Let’s cover what a market-related price really is in the Randburg property market.  What does it mean to add fat or price for sale?

Let’s consider what ‘fat’ is on the price?

Firstly, when a buyer asks me whether there is wiggle room on the price, I am honest with my feedback.  And that means the seller and I both know what the ‘fat’ is that is involved in the price the property is listed at.  As property professionals, we are driven and compelled to help you unlock the equity that is built up in your property over time.  But pushing it up by R200,000 is what we call fat.  And it’s not what we think, it’s about what the numbers say.  If your property values are indicating R1,900,000 then demanding the price north by R200,000 is called ‘fat’.  That’s the wiggle room or ‘fat’ that is what we will negotiate on.

A market-related price is one that stacks up based on pricing history

Pricing history considers the last 10 – 20 sales in an area or a complex.  We compare like with like or apples with apples.  If a property is worth R1,900,000 in a tough market or a good market, then that’s the market-related price.  If you have improved your property over time and maintained it well and there is something special about your property, we could lift the price a little but again that’s wiggle room.  We are back to square 1.

What reports do we use to establish the market-related price of your property?

Firstly, there are numerous reports that we leverage to help us arrive at the correct or accurate price at which to list your property for at sale.  We leverage Lightstone, a 3rd party data provider that is linked to all the Deeds offices around the country.  As property professionals, we are able to access a number of different reports to support the valuation or the CMA or Comparative Market Analysis for your property.  As property professionals, we really consider the numbers very carefully because when we agree to sell your property not many of us underestimate the responsibility that comes with helping you sell your property and move to the next phase of your life.  We use the following reports:

  • Lightstone property report – which considers your property within an area or a complex or an estate.  Street transfers, growth in the property over time as well as bank market share.   It’s a fascinating report when you consider the info that is all pulled together to provide an accurate pricing strategy to consider at the sale.
  • Lightstone complex or estate report – which considers the complex or the estate where your property is located.  Again, consider the last 10 – 20 property sales in your street, the complex or your estate.
  • Lightstone suburb report – which considers the stats within a suburb.  Again, this results in the number of sales in a particular price band.  The numbers are established considering the total number of sales in an area the gross sales price and then averaged by property type.

Breaking it down to one bite at a time

When considering the opportunity to provide you with a property valuation, firstly we stick to the areas we know.  Areas where we know property values what has been listed and what the sales price was.  How long it took to sell and more.  The numbers are the numbers but I often find there are a few things people consider even more:

  • Either the price at sale is less than expected, or more than expected.
  • I find often the first number to leave your mouth is the number that sellers hold you to.  Remember we are here to unlock equity in your property and whilst we always strive to lift it just a little more than before, the current market is harsh and the conditions tough.
  • Furthermore, sometimes a seller knows better than what the numbers show and leads a little more in terms of the price that is sought at sale. Often the gap between what is market-related and what is too-much-fat is simply the difference between a clean and quick sale.  And trust me there are sales to be made in the current market. 
  • Often when the market does not perform, we find we have stretched a little hard and need to pull back in order to find the sweet spot.  But pricing a property correctly means that a price correction is rarely required in the current market.
  • Finally, when a buyer is shopping in a buyer’s market, the wiggle room question always comes up.  If a buyer loves your home and the price is market-related, you can expect the wiggle room question to come up.  Trust me as property professionals, we hold hard on price even when the market is tough and we know that there is very little fat in the asking price.
  • Also, the hardest listing is always one where the seller has over-capitalised on their property and want the option to recoup costs in a tough market.  This is possibly the most difficult sale of all.

Need to consider your options for sale in the current market?

Living in Randburg and considering whether it’s time for a sale?  There are wonderful sales being made at the moment and the benefits of selling in a tough market are phenomenal.  So many people believe otherwise but if you price it right it will sell.

Need to touch base or need a fresh pair of eyes?

If you have a property on the market and it is just not moving we have a few options:

  1. Is the price correct, for the current market?  Do you have too much ‘fat’ in the price?
  2. Does the property need work and does it look its best?  If you have things that need done, spend the money but do not over-capitalise to get it looking absolutely wonderful.  Sometimes the cost to repaint a property at say R50,000 can add two or three times that in terms of the sales value.
  3. Does your property rank below the 15th property for your area?  This may mean that your listing is a little stale.  A new listing ranks higher. A seasoned property professional will know how to make your listing rank at the top of the search results.  It may be wise to withdraw from the market for a few weeks and then relist.  Let me know if you need some help here.

Get in touch

If you need assistance from a seasoned property professional call Sandy from Sell with Sandy on 083 550 1220 or visit my website for more information.

Get valuated for free