The property market in South Africa is always based upon the price that buyers are prepared to pay for the property they are interested in. It therefore goes without saying that overpriced properties will stay unsold for until they become more realistically priced, and eventually potentially losing the seller money. Properties that are well-priced will always sell within a reasonable time.
Even taking the above into account, most sellers are still overpricing their properties. Understandably most sellers want to obtain the highest price for their property, however, one important thing that sellers must remember is that buyers have no emotional connection to the return on investment. The main criteria for the buyers whether the home that offers them a fair market-related price. So there the overpricing of a property or home will not achieve the objective of selling within a reasonable time.
As mentioned above all overpriced properties don’t sell and end up losing the seller money due to being on the market for too long which involve extra bond repayments and the unseen cost like keeping the property clean and available for viewing to potential buyers. Ultimately being overpriced affects the selling or offered price due to a stale listing that was overpriced for too long. Savvy property buyers do their homework and usually submit unrealistic offers for properties that have been on the market for a long time. In some instances, desperate sellers are forced into accepting these offers, which could have been avoided if the home was correctly priced at the beginning of the selling process.
A good indication is usually when more than one buyer put in offers within a similar price bracket, then the seller should seriously consider that the price offered is close to the price that the current market conditions support. A property evaluation is mostly based upon an educated opinion based on the evaluation of similar properties in the surrounding suburb and area. Other strong factors to consider are market trends and the condition the property is in, and how much would need to be spent to get the property to a certain standard.
It is almost impossible to determine the exact right price, but more realistically a price range. So, do not make the mistake of putting up the price on the remote chance of receiving an unrealistic offer as the property is only worth what a willing buyer is prepared to pay.