Price your home right for an effective sale

Ongoing sluggish economic growth has placed household finances under pressure and interest rates remain elevated. As a result, national housing sales have slowed sharply since the post-pandemic surge faded. In stark contrast, however, sales activity in Cape Town’s northern suburbs has remained resilient with total sales in 2021 to 2023 matching the pre-pandemic levels.

This highlights ongoing demand for homes in the northern suburbs, says Mariël Burger, area manager at Pam Golding Properties for Durbanville, Bellville, Parow and surrounds.

“These areas are proving to be very popular with buyers in all price ranges,” he says. “All the northern suburbs are experiencing good sales because of the excellent amenities on offer, such as schools, shopping, hospitals/medical and recreational facilities . Properties here are available in a wide range of prices and styles to suit middle income families and single buyers, as well as affluent buyers.”

In Durbanville and its surrounding suburbs prices range from R1,3 million for a one-bedroom apartment in a modern block, to around R15 million for a luxury home in a secure estate. In Parow, a two-bedroom De Tijger apartment is for sale at R1,2 million, with a three-bedroom house in Welgelegen available at R8,9 million.

Bellville prices range from just under one million for an apartment to over R3 million for a freestanding house in Boston. Brackenfell has expanded rapidly in the past 10 years, with a series of new secure estates and first class shopping and recreation facilities. Brackenfell prices range from R1,39 million for a two-bedroom apartment to around R6,5 million for a freestanding house in Klein Bron Estate.

Burger warns, though, that sellers should not take the strong market demand as an indication that buyers will pay inflated prices to live in these sought-after suburbs. He says home buyers are more value-conscious than ever before. In many areas they are able to pick and choose from a wide selection of properties that your home needs to compete with.

“If you are serious about selling your home, it’s essential to list it at a realistic market-related price. To achieve a sale at the right price and in a reasonable timeframe requires expert advice from an experienced estate agent. It’s important not to assume that the agent that gives you the highest assessment of your home will achieve the highest sales price. Appointing an agency that gives an inflated price assessment for a property is self-defeating, because it is highly unlikely that the property will sell at that price.”

He says sellers often base their expected price for their home on what they see other properties in the area listed for. However, many properties don’t sell for the listed prices, and the condition and varying features are further factors to take into account when setting a realistic price.

“If your property is overpriced, you run the risk of it being rejected by the market. You will almost certainly lose genuine prospective buyers, and your property could then sit on the market and become ‘stale’. If you then adjust the price to a market-related value, many buyers could perceive it as flawed in some way. They will then either overlook your property or make unrealistically low offers. And the longer the property is on the market, the greater the price-decay curve.”

Another factor for sellers to consider along with price is the quality of buyers. Often, the highest-price offers attract the most risk, with more realistic offers being most reliable. Unfortunately, many sellers reject speedy initial offers only to be obliged to sell at a significantly lower price months later.

However, correct pricing is not a one-size-fits-all situation but rather based on specific and particular supply and demand factors in almost every area and suburb in the country.

“This is why it is essential to appoint an area specialist, who is up to date with current supply and demand dynamics, activity levels and market trends at any given time. Specialist agents will know which comparative property listings have been sold that are not yet recorded in the Deeds Office. They will also be aware of listings that are not marketed on the portals, which means that sellers would probably not be aware of them.”

Burger says that professionalism, knowledge and expertise as well as a strategically well-thought-out and presented marketing plan are the hallmarks of an agent who will have the most chance of success in selling your property.

“By far the best way to attract the right buyers is to market the property correctly when offered for sale for the first time. The key to an effective sale really is to set a realistic price from the start,” says Burger.

Posted by The Know - Pam Golding Properties