Your house still not sold? You may need to rethink your asking price

Many sellers have been holding out with the hope that a cut in the interest rate will lead to buyers being willing to pay higher prices. According to the Seeff Property Group, the higher interest rate might linger for a while longer, and market conditions will largely continue favouring buyers.

The top reason why a property does not sell is generally because it is overpriced relative to similar properties or the current market conditions. While highly anticipated, we simply do not know when the interest rate will start coming down, and we are also not assured that it will necessarily lead to buyers paying higher prices.

The problem of waiting is that the longer you wait, the lower the price that you may end up with. An unrealistic asking price extends the selling timeline. This means more days of keeping your home show-ready, additional marketing costs accruing, and potentially missed opportunities on other properties you might be interested in buying. The longer your house sits on the market, the more it can cost you in the long run.

An asking price which is notably higher than the current market parameters can deter potential buyers resulting in overpriced properties lingering on the market. Buyers actively searching for properties typically have a budget in mind. If your listing falls outside their range, they will simply move on to properties which are a better fit with their budget.

This can lead to a domino effect in that the longer your house sits on the market, the staler it can appear to potential buyers, who may question why it has not yet sold. Eventually, buyers may simply scroll past it. While an overpriced house might not attract serious buyers, it may attract buyers who may think there is an opportunity to negotiate a significant discount.

While some areas are doing better than others in terms of sales, there are still plenty of buyers and activity in the market, and good opportunities to sell. If everything else is in place, and the property is in a good sellable condition, then, says Samuel Seeff, chairperson of the Seeff Property Group, chances are that you need to change your agent or, more likely, your price.

Work with your agent to assess your price against comparable properties which have recently sold in your area. Look at properties which are similar in location, size, and overall features and the condition of the property. By aligning your asking price with similar properties which have sold, your property will be better placed to attract buyers who are actively searching in your price range.

Be flexible in terms of the offers which are coming in to allow the agent to negotiate with potential buyers. Seeff says a good agent is one who will quickly spot a good opportunity, and will then use their negotiating skills to bring the parties to a mutually beneficial price and deal. Selling also means you can move on.

A competitively priced property is more likely to attract offers and potentially sell for a higher price in the end. A realistic price gets your home noticed by qualified buyers, leading to a smoother and faster selling process. Taking another look at your asking price might just be the key to finally getting that “Sold” sign you’ve been waiting for.

Writer: Gina Meintjes