As an estate agent, this conversation comes more often than you think. As estate agents, we will often go just a little too far to help our clients, especially when we know the reasons why….
Lovely home, in a great area, but the price of R3,200,000 is a bit high, but let’s give it a try. We call this the wishing price. The wishing price here is just a little too high and no sale at this price will be forthcoming not today and not for a while.
But We Will Always Flex Our Muscles For You
In this case, our Seller, who shall remain unnamed required us to stretch too far with their wishing price. Too far means the next step is to tweak the price down until the market responds. The market means buyers looking for lovely properties just like yours. But in this case, the flex was just too far and even with conclusive evidence to support the price is just too high, our Seller will not budge on Price. We agreed to Flex but on condition that after 2 weeks we would review the price down until buyers started responding.
Who Decides On The Property Sales Price?
The market always determines the value of your home. Not your estate agent no matter how good they are. No other agents that tell you what you want to hear. Not you as the Seller. The market and the buyers determine the price at which a property is sold. This property although lovely is just priced too high in this case. Painful, but it’s the truth.
But Flexing Too Hard And Too Far May Not Work
When as a seller you push hard for a price, called the wishing price, and the market completely snubs you there are a few things to think through before starting to beat the price down. I know this property owner and Seller, and we tried hard for so many reasons to get them their wishing price, but the truth is the wishing price is just too high. A great Estate Agent will also always back up a price counselling conversation with concrete numbers direct from the market.
A Bit Of Context
I know these owners. I know their reasons for selling and they are really valid. The split levels present challenges for a member of their family. They are personal friends. So I decided to keep an arm’s length and I did put them in touch with our very best and top performer. This property has been on the market for 3 years now. That already tells a story. And, every agent worth their salt, and their friends have listed this property. Every brand you can think of has listed this property. Why bother to go the extra mile you would think? Because we can help and we will help, but…
Is The Market Responding Favourably?
In this case no. And when you have one of the very best agents in Johannesburg working on the marketing and sale of a property and this agent gets ZERO buyer enquiries you have to ask why.
So We Start The Process Of Elimination?
- Do the photos work well? Yes, in this case, we had professional photos taken of the property and yes the photos look fantastic and showcase this property perfectly.
- Does the actual listing rank well on the major portals? In other words, does this listing rank at the top of the pile for the area? And yes this property ranks in the top 5.
- Next, we consider the actual description. Anything off? In this case, no this agent is at the top of her game and she absolutely does know how to list a property and write a brilliant description.
- Then, let’s look at any other agents that had a buyer they wanted to present. Another top agent in Randburg did have a buyer that bailed on the listing. Our only buyer that responded, bailed because they found something on par for a little less in value. So be clear, something similar for a smaller price tag. And actually, the price tag we were recommending.
- Finally, let’s look at the actual numbers. See below for a view of what evidence we have that the price is just too high for the area. The size of this property is 1,686 square meters. What price would you think is correct? R3,200,000 which is us flexing really hard or would you think that R3,200,000 is a little too much flexing?
I Also Know The Reasons These Folk Are Selling
Trust me there is a pain point here with this family. But R3,200,000 is just not the right price. We did our best to flex hard but we flexed a little too hard here. The price drop after 2 weeks indicated a good price for the current market at R3m to R3,150m to ensure a strong sale.
Need To Get A Second Opinion On Your Beautiful Home That Is Just Not Selling?
Book your property valuation, click here. We will be honest and we will provide you with all the information you need to consider the right asking price when you sell. We will present all the info you need to make an informed decision and we will share it all with you. If your wishing price is just a little higher than the market will pay we will be honest and true. The first 2 weeks on any new listing is crucial. We know that. As estate agents with KW Select we strive to achieve a win-win for all parties. A win-win must be just that a win for all parties. If it’s time to come unstuck and interrogate your wishing price for all the right reasons, reach out today. Bank on the Best with KW Select. Partner for success with a great agent in your neighbourhood. Fully trained, fully accredited with the world’s largest real estate brand in the world. Click here to book your valuation.
