What is the true Market Value of your property?
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What is the true Market Value of your property?
In a nutshell, your property is worth exactly what a willing and able Buyer is prepared to pay for it at any given time, and there are many factors which play a role in establishing value.
Despite what many think, the best means of determining its value, is to market the property by initially advertising it as close to market value as possible. The thinking that you can put it on the market at an inflated price and haggle doesn't work - in most cases the property will sell for below market value if you try this route.
The recommended price can be calculated by taking an average figure from the C.M.A's (Comparative Marketing Analysis) prepared by the estate agent you interview and select.
Beware of price exaggeration
It is an unfortunate fact that many estate agents initially place an inflated price tag on a property when asked to give a valuation or "evaluation". (This is one of the reasons we recommend you ask any estate agent you may be considering hiring to give you an up to date CMA)
The reason is simple. At his first meeting with you, the agent naturally wants to make a good impression, and therefore tries to avoid disappointing you. So he tends to price the property at a figure much larger than the market value, or unrealistically higher than the amount that you paid originally.
Also, there is a possibility of some unscrupulous agent or agents inflating their valuation merely to obtain a mandate.
Then, after softening you up and conditioning you, they frequently end up persuading you to accept an offer far lower than the honest and experienced estate agent quoted you in the first place. Read more about this on the page "selecting the right agent"
Establish the actual market value.
Once you and your agent have established a marketing price, an intensive marketing campaign can be implemented.
All things being equal, you can feel assured of a sale at a reasonable price.
Always remember there is a constant nucleus of buyers in the market place ready and able to purchase. Their interest in your property is at its peak during initial market exposure, when these Buyers will compare your property with what they have already seen.
Buyers buy by comparison, and they will only seriously consider a property which they feel compares favourably with their expectations of value and price.
REMEMBER: GOOD MARKETING IS ESSENTIAL!
Advantages of Pricing your Property correctly
- Faster sale
- Creates good impression of value
- Less inconvenience to the Seller
- Maximum exposure during initial Marketing Time
- Exposure to more buyers
- Marketing period minimised
- Fewer showings
- Least disruption
- Increased advertising response
- Stimulates buyer interest
- Attracts higher offers
- More money less time
- Avoids being "shopworn"
Establishing Property Value for Capital Gains Purposes
The extended period in which to obtain valuations for the purposes of capital gains tax finally expired on the 30thof September 2004. For more detailed information on Valuation Methods for Capital gains Tax
To meet and have one of our experienced agents give you an up to date evaluation, call the Chas Everitt National Call Number on +27 11 801 2500 or After-Hours +27 860 104 355 and we will get one of our local estate agents to arrange a viewing appointment at your convenience.
Author: What's your home worth?