One of the most common questions homeowners looking to sell ask is “when to accept a low offer?” While that may seem like a simple question, the answer is a little more complicated. Before you accept or reject any offer, let’s take a minute to unpack the most important things to consider when accepting an offer on a house.
Current Market Determines Current Price
In any free market environment, the current market value of a home will be dependent on a willing-buyer, and a willing-seller. That means, your property is only worth what someone is willing to pay for it, and if you’re willing to accept the offer. The cold, hard truth is that your expected return on investment for the property has nothing to do with its real value. It may be a tough pill to swallow, but the truth will set you free from unrealistic house price expectations.
House Prices In the Area
Part of the property valuation process involves checking what similar properties are selling for in your area. Take 2 bedroom flats for example: if 2 bedroom flats in the area are currently selling for an average price of R1.2 million, then pricing your apartment substantially outside of this range may be disadvantageous. Consider the other variables below before you decide to price your property far outside of the average sold price.
Property Condition Affects House Price
The age and condition of your property will affect the price a buyer is willing to pay. There’s a reason why the term ‘fixer-upper’ is synonymous with lower prices… If someone has to spend R200,000 to refurbish the kitchen, replace the roof, or fix a perimeter wall damaged by tree roots, they will likely include this cost in their calculations. So, if you’re looking to get the most out of your property sale, be sure to invest in maintenance and maybe even consider some home improvements. Just remember that not all refurbishment will give you a return on investment.
Aesthetics of Interiors
House price value is influenced by the visual appeal of the interior decor, fittings and even window dressing. Even if the interior of a house is new, and in good condition – if it’s not in-line with current appeal, buyers will need to use imagination and budget for renovation. Thankfully, classic style is always on-trend so things like parquet flooring, marble counter tops, and neutral colours are great.
Experienced Estate Agents Will Help
Fair market value of a home changes all the time, and with so many different variables with distinct weighting affecting the valuation, experienced estate agents are a must for pricing your home. Faircape Sales & Leasing agents use a comparative market analysis (CMA) to accurately account for the most important variables and help you get the right house price.