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How to price your property
When it comes to putting a property on the market some sellers believe listing the property higher than the market average is the best strategy because it allows for downward negotiation.
H
owever, Johannesburg North East Leapfrog Principal, Michelle Cohen believes that It is rare that this plan works and that not one that an experienced property professional would recommend.
Pricing a property for sale needs to be done thoughtfully, with several factors to take into consideration, starting with clarity on the difference between price and value.
“ Warren Buffett famously said that‘ Price is what you pay. Value is what you Get’, which is exactly what happens in the property market. Price is based on a market-related estimate for your property, based on industry trends and research, demand in the area, as well as the features of your property,” Cohen explains.
Value is more subjective and is essentially determined by what a buyer is prepared to pay for a property. The wellknown willing seller and able buy economic model.
20 SEPTEMBER / OCTOBER 2020 SA Real Estate Investor Magazine