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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