Hartbeespoort Real Estate - Benefits and Disadvantages of Pricing a Property

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Benefits and Disadvantages of Pricing a Property

The Benefits of Correct Pricing:

• It gives the impression of good value to your purchaser
• It increases the response from your advertising
• It projects Seller Commitment
• It achieves the maximum response in optimum time and maintains the Seller negotiating advantage.

THUS the consequences of Correct Pricing are:

• A maximum number of acceptable offers
• A maximum Seller price is achieved
• The marketing period of the property is minimized and the property is not overexposed, thus the Seller’s lifestyle is not disrupted continuously
• Bargain Hunters are discouraged and the property is sold within the shortest period of time possible.

The Disadvantages of Over-Pricing:

• Potential buyers lose interest as the property is over-exposed
• Marketing time is prolonged and advertising is expensive, therefore properties are not advised as well as they should be
• Lower offers are attracted as a result of a reduced advertising response
• Buyers become reluctant to make an offer, as they wonder what is wrong with the property – why it has not been sold. Is it a sound investment?
• The property gains a stigma and competing properties become more attractive
• Bargain Hunters now “stalk” the property, waiting for it to become an urgent sale

This article has been reprinted with the kind permission of Masilo Freimond Inc.
Tel : 011 958 0488
Fax : 086 610 0276
E-mail : info@masiloincjhb.co.za