Lew Geffen has been in the real estate industry since 1972, is recognised as one of the leading experts in property in South Africa and holds many directorships in associated real estate and allied industries.
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Don’t Undervalue Your Home
Author: Lew Geffen Sotheby's International Realty | Published: December 5th, 2011
As the South African property market gradually crawls out of the slump following the global recession, it’s quite tempting for sellers to undervalue their homes in search of a quick sale. It’s even more tempting for unethical and opportunistic real estate agents to capitalise on market circumstance and convince sellers to undervalue their homes in search of an easy commission.
Lew Geffen Sotheby’s International Realty strongly advises against undervaluing your property. There is a balance to be struck between market and seller interests that will result in fair value for your home.
The Expert Property Opinion
Jason Rohde, CEO of Lew Geffen Sotheby’s International Realty, notes, “Yes, the market is still trying to recover from the recession and many experts still deem it to be in a slump. However, extremely undervaluing a property in order to sell it faster benefits only the estate agent waiting on the sidelines for commission. The goal should be to set a realistic and market-congruent asking price, not setting it so low that the property is sold for far less than it is worth.”
Getting the Right Advice
While the market definitely requires a pragmatic pricing strategy – with asking prices significantly less than they were three or four years ago – there is a fine line between fair value and less than fair value which needs to be straddled. Those looking to sell their property in a difficult climate should seek expert advice to do so successfully. Sellers need to consult with a reputable realty firm that has a proven track record in selling properties in their geographical area and access to property records.
Rohde stresses, “The agent you partner with should be suitably experienced and qualified. They must have at the very least passed the NQF qualifications. Your agent should also have experience in selling the same sort and value of home that your house falls into. Insight into the mindset and culture of the typical people who buy in the area is also beneficial. Aside from being familiar with your area, the agent must also have a good understanding of the macro-market conditions and drivers that influence the housing market.”
If you remain unsatisfied and unconvinced after a consultation, you can always seek a second and third opinion, to establish a consensus and get a feel for which agents have your best interests in mind. Ask them for records of recent area sales and ensure you have peace of mind before taking the leap and setting an asking price.
Lew Geffen Sotheby’s International Realty strongly advises against undervaluing your property. There is a balance to be struck between market and seller interests that will result in fair value for your home.
The Expert Property Opinion
Jason Rohde, CEO of Lew Geffen Sotheby’s International Realty, notes, “Yes, the market is still trying to recover from the recession and many experts still deem it to be in a slump. However, extremely undervaluing a property in order to sell it faster benefits only the estate agent waiting on the sidelines for commission. The goal should be to set a realistic and market-congruent asking price, not setting it so low that the property is sold for far less than it is worth.”
Getting the Right Advice
While the market definitely requires a pragmatic pricing strategy – with asking prices significantly less than they were three or four years ago – there is a fine line between fair value and less than fair value which needs to be straddled. Those looking to sell their property in a difficult climate should seek expert advice to do so successfully. Sellers need to consult with a reputable realty firm that has a proven track record in selling properties in their geographical area and access to property records.
Rohde stresses, “The agent you partner with should be suitably experienced and qualified. They must have at the very least passed the NQF qualifications. Your agent should also have experience in selling the same sort and value of home that your house falls into. Insight into the mindset and culture of the typical people who buy in the area is also beneficial. Aside from being familiar with your area, the agent must also have a good understanding of the macro-market conditions and drivers that influence the housing market.”
If you remain unsatisfied and unconvinced after a consultation, you can always seek a second and third opinion, to establish a consensus and get a feel for which agents have your best interests in mind. Ask them for records of recent area sales and ensure you have peace of mind before taking the leap and setting an asking price.
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