The Right Price From Day One
Why your property’s position in the market matters
When a homeowner decides to sell their property, one of the first — and most important — questions is:
“What can I ask for my home?”
It is completely understandable that a seller wants to achieve the best possible price for their property. For many people, their home is one of their largest financial assets.
The temptation is therefore to start a little higher.
“Let’s put it on the market at a higher price. We can always come down. If a buyer likes the house, they can make an offer.”
On the surface, this sounds perfectly logical.
But the property market does not always work that way.
The price at which your property enters the market determines which buyers see it, which other properties it will be compared with, and the first impression the market forms of it.
Good pricing is therefore not about selling your home cheaply.
It is about positioning your property correctly from day one.
A buyer is not only looking at your home
This is probably one of the most important things for a seller to understand:
Your property is not being sold in isolation.
A buyer does not simply look at your home and ask:
“Do I like this house?”
They also ask:
“What else can I buy for the same money?”
If your property is marketed at R2.8 million, for example, you are placing it in direct competition with other properties a buyer can purchase for around R2.8 million.
If those properties are larger, situated in more sought-after locations, have more modern finishes, bigger stands or offer more features, your property can suddenly appear expensive — even if it is a very good home in its own right.
The problem is not necessarily the property.
The problem may be the price bracket in which it has been positioned and the competition it is expected to face.
Buyers search within specific budgets
The way buyers search for property today makes the initial asking price even more important.
Buyers use property portals and will often set minimum and maximum price parameters when searching.
Suppose a property should realistically be positioned at around R2.5 million, but it is listed at R2.8 million to “leave room for negotiation”.
The buyer who can afford up to R2.5 million — and who may be the perfect buyer for that home — might never even see the property in their search results.
Meanwhile, buyers searching around R2.8 million will see it, but they will compare it with other properties genuinely competing in that price bracket.
You could therefore lose at both ends:
The right buyer may never see your property, while the buyer who does see it may find better value elsewhere.
“But surely the buyer can just make a lower offer?”
Yes, of course they can.
But there is one important condition:
They first need to be interested enough to enter into a negotiation.
If a buyer looks at a listing and immediately feels that the property is priced well above what they believe it is worth, they may not think:
“Let me view it and make a lower offer.”
They may simply move on to the next property.
This is why a high asking price does not necessarily give you more negotiating room.
Sometimes it simply reduces the number of buyers willing to start the conversation.
In Upington, the area plays a major role
One of the biggest mistakes we can make when comparing property values is to look only at the size of the house, number of bedrooms and finishes.
Location matters.
Upington consists of different residential areas, and demand is not the same in every neighbourhood.
Certain areas are more popular with particular groups of buyers. Some attract buyers with larger budgets, while other parts of the market operate within a different price range.
Even within the same neighbourhood, there can be differences between streets, sections and specific locations.
Two very similar houses will therefore not necessarily achieve the same selling price simply because they have the same number of bedrooms, bathrooms and square metres.
You can improve your home. You can modernise it. You can invest money in it. But you cannot change its location.
And location remains one of the factors the market takes into account.
Be realistic about the market in which your property is positioned
This does not mean that a beautiful home in a more affordable area is not valuable.
Quite the opposite.
It may be one of the best properties in that particular area.
But at some point, a buyer starts comparing again:
“If I am going to pay this amount, what else can I buy for the same money?”
If your asking price begins to approach the prices of properties in areas where buyers perceive greater demand, a more desirable location or other advantages, your home starts competing with those properties.
That can place a natural limit on what the market may be willing to pay.
Overcapitalisation is a reality
This can sometimes be a difficult conversation.
An owner may have spent a substantial amount of money on a property over many years.
A new kitchen.
Beautiful bathrooms.
Solar power.
A swimming pool.
An additional bedroom.
An entertainment or braai room.
New flooring.
A large garage or additional outbuildings.
These improvements can certainly add value.
But there is an important principle to understand:
What an improvement cost you and how much additional value the market places on that improvement are not necessarily the same amount.
If you spent R500,000 on improvements, it does not automatically mean that the market value of your property has increased by R500,000.
This is where overcapitalisation becomes relevant.
Every area operates within a particular market, where buyers have certain price expectations and compare properties within specific price ranges.
You may therefore own one of the most beautiful and best-equipped homes in your area, but the surrounding area and local market will still influence what buyers are prepared to pay.
This does not mean that the money spent on your home was wasted.
You and your family may have enjoyed the comfort and benefits of those improvements for many years.
But personal investment and market value are not always the same thing.
How your home presents is just as important as the advertisement
Professional marketing plays a major role in selling a property.
Good photography, video, a strong listing, property portals and social media can attract a buyer’s attention.
We can present a property professionally and ensure that it looks its best in the marketing material.
But there comes a point where the marketing stops and the property itself has to take over:
Marketing can bring the buyer to your front door. The home then has to do the rest.
When a buyer has seen beautiful photographs and arrives at the property with a certain expectation, only to find that the house is untidy, poorly maintained, the garden is neglected or small repairs are visible everywhere, there is immediately a gap between expectation and reality.
The buyer may even feel that the advertisement created a different impression from what they are now experiencing in person.
Small maintenance issues can create big doubts
A leaking tap.
Peeling paint.
A broken handle.
A door that does not close properly.
An untidy garden.
A swimming pool that is not clean.
To the seller, these may seem like minor issues.
A buyer may see them differently.
They begin to wonder:
“If these are the things I can see, what problems might there be that I cannot see?”
The buyer then starts mentally deducting money for repairs — often far more than it would have cost the seller to address those smaller issues beforehand.
A home does not have to be new or perfect to present well.
It simply needs to give the buyer the impression:
“This property has been cared for.”
An asking price is not necessarily market value
Another common mistake occurs when sellers look at other properties advertised online.
“That house is advertised for R3 million, so mine must also be worth R3 million.”
But there is a significant difference between:
what someone is asking for a property
and
what a buyer is ultimately prepared to pay for it.
A property advertised at R3 million has not yet proved that the market will pay R3 million for it.
It may remain on the market for months.
The asking price may later be reduced.
Or it may eventually sell for a different amount.
A market analysis should therefore not be based solely on the prices of properties currently being advertised.
Where reliable information is available, actual sales, comparable properties, current competition and local market conditions should also be considered.
The market does not know how much you need from your property
This is another difficult but important reality.
A seller may need a certain amount because there is still an outstanding bond.
They may need money to purchase their next property.
They may have invested substantially in improvements.
Or they may simply have a particular net amount they would like to walk away with.
These are all valid personal considerations.
But unfortunately, they do not determine the market value of the property.
The market does not know how much you need.
The market looks at what is being offered, where it is located, its condition, demand in the area and what a buyer can purchase elsewhere for the same money.
But doesn’t the agent also want the highest possible price?
Of course.
This is an important point that is sometimes overlooked.
An estate agent’s remuneration is normally linked to the final selling price.
The better the price achieved for the seller, the better the outcome for the agent as well.
A good agent therefore has no reason to deliberately sell a property below its realistic value.
We also want to achieve the highest possible realistic price for the seller.
But there is an important distinction:
The highest possible asking price and the highest possible selling price are not necessarily the same thing.
A very high figure on an advertisement means little if the market does not respond to it.
The goal should not be to say:
“Look how high we listed your property.”
The goal should ultimately be to say:
“We achieved the best possible result the market could deliver for your property.”
When an agent advises you on price, ask: “Why?”
A seller should not simply listen to a number.
If an agent says:
“I believe your property should be marketed at around this amount,”
ask:
Why?
What is the recommendation based on?
Which comparable properties were considered?
What is currently on the market?
What have similar properties sold for, where reliable sales data is available?
How long has the competing stock been on the market?
How do the areas differ?
Who is the likely buyer for this property?
How do its condition and improvements affect its position?
And one of the most important questions:
What else can a buyer purchase for the same amount elsewhere in Upington?
An agent should be able to explain the reasoning behind their recommendation.
Local knowledge AND good data
No computer system can fully understand every aspect of a local property market on its own.
A system can provide excellent data, but it does not drive through the streets of Upington every day.
It does not necessarily understand why buyers prefer one section of a neighbourhood over another.
It does not hear, day after day, what buyers are asking for, what they are looking for and why they decide against certain properties.
That is where local experience becomes valuable.
But the reverse is also true:
Local knowledge should not be based on gut feeling alone.
We believe the strongest pricing advice comes from combining:
local knowledge + experience + comparable properties + market data + current competition
We use professional property and market information systems to support our analysis and combine that information with our practical knowledge of Upington and its different property markets.
Don’t choose an agent simply because they suggest the highest price
When two or three agents assess a property, their recommended values may differ.
Naturally, the highest figure can be very appealing.
But the most important question should not be:
“Who gives me the highest valuation?”
Rather ask:
“Who can best explain why my property should be positioned at this price?”
Ask for the comparisons.
Ask for the data.
Ask about your area.
Ask about the competition.
Ask about the marketing strategy.
And ask what the strategy will be if the market does not respond as expected.
A good market analysis should not be a promise.
It should be a well-motivated strategy.
Our goal is not to sell your home cheaply
We want exactly what the seller wants:
The best possible result.
But we want to achieve that by positioning the property correctly, marketing it professionally and supporting the recommended price with facts and local knowledge.
We do not simply want to place the highest possible number on an advertisement.
We want to identify the highest defensible price at which we believe your property can compete strongly in the current market.
Because ultimately, the market determines the result.
The right price does not mean “cheap”
This may be the most important message of all.
When an agent recommends a realistic price, it does not necessarily mean:
“We want to sell your home for less.”
It means:
We want to position your property in the right market.
Against the right competition.
In front of the right buyers.
With the right presentation.
And at a price we can motivate.
A successful sale ultimately comes down to the combination of:
THE RIGHT PROPERTY
THE RIGHT AREA
THE RIGHT PRICE
THE RIGHT PRESENTATION
THE RIGHT MARKETING
AND THE RIGHT BUYER
Thinking of selling your property in Upington?
Instead of starting with the question:
“How much can we ask?”
start with:
“Where does my property realistically fit into today’s market?”
We can look at your property, its location, condition, improvements, current competition and available market data with you.
And when we recommend a marketing price, we do not simply want to give you a number.
We want to be able to show you and explain why.
Kassel & Helene van den Berg and Cecilia Fourie
KLK Eiendomme – Powered by RES
Local knowledge. Experience. Market data. Professional marketing.
