Why Choosing the Right Real Estate Agent Is About More Than Just the Price of Your Property
The price you pay for a property today could determine how easily you can sell it tomorrow.
When purchasing a property, most buyers focus on their immediate needs. A larger home, a better location, a swimming pool, or perhaps a property they believe will be a good investment.
But how many buyers stop to ask themselves one important question?
If I had to sell this property in three or five years, would the market support the price I am paying today?
This is where the concept of "Trapped Buyers Become Trapped Sellers" becomes particularly relevant.
A buyer who overpays for a property today may become a seller who struggles to achieve an acceptable selling price tomorrow.
And this is precisely why choosing the right real estate agent matters.
A Higher Asking Price Does Not Always Mean a Better Market Price
Imagine you are planning to sell your home.
You invite two real estate agents to assess your property.
The first agent conducts a thorough Comparative Market Analysis (CMA) and explains that similar properties in your neighbourhood have recently sold for between R1.8 million and R2 million.
The second agent confidently suggests that your property could achieve R2.3 million.
Which agent would you choose?
Naturally, most sellers would be attracted to the higher figure.
But here is the important question:
What evidence supports that R2.3 million asking price?
If the second agent is simply suggesting a higher price to secure the mandate, the decision could ultimately cost the seller valuable time and money.
However, what if that agent has genuinely identified something the first agent overlooked?
Perhaps the property has unique features, there is limited competition in that particular price range, or demand in the area has recently increased.
In that case, the higher suggested price might be justified.
The difference is not necessarily which agent provides the highest or lowest valuation.
The real difference lies in which agent can support their recommendation with credible evidence, local market knowledge, and professional judgement.
A CMA Tells an Important Story, But Not Always the Whole Story
A Comparative Market Analysis is one of the most valuable tools available to a real estate agent.
It helps establish:
What similar properties have actually sold for.
How many comparable properties are currently available.
How long properties typically remain on the market.
The difference between asking prices and actual selling prices.
How buyers respond to properties within different price brackets.
However, statistics are only as useful as the person interpreting them.
Suppose ten properties have recently sold in a particular neighbourhood at an average selling price of R1.9 million.
Does that automatically mean every property in that neighbourhood is worth approximately R1.9 million?
Absolutely not.
A property's condition, location within the neighbourhood, erf size, building quality, improvements, additional facilities, and the availability of comparable properties can all influence its market value.
This becomes particularly important in smaller towns and rural property markets, where directly comparable sales may be limited.
Sometimes there simply isn't enough reliable sales data to establish an accurate value based on averages alone.
A knowledgeable real estate agent understands that a CMA is not merely a report generated by a computer.
It is market information that requires professional interpretation.
What Happens When a Property Sells Above Its CMA?
There are situations where a property sells for more than the value initially suggested by comparable sales.
Does this mean the CMA was incorrect?
Not necessarily.
A CMA provides an estimate based on available market information. It does not guarantee what an individual buyer will ultimately be willing to pay.
Perhaps the property offered something particularly desirable that was not adequately reflected in the comparison.
Perhaps there were very few similar properties available.
Or perhaps a buyer had a specific requirement that made that particular property especially attractive.
However, this does not mean every seller should automatically price their property above market expectations in the hope of finding that one exceptional buyer.
An unusually high selling price does not necessarily establish a new market trend.
A skilled real estate agent needs to understand the difference between an exceptional transaction and a sustainable market value.
The Hidden Cost of Overpricing Your Property
When a property enters the market at a price significantly above what buyers are willing to pay, the consequences can be more serious than many sellers realise.
The property may attract fewer enquiries, generate fewer viewings, and remain on the market longer than expected.
As time passes, potential buyers may begin questioning why the property has not sold.
Eventually, the seller may feel pressured to reduce the asking price.
In some cases, the final selling price may even be lower than what could reasonably have been achieved with a more realistic pricing strategy from the beginning.
An unrealistic asking price can therefore do more than delay a sale.
It can weaken the seller's negotiating position and cause the property to lose valuable momentum in the market.
The first few weeks of marketing are often an important opportunity to attract serious buyers. A poorly considered asking price can waste that opportunity.
When Today's Buyer Becomes Tomorrow's Trapped Seller
Consider a simple example.
A buyer purchases a property for R2.5 million, even though comparable properties in the area were selling for approximately R2.2 million at the time.
The buyer loves the home and believes the premium is justified.
Three years later, circumstances change, and the owner needs to sell.
Unfortunately, the local property market has not grown sufficiently to recover the original purchase price together with the costs associated with buying and owning the property.
The owner now faces a difficult situation.
They do not want to sell at a loss, but potential buyers are comparing the property with other homes currently available on the market.
The seller's personal financial needs do not determine what the market is willing to pay.
They may now be trapped between the amount they need to recover and what buyers are realistically willing and able to offer.
This does not necessarily mean the owner will suffer a financial loss, but it demonstrates how today's purchasing decisions can affect tomorrow's selling opportunities.
A property that is your dream home today should ideally remain a marketable asset tomorrow.
The Other Side of the Coin: The Risk of Underpricing
We often discuss the dangers of overpricing, but there is another risk that deserves equal attention.
What happens when an agent is too conservative?
An agent who relies exclusively on historical sales figures may overlook important developments in the current market.
Perhaps buyer demand has increased significantly.
Perhaps new infrastructure or development has made the neighbourhood more attractive.
Or perhaps the property offers features that are particularly scarce and desirable.
If an agent fails to recognise these factors, a seller could potentially accept less than the property might have achieved with the correct marketing and pricing strategy.
This is why selecting an agent who can simply produce a CMA is not enough.
You need an agent who understands the numbers, questions the data, recognises market changes, and can explain how these factors influence your property's position in the market.
What Should You Expect From a Qualified and Knowledgeable Real Estate Agent?
A professional real estate agent should offer far more than advertising your property and arranging viewings.
They should be able to provide informed guidance on several important factors.
1. Local Market Activity
What is currently selling, at what prices, and how quickly?
Property markets can differ significantly between neighbourhoods, even within the same town.
An agent who understands these differences is better equipped to advise you.
2. Relevant Comparable Sales
Not every three-bedroom house is directly comparable.
Property condition, size, location, quality of finishes, improvements, and additional facilities must all be considered when analysing comparable sales.
3. Supply and Demand
How many similar properties are competing with yours?
Are there enough active buyers within your price bracket?
An asking price should reflect not only historical sales but also current market competition.
4. Asking Prices Versus Actual Selling Prices
A property advertised for R2.5 million is not necessarily worth R2.5 million.
The eventual selling price, together with the circumstances surrounding the transaction, provides more meaningful evidence of what buyers have actually been willing to pay.
5. A Clear Marketing Strategy
An agent should be able to explain:
Who the target buyers are.
How the property will be marketed.
Which platforms will be used.
How buyer interest and enquiries will be monitored.
When the marketing strategy and asking price should be reviewed.
A successful marketing strategy should be informed by results, not assumptions.
6. Professional Qualifications and Accountability
In South Africa, sellers should ensure that their chosen property practitioner holds the appropriate registration and valid Fidelity Fund Certificate as required by the Property Practitioners Act.
However, legal compliance alone does not guarantee strong market knowledge.
Qualifications, practical experience, continuous learning, ethical conduct, and an understanding of local property trends all contribute to the quality of advice an agent can provide.
The Benefits of Choosing the Right Agent
When you appoint an agent who genuinely understands your local property market, you gain more than someone who can facilitate a sale.
You gain access to informed advice about one of your most valuable assets.
The benefits may include:
A realistic and defensible asking price.
A better understanding of your property's strengths and weaknesses.
Marketing directed at the right buyer segment.
Reduced risk of unnecessary delays.
More informed negotiations.
Regular, meaningful feedback on buyer activity.
A pricing strategy that can adapt to changing market conditions.
On the other hand, choosing an agent based purely on the highest suggested selling price can lead to unrealistic expectations, prolonged marketing periods, unnecessary price reductions, and disappointing results.
No agent can guarantee a particular selling price.
But a professional agent should always be able to explain the reasoning behind their recommendation.
Five Questions Every Property Owner Should Ask Before Signing a Mandate
Before appointing an estate agent, consider asking these five questions:
Which actual property sales support your recommended asking price?
How does my property differ from the properties used in your comparison?
How many similar properties are currently competing with mine?
What is your marketing strategy, and how will we measure its effectiveness?
What market indicators would lead you to recommend adjusting the asking price or marketing approach?
The answers to these questions will tell you far more about an agent's expertise than the highest figure presented in a valuation report.
When Your Next Purchase Determines Your Current Asking Price
There is another situation that property owners often overlook.
A seller may need R3 million from the sale of their current property to purchase another home.
Perhaps they have already identified the property they want to buy, and R3 million is the amount required to make the next transaction possible.
But does that automatically mean their existing property is worth R3 million?
Unfortunately, no.
The amount a seller needs and the amount a property is worth in the current market are two different things.
This is where professional advice becomes essential.
A good agent should be willing to have difficult conversations, explain the market evidence, and help sellers make informed decisions rather than simply agree with the price they hope to achieve.
Final Thoughts: Choose the Agent, Not Just the Price
Every property owner wants to achieve the best possible selling price.
And that should be the goal of every professional real estate agent.
However, the highest suggested asking price is not automatically the best strategy, just as the lowest valuation is not necessarily the most accurate or conservative approach.
The true value of a knowledgeable real estate agent lies in their ability to combine market statistics, practical experience, local knowledge, and professional judgement.
A good real estate agent does not simply tell you what your property might be worth. They explain why the market should support that value.
Whether you are buying or selling, the decisions you make today can have long-term financial consequences.
Because in property, it is not just about the price you achieve today.
It is also about protecting your financial position and your options for tomorrow.
Don't let today's dream purchase become tomorrow's selling challenge.
Property Practitioners: Kassel en Helene van den Berg & Cecilia Fourie
Local Market Knowledge. Professional Property Advice.
