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How to price your home to sell
Price your home at what buyers will actually pay, not what you hope for or what you owe on the bond. The best evidence is what similar homes near you have recently sold for. Overpricing is the common mistake: it leaves a home sitting while buyers pass it over, and it often ends in a lower price than you would have got by pricing it properly from the start.
Start with comparable sales
A comparable sale, or “comp”, is a similar property that sold recently in your area. Look for homes with a similar size, number of bedrooms and bathrooms, condition and position. Asking prices only show what sellers hope for. Sold prices show what buyers paid.
- Ask agents for recent sold prices in your street, estate or complex.
- Check the municipal valuation roll for your area. It shows the municipality’s value for rates, which is not the same as market value, but gives you a reference point.
- Compare the price per square metre with similar homes, using the price per square metre calculator.
- Look at what is currently for sale near you, because those homes are your competition.
Get more than one opinion
Ask two or three agents to give you a valuation, and ask each to explain how they reached their figure. Be wary of the agent who gives you the highest number just to win your mandate. A good agent will show you the comps, explain the gaps and be honest if your expectations are too high. If you want a formal figure, for example for a divorce settlement or an estate, you can hire a professional valuer, who charges a fee.
What affects your price
These factors push a price up or down:
- Location. Street, school zone, security and the feel of the neighbourhood.
- Condition. A well-kept home sells faster than one needing work.
- Size and layout. Bedrooms, bathrooms, parking and storage.
- Running costs. Levies, rates and utility costs matter to buyers, especially in sectional title.
- Backup power and water. Solar, inverters and water tanks interest many buyers, although what they will pay for them varies.
- Timing. A seller in a hurry usually accepts less.
Do not assume that money you spent on improvements will come back rand for rand. Buyers pay for the home as a whole, not for your receipts.
Be honest about your own numbers
What you owe the bank and what you need to buy your next home are not reasons a buyer will pay more. Still, you need to know them. Work out what you will have left after paying off your bond, agent commission, the conveyancer, and any early termination charge on the bond. Capital gains tax may also apply if you make a profit, although the first R3 000 000 of gain on a primary residence is excluded for the 2027 tax year. Use the capital gains tax calculator for an idea, and speak to a tax practitioner.
If the price you need is above the market, it is better to know now. You may decide to wait, improve the home, or stay.
Asking price and negotiation
Most buyers offer less than the asking price, so some sellers add a little room. This works only if the price is still close to market. If you price too high, your listing may attract few viewings, and a home that sits on the market starts to look as though something is wrong with it. Buyers then offer less, not more.
It helps to review your price if you get few viewings in the first few weeks. Few viewings usually means the price or the photographs need attention. Many viewings but no offers can mean the home is good but the price is a little high. Talk it through with your agent.
Keep in mind that the buyer’s bank will also value the property before it grants a bond. If the valuation comes in below the agreed price, the buyer may have to pay the difference in cash or the deal may fall through. That is another reason not to stretch the price.
What to do next
- Collect sold prices and at least two or three valuations.
- Check what you will have left with the estate agent commission calculator.
- Read getting your home ready to sell.
- Find an agent to value your home, or search property to see what you are competing against.
This article is general information for South African readers, not legal, financial or tax advice. Rules and rates change, so check your own situation with an attorney, your bank or a tax practitioner. Our property calculators can help you work out the numbers.