Selling your home in Cape Town can be thrilling, but it’s also one of the most crucial financial decisions you’ll make. With Cape Town’s diverse neighbourhoods and ever changing real estate market, getting your pricing strategy right is not just important—it’s essential.
Gabriella Johnson from Tyson Properties Southern Suburbs explained that it’s important to price your home correctly from the start in order to avoid the property sitting on the market or getting offers that don’t align with the property’s value.
“You also don’t want your buyer to purchase a home because if that buyer wants to sell the home 5 years down the line, they might not be able to achieve that price point,” Gabriella continued.
When buyers scroll through listings, your home’s price is their first impression. In a competitive market like Cape Town’s, overpriced homes can get skipped over. Underpricing, on the other hand, might leave you with offers that undervalue your property’s worth. Striking the right balance ensures you attract serious buyers who see your home as a match for their budget and expectations.
Not only is it important for sellers to price their home correctly but it also affects the agent and the agency. Not pricing a home correctly can make you look uneducated in the market.
Today’s buyers are savvy. They’re armed with data and market knowledge. They’ve seen comparable homes, and they know when a property is overpriced. In areas like the Southern Suburbs or Atlantic Seaboard, where properties are highly sought after, unrealistic pricing can make potential buyers walk away—or worse, not walk in at all. “People who are actively following the market can see when a property is over or under priced,” said Dean Schoeman from Tyson Properties Atlantic Seaboard.
Gabriella stressed that it’s important that agents use the tools that they have been supplied with in order to discuss and determine the correct value of a home, and be honest with a seller about what they can achieve.
Dean explained that for an agent overvaluing the home is usually what works to get a sole mandate, which is something that agents should avoid and sellers should be careful of.
An overpriced home tends to sit on the market longer. In Cape Town, where new listings are constantly appearing, your home can quickly lose its “fresh appeal.” The longer it stays unsold, the more buyers begin to wonder if something’s wrong with it. Eventually, you might be forced to reduce the price anyway—sometimes below its actual market value—just to spark interest again. Once the property is priced too high and you start to reduce the price, the seller starts looking desperate, states Dean.
Gabriella emphasises that as an agent it’s important for agents to be honest with the buyer, and tell them the correct amount based on a market analysis, so they don’t overcapitalise.
“You delivered the service, and our reputation stays intact,” Gabriella explained.
When priced correctly, your home can attract multiple buyers, potentially creating a bidding war. Cape Town is known for its high-demand pockets, where pricing smartly could see your home selling for even more than you expected. The right price acts as a magnet, pulling buyers in rather than pushing them away.
Selling your home is stressful enough without extended listing periods and fruitless showings. Market related pricing can help you sell quicker, freeing you to move on to your next chapter—whether that’s buying another home in Cape Town or venturing somewhere new.
The best way to price your home correctly is having it assessed by an experienced real estate agent at least once a year or when there is a change in the market.
According to Dean, another factor to consider is what your property looks like, does it need touch ups or maybe a need for a coat of paint. It could be a fixer-upper but if you want to maximise the full potential of the property. Having these things fixed, does boost the overall value of the property.
Cape Town properties often have distinct features—views of Table Mountain, proximity to schools, or historical charm. These can influence your pricing.
A local real estate agent familiar with the Cape Town market can help you determine a competitive price.
Dean explained that by not using an experienced agency can also cause private sellers to sell their homes for a price that doesn’t align with the properties worth.
Home owners should still be realistic about what the market has been doing over the past couple of years.
Another mistake that sellers make is putting too many agents on a property because you are getting so many different opinions that at the end of the day, you don’t know what advice to take and what to ignore.
Remember, a well-priced home sells faster, generates better offers, and spares you the stress of extended listing periods. Don’t let your property become the one that sat on the market.
According to Gabriella, when there is a surplus of properties on the market you shouldn’t be over pricing, because it will end up sitting on the market and become stale.
“Right now, it’s a premier sellers market,” Gabriella stated.
However, Dean explained that it swings both ways. Because when there is a shortage on the market like we are experiencing now, sellers can ask what they want because potential buyers are keen to buy what there is on the market.
It all depends on the seller. Generally, most homeowners are living in their home for a few years at least. “The best thing you can do in the meantime is, look after the property and maintain it, in order to keep its value,” Dean stated.
In Cape Town’s dynamic real estate market, pricing your home correctly is the foundation of a successful sale. It’s not just about numbers, it’s about understanding your home’s value, knowing your audience, and crafting a strategy that attracts the right buyers.
This article was proudly sponsored by Abrahams & Gross Attorneys.
