How to Price Your Home Correctly: It’s Not Just About the Numbers
Pricing a home isn’t a straightforward formula it’s not as simple as plugging numbers into a calculator. In fact, many different factors influence what a fair and market-ready price should be.
We’ve all browsed property listings and thought, “That house is way overpriced!” Emotional attachment, guesswork, or aiming too high can all backfire, leaving sellers with a stagnant listing that no one’s biting on.
The truth is, pricing a home right requires a balanced, informed approach. Here are the key factors to consider:
6 Factors That Influence a Home’s Selling Price
1. Location, Location, Location
This is the golden rule of real estate and for good reason. Homes in sought-after neighbourhood’s naturally fetch higher prices. However, it's not just about the suburb. A house on a quiet cul-de-sac might sell for more than a similar one on a busy main road, even if both are in the same area.
Tip: Premium suburbs can boost value, but micro location still matters.
2. Unique Designs That Miss the Mark
Architecturally unique or custom-designed homes don’t always appeal to the general market. While the owner might love the bold or unconventional style, buyers may not share the same vision and that limits demand. These homes often sit longer on the market and may require a price drop to attract interest.
Tip: Design for broad appeal if you're planning to sell within a few years.
3. Condition and Age of the Home
Vintage homes with character features like Oregon pine floors or stained-glass doors can attract buyers if they're well maintained. But if the home hasn’t been updated in decades, expect a lower offer. Buyers today want modern kitchens, updated bathrooms, and move-in-ready convenience.
Tip: Do regular updates over time instead of major renovations before selling. Large upgrades don’t always yield a return on investment.
4. Perception of the Area
Safety and lifestyle perceptions play a big role. If the property is in an area known for high crime, even if crime has declined, buyers may hesitate and this can impact the price. While this is a sensitive topic, especially in South Africa, it’s one that can’t be ignored.
Tip: Highlight community improvements, neighbourhood watch initiatives, or recent security upgrades, where possible.
5. Size and Layout
Bigger isn’t always better. While spaciousness matters, not every buyer is after a five-bedroom house. What does matter more than square meterage is functionality and comfort. One commonly overlooked feature that can sway buyers? Bathrooms. A three-bedroom, one-bathroom home can be a hard sell in today’s market.
Tip: If adding a second bathroom is possible, it could boost your home’s value significantly.
6. The ‘Wow’ Factor
This is the emotional element. A beautifully presented home, clean, stylishly decorated, with a well-maintained garden can steal a buyer’s heart. Even if your home is similar in layout to your neighbours, if it looks and feels better cared for, buyers are more likely to pay a premium.
Tip: Small touches make a big impact. Think fresh paint, manicured lawns, and decluttered interiors.
Final Thought: Price Smart, Sell Faster
The right price isn't about what you want to get it's what the market is willing to pay. Overpricing can lead to weeks or months of no offers, while competitive pricing can generate interest and even spark bidding wars. It’s not a science, and it’s not just emotion either, it’s about understanding where your home fits in the bigger picture.
Need help determining a fair price? A professional valuation, combined with recent sales data and local market insights, can help you hit the mark from day one. Using platforms like Lightstone which will assist you in purchasing specific market reports that will guide you in the correct pricing of your home.