One mistake South Africans make when selling their homes

Setting the right initial listing price is crucial when selling a home, since it shapes buyer perceptions, drives interest, and can significantly impact how quickly and profitably it sells.

Arnold Maritz, Co-Principal of Lew Geffen Sotheby’s International Realty in Cape Town’s southern suburbs, explained that setting a listing price is one of the most critical decisions when selling a property.

Since people are selling a place they have likely lived in for years, it can be difficult to separate emotions from the actual value of the property.

“Many sellers believe they can ‘test the market’ with a high price and adjust later, but the reality is that your first listing price sets the tone for the entire sale,” Maritz said.

“Buyers form immediate perceptions, and if those perceptions are negative, it can be incredibly difficult to change them.”

Maritz said research, market experience, and buyer behaviour all point to one undeniable truth: the first price set can make or break the sale.

The moment a seller’s home hits the market, it enters a golden window of peak interest, typically the first 30 days, when buyer activity is at its highest.

“Serious buyers are constantly comparing properties,” Maritz said. “If your home is priced correctly – or even just very slightly above market value – it immediately stands out as a strong contender.”

If the property is overpriced, though, buyers will dismiss it without a second thought, assuming it’s either out of their budget or not worth the ask.

“Worse, an overpriced home can make similarly priced properties look like bargains – essentially helping your competition,” he warned.

Maritz explained that today’s buyers are more informed than ever. With online listings, price comparison tools, and market data at their fingertips, they can quickly spot an unrealistic price.

“Overpricing sends subconscious red flags. Buyers think ‘this seller isn’t serious’ or ‘there must be something wrong with this property’,” he explained.

“Even if you’re open to negotiation, many buyers won’t bother engaging because they assume they’ll be dealing with unreasonable expectations.”

Instead of sparking excitement, Maritz warned that an inflated price fosters scepticism. Buyers want to feel they’re getting a fair deal, not battling against an unrealistic seller.

Quick sales are critical

Selling a home quickly isn’t just a nicety but a necessity. According to Maritz, time on the market is one of the biggest enemies of a successful sale. The longer a home sits unsold, the more buyers question its desirability.

“A stale listing creates doubt,” Maritz explained. “Buyers start asking why it hasn’t sold and whether there might be something inherently wrong with the property.

“Even if you eventually drop the price, the damage is often already done. Buyers see price reductions as a sign of desperation, and lowball offers follow.”

Maritz added that pricing for the market or just above market value can actually drive a higher final sale price.

“A well-priced home creates urgency. It attracts more viewings, generates emotional investment, and can lead to multiple offers,” he said.

“When buyers fear missing out, they’re more likely to put in an offer above the asking price. This is how bidding wars start, and the majority of the time they happen when the initial pricing strategy is spot-on.”

By pricing to attract, not repel, South Africans selling their property maximise their negotiating power. While broader market trends influence pricing strategies, buyer psychology remains a constant factor, Maritz said.

“Even in a seller’s market, an overpriced home will struggle. Buyers are always looking for value, and if they perceive your home as overpriced, they’ll move on to better opportunities,” he explained.

“Conversely, in a slower market, competitively priced homes still sell faster and closer to – or even above – asking price.”

Psychology doesn’t only impact how buyers perceive pricing, though. One of the biggest challenges in pricing a home is separating personal attachment from market reality.

“Sellers often overvalue their homes based on memories and emotional investment. But buyers only see the property’s features, location, and condition,” he said.

Ultimately, setting the right price isn’t about guesswork, Maritz said. It’s about analysis, experience, and strategic positioning.