Objectivity is vital, avoid ownership bias when selling your property

Objectivity is vital, avoid ownership bias when selling your property

Category Property Tips

Selling a home is firstly a financial decision as the property owner will want to achieve the maximum price for their property. This goal is usually heavily influenced by the emotional attachment to the property by the owner, a phenomenon known as "ownership bias", which skews one's view of the value of your own property.

Ownership bias is the tendency to attach a higher value to something that one owns. This can distort pricing decisions, particularly when selling a property. Owners often become emotionally attached to their property which can lead to unrealistic expectations for its value.

Pricing is often the top reason for a property not attracting offers which can be quite emotional for sellers. It is, however, vital for property owners to take emotion out of the process, and view it as a business transaction. The seller must essentially "think like a buyer". Property owners often renovate, customise or add features to their own taste, but not all buyers share the same taste. A buyer may therefore not view a particular renovation with the same enthusiasm as the seller.

Ownership bias tends to result in a reluctance to accept a competitive listing price, and to consider reasonable offers. This leaves the risk of the property sitting on the market, not attracting suitable buyer interest, making it difficult to conclude a successful sale. This may then result in the seller dropping the price, in some instances, more than once which will make the property less desirable. The property may even end up selling for a lower price than what it could have achieved if it was correctly priced from the outset.

To overcome ownership bias and achieve a successful sale, it is recommended that the seller detaches emotionally from the transaction, and view the property objectively as a product, rather than subjectively, as a personal possession. It is ultimately the buyers who decide what price they are willing to pay, and sales trends in the area would be the best guide of this.

The best way to overcome this ownership bias is to get a professional valuation by an experienced local area agent. This will provide an unbiased estimate of the property's market value, and compare it to similar properties recently sold in the area. Agents spend many years selling properties just like yours. They know what buyers are looking for and are best placed to provide recommendations and suggestions on any adjustments which may be required to maximise the sales and price potential.

Given the outlook of a possible interest rate cut on the cards in the next two months, and an end to the wet weather as the traditionally busier summer season approaches, the property market looks set for a return of some exuberance. This means that now may well be an ideal time for sellers to put their properties on the market.

As an added incentive for sellers, a reminder of the incredible R1 million Cash Prize Competition which is open to all sellers who sell with Seeff on an exclusive sole mandate between the 1st of June 2024 and the 31st of May 2025. We have already seen a number of sellers achieve an entry into this fantastic competition.

Aside from the credibility and 60-year brand leadership history, Seeff offers skilled and experienced agents who are able to assist clients to maximise their property goals. Your local area specialist, Gail Turner, offers a proven and consistent record of top sales in the area, and is ready to assist with your property needs. Contact her at any time for more information or to chat about your property aspirations.

Author: Gina Meintjes