In my opinion by Eskel Jawitz
Why isn't my property selling? What's wrong with my House? Don't bring me cheeky offers - I don't have to sell - I'm not giving my home away!!
Does it sound familiar?
You're selling your house, you're upset, you're frustrated, you're even angry - the market is not responding & you're almost taking it personally- But don't, there's nothing wrong with your property, the market is not rejecting your Home, the buyers are rejecting the price.
On the 10th April 2018 the Business Day published an article "The Bottom Line", and I'm sharing with you an Extract of the article. The message was & I quote;
"The Gorilla in the room is that the market is right all the time!"
When you start believing you can beat the herd or you are contrarian it's time to think again.
The price of anything Is what a willing seller and a willing buyer agree on - no more, no less. The market is always right (and if it is not, it doesn't matter). The market is right all of the time! Always! There is no "but", "maybe", or even "perhaps". No!
If you want to know everything about the market, go down to the beach and try push a wave out when it is coming in. It will never happen. The market is always right. The best thing you can do is realise it as soon as possible and use it to your advantage. And, even if it is not true, it doesn't matter. It is easy to offer reasons why the market is wrong. A number of pundits make a decent living telling investors why the market is too high or too low. They claim it is overbought or oversold for this or that reason.
"There is only one problem: the market is always right. Here is why: the price of anything, whether stocks, bonds or bananas is what a willing seller and a willing buyer agree on - no more, no less. It is important not to confuse value and price. A stock may be valued much higher or lower than the price it trades at.
But that doesn't change the price. Value is subjective - it runs to extremes, but price is absolute". Unquote.
And now just over 5 years later, nothing has changed. The Gorilla is still in the Room, it won't move and as much as we would like to change the Basic law of Economics and prove it wrong, we can't! Regrettably the truth is "The market will always be right all the time" Brutal as it might be!
You even ask "but why don't they make an offer?" And it's a good question to ask!
The answer is quite simply because they don't, they don't have to, they are spoilt for choice. The bitter truth is that the value of your home is determined not only by what it has to offer but also to a large degree by the prices at which other Sellers more urgent than you are, have sold for, or are trying to sell at.
So, is your property priced to sell yours or is it priced to sell the others? Because if priced to sell the others - you have succeeded. Buyers are buying, Sellers are selling, properties are changing hands. At the right Price Everything Sells.
This is not a Market to try your luck to see what happens, you're either in or out! The question I have to ask is "Are you a Serious Seller meaning you will sell if you get your price, or are you a Genuine Seller?
To help you with the answer, may I share our take on the question.
"A Genuine Seller is someone who irrespective of their reason for selling, will finally accept a price on their Home irrespective of that price, when they are satisfied in their own mind, not necessarily with the price itself, but with the fact that the price, given the circumstances is most probably the Best Possible Price the Market will pay.
So, with apologies to Shakespeare "To Be or Not To Be a Genuine Seller? that is the Question" Only you have the answer!
If you are, you'll find that when next you look, the Gorilla is no longer in the Room.
22 Aug 2023
Author Eskel Jawitz, Chairman of Jawitz Properties
