Most suburbs have ceiling prices that fluctuate with market conditions, says Laurie Wener, PGP's managing director in the Western Cape's Cape Town metro region.
The more buoyant the market, the greater a role the emotional factor can play," says Wener
says in high demand areas, such as the Atlantic seaboard and southern suburbs, the fact that the demand exceeds the supply tends to narrow the margin between ceiling and listed price and may even eliminate the margin completely when comparative offers result in the listed price being exceeded.
says luxury homes are more difficult to evaluate due to a lack of comparative properties.
"Sellers in this sector of the market also have their own views on what they want for the property and often you have to test the market at a very optimistic price and gauge the response.
Even the most experienced agent may be incorrect in assessing these properties, and there is also a high degree of subjectivity, especially with unusual properties and in an environment of market fluctuation," she says.