How To Chase The Market Down In Somerset West

Reader Bean Counter sent in the following email:

In July last year this place was on the market on for R1,950,000.

In December they dropped the asking to R1,850,000.

By February it had dropped to R1,790,000.

That's how it stayed for a couple of months, until lo and behold in April they thought, 'To hell with reality, we want value!' and RAISED their price to R1,800,000.

Well, pride comes before a fall, and this week, it's down to an all-time low of R1,720,000.

You'll notice that in over a year they've dropped their asking price R230 000 from R1.95 million to R1.72 million. That only works out to a price drop of 11.8%, which is below the 13.2% drop in median property prices that Standard Bank released. In other words they are chasing the market down: you're dropping prices but the market is dropping at a faster rate, a sure fire way to not sell a house.