---
title: Why Your Neighbour's Selling Price May Not Be Yours
description: What should buyers be looking for – and which features could help protect a property's long-term appeal and value?
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---

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# Why Your Neighbour's Selling Price May Not Be Yours

Published on 02 Nov 2026

For homeowners preparing to sell, one of the most tempting ways to set an asking price is to look at what similar homes nearby have sold for. If the house next door achieved R4 million, it is natural to assume that yours should be worth roughly the same – or perhaps even more.

Your house also has three bedrooms and a swimming pool, and your garden is more impressive than your neighbour’s, so it seems a logical assumption. But property pricing is rarely that straightforward.

This is where the power of comparative market analysis (CMA) comes in – it provides a more evidence-based way of determining a realistic selling price. A CMA examines recently sold properties and compares them with the home being brought to market, taking into account factors such as location, size, condition, features, improvements and current market conditions.

For buyers, understanding the CMA process is equally valuable. It provides insight into whether an asking price is supported by comparable sales or whether a property may be overpriced.

**Why is CMA Important?**

- **Accurate Pricing**: Overpricing a property can discourage potential buyers, while under-pricing can lead to financial losses. A well-prepared CMA helps determine the optimal price, attracting interested buyers and maximizing the property's value.
- **Market Insights**: A CMA provides valuable insights into the current market conditions, helping sellers understand trends, demand, and competition. This knowledge enables informed decision-making.
- **Competitive Edge**: In a competitive real estate market, a well-priced property stands out. CMA helps position your property effectively, increasing the chances of a quicker sale.
- **Negotiation Power**: Armed with data from a CMA, sellers are better equipped to negotiate with potential buyers, ensuring a fair and mutually beneficial deal.

**A CMA is more than looking at listings**

One of the most common misconceptions is that an agent can simply search online for properties currently advertised in the same suburb and calculate an average price per square metre.

In reality, a meaningful CMA should look primarily at completed sales, rather than asking prices.

An asking price represents what a seller hopes to achieve. A completed sale provides evidence of what a buyer – or the market - was actually prepared to pay.

The analysis should consider recent transactions involving properties that are genuinely comparable. These might include homes in the same suburb, estate or complex, with similar sizes, configurations and characteristics.

The timing of those sales also matters. A property that sold 18 months ago may have been affected by very different interest rates, economic conditions and buyer sentiment from those prevailing today.

**So why didn't your neighbour get the same price?**

This is where property becomes particularly interesting.

Two houses can be almost identical on paper but have very different market appeal.

Perhaps your neighbour's home has a renovated kitchen and bathrooms while yours is still largely original. Perhaps their property has uninterrupted views, a larger garden, better privacy or additional parking. Their home might have a swimming pool, solar system, inverter, staff accommodation or a landscaped outdoor entertainment area.

Even seemingly small differences can influence what buyers are prepared to pay.

A house with an excellent position within a neighbourhood may command a premium over one only a few doors away. Being on a quiet cul-de-sac rather than a busy road, having a north-facing garden, enjoying better natural light or being further from a noisy intersection can all influence buyer perception.

The converse is also true. A home may be larger but have an awkward layout, significant maintenance requirements or features that today's buyers do not value as highly as the owner expects.

**Condition matters – often more than sellers realise**

Homeowners can become accustomed to their property's shortcomings because they live with them every day.

A dated kitchen may seem perfectly functional to the owner, but buyers comparing several properties may immediately factor the cost and inconvenience of renovation into their offers.

The same applies to worn flooring, ageing bathrooms, neglected gardens, outdated lighting, inadequate security or deferred maintenance.

This doesn't necessarily mean that every home should undergo an expensive renovation before going onto the market. In many cases, the cost of improvements won't be recovered in the final selling price.

The important question is whether the property's condition is consistent with the price being asked.

**The danger of choosing the highest comparable**

Sellers sometimes present an agent with the highest recent sale in the neighbourhood and ask: "Why can't I get that?"

The problem is that the highest sale isn't necessarily the most comparable sale.

A proper CMA considers a range of transactions and adjusts for differences between the properties. It may identify a group of homes that sold for R3.5 million to R4 million, for example, but conclude that a particular property should sit towards the lower or upper end of that range depending on its characteristics.

This is why an experienced local agent doesn't simply take the highest number and work backwards.

The objective is to establish a price that is defensible in the context of the available evidence.

**Market conditions can change the equation**

There is another reason your neighbour's selling price may not be achievable today: the market itself may have changed.

Interest rates affect affordability. Buyer confidence influences demand. Stock levels can determine how much competition exists between sellers. Economic conditions, employment trends and local development can also affect buyer behaviour.

If your neighbour sold six months ago when there were few comparable properties available, today's market may look very different.

Equally, if demand has strengthened since that sale, a property's potential value may have changed.

A CMA therefore shouldn't be treated as a permanent valuation. It is a snapshot of the market at a particular point in time.

**Price is also a positioning decision**

Determining a realistic asking price isn't simply about finding a number. It is about positioning the property correctly.

Price too high and the home may sit on the market while competing properties attract buyers. Over time, repeated price reductions can create the impression that something is wrong with the property.

Price too low and the seller risks leaving money on the table.

The right pricing strategy considers the evidence, the property's strengths and weaknesses, competing stock and the seller's circumstances.

For buyers, the same information can provide useful negotiating context. A buyer who understands recent comparable sales is better placed to distinguish between a property that is genuinely differentiated and one whose asking price is simply ambitious.

**A CMA starts a conversation, not a guarantee**

No CMA can guarantee exactly what a property will sell for. Ultimately, a home's market value is established through the interaction between a willing seller and willing buyer, subject to the prevailing market conditions.

But that doesn't make comparative analysis less important. It makes it more important.

For sellers, it replaces guesswork and neighbour envy with evidence. For buyers, it provides a framework for understanding whether an asking price has a reasonable basis.

The key lesson is simple: your neighbour's selling price is a reference point, not a price tag for your home.

Every property has its own combination of position, condition, size, features, presentation and buyer appeal. A well-prepared CMA brings those differences into focus and helps sellers enter the market with realistic expectations – while giving buyers a clearer understanding of what they are actually being asked to pay for.

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