select
|

The gap widens between asking and selling price

According to Cameron Jansen, Broker/Manager of RE/MAX Central, whose office services the central Gauteng region, the differential between the listing price and selling price of homes in the current market can be as much as 30%.

“There seems to be a large disparity between what sellers think their home is worth and what buyers in the current market are prepared to pay for homes. Buyers are aware that market conditions are in their favour and as such are looking for a bargain where possible, often putting in offers that are between 25% and 30% below the seller’s listing price,” says Jansen.

He adds that this is not something that is unique to any particular price range, but rather across the board. “It is not that we just see the trend developing in one sector of the market – it is from one end of the market to the other, from the affordable housing sector right up to the luxury market,” says Jansen. “Apart from the fact that the trend is placing pressure on sellers to lower their price, estate agents also have to do a lot of negotiating between buyers and sellers to try and narrow the gap and find a price that is acceptable to both parties.”

While all sectors of the market are being impacted by the trend, Jansen says that from a rand value perspective the luxury market has felt the effect the most. “Have seen high-end homes go to market at around R4 million and receive offers starting from R3 million to R3.2 million. The result of this is that the luxury market has slowed significantly with sellers opting to rather hold onto their homes than sell for between R800 000 and R1 million less than what they want,” he adds.

So where does this leave sellers in the current market? Offering some advice, Jansen says that it all depends on the seller’s reason listing their home. “It is one thing if there is an absolute need to sell the property, however, if the seller is speculating and listing in the hope that they will achieve their asking price – in the current market it is not a good idea to be doing that. On the other hand, it is important to remember that if the reason for selling is to buy another home, the consumer is selling and buying in the same market. While they may be losing 20% on the sale, they will be gaining the 20% when buying. So if the reason for selling is to buy, then go for it,” advises Jansen.

Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, says that while certain phases in the market will favour either buyers or sellers – the market is the market. “For homeowners listing their property to purchase another, any challenges they face in the market as a seller will be their advantage as a buyer in the same market,” adds Goslett.
Jansen concludes by saying that while sellers looking to make a profit on their homes will find the current market challenging, there are opportunities for buyers wanting to get their foot in the door.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 21 May 2018
      Secure living is one of the growing property trends in South Africa and Nooitgedacht Estate in Stellenbosch certainly ticks the right boxes for buyers who want a secure, exclusive lifestyle in one of the Boland’s most sought-after estates, says Pam Golding Properties.
    • 21 May 2018
      As the impact of technology on the real estate industry becomes more significant, it is clear that there is a need for an objective look at not only traditional real estate models but also online and other alternative low-commission real estate agencies, to examine what they offer and what their impact might be.
    • 21 May 2018
      With sectional titles growing in popularity, an increasing amount of homeowners simply do not have the garden space to install a tool shed in their backyard.
    • 18 May 2018
      Home improvements are a great way to add value to your property, but not all of us have bottomless pockets for a full-on renovation. Lucky for us, there are plenty of affordable DIYs that can spruce things up over a free weekend.
    • 18 May 2018
      The need for large office spaces is slowly eroding as more and more employers choose to allow their staff to work remotely. As a result, the home business model has grown in popularity, with many new entrepreneurs choosing to start their business from home rather than in a business district. But, what are the legal implications of operating a business in a residential area?
    • 18 May 2018
      Proxi Smart Services Pty Ltd, a company that deals with the day to day administration of property transfers while the conveyancer attorneys perform the legal side of transfers, lost its bid for the court to allow them to do business in this regard.
    • 17 May 2018
      If you’re a first time buyer, then you are probably only just beginning to realize how expensive furniture can be. That three-piece lounge suite you’ve had on your “Dream Home” inspiration board probably seems like nothing but an unrealistic fantasy to you now. But, a little bit of financial discipline mixed with a dash of smart shopping can go a long way towards helping you furnish your fantasy.
    • 17 May 2018
      In recent years the demand for sectional title apartments – both for rent and to purchase - in Rivonia, which is considered to be one of the most affluent residential and suburbs in Johannesburg, has been incredibly strong.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK