It pays to keep your price down and sell faster

Sales of residential properties are showing a definite upward trend, and home sellers should take advantage of the situation by aiming for quicker sales rather than raising their asking prices.
That’s the advice of Harcourts Africa CEO Martin Schultheiss, who says: “Sellers are always very slow to react and lower their prices when the market declines, but can’t wait to raise their asking prices the minute the market shows any sign of improvement.
“However, if they really want to benefit from the current resurgence of confidence in property, they should be doing all they can to achieve a faster sale – and especially making sure that their asking prices are very competitive.
“There are three reasons for this, the first being that although demand is increasing, buyers are still being very choosy. There is still a plentiful supply of properties for sale and they are under no purchase pressure, so have the time to carefully weigh up which homes really offer them the best value for money.”
Secondly, he says, bank lending is still slow and very cautious. And it stands to reason that a property at a lower price will be more affordable to a great number of potential buyers, so the seller has a much better chance of attracting a buyer who can qualify for a home loan.
“And finally, achieving a quick sale definitely means big savings in holding costs, while the results of raising your asking price are at best uncertain.”
Schultheiss notes that the average time that a “well-priced” property is on the market before being sold has dropped from around five months in the middle of 2009 to around three months now, “which means two months’ savings in terms of bond repayments, for a start.
“Then there are municipal rates and service charges, insurance premiums, maintenance costs or levies and security costs to consider, adding up to a significant sum of money that you should rather be spending on your new home.”
Distributed by/ versprei deur
The Mega/ Press Network

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us