There is an alternative

With distressed properties still very much a reality in the current market, homeowners that are behind on their monthly bond repayments may feel as if there is no alternative but to lose their property, says Willie van den Berg, Broker/Owner of RE/MAX Jowic, whose office services the greater Centurion region.

“However,” says van den Berg, “this is not the only option and homeowners that are in this situation do not have to go it alone. They have the option of working with an agent to avoid their property being repossessed by the financial institution that holds the bond. RE/MAX Jowic currently has 41 Certified Distressed Property Experts (CDPE) that can assist homeowners to take action because in our experience, the worst option is to sit back and do nothing.”

Statistically as many as 30% of property owners residing in South Africa could find themselves needing to sell their property to alleviate some financial strain, a sobering thought considering that on average properties spend approximately 42 days on the market.  “This is why it is so important for homeowners that are in a distressed situation to seek help through the correct channels as soon as possible,” says van den Berg, “as soon as a homeowner recognises the need to sell they must act before it is too late. A CDPE can assist them through the process of selling their home in a timely manner for the best possible market value.”

Adrian Goslett, CEO of RE/MAX of Southern Africa, says that to date more than 500 RE/MAX agents countrywide have completed the CDPE course and are distressed property experts, equipped with the specific knowledge required to effectively handle the intricacies of distressed property sales. Offered exclusively to RE/MAX of Southern Africa agents, this has ideally placed RE/MAX agents to assist homeowners that find themselves in distress.

According to van den Berg, it is vital that homeowners provide the CDPE with accurate information regarding how serious the situation is, in order for the agent to understand the urgency of the matter. This will give the agent an indication of how to proceed and what time frame is given in order to sell the home. A trained CDPE will keep communication channels with the financial institution open and inform them of any offers or signed sale agreements that they receive.

“Perhaps one of the most important elements of selling a distressed property is marketing it at the right price. It is vital to understand the local market and what is perceived to be a fair market value so that buyers will not be scared off by excessive pricing. An overpriced property will sit on the market for longer, which is a luxury that most distressed sellers do not have. RE/MAX agents who have sold distressed properties have managed to achieve, on average, 91% of the asking price,” says van den Berg, “The estate agent will guide the homeowner through effective negotiation of each offer they receive to get the highest price and ensure the best possible solution for the seller as well as the bank.”

Van den Berg says that using a specially trained agent to sell a distressed property is a viable solution for homeowners that want an alternative. “A CDPE can help a distressed homeowner to avoid the financial implications of having a property reposed.  The property might be distressed, but that doesn’t mean that the homeowner have to be,” van den Berg concludes.

  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