When a property doesn’t sell

The South African property market today is a far cry from its 2007/8 heyday. Prices have come down significantly, homes are often on the market for longer and buyers are far pickier due to the increased selection they have to choose from.

That does not mean that homes aren’t selling though, they are – for the right price. According to the April FNB House Price Index last month “showed increased acceleration, up from a revised March growth rate of 8.1% to 8.6% year-on-year. This is the highest year-on-year growth since June 2010”. The bank’s Property Barometer continues to indicate that “the 1st quarter of 2012 saw an acceleration in house price growth in almost all segments of the market when segmented by room number and title deed”.

So why are some properties stagnating on the market? Is it purely due to the buyers being spoilt for choice? Hardly, in fact there are a number of factors to consider.

Location, location, location; the old adage remains true. Properties in prime areas will always have a better chance of selling at the asking price and, selling sooner. If that’s not the problem though, the condition of the home could be. While there are buyers looking for fixer-uppers many want their new home to be in a reasonable condition – especially if the sales tag is fairly substantial. Buyers who are willing to do renovation work often subtract the cost from their offer.

As such sellers need to ensure that the property is neat, well-maintained and that the electrical and plumbing systems are in working order. If not, the property likely won’t fly off the market. “Agents are not only experts in their areas, they are also professional sales people and can give valuable advice on what’s needed to move a property”, says Bruce Swain, MD of Leapfrog Property Group.

If the issue is not the location or the condition of the property then it might very likely be the asking price. Properties will always sell – for the right price. The question is – is the property accurately priced based on its size, amenities and the area it’s located in? “Assessing the value of a home is part science, part experience and dependant on a variety of factors,” says Swain, “however sellers would be well advised to compare their asking price to that of other properties in the area to get a firmer grip on their prospects.”

The current local situation however does lead to a number of properties for buyers to choose from and as such even a correctly priced, well situated home could end up on the market for a while. In such a situation, depending on the reasons for selling, it might be wise to hold on to the property for a while. The real estate market is cyclical and prices will firm in time.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
    • 19 Apr 2018
      The rental market is a cut-throat sector of the real estate market that waits for nobody. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, first-time renters need to be fully prepared before they even start the process of looking for a place to rent in order to avoid the disappointment of losing out on their ideal property.
    • 19 Apr 2018
      Choosing to buy your first home instead of continuing to rent is a big decision that will usually take some time to put into action, but the sooner you can save up a sizeable deposit, the closer you will be to reaching your goal.
    • 18 Apr 2018
      Selling your home is no small task and as you will quickly find out, there are a lot of misconceptions about the process. Gerhard van der Linde, Seeff's MD in Pretoria East lists the top 5 misconceptions when you are selling your home.
    • 18 Apr 2018
      The Cape Town municipality is now installing water-management devices at properties that have been non-compliant with the new level 5 water restrictions and there are talks of fines between R5,000 and R10,000 for households that use too much water.
    • 17 Apr 2018
      The recent interest rate cut has stoked the coals in the first-time buyer’s market. At least for the next two months until the next interest rate announcement, homeowners are guaranteed lower monthly instalments than in the previous quarter. But, is it wise to take out a 100% bond just to enter the property market while interest rates are low?
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us