select
|

Look at the ‘small picture’ to get past price confusion

In recent months, there has been a lot of contradictory – and thus confusing – information about home prices emerging from the banks and other regular market commentators.

But there is a way to get a clearer picture, says Berry Everitt, MD of the Chas Everitt International property group.  

Writing in the Property Signposts newsletter, he notes: “Some commentators say prices are rising, some that they are falling and some that while prices are rising the rate of growth is declining – all of which is a bit bewildering for homebuyers and sellers.

“However, all this really shows is what we already know, that is, that the market is always in flux and that home values in each sector and each area are shifting all the time, in response to a whole variety of local factors.

“This is why it is essential for homebuyers and sellers to be able to look in as much detail as possible at the ‘small picture’ – or the current market value of the specific property they are interested in buying or selling – as well as the big picture of macro-economic trends and regional forecasts.”

For a home seller, Everitt says, market value equates to what a capable buyer is willing to pay for his property right now (not what that buyer might have paid last month or would perhaps be willing to pay next month), and the closer the asking price is to that immediate value when the home goes on sale, the greater the likelihood of a quick sale.

“For buyers, of course, market value largely equates to what they can afford, and most will be very anxious not to overpay. They want what they perceive to be the best value for their money, even if it sometimes means giving up on an area where they initially thought they would like to live.”

So for both parties, he says, it is essential to be able to access the most recent and most detailed, unbiased information available about the specific area, close neighbourhood, street, estate or complex before they decide to sell or buy. “This should include but not be limited to recent comparative home sales, and is exactly the type of information that our agents are now able to provide through various bank buyer qualification programmes.

“Through these programmes, buyers can also get bond approvals-in-principle while sellers can access independent home valuations, and even assistance in finding a new home that is good value for money among the banks’ distressed sale listings. In a word, they are excellent, and already having a major influence on the way property is bought and sold in SA.”



  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
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.
        
    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