select
|

With demand for residential property improving in South Africa, sellers need to improve their strategies

With South African residential property showing signs of becoming a preferred asset class once again, estate agents, says Tony Clarke, Managing Director of the Rawson Property Group, are finding that multiple offers on homes are now increasingly common.

“There have been many occasions recently,” says Clarke, “where bidding wars have taken place — and stock shortages are now beginning to be a problem, another sign that demand is increasing.”

In the new conditions, he says, more sellers will be coming to the market and if they are going to get the best price in the fastest possible time they should be working out strategies suited to today’s conditions.

The first and most important point to be grasped, says Clarke, is that great care must be taken to get the right estate agent.

“In appointing an estate agent, sellers are inviting them to establish a relationship with themselves which may last three or four months, possibly even longer. The estate agent, therefore, must suit the seller’s personality and must be right for the area and for the home being sold. If the seller appoints the wrong agent, his chances of selling quickly at a good price will immediately be reduced.”

The next step, says Clarke, should be to set about researching the details of similar properties on the market or recently sold in the area. This will involve going to as many show houses in the precinct as possible and reading local property advertisements so as to compare what others are offering with what the house in question offers.

In this process, says Clarke, it is important that the person coming to the market should recognize that sellers will usually overprice, to a greater or lesser degree and it can take careful research to establish what the true values of similar homes in the area are.

It is especially necessary, he says, to examine the recently achieved prices, these being more important than the asking prices in the long run. It is also helpful to compare prices on a square metre basis. If this is carefully done, it can lead to the seller actually having to re-adjust his price.

“It cannot be stressed enough,” adds Clarke, “that, if you are serious about selling, you must have a market-related price. Experienced estate agents will tell you time and again that if you inflate your home’s value you will end up actually selling it for less than its true value. This is definitely a route that should not be followed.”

Good estate agents, says Clarke, will always give their clients feedback on where a home is being advertised – and the seller should assess the success of the portals and media being used.

All homes should be given printed brochures for distribution to those interested and these should be available online.

In many of the more expensive homes, says Clarke, a walk-through video should also be part of the marketing kit and this should be professionally handled. Poor pictures in brochures and poorly executed videos, he warns, can discourage a potential buyer very quickly.

“Buyers,” adds Clarke, “will show greater interest if the home is advertised on the value range pricing system rather than with a single definite price.”

Once these databanks on the property have been established, it is wise, as early on as possible, to pack in a great many show days within a limited period.

“Do not,” he advises, “arrange to show the house once every two or three months. Aim for maximum exposure over a short period as soon as the sale is launched.”

Sellers who are not serious about selling but who are tempted to come to the market with inflated, unrealistic prices in order to see what offers they will get, says Clarke, should stay away.

“In recent years, the industry has been plagued by such sellers and regrettably all too often estate agents go along with them. However, the net result of their efforts has been simply to confuse both buyers and sellers and to make accurate marketing assessments more difficult.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    • 22 Nov 2017
      While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
    • 22 Nov 2017
      The end of the year is fast approaching, and so are all the travellers, tourists and holidaymakers. For those who live near or own a property in a holiday-hotspot, the festive season also brings with it an abundance of short-term rental opportunities. Its a great way for property owners to make a few extra rand for their own holidays or to put towards their savings.
    • 21 Nov 2017
      The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
    • 21 Nov 2017
      When an offer to purchase a property is signed by both buyer and seller, this constitutes a binding agreement or “Deed of Sale” between the two parties. However, in most cases the “standard contract” might not be enough to cover all the specifics pertaining to the sale. The agreement may require some additions or alterations to clauses, which needs an expert hand in the drafting of such
    • 21 Nov 2017
      As more and more South Africans look to invest in property abroad, Spain is offering them one of the best deals in global real estate.
        
    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