select
|

Expect to sell quickly, stay put longer

Home sellers in the luxury sector of the market should now make sure their sale agreements allow at least six months for them to find and buy their next home.
 
That’s the advice of Lew Geffen, chairman of Sotheby’s International Realty in SA, who says they may find it difficult to do so because there is now a distinct shortage of stock in many upmarket areas.
 
“The average sale price in our group has jumped 30% in the past five months – not because home prices have risen but because so many buyers in this period shifted their sights upward to the R3m to R8m bracket, where sales were few and far between during the recession.
 
“These purchases have mostly been driven by ‘upgrade’ buyers seeking to take advantage of low interest rates and discounted prices ahead of the market upturn, and they have rapidly absorbed most of the stock that was available in this price range.
 
“Meanwhile, many would-be sellers are now hanging back, no doubt in the hope that prices will rise before they put their homes on the market, and this is exacerbating the current shortage of homes for sale in the high-end areas along the Atlantic Seaboard, in the southern suburbs of Cape Town and in the northern suburbs of Johannesburg .”
 
The result, he says, is that it can now take much longer for those who do sell to find suitable replacement or upgrade properties, and they need to make sure that this is provided for in any offer to purchase that they accept.“Our suggestion is that they build in an occupational rental period of at least six months from the date of sale now, instead of the more customary three to four months.
 
“In addition, they should be prepared for their properties to sell much more quickly than has generally been the case since the 2009 recession. Certainly in our group, the average listing time for luxury properties has now dropped from six months a year ago to as little as 40 days, with anxious buyers pouncing on any new stock coming on to the market.”
 
For this reason, says Geffen, high-end home sellers who do find a replacement home that they like should not hesitate to make an offer, and should also be prepared to be involved in a multiple offer scenario, where they may have to better their original offer in order to secure the property.
 
“This is happening with increasing frequency in this sector of the market, and buyers should note that having cash readily available to conclude the deal, or genuine pre-approval for a home loan, can often turn the tide in their favour.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 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.
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
        
    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