select
|

'Stalking' a new trend in house buying

A new trend is now making itself felt in the South African residential property market: the ‘stalking’ of homes.

“The word ‘stalking’”, says Bill Rawson, Chairman of the Rawson Property Group, “is now being used to describe the practice of identifying a suitable property on a property website and then watching it closely over the next few weeks or months to see if the price comes down.”

“These stalkers, we have found,” says Rawson, “are often highly sophisticated researchers and know the market in their area well. When they find a home they like, and they believe the price is too high and will potentially drop, they watch its price on the website, hoping to see it fall to, or even below, market value. If the property’s price does fall, they then make an even lower offer in the hope that they will get the home at a bargain price.”

These shrewd investors, says Rawson, in many cases do, in fact, get a deal that is below the home’s market value because the seller may need to sell the home within a specific time period or they have just become disheartened by the lack of interest shown to their home and their judgment has been impaired.

Sometimes, says Rawson, the seller has only himself to blame for the low bids he receives because he has originally set his price so high that the home ‘sticks’ on the market for months. This causes it to gain a stigma, a bad name. If it does then find a buyer, the achieved price is quite likely to be well below its true market value.

In the year ahead, says Rawson, stalkers are likely to be less successful because, with demand in many areas now outstripping supply and most homes (except those at the top of the price scale) appreciating at close to 10% per annum, bargains will be fewer and harder to find.


“What the stalker hopes for, but is unlikely to come across today, is an ignorant seller and an inexperienced agent who can be persuaded that their price is unrealistic. As I say, however, this will happen only very occasionally in the year ahead because since the introduction of compulsory training and examinations, the professionalism of all agents has taken a big step upwards.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
        
    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