WHEN THE PROPERTY MARKET IS CHANGING
PUBLISHED 30 NOV 2017
Tips for Selling in a Changing Market:
IGNORING THE FACTS:
Prices in Uitzicht,east of Durbanville, have risen with +-9.7% over the last 12 months and in Eversdal Heights the median price increased by 20% during the same period. The number of sales in Uitzicht are down by 20% and 40% in Eversdal Heights. Why the lower sales volumes? Most probably because of low stock levels in popular areas,which resulted in continued price growth, and affordability on the one hand. Real Disposable Income only grew with .8% over the last 12 months. As a Seller you need to be aware in which part of the market, within an area you will be selling. Lower to Middle or Middle to high? A different marketing strategy is required for each market within an area. Otherwise selling can be a drawn-out mission!
See FNB Bank's graph below.
With so much information available, Buyers do a lot of research before viewing homes. Comparing size,
accommodation, areas, etc, making it easy to spot the " Odd one out". Online reports can be bought,
showing sales figures in the area/s a person is looking for a property, giving a good idea what the asking
price of a home should be. Most websites also have a function where comparative properties are
suggested. Listing higher than 5 -7.5% from the real value of a home will lead to very little activity on the listing. In order to get activity back, a seller will have to adjust the price a lot.
UTILIZING OLD SCHOOL METHODS ONLY, TO MARKET A PROPERTY:
Most buyer leads come from web marketing, and more owners are very privacy orientated. Putting a
home on the market where the only marketing plan is to put up a For Sale sign and hosting show houses
will result in not achieving the best price. With 3D Video available, a 3D walk-through adds a lot of value to marketing process. Buyers can today, from the comfort of their homes, go through the available homes on the market and select a few which they are 90-95% sure will work for them. Eliminating time wasted by a seller to prepare a home for numerous viewings and buyers driving from one home to the other not finding the right home!
NOT KNOWING WHAT ALL THE COSTS ARE WITH REGARDS TOSELLING AND BUYING:
• Compliance certificates for plumbing, electrical, gas, beetle and electrical fencing (where applicable) can cost an arm and a leg! Have these inspections done before putting the home on the market, then you have an actual figure to budget for. The repairs can be done any time before lodging of the transaction in the Deeds Office and paid from the proceeds of sale.
• Transfer and Registration costs when buying can be more than you think. With a purchase price of R2 500 000 and R2 00 000 bond, the costs will be +-R180 000 - R190 000.
• Bond cancellation costs, Home Owner Association / Body Corporate Clearances are other smaller costs to keep in mind.
NOT UPDATING YOUR BUILDING PLANS:
This is the issue causing the most hassles when selling! Buyers are very aware and determine to obtain an updated copy of the approved plans before registration. If there are built structures on the property not reflected on the approved plans, a home owner has to employ the services of a draughtsman to draw an updated plan showing all structures. This can become very costly if there are things like thatched lapa's against the home, where an engineer will have to give a certificate, or a buyer's bank requiring an occupational certificate for additions, which were made a few years ago and no occupation certificate was issued.
For more info on our
Big Results Home Listing Plan
SCAN THE IMAGE BELOW AND GET A FIRST HAND IDEA OF OUR MIND BLOWING MARKETING!
Director of Pieter Kotze Real Estate
The market is ever changing but there are a lot off factors which are busy aligning to start a downward cycle.
• Talks of rising interest rates due to weaker rand as a result of possible credit downgrades and political uncertainty
• Affordability of property/ home loans
• Disposable income of consumers
• Rising food prices due to drought
• Huge escalation in the cost of municipal services and rates
• Foreign buyer confidence in the SA market is at a low due to negative press about crime, corruption and political uncertainty.
Contact me when you need property related advice or a realistic valuation, in Northern Suburbs of Cape Town
Feel free to email me: email@example.com.
Or visit our website’s home page – www.pieterkotze.co.za
Tel: 021 975 5897 / 021 979 2228 / 0832601932