Real Estate

Tips for getting your property from Listed to SOLD.

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Tips for getting your property from Listed to SOLD!

Do some of your own research:

  • Have a look at some of the “Listing” and “Sold” prices in your area, street, neighbourhood, complex or estate where you stay. Any decent agent will be able to point this out to you but don’t just take his / her word for it. Many agents “buy” mandates by showing inflated valuations creating unrealistic expectations.
  • Pricing is the most important factor when selling. Although “location” is important, you can’t do anything about it unless you stay in a mobile home. A lot can be done to other factors such as condition, accessibility and pricing ….. get the price right, and you will sell quicker.

Become a buyer:

  • Look at your property through “Buying Eyes” and ask yourself the following questions ….
  • Would I buy it in the condition that it is?
  • What would I like to have “fixed up” before I buy?
  • What are the biggest negatives about my property and what can I do to make it better.

Appoint a reputable agent to market and sell your property:

  • We (agents) like to work on Mandates because that shows commitment from your side and I can then spend valuable time and money advertising and bringing buyers to your property. Although it might not always look that way, a lot of time, effort and money is spent on marketing and communicating with buyers before they actually see the property and once an offer comes in, the real work starts. You want to make sure you are dealing with an agent that understands the selling and registration processes so the transaction can be as quick and painless as possible. A mandate can be seen as an employment contract where the salary (“Commission”) is 100% performance / outcome based.

Be accessible:

  • Many properties do not sell because you can never get in to show buyers the property. Between you and your agent you have to arrange that the property can be easily accessible. Most buyers (not all) view properties after hours in the week or weekends and they see more than one at a time so you have to “play ball” here. If a buyer can’t see your property he will go on and buy something else and you might just lose out on “the one”.

Clean up:

  • It’s a fact, neat houses sell quicker than dirty or untidy houses. Buyers are put off by the fact that the owner is not taking care of the property and as much as we try to tell the buyers to look past the mess in the kitchen, unmade beds, clothes all over the floor, underpants (and other similar items) lying around in the bathroom, on the couch etc …… most buyers will not see the “potential” we talk about and leave.

Don’t be stubborn:

  • Selling properties is what we do and I don’t believe that this business can be done as a part-time or side-line business so …… selling property puts food on the table for most agents and we need to sell to survive. As mentioned in point 3 above, pick an agent that you can relate with, trust and work with to sell your property and then go with what he or she tells you to do. If you don’t get along with the agent, don’t appoint him or her and find one you like.

…………… hope this helps, please feel free to pass this on or “share” with friends and watch this space for more tips, hints and industry related news and updates …………. Happy Selling!

SOLD PropertySelling Property

Heads UP

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… every now and again we have to look at some stats to see where we are coming from AND if we are on track to where we want to go. The last 17 months since Jan ’12 we have captured our transactions a bit differently so that we can extract valuable data on various aspects of our business.

RealPro is not a BIG Real Estate Agency, but we a fair a mount of business on the Westrand including Krugersdorp and Roodepoort. Enough to get some stats to look at ….. at least. In the last 17 months we registered just over R 72 000 000 worth of properties (Property Value)., with an average value of below R 1 000 000. We make use of bond originators where we can as we believe they add value to our business and to the majority of our buyers. We have some clients who prefer to go directly to their banks but the most use originators to see where they can get the best deal.

Yes, we do get many 100% bond applications, 54% of the registered deals applied for 100% bonds and 57% of them got it. Many got 95% or 90% or even as low as 75% and still continued with the transaction.

Below is a graph showing which banks granted the most applications (deals) during this 17 month period. Banks include ABSA, Nedbank, Standard Bank, FNB as well as RMB and SA Homeloans.

Finance 3 June 2013…. watch this space for more stats and info ….. all our properties can be viewed at www.realpro4u.co.za

Have a good one

McS

Posts to come …..

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So much is happening in the Real Estate market at the moment. Agents and agencies are fighting for a piece of the pie with less stock and most buyers struggling to qualify for bonds. Marketing of your brand, your stock and most importantly, yourself is becoming increasingly important for agents.

Most often than not, sellers want too much for their properties and they believe that somewhere out there is a buyer who’s prepared to pay more for their home than what similar properties have just sold for, and its up to the agent to find that 1 buyer!

Property websites are becoming more & more popular but many buyers are frustrated with all the duplicate and outdated stock on most of these sites. Not sure if we can solve this one but knowing how and why this happens might benefit buyers browsing these sites for properties.

Some issues I would like to blog about before 2013 ……..

1. Pricing right for sellers
2. Giving / Taking a sole mandate or not ….
3. Multi-Listing or not ….
4. What’s up with commission?
5. Finding your new home ….
6. Some smart marketing tips for agents ….
7. Stock on property websites …. what you as a buyer, and seller should know.

Watch this space for more details.

Happy blogging.

Stock – Listings available

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Stock, stock and more stock ………. Just a quick one regarding some available stock the I will be advertising for next week. Some well priced family houses in Krugersdorp and Townhouses available in Roodepoort. Small holding properties in a secure estate in Honigklip as well as some stunning estate houses in Chancliff, Krugersdorp.

For all my, and all RealPro listings please remember to visit the RealPro website at www.realpro4u.co.za

RealPro YTD Stats

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Looking at our stats from approved transactions this year so far i have to thank two companies for their commitment and great service in assisting our buyers and sellers. Attorney Firm Trutter Crous & Wiggill and Bond Originator Payneless Bonds ….. thank you for your help to date!

Planning and strategizing for the future is no good unless you know what you have achieved thus far. In an industry as volatile as ours where there are so many external factors that can influence the success of the agent and agency we have to be well aware of the pitfalls and try to avoid them as far as possible. One of the ways we try to do this is by looking at certain statistics from transactions that have been successfully registered to date.

The more of these deals there are the better but let’s just say we have enough 2012 data to see some interesting stats coming through.

 “The Banks” are very unpopular when it comes to granting home loans and for most buyers this is where it all goes wrong. Not too harp on the subject but the banks are tough, very tough, but for those applicants who have their financial affairs in order it does seem as if the banks are getting a bit more lenient ……… all be it minutely so!

Looking at the clients that have successfully bought properties from or through RealPro this year it is interesting to notice that a very small percentage have been successful with Nedbank and that almost 22% of the transactions were 100% CASH deals with no bond application needed. FNB got almost 15% of the pie and ABSA got just over 22% of the business. Standard Bank is leading the race at this stage with just over 33% of the allocated bonds …… obviously looking to grow their bond book.

Buyers always have a choice of where they want to place their bonds but the repayment rate plays a big part with prime + rates being the norm at the moment. Just as a matter of interest, the average sales price of the properties making up the above data comes to R 845 000 which is also in line with the national average.

Many buyers still apply for 100% bonds in the hope that they don’t need to pay a deposit. In our case, 48% of our applicants applied for 100% bonds and 61 % of those got approved. The average purchase price where 100% bonds were achieved was R 857 000. Average price for all the CASH transactions was R 570 000. Even though it seems as if some of the Banks may have loosened their Credit Criteria slightly, buyers should still plan and prepare for a 5% to 15% deposit to secure a home loan, especially when buying in the higher price brackets of R 1 000 000 +.

Having a good Bond Originator on your side to aid your buyers also helps as they understand the application processes better and can motivate certain issues to the bank which might be overlooked. With the Bond Repayment Rate dropping by 50 basis points from 9% to 8.5% on Thursday 18 July 2012 many prospective buyers might now be in a better position to afford that perfect new home.

Credit profile still plays a huge role for applicants and we don’t see that changing soon so make sure your credit profile is clean and all accounts are up to date and paid on time.

Happy Buying and Selling ……

 

What factors should you consider when buying into a HOA or Sectional Title / Body Corporate ….

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A resent article on Property24 highlighted the most important factors to consider when buying into a HOA (Home Owners Association). Herewith the article:

05 Jun 2012

Gated communities and private estates have become common place in South Africa mainly due to their perceived feelings of added security and safety. What most people might not realise is that each of these communities and estates are ruled by a Home Owners Association (HOA) that has their own set of rules and regulations with regards to what can and cannot be done.

Ask to see the most recent trustee meeting minutes – viewing the minutes will be able to give you an idea of the topics and issues that are current within the estate. “HOAs are often confused with Sectional Title Schemes or Bodies Corporate, and whilst the two are similar there are many differences,” says Johann Le Roux, Director of Propell.

Before buying into a gated community or private estate, Le Roux advises that you ask the following questions with regards to the HOA for that estate:

  1. Make sure you know what the HOA rules and regulations are. For example are you able to sublet any parts of your property or run a business from your property? What are the styles and colours allowed? Are you allowed pets within the estate; and if you are allowed dogs, must they be walked on a leash when out in the common area? If you are unsure of any of the rules and regulations stated, seek legal advice.
  2. What is the financial standing of the HOA? Is the HOA currently in the black? Does it have any monies saved for future projects? What are the current levies and when last were they increased?
  3. What is the arrear levy collection policy? Obtain a list of arrear owners to establish if there are significant arrear balances, which could impede the HOA’s cash flow.
  4. Ask to see the most recent trustee meeting minutes – viewing the minutes will be able to give you an idea of the topics and issues that are current within the estate.
  5. Find out if there are any penalties for not building within a specified time period – this especially applies to estates where you buy your plot and then build. The penalties for not building within a specified time period have been known to be as much as 8 times what the current levies are.
  6. Make sure the home/property that you are buying is not already out of compliance with the HOA regulations.
  7. What do your levies cover? For example – security, road maintenance, path maintenance, fences, public areas such a pool, club house, etc.

The main advantage of living within an HOA is the lifestyle opportunities they offer, says Le Roux ……

 

 

 

 

A couple of examples in the areas where I sell.

  1. Townhouse in Wilgeheuwel,Roodepoort for R 489 000
  2. Townhouse in Rangeview, Krugersdorp for R 599 000
  3. Townhouse in Wilgeheuwel, Roodepoort for R 850 000
  4. Townhouse in Wilgeheuwel, Roodepoort for R 925 000
  5. Cluster in Chancliff, Krugersdorp for R 1 140 000
  6. Cluster in Chancliff, Krugersdorp for R 1 355 000
  7. Cluster in Strubensvallei, Roodepoort for R 1 750 000
  8. House in Estate, Ruimsig, Roodepoort for R 2 500 000
  9. House in Estate, Ruimsig, Roodepoort for R 2 750 000
  10. House in Estate, Chancliff, Krugersdorp for R 5 259 000

Just to point out that most the advice given above is also applicable when buying into a Sectional Title (‘ST’) / Townhouse development with the major differences being:

  1. Most ST developments are managed by a property management company.
  2. Properties are mostly refered to as Townhouses or Flats where HOA’s are Clusters and or Single Residential Properties within an Estate.
  3. These Townhouses do not have their own Erf numbers which is covered by one Erf number for the development as a whole.
  4. Owners do not own the stand / land on which the property is built but only the inside of the building.
  5. Owners therefore own a share in the development depending on the size of their unit ……… and so we can go on.

The ST developments appoint a board of trustees made up of owners and also have audited financials, rules and regulations, annual general meetings where budgets and levies are discussed and minuted. Some even have regular news letters sent out to owners / residents which can all be obtained prior to signing on the dotted line. Agents selling any of these properties should also be able to provide you with such info where requested.

Additional monthly expenses that you need to be aware of are:

  1. Levies + additional levy for security where applicable (some complexes have this included in the current levy but this is not always the case). Levies normally include payment for services such as: upkeep of common property, garden services, refuse removal, general maintenance to the common property as well as to the exterior of the units, security services and maintenance to gate motors, systems etc, structural insurance (replacement value) including repairs and replacement of geezers, windows, walls, roof structures etc.
  2. Rates and Taxes paid to the relevant council.
  3. Water and electricity usage (Some developments might have these on a pre-paid system) normally included on the levy statement.
  4. Any special levies imposed by the Body Corporate for maintenance, upgrades etc.

What is very important is to make sure that when you buy into any of these Developments, Complexes or Estates, that any additions, alterations or improvements of any sort has been approved by the HOA or Body Corporate and the Council where applicable.

Just as buying any property, you as the buyer have to make sure that you took all necessary steps to gain as much info on the relevant property that you want to buy that you are comfortable going forward with the sale.

Just remember …… “Any day is a good day to buy Property”!

Marnus

Can we be blamed

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As with any business and or industry, one has to roll with the punches and adapt in order to stay at the top of your game.

The Real Estate industry is no different. Providing a professional service to buyers and sellers means that you have to do everything in your power to make sure you act in the best interest of your client. You also have to make sure that you cannot be held responsible for defects that wasn’t declared by the seller. One way of doing this is by having a professional property inspection done prior to the listing or selling of a property.

This is much easier said than done as many sellers already want too much for their properties, having an inspection done will, in many cases, mean that the seller will now have to spend more money on fixing the problems or he will have to drop his price to compensate for the problems. The cost of the inspection will also be for the sellers account unless otherwise agreed to by the buyer.

The positive side to all of this is transparency. Buyers will know what condition the property is in and they won’t have to worry that the seller or agent is hiding something. The inspection will also cover the seller and the agent and will assist in the valuation process, making sure that the property is marketed and sold at the right price. All (or most) agencies and agents do little defect lists on their mandates and offers and sometimes these are even completed on behalf of the seller just because the agent didn’t see anything wrong with the property.

Whether a buyer can legally take you to court or not is not the point, providing a professional service is …….. in most offers I have ready through, buyers acknowledge that they have thoroughly inspected the property and that they buy it as they have seen and inspected it …… I have never had a buyer climb in a roof …… neither have I as I wouldn’t know what to look for any way!

My personal opinion is that a pre-listing property inspection will become mandatory in our industry and being pro-active in this field will be to any agencies’ advantage. Sellers need to take responsibility for the condition of the property and disclose as much of the condition of the property as possible. Agents need to take ownership of their stock and make sure they know what they are selling ……… Reputation can make or break any agent.

For more on the industry follow me on twitter @marnusuragent or on Facebook.

Marnus Steyn

New Year – 2012

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I’m not really one for NEW YEARS RESOLUTIONS but I suppose it’s a good time to review how and what I have been doing up to now.

With almost 38 years of experience in this thing we call life I know that I can always try to do something better or be more efficient than what I have in the past. This is a great time to look for better ways to do what I do, better. Being in the Real Estate business for the last 5 years and having to sell and market properties for my clients, it doesn’t take a Rocket Scientist to figure out that if I can sell more properties, more often, I will make more money and more of my clients will be happy. This sounds easier than it is as there are a couple of hurdles that need to be overcome.

A couple that comes to mind, in no specific order are:

1. List at the right price
2. Build up a database of buyers / investors
3. Regular communication to clients / buyers / sellers
4. Better and more efficient use of technology, websites, blogs and social networking platforms ….. and and and

…… Not that any of this is new but it’s good to have a constant reminder. More happy clients also means more “word of mouth” marketing that your clients do on your behalf ….. still one of the best forms of marketing.

So I guess after all of this, my New Years Resolution for my business is not just to work “smarter” in stead of “harder” but to have more of my clients do my marketing for me ……

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Property Business: Outlook for 2012

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I have only been in the Real Estate industry for the last 5 years, since March 2007 and have had my own agency since July 2007. It didn’t take me long to realise that it might not have been the best time to start an agency as this was also the time when the market started to go for a bit of a “dive”, if you know what I mean. The bond lending rate was at 11% in July 2007 and went up to 15.5% (June 2008) before coming all the way down since then to where we are today.

The market and business as we knew it was changing and then the new National Credit Act came into play. There were no more 108% loans where the banks financed your loan, your deposit, your costs and your new lounge & dining room suit. Many prospective buyers become tenants and the words “qualified buyer” took on a whole new meaning. The “boom” was no more and the property industry became a touch place to make a living. Many agents and agencies have gone “walkabout” to find greener pastures and the industry became a lot more regulated. We have also been through a recession and many economists are predicting more of the same to come.

So, what should we do now? Well, I might not have 30 years experience in the property business but I have enough experience in life to know that our situation is not unique and that many before me and even more after me will be able to make a success in tough times. Looking at 2012 and remembering my brief 5 years of experience, marketing and selling houses on the Westrand, I am very positive and looking forward to a great 2012. Will it be tough? Yes! Will buyers struggle to get bonds? Yes! Will there be less stock? Probably! But the fact is that there will always be people who need to sell their properties and there will always be those who see opportunity in buying property for themselves or for investment purposes. Economists all over agree that property in SA is still a good long term investment. There are also less qualified agents to assist buyers and sellers so those that make the effort will get the listings and take the offers.

My focus will be on learning, finding more effective ways of marketing to buyers, sellers and agents, building business networks, delivering great service and being more than just an agent. We have so much to be thankful for in this country where owning property is a great privilege for most. Helping someone find a new home or selling there’s so that they may start a new chapter in their lives is what I love doing …….. Thank you for taking the time to read my blog, may you have a fantastic Festive Season filled with love, warmth and happiness and may 2012 be THE year, for you, your family, loved ones as well as your business.

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SA Property Market – News

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Very interesting and insightful article from Property24 but what I like the most is the following quote …. “People need to remember that buying property is still one of the best decisions they will ever make,”.

Read it here