So you want to sell your property, could be the house you stay in now or maybe another that you have bought some time ago for investment etc. The first thing you do as the seller is to think about PRICE. What can I / we sell this for?
With all the information available to buyers and sellers these days it is quite possible for sellers to take all of this information into consideration to get to an amount. What sellers need to know is that a lot of the information floating around on the internet and in property publications and booklets are or could be misleading. Take the property publications and ads on the internet sites for instance. Many of the properties advertised on these platforms are over-priced, have been on the market for a long time and just because they are in the same complex, estate, area or street as your property, doesn’t mean that you can price your property accordingly.
Although it gives us an indication, it is a known fact that over-priced properties take a very long time to sell, they become stale and then eventually sell for a lot less if they sell at all. It also doesn’t help talking to sellers in the area as many of them won’t tell you if their property sold for much less than the asking price. To get to the accurate selling price for your property the following needs to be taken into account:
1. Recent Sales: Recent selling prices of similar properties in the complex, estate or area. This is easier in sectional title complexes and estates than in normal residential areas unless the agent knows the properties that have sold and he/she can can also compare specific specifications.
2. Buyers Needs: Experienced agents know what buyers are looking for. Sellers need an independent view on this from an agent that is not emotionally attached to the property. Everything from the layout of the property to the specific finishes, storage space, lighting, garden size and privacy could be issues that are very different from one buyer to the next.
3. Defects, Declaration and Costs: Defects and the general condition of the property is a very important factor. Neat and well maintained properties sell quicker and at better prices …… that’s an industry standard unless you are buying a “fixer-upper” when a whole new set of rules will apply. All possible defects and the general condition of the property has to be documented and declared to the agent so that the buyer can be made aware of the situation. Buyers need to know what they are buying and they will be looking to the agent to declare this. All costs associated with the property need to be declared and documented such as rates and taxes, levies, additional security and maintenance levies etc.
4. Availability: Availability for viewing is sometimes a big problem. Especially in properties where there are tenants that are scared that the property will be sold. Agents will need access to view the property. Most buyers view on weekends and after hours and if that doesn’t suit the seller, well then you might just as well take your property off the market.
5. The Market: We are still in a Sellers Market which means that, taking all the above into consideration, sellers should be able to get slightly higher or at least close to asking price for their properties, if they are priced correctly. With interest rates and stock being low, this is a good time to sell. Buyers also get the benefit of low rates but unfortunately supply is a problem if you don’t find what you are looking for.
6. Commission: Sellers need to account for commission of +/- 5% to 7% of commission to be paid to the mandated agent or the agent who introduced the property to the buyer. This needs to be negotiated and agreed on and documented before the agent starts to market the property.
Determining the market related price of a property to secure a successful sale at the highest possible price with the best possible conditions is serious business and should be left to a property professional. For property sales on the Westrand, Krugersdorp and Roodepoort, contact me on 072 264 7806 / marnus@realpro4u.co.za
Marnus Steyn 