Tag: Cape town

Today we publish the next of our blogs in our 12-week blog series, THE ULTIMATE GUIDE TO SELLING YOUR HOME.

SELLING YOUR HOME – PROPERTY SALE NEGOTIATIONS

DON’T EXPECT TO BE OFFERED YOUR ASKING PRICE

It is common cause in the real estate market that a property has a marketing price and an eventual selling price. These two amounts are, most often, not the same, as buyers will always try and negotiate on the asking price. As a result, the homeowner, along with the estate agent, traditionally sets a marketing price which can accommodate a degree of negotiation.

How much the buyer’s eventual offer price differs from the asking price will depend on a number of factors. These include how realistic your initial asking price was and how many buyers are competing for your home. In addition, it will depend on what cycle the property market, in general, is in. This is a very important consideration, as conditions cycle between what is termed a seller’s and a buyer’s market.

In a “seller’s market”, properties in general attract more buyers at better offers. There is more demand than supply, which can occur as a result of many contributing factors. This is naturally the best time for a homeowner to market his or her property. A “buyer’s market”, in turn, means the opposite, with the supply of property outstripping the availability of buyers. It means there is more negotiating room for the buyer. This often translates into a downward correction in property prices.

The one positive of having gone through the property marketing process in the detail described up to now is that, by the time you arrive at the point of having to consider an offer from an interested buyer, you will have a reasonable idea of what could be seen as a fair price for your property. Your real estate agent will also lead you with regard to that fair price.

DON’T SELL TO UNQUALIFIED BUYERS WHEN SELLING YOUR HOME

First prize with any offer from a buyer is that it is for cash. In this case, you need to insist on a proof of funds from him or her.

Second prize is that it is an offer where the buyer requires a bond to finance the purchase. In this case, it is best if the party provides you with a pre-approval letter from his or her Bank or mortgage lender.

If the buyer makes an offer subject to the sale of his or her current property, you need to give careful consideration to your own requirements. If you need to sell your property reasonably urgently, you may well not accept the “subject to” offer. With a subject to offer you should, at the very least, ask your agent for some detailed information on the property in question. How realistically is the property priced? Has there been some interest in the area in which the property is located? What is the interest level in the property itself? Has an offer already been received?

Lastly, it is imperative that, when accepting a buyer’s offer subject to the sale of a current property, you set and include a deadline for that sale to be concluded, after which the offer will lapse.

RESPOND PROMPTLY TO A PURCHASE OFFER

When you are selling your home, you may join the buying process shortly. Or you may already be in the process of searching for your new home. When you eventually submit an offer for a property which you have identified as your future home, you will expect the seller of the property to treat your offer with fair consideration and particularly, respond to your offer promptly. You need to ensure that you, as the seller, treat the buyer in exactly the same way.

ENSURE THAT YOU ARE KEPT FULLY INFORMED THROUGHOUT THE CONVEYANCING PROCESS

Next week we provide you with the entire Conveyancing process. Most Conveyancing attorneys will supply you with such a list at the outset of the process and update you on its progress on a weekly basis.

NEXT WEEK: THE CONVEYANCING PROCESS

Today we publish the next of our blogs in our 12-week blog series, THE ULTIMATE GUIDE TO SELLING YOUR HOME.

SHOWING YOUR HOME

ACCOMMODATE VIEWINGS BY PROSPECTIVE BUYERS

You have done a lot of hard work so far and now is not the time to drop the proverbial ball. If the estate agent calls for a viewing by an interested party, you need to be as accommodating as possible. Selling your home is as much about the presentation, as we have highlighted throughout the staging and marketing sections, as it is about getting as many feet through your property. You will have to clean, again, but stay focused on the prize!

BE FLEXIBLE WITH HOME SHOWINGS

Showing properties is less of an occurrence than it used to be in the marketing of property these days, largely as a result of the visual effectiveness provided by online technology. But, if your estate agent believes a “Sunday showing” of your home will benefit the marketing process, please don’t turn him or her down. Of course, you will have to clean, again; no dishes in the sink or a dirty dishwasher and bathrooms need to sparkle. And if you find it too uncomfortable or distressing to have strangers in your home whilst you are in attendance, be sure to visit some friends for the two or so hours of the showing. It’s a little inconvenient, but it will get your house sold!

CONSIDER HOLDING AN OPEN HOUSE WHEN SELLING YOUR HOME

Not every home is necessarily appropriate for an open house, but if your estate agent feels yours is, you should consider employing that marketing route. An important consideration is whether your property is in area close to major traffic or on a major artery. Also ask your agent if the open house will be advertised online. There are many eventual buyers of a property who initially had little interest in a specific property, but then ended up buying it after visiting it as an open house.

TAKE YOUR PETS SOMEWHERE FOR SHOWINGS

Many of you will probably be agasp at this, but some people really don’t like pets. You may not agree with this and may even avoid such people socially, but that does not exclude such a person from actually buying your house. Buyers certainly don’t want to see a bowl full of dog food or smell the cat litter box. Take the pets(s) to a friend or a pet hotel for the day.

DON’T HIDE MAJOR PROBLEMS 

One of the most serious and critical mistakes a homeowner can make is to hide ANY problems with the property from a potential buyer. You are just opening yourself up to all sorts of problems during the conveyancing process and may even run the risk of legal recourse. If you are aware of a problem or problems, it will even be to your advantage to have your home inspected by a professional prior to listing the property.

In terms of home staging, it is always critical to fix the problem before home showing. You will know by now that, by not fixing the problem prior to home showing, you will definitely be limiting the number of interested buyers. If the cost of fixing the problem outweighs the perceived benefit, you may also consider pricing the property lower to compensate for the problem and then disclose the problem upfront to any potential buyer. Or you may consider offering the buyer a credit to fix the problem.

NEXT WEEK: SALE NEGOTIATIONS AND THEREAFTER

Today we publish the next of our blogs in our 12-week blog series, THE ULTIMATE GUIDE TO SELLING YOUR HOME.

SHOWING YOUR HOME

ACCOMMODATE VIEWINGS BY PROSPECTIVE BUYERS

You have done a lot of hard work so far and now is not the time to drop the proverbial ball. If the estate agent calls for a viewing by an interested party, you need to be as accommodating as possible. Selling your home is as much about the presentation, as we have highlighted throughout the staging and marketing sections, as it is about getting as many feet through your property. You will have to clean, again, but stay focused on the prize!

BE FLEXIBLE WITH HOME SHOWINGS

Showing properties is less of an occurrence than it used to be in the marketing of property these days, largely as a result of the visual effectiveness provided by online technology. But, if your estate agent believes a “Sunday showing” of your home will benefit the marketing process, please don’t turn him or her down. Of course, you will have to clean, again; no dishes in the sink or a dirty dishwasher and bathrooms need to sparkle. And if you find it too uncomfortable or distressing to have strangers in your home whilst you are in attendance, be sure to visit some friends for the two or so hours of the showing. It’s a little inconvenient, but it will get your house sold!

CONSIDER HOLDING AN OPEN HOUSE WHEN SELLING YOUR HOME

Not every home is necessarily appropriate for an open house, but if your estate agent feels yours is, you should consider employing that marketing route. An important consideration is whether your property is in area close to major traffic or on a major artery. Also ask your agent if the open house will be advertised online. There are many eventual buyers of a property who initially had little interest in a specific property, but then ended up buying it after visiting it as an open house.

TAKE YOUR PETS SOMEWHERE FOR SHOWINGS

Many of you will probably be agasp at this, but some people really don’t like pets. You may not agree with this and may even avoid such people socially, but that does not exclude such a person from actually buying your house. Buyers certainly don’t want to see a bowl full of dog food or smell the cat litter box. Take the pets(s) to a friend or a pet hotel for the day.

DON’T HIDE MAJOR PROBLEMS 

One of the most serious and critical mistakes a homeowner can make is to hide ANY problems with the property from a potential buyer. You are just opening yourself up to all sorts of problems during the conveyancing process and may even run the risk of legal recourse. If you are aware of a problem or problems, it will even be to your advantage to have your home inspected by a professional prior to listing the property.

In terms of home staging, it is always critical to fix the problem before home showing. You will know by now that, by not fixing the problem prior to home showing, you will definitely be limiting the number of interested buyers. If the cost of fixing the problem outweighs the perceived benefit, you may also consider pricing the property lower to compensate for the problem and then disclose the problem upfront to any potential buyer. Or you may consider offering the buyer a credit to fix the problem.

NEXT WEEK: SALE NEGOTIATIONS AND THEREAFTER

Today we publish the next of our blogs in our 12-week blog series, THE ULTIMATE GUIDE TO SELLING YOUR HOME.

SHOWING YOUR HOME

ACCOMMODATE VIEWINGS BY PROSPECTIVE BUYERS

You have done a lot of hard work so far and now is not the time to drop the proverbial ball. If the estate agent calls for a viewing by an interested party, you need to be as accommodating as possible. Selling your home is as much about the presentation, as we have highlighted throughout the staging and marketing sections, as it is about getting as many feet through your property. You will have to clean, again, but stay focused on the prize!

BE FLEXIBLE WITH HOME SHOWINGS

Showing properties is less of an occurrence than it used to be in the marketing of property these days, largely as a result of the visual effectiveness provided by online technology. But, if your estate agent believes a “Sunday showing” of your home will benefit the marketing process, please don’t turn him or her down. Of course, you will have to clean, again; no dishes in the sink or a dirty dishwasher and bathrooms need to sparkle. And if you find it too uncomfortable or distressing to have strangers in your home whilst you are in attendance, be sure to visit some friends for the two or so hours of the showing. It’s a little inconvenient, but it will get your house sold!

CONSIDER HOLDING AN OPEN HOUSE WHEN SELLING YOUR HOME

Not every home is necessarily appropriate for an open house, but if your estate agent feels yours is, you should consider employing that marketing route. An important consideration is whether your property is in area close to major traffic or on a major artery. Also ask your agent if the open house will be advertised online. There are many eventual buyers of a property who initially had little interest in a specific property, but then ended up buying it after visiting it as an open house.

TAKE YOUR PETS SOMEWHERE FOR SHOWINGS

Many of you will probably be agasp at this, but some people really don’t like pets. You may not agree with this and may even avoid such people socially, but that does not exclude such a person from actually buying your house. Buyers certainly don’t want to see a bowl full of dog food or smell the cat litter box. Take the pets(s) to a friend or a pet hotel for the day.

DON’T HIDE MAJOR PROBLEMS 

One of the most serious and critical mistakes a homeowner can make is to hide ANY problems with the property from a potential buyer. You are just opening yourself up to all sorts of problems during the conveyancing process and may even run the risk of legal recourse. If you are aware of a problem or problems, it will even be to your advantage to have your home inspected by a professional prior to listing the property.

In terms of home staging, it is always critical to fix the problem before home showing. You will know by now that, by not fixing the problem prior to home showing, you will definitely be limiting the number of interested buyers. If the cost of fixing the problem outweighs the perceived benefit, you may also consider pricing the property lower to compensate for the problem and then disclose the problem upfront to any potential buyer. Or you may consider offering the buyer a credit to fix the problem.

NEXT WEEK: SALE NEGOTIATIONS AND THEREAFTER

Today we publish the next of our blogs in our 12-week blog series, THE ULTIMATE GUIDE TO SELLING YOUR HOME.

SHOWING YOUR HOME

ACCOMMODATE VIEWINGS BY PROSPECTIVE BUYERS

You have done a lot of hard work so far and now is not the time to drop the proverbial ball. If the estate agent calls for a viewing by an interested party, you need to be as accommodating as possible. Selling your home is as much about the presentation, as we have highlighted throughout the staging and marketing sections, as it is about getting as many feet through your property. You will have to clean, again, but stay focused on the prize!

BE FLEXIBLE WITH HOME SHOWINGS

Showing properties is less of an occurrence than it used to be in the marketing of property these days, largely as a result of the visual effectiveness provided by online technology. But, if your estate agent believes a “Sunday showing” of your home will benefit the marketing process, please don’t turn him or her down. Of course, you will have to clean, again; no dishes in the sink or a dirty dishwasher and bathrooms need to sparkle. And if you find it too uncomfortable or distressing to have strangers in your home whilst you are in attendance, be sure to visit some friends for the two or so hours of the showing. It’s a little inconvenient, but it will get your house sold!

CONSIDER HOLDING AN OPEN HOUSE WHEN SELLING YOUR HOME

Not every home is necessarily appropriate for an open house, but if your estate agent feels yours is, you should consider employing that marketing route. An important consideration is whether your property is in area close to major traffic or on a major artery. Also ask your agent if the open house will be advertised online. There are many eventual buyers of a property who initially had little interest in a specific property, but then ended up buying it after visiting it as an open house.

TAKE YOUR PETS SOMEWHERE FOR SHOWINGS

Many of you will probably be agasp at this, but some people really don’t like pets. You may not agree with this and may even avoid such people socially, but that does not exclude such a person from actually buying your house. Buyers certainly don’t want to see a bowl full of dog food or smell the cat litter box. Take the pets(s) to a friend or a pet hotel for the day.

DON’T HIDE MAJOR PROBLEMS 

One of the most serious and critical mistakes a homeowner can make is to hide ANY problems with the property from a potential buyer. You are just opening yourself up to all sorts of problems during the conveyancing process and may even run the risk of legal recourse. If you are aware of a problem or problems, it will even be to your advantage to have your home inspected by a professional prior to listing the property.

In terms of home staging, it is always critical to fix the problem before home showing. You will know by now that, by not fixing the problem prior to home showing, you will definitely be limiting the number of interested buyers. If the cost of fixing the problem outweighs the perceived benefit, you may also consider pricing the property lower to compensate for the problem and then disclose the problem upfront to any potential buyer. Or you may consider offering the buyer a credit to fix the problem.

NEXT WEEK: SALE NEGOTIATIONS AND THEREAFTER

Today we publish the next of our blogs in our 12-week blog series, THE ULTIMATE GUIDE TO SELLING YOUR HOME.

EFFECTIVELY MARKETING YOUR HOME

DON’T SKIMP ON LISTING PHOTOS, INSIST ON PROFESSIONAL PHOTOGRAPHY

Until a few years ago, one may have got away with photos of an inferior quality. Nowadays, all photographic content needs to be presented at an exceptional level, when selling your home.

Ask your agent, prior to the signing of any mandate, for samples of the photographic content his estate agency has presented in the past. Visit the agency’s website to review their photographic presentation and compare it to that of the competition. You need to ensure that the estate agent employs a professional photographer. The photography session needs to be arranged for the day, in plenty of natural light. The photographer needs to ensure that the time of day and the angle of natural light, best presents your house.

CONSIDER A VIDEO TOUR

The addition of videography is fast becoming ‘the next kid on the technological block’ in property presentation. Drone technology allows for the setting and the possible views of your property to be best shown to any potential buyer. Be sure to speak to your Agent about this prior to signing off on a mandate.

REVIEW YOUR LISTING ONLINE

Once your property has been photographed and, possibly, video graphed, the agency will add these to your property listing on-line. Look at your home listing on the various websites. Ensure that both the visuals and the conveyed property information is both of a high-quality and accurate. If anything is missing or unsatisfactory, contact your agent immediately and ask for it to be rectified.

YOUR PROPERTY NEEDS TO BE MARKETED THROUGH ALL POSSIBLE CHANNELS, ESPECIALLY ONLINE

It was strongly recommended in a previous section that you ensure that all possible marketing channels are used by the estate agency in the marketing of your property. This is particularly relevant for on-line marketing channels.

Your property listing should, at the very least, be presented on the agency’s website and on one secondary, property-listing site. Importantly, these websites supply minute-by-minute statistics of the number of visits to your property listing. The statistics will also reflect the number of times the agent has been contacted for information on, and/or viewings of, your property. So, don’t be shy to regularly ask your agent for feed-back.

In addition, Social media is regularly used to advertise properties to a defined user audience. The exposure of your property to relevant buyers is increased by such advertising. Ask your Agent whether your property will get exposure on Facebook and/or Instagram and how the buyer-audience has been identified.

Also, good estate agents will most times use an email or SMS campaign to notify your neighbours and the immediate surrounds that your property is in the market.

PUT UP A SIGN ON THE PERIMETER OR THE PAVEMENT WHEN SELLING YOUR HOME

Yes, we are living in a digital age and online marketing of your property is critical. However, that does not mean that certain more traditional aspects of marketing and exposing your property is not necessary anymore. Be sure to ask the agent to display a For Sale sign on the perimeter of your property. This is particularly important if your property is situated on a reasonably busy main artery in your town or city.

You may want to keep the sale of your property private by not displaying a For Sale sign. However, in doing so, you may run the risk of missing out on a neighbour who has just been waiting for your property to come onto the market !

NEXT WEEK: CRITICAL ASPECTS OF SHOWING YOUR HOME

Today we publish the next of our blogs in our 12-week blog series, THE ULTIMATE GUIDE TO SELLING YOUR HOME.

STAGING YOUR HOME FOR MAXIMUM SELLING IMPACT

PREPARE FOR THE SALE WHEN SELLING YOUR HOME

You have decided on an agent to assist you in the marketing of your property and between the two of you, you have agreed a price to market the property at. That probably means that you have gone some way to reducing the emotion attached to selling your home.

Now it is time to follow through and maximize the chance of successfully marketing your property by assessing your current home unemotionally in terms of how it will present itself to a prospective buyer. Houses change into homes as owners tailor it to their specific needs over time. However, your and/or your family’s needs will never equate exactly to those of a prospective buyer.

Therefore, put your ‘buyer’s hat’ on and be prepared to change a lot of what you have become used to over the years. And ask your estate agent to advise you on preparing your property for sale.

DO HOME STAGING – IT BOOSTS THE APPEAL AND SELLING POWER OF YOUR HOME

The first impression is the only impression

A prospective buyer visiting your property for a viewing has already judged your home before he or she walks through the door. After all, the general area in which your property is situated and the very street in which it is located, has already made a certain impression on that person. Whilst you do not have much control over the latter, you can and should influence the potential buyer’s impression from the moment he or she steps onto the pavement in front of your house.

START FROM YOUR PAVEMENT AND WORK YOUR WAY IN

One of the first things buyers are going to notice as they enter your property is the landscape, i.e. the lawn, plants, flowerbeds etc.

• Fix/paint the entrance gate (if necessary)
• Mow the lawn and pull out weeds
• Trim trees and flowers or plant new flowers for some colour
• Get rid of oil marks from driveways
• Clean the pool
• Clean up outdoor areas
• Fix any holes in, or leaning, fences
• Unblock gutters
• Wash the windows
• If necessary, repaint the exterior walls, driveway gates and boundary walls

LESS IS BETTER, SO REMOVE CLUTTER

Any homeowner builds up a tremendous number of fixtures and fittings over many years of turning a house into a home. However, the prospective buyer is only interested in seeing as much of the actual house as possible. This includes the floor-space of every room and the physical dimensions of cupboards, showers etc. A cluttered home will make the house seem much smaller than it is. You want to maximize the perceived space in your house.

• Make sure the entry way is clear and clean
• Remove any furniture which may seem excessive; rent a storage space if needs be
• Present some cupboards half-empty (and neatly stacked or hung), to illustrate the space available
• De-personalize your home as much as possible. Prospective buyers will have difficulty visualizing the house as their future home, the more clutter they see
• A good yardstick is getting rid of one-third of the stuff in your home
• Maximize the perceived space in the home – clear out all the non-essentials.

 DON’T OVER-UPGRADE, BUT DO MAKE SURE YOU REPAIR EVERYTHING THAT’S BROKEN

Fixing what is broken is critical and will always pay off, but massive makeovers seldom do when selling your home. Therefore, fix everything, because when a buyer sees one thing broken, it is only natural to start wondering about what else may be a problem.

• Fix broken doorknobs and/or locks
• Repair broken window latches
• Fix a leaking toilet
• Repair leaky faucets
• Clean or re-paint ceiling stains
• Fix broken Cupboard handles
• Ensure Closet doors are on track
• Fix faulty and/or exposed wiring
• Clean any grout

PAINT YOUR INTERIOR IF IT NEEDS IT

There is not another home improvement that will give you more bang for your buck than a fresh coat of paint. Dark colors will reflect less space and old paint makes rooms look decrepit. Paint with contemporary, light and neutral colors.

CLEAN PROPERLY AND THOROUGHLY

A dirty home is one of the things most off-putting to a potential buyer. It makes it almost impossible for him or, especially her, to visualize themselves in the house in the future. It is one of the quickest, most sure-fire things to turn a potential buyer away and this applies particularly to the kitchen, the bathrooms and any carpets. This is one of those things where spending a few hundred Rand can save you thousands by preventing the buyer from thinking they need to replace the carpets immediately. As a result, consider a professional cleaning for the entire house if it really requires it.

GET RID OF ALL ODORS

This is something you should not take any chances with. Ask an outside person, like your property agent, for an opinion on any odors in the house. This may include smoking (a massive no-no!), pet or cooking odors; any of these, particularly the first two, will more than likely chase most buyers away.

LET THE LIGHT IN!

Presenting a light, airy house to the buyer is critical; it is next in line in importance, only to the location and the kitchen. Good light is the one thing that every buyer cites that they want in a home. Things to do to maximize light is cleaning the windows, remove unnecessary curtains, replace fused light bulbs and increase wattage, where necessary. If there are any shrubs or bushes outside windows which deplete light inflow, cut them back to let in sunshine.

WHEN SELLING YOUR HOME, THE KITCHEN COMES FIRST, SO MAKE IT APPEALING

Remember, you are selling your kitchen as much as you are selling your home. On the one hand, we have warned against over-spending on upgrading and/or performing unnecessary upgrades. However, if there is one area in which you can break this rule, it is the kitchen. You are almost certain to get your money back. Replace counter-tops and any tacky cabinetry. Paint, with neutral colours! You can even consider installing a new appliance or two if the existing ones are in really bad shape or look outdated.

NEXT WEEK: CRITICAL ASPECTS TO EFFECTIVE MARKETING OF YOUR HOME

Today we publish the next of our blogs in our 12-week blog series, THE ULTIMATE GUIDE TO SELLING YOUR HOME.

#9: UNDERSTANDING ALL ASPECTS OF A MANDATE  

It is important to understand what different options there are when it comes to granting an estate agent a mandate.

• Open Mandate:

This gives the owner and a number of specified estate agencies the right to market the property. It is an’ instruction to sell’ by the seller to a number of estate agencies. The owner still has the right to market the property and has no contractual obligations to the collaborating agencies.

• Multiple Mandate:

This gives the owner and a number of specified estate agencies the contractual right to market the property. It is an ‘instruction to sell’ by the seller to a number of estate agencies. The owner still has the right to market the property, but has contractual obligations to the collaborating agencies.

• Joint Mandate:

This gives the owner and two specified estate agencies the contractual right to market the property. It is an ‘instruction to sell’ by the seller to two estate agencies. However, the owner still has the right to market his or her own property.

• Sole Mandate:

This gives the owner and one specified estate agency the contractual right to market the property. It is an ‘instruction to sell’ by the seller to one estate agency. However, the owner still has the right to market his or her own property.

• Exclusive Sole Mandate:

This gives one specified estate agency the contractual right to market the property. It is an ‘instruction to sell’ by the seller to one estate agency. The owner forfeits his or her right to market his or her own property.

WEIGHING UP YOUR RIGHTS AGAINST THE AGENCY’S EFFORT IN SELLING YOUR HOME

A mandate is there to protect the relevant parties involved with selling your home.

From a seller’s perspective, it may seem as if he or she is giving more rights away as one moves up the scale of the various mandate options. However, an estate agency will always prefer to market the property backed by an exclusive sole mandate or, at least, a sole mandate.

The estate agent’s reality is the time the agent will be spending on marketing your property over the next few months. That time starts with preparing the valuation. This is followed by the conducting of viewings and eventual negotiations on your behalf. Considerable time is then spent on assisting you in the execution of any inspections required and the fulfillment of specific suspensive conditions.

The estate agency’s reality is the cost it will incur in marketing your property over the period. This starts with the photography session, which is followed by the listing on one or more secondary property sites. It will include the occasional boosting expense to give your property more exposure at selected times. In addition, the agency will be using, and paying for, social media advertising to promote your property selectively.

It is only natural that the more secure a mandate owned by an estate agency, the more marketing time, effort and cost it will expend on a property. The owner/agent relationship is always critical in the success of the selling of a property. This relationship is normally best served by providing the property agency with a sole mandate to ensure you receive maximum effort from the marketing process.

Please note that such a mandate should also specify the time (mostly 3 months), the marketing price and the fee/commission payable to the agent upon transfer of the property.

NEXT WEEK: STAGING YOUR HOME FOR MAXIMUM EFFECT

Today we publish the next of our blogs in our 12-week blog series, THE ULTIMATE GUIDE TO SELLING YOUR HOME.

CLICK BELOW should you prefer to skip this 12-week educational and proceed straight to a FREE EMAILING of the entire document:

#6, 7 & 8: SETTING YOUR ASKING PRICE & BEING AWARE OF ALL COSTS WHEN SELLING YOUR HOME

We have already warned against becoming emotionally involved when selling your home, as this is what often results in properties coming to the market at an unrealistic asking price.

But there are other factors which will also determine whether prospective buyers see your property as fairly priced:

• ask yourself from the outset whether you “want to sell” or “need to sell”. If you find yourself in the former situation, you could lean towards the higher end of the valuation scale. However, if you are in the latter situation, you need to price your property at the bottom of the valuation scale

• a buyer only has a certain amount of funds available, or only has access to a specific amount of bond finance. This has to be used to secure the most appropriate property possible for his or her particular needs. Couple this to the advances in technology, which permit the buyer to research every possible property in the desired location. It becomes critical for sellers to be realistic about the price they set for their home

• obtain an understanding of what current market conditions are, i.e. is it currently a sellers’, buyers’ or a neutral market. A sellers’ market means that demand for property is strong and you could price your property slightly higher. A buyers’ market means that properties are not fetching the prices it has in the past. This could be the result of recent property prices having just become too expensive or as a result of the prevailing economic conditions.          

PRICE YOUR HOME ACCURATELY

In the preceding section, we highlighted the advantages agents have in the process of valuing your property. This includes the benefit of agencies having access to digital platforms such as CMA (Comparative Market Analysis) to:

• extract the selling prices of comparable properties sold in your area over an extended period
• provide you with a projected valuation, based on your initial purchase price and compounded interest rates, over the ownership period
• establish how many properties had been sold in your area for different periods, providing you with a view of prevailing market conditions
• extract municipal valuations of your property and those in your surrounds.

An agent who uses this tool effectively, will be able to provide you with an accurate valuation of your property based on factual and extensive statistics.

BE AWARE OF CERTAIN COSTS YOU WILL HAVE TO INCUR DURING THE PROCESS

Sellers are often caught unawares by costs which they have to incur by law. These include:

• Electricity compliance
• Beetle certificate
• Plumbing compliance
• Gas certificate

Any non-compliance identified during the inspection will, in turn, translate into specific repair or upgrading costs to the seller.

These compliance inspections mostly occur during the conveyancing process. However, the seller may take it upon him or herself to have the inspections done prior to the marketing of the property. This will mean that you can present a prospective buyer with compliance certificates, reflecting your property’s “clean bill of health”.

A note of caution, though, when embarking on the compliance process. You may find there are a few service providers who may quote you on items which not necessarily require repair or upgrading for your property to be considered compliant. Therefore, be sure to use your agent’s knowledge and experience to access reputable and trustworthy service providers.

NEXT WEEK: SIGNING A MANDATE