Considering the unique dynamics that surround your neighbourhood is vital before deciding to enter the selling market.
According to Adrian Goslett, the Regional Director and CEO of RE/MAX of Southern Africa, buyers and sellers can expect a challenging environment ahead as the market begins to transition and become more competitive.
“For some time conditions have favoured sellers, with high demand and a low supply of inventory, however the market is slowing shifting as buyers are adopting a wait-and-see approach to the market. As a result, sellers now have to be aware of the competition they face in their own neighbourhood, before they decide to list their property,” says Goslett.
Goslett offers a few aspects to consider about your neighbourhood before listing your property for sale:
Are the neighbours renovating?
Tap into the neighbourhood grapevine and find out who is renovating their kitchen or bathroom fixtures. Newly refurbished homes increase the property’s value and attracts more attention from prospective buyers.
Real estate professionals who specialize in the neighbourhood have access to resources such as home listings, the price of homes for sale, as well as relevant information to confirm if any of the home renovations have made a difference.
Are the homes selling quickly?
Are the other houses for sale in your neighbourhood faring well on the market? Having an estimation on how quickly these homes are selling before listing yours for sale will help you to plan accordingly.
The FNB Price Index has highlighted that the average home sits on the market for approximately 12 weeks before it is purchased. “Depending on the neighbourhood, properties available and buyer demand in the area, it could take less time or in some cases a bit more. It all depends on the specific circumstances that surround that particular trading environment. Other factors can also come into play such as pricing the home correctly at what is perceived to be fair market value for the area,” says Goslett.
Take stock on the available inventory
Attaining your ideal selling price can be difficult if there are too many of the same home listings with not as many buyers in the market. “All the sellers in a particular neighbourhood will be competing against one another for the same pool of buyers. If there are several homes for sale within a relatively small radius, it might be worthwhile to wait for a while before listing the property,” advises Goslett. “An experienced agent will be able to provide vital information with regard to the current market trends and the best time to list the property.”
Stay alert of all neighbourhood and area news
Being in the know of all upcoming or potential public projects, such as an area construction plan, is important as it affects the timing of your property listing. Many buyers want a home that is convenient and close by to all amenities but not if it’s in an area that’s currently under construction. Discussing a selling strategy with your real estate agent is vital in this regard, so that any potential issues can be avoided.
“A real estate agent with extensive working knowledge of the local market will be able to put all aspects into perspective when considering selling. Sellers will benefit from using an agent that has an understanding of the unique dynamics surrounding their specific neighbourhood,” Goslett concludes.