The property market is becoming increasingly challenging for sellers with demand declining and buyers facing affordability challenges. Properties are now taking increasingly longer to sell.
Realities to keep in mind
That said, there is still plenty of activity in the market, but sellers need to adjust to the new realities, say property practitioners from the Seeff Property Group. For sellers, the main objective is always to sell their property for the best price in the shortest possible time.
While this may sound easy in theory, it is not always the case, especially when the market takes a slight downturn as things look now. Seeff’s property practitioners say that there is now an increasingly a mismatch between what buyers are prepared to pay and what the seller wants for the property.
Sellers who set the price expectation way above the market, are beginning to realise that there is not much appetite for high prices. Sellers who are serious about selling in the current market are then often now faced with the choice of either waiting it out at a degree of risk, or reducing their asking price in an attempt to attract a buyer.
The reality is that buyers are savvy, they are well aware of the market, and they simply will not overpay. It is rare to find buyers who will offer well above the asking price. Even during the Covid-boom, agents did not necessarily see a noteworthy prevalence of buyers overpaying.
How to achieve a quick sale
Seeff’s property practitioners highlight important considerations for sellers to achieve a quick sale and a best possible price.
Firstly, never overcapitalise. Ensure that renovations and improvements add value. Keep finishes up to date, but not overly elaborate because each buyer has their own taste. Buyers will not necessarily want to pay for finishes that they do not need. Neutral is best.
Importantly, ensure your price expectation fits with the realities of the current market. Evaluate this against the prevailing sold prices in the area. Listing prices are not a guideline as many listings on the property portals are overpriced, so do not compare with these.
Choosing the right time to sell is another important consideration. If you have a particular price in mind which is above the prevailing market prices, it might be better to wait for a more opportune time to put your house up for sale. It all depends on your needs. If you must sell now, then you may need to adjust.
Do not try and sell it yourself. Property practitioners still conclude more than 95% of all property sales in the country and achieve the best prices. It may be tempting to think that you can make more money, but there is limited evidence of success.
Take care not to choose a property practitioner only on the basis of the highest price promise. It is important to work with a local area specialist who can show you their experience and recent sales in the area. A proven track record is the best predictor of success.
Always choose a sole mandate. Although an open mandate can have many property practitioners working on the sale of your property, they are not likely to give it their sole attention. A sole mandate means sole attention from one property practitioner and focused marketing.
Your property should be in tip top sellable condition. With fewer buyers in the market, you want to give them no reason to hesitate or look for a price discount. Clean, paint, repair, replace and upgrade where needed. You could also get all the checks and compliance done upfront so that the buyer can have peace of mind that the building works, electrical and water installations and other aspects are all compliant.
Stage the home for viewings. Pack away personal items and declutter (including kitchen and bathrooms). The house must be clean, light and airy. Put out clean towels and fresh flowers. Do not hover during viewings. Put away the pets or take them with you so that buyers can view the property unhindered.
Prepare properly, and do not give buyers any reason to find fault or walk away. Ensure you have the plans, title deed, and all FICA documents handy so that there can be no delay. The first offer is often the highest offer, so consider all offers. The property practitioner will provide guidance. A counter offer is often the route to success.
Writer: Gina Meintjes