This article deals with the selling of residential property. However, many of the points made here are also very relevant to the sale of commercial property.
Despite being a sellers’ market, correct pricing and proper marketing are vital when selling a residential property.
“The current residential property market in South Africa is showing strong signs of recovery across all segments of the market and solid growth is expected in this area of the economy over the next few years. In addition, the lower and middle sectors of the market are set to benefit from the recent reduction in transfer duties and this is likely to encourage more first-time buyers to enter the market,” says Jonathan Davies, joint area manager of Pam Golding Properties Hyde Park.
He adds that with shortages of residential property stock very much in evidence in most metropolitan areas and growth hubs around the country, the residential property market has shifted in favour of the seller once more.
“For this reason some home sellers now have high expectations, believing that their properties will be snapped up soon after they are put onto the market, no matter what price they ask. However, the homebuyers and investors of today are extremely savvy, making it their business to thoroughly educate themselves about their target property markets before they commit to buying. They are looking for properties that have the potential for good capital growth and are only prepared to pay realistic, market-related prices for these.
“Sellers, on the other hand, usually want to extract maximum value from the sale of their property in the shortest possible period of time. Few of us can afford to sit with such a large asset as a residential property, so sellers are looking to complete their transactions as quickly, seamlessly and cost-effectively as possible. It requires considerable thought and planning to achieve this.”
It makes sense for the seller to find a property consultant with a good record of accomplishment to assist in the process of taking a home to market. “They should be an expert on your suburb, be able to give you a feel for your local market, provide insightful advice on pricing and home presentation as well as possess the means to market your home effectively. Trust is key in this relationship, so selecting the right agency is vital.”
Getting key aspects right
Sellers must get a number of key aspects right if they wish to make a hassle-free sale. He says of overriding importance is that the home is priced to sell. “This is particularly critical as buyers are not surprisingly considered in their approach and are carefully watching out for properties representing good value to enter the market.”
“Many new buyers view the home within the first two weeks of it coming to market making it very important to present the home at the right price. Once a buyer has declined a home it is often very difficult to create new interest, as psychologically they move on to other homes and this large initial pool of buyers is lost.”
Of added concern is that if a property is on the market for an extended period, some potential buyers may start to question whether it is indeed overpriced or if there is not a hidden problem with the property.
Four prices to property
Trish Luthuli, new business executive at Pam Golding Properties in Gauteng, agrees. She says some sellers are so focused on making the most from the sale of their property that they fail to pay attention to some guidelines that price their asset realistically.
“It cannot be emphasised enough how important it is to ensure that the price of a home is market related. We always say that any home has four prices: the one the seller thinks it is worth, the one a valuator feels it is worth, the one an agent says it is worth and what the market is actually prepared to pay for it.”
“It should be kept in mind that local property markets and suburbs are constantly in flux and it is, therefore, crucial for sellers to be in touch with the latest developments in this regard. If the average property selling price on your street is approximately R3 million, for example, you are probably asking too much for your home if you try to market it for R5 million. That is of course unless your property offers something substantially different or unique from the other homes in your area.”
The company has developed a series of property showcase exhibitions that will run for several weeks in a number of Johannesburg’s premier shopping centres from 21 April to 8 June around Johannesburg.
“The value that you achieve on your property when you sell it is all too often directly determined by the quality of the real estate service that you receive,” concludes Luthuli.
This article “Location, Location, Loquacious: Marketing Still Vital In Property Sales” was issued by Pam Golding Properties SA – http://www.pamgolding.co.za/