'Widespread lack of realism in the residential market'

THERE are some essential tips to guide sellers who want to close a property deal, according to Adrian Goslett, assistant regional director of Re/Max Southern Africa.

"Homes have been sitting on the market for longer. And while a rosier picture of the property market is predicted for 2010, sellers and estate agents will have to pull out all the stops marketing a property."

Quoting FNB Home Loans property strategist John Loos, Goslett said there was a widespread lack of realism in the residential market, with most sellers ultimately having to drop their asking prices.

Goslett said FNB put the average time houses were on the market down from a high of 21 weeks and a day in the second quarter of 2009 to 16 weeks and four days in the third.

But he said sellers had to establish what the market was willing to pay for a house.

"A property is worth only what buyers are willing to pay. Home owners can get deeds office data to help them compare prices of properties recently sold in an area.

"This data is accessible through subscriptions to a company that compiles the trends in specific areas based on property transfers.

"Compare your property to the properties sold in your area by taking location, size and amenities into consideration.

"Also compare your property to other properties currently for sale in your area. But remember that the asking price published in advertising material is often different from the actual price achieved."

Goslett said sellers should ensure that swimming pools were in good condition and leaking taps and broken shower doors were repaired before show days.

Another tip was to get rid of clutter and unwanted accessories that could prevent buyers from visualising their own possessions and lifestyle in a home.

"Not all people are animal lovers. Move your puppy's sleeping pillow out of the spare room. The same goes for pet food and water bowls in kitchens.

"Rather welcome buyers with the aroma of freshly ground coffee or the smell of freshly picked flowers in your home."

Goslett said sellers should ask their estate agents to determine a potential buyer's ability to obtain a bond and raise a deposit.

"By doing so, you can speed up the purchasing process once an offer to purchase has been signed and avoid the frustration of having to wait for bond approval."

Goslett advised watching out for subject-to agreements where a buyer made an offer to buy your property contingent on the sale of his or her own home.

"A good estate agent will be able to advise you on how long the buyer's property will be on the market and what price the buyer can expect. Ensure that the agreement has a clause allowing you to consider other favourable offers while you wait for the first buyer's property to get sold," Goslett said.

Property Guide (Sunday Tribune)

Posted at 09:16AM Dec 14, 2009 by Editor in Residential  |  Comments[3]