Limited access to finance and the affordability of homes are hampering property sales according to South African estate agents who claim that the extensive number of available properties are making buyers more discerning.
Samuel Seeff, chairman of Seeff Properties says that buyers are currently “in the pound seats” although many sellers are still trying the get prices that were last seen in 2007 when the property market was buoyant.
He says that if sellers are still expecting to achieve the 2007 price levels then the house is likely to be on the market for a long time and the number of offers will be limited and certainly below the 2007 levels.
Berry Everitt, chief executive of Chas Everitt International Properties says the average drop in price required to achieve a sale is around 12 percent, indicating that most sellers are expecting too much for the property they have on the market.
Everitt says that because there are so many properties on the market at this point, many buyers will not even consider making an offer on a property that is over-priced and will move on to something that is more realistic.
Homes that do not attract any interest after several weeks on the market are, according to Everitt, possibly over-priced and the seller should consider dropping the price to increase interest in the property and attract offers on it.
In a newsletter produced by Pam Golding Properties, the company points out that the property market has shown a 30% improvement in sales volumes for the year to date but the limited access to credit is preventing even more sales from being finalised.
“This means that, in the present market, correct pricing of properties is more critical than ever as buyers are faced with affordability issues and have a good selection of properties from which to choose,” says the newsletter.
Everitt concedes that many sellers have the view that buyers are at liberty to make any offer on a property but he says that sellers must now appreciate that most buyers are well informed when it comes to property prices and know what homes in a particular area are selling for.
Readers' Comments Have a comment about this article? Email us now.
