*Article updated on 09 March 2022
You may have heard about an estate agent’s “hotlist” and may wonder if such a thing exists.
According to Graham White, managing director for Seeff North Coast, it does indeed exist, and you really want to be on it.
When an agent lists a new property, they are not wanting to necessarily do fifty viewings, spend copious amounts of money on marketing and even more importantly waste lots of time.
Property portals have a wealth of listings, and you can set your alerts to find the perfect property and optimise your search. However, the agent “hotlist” continues to be important to both buyers and sellers, bringing with it, its own set of property journey merits to get your property noticed immediately.
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If you are buying
Even in a hot buyer’s market, properties often get offers even before the marketing goes live. For a buyer, being on an agent’s 'hotlist' means they are notified the instant a new listing which meets their needs comes onto the market. As a serious buyer, this means you do not lose out if a property in an area or complex that you have your eye on comes onto the market. There is nothing worse than spotting a property only to see that it is already under offer.
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Professional agents go to their best qualified and most serious buyers first, says White. These buyers will get the first call. To get onto the list, start by being serious about buying as the 'hotlist' is all about buyers who are ready to put in an offer on the right property.
He advises that buyers should be realistic and clear about what they need, or are looking for, including your price parameters. If you have a property to sell, it should already be on the market. Be sure to respond to the agent, turn up for appointments on time and importantly, have your finances already in place with either a deposit available, a bond approval or agreement in principle signed.
“Buyer’s remorse is not uncommon among first-time buyers,” says Yael Geffen, CEO of Lew Geffen Sotheby’s International Realty, adding that the best way to ensure the dream doesn’t become a nightmare is to be thoroughly prepared.
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“It’s really a case of ‘forewarned is forearmed’ because if you have done your homework and devised a clear plan of action, you can easily circumvent costly mistakes and shop for your dream home with confidence.”
Buying real estate is a lengthy, complicated process so it’s understandable that first-time buyers almost always make mistakes, but, according to Geffen, not all mistakes are equal.
She says many oversights or errors in judgement are easily remedied, while others can significantly impact your life and investment returns.
SEE | 7 mistakes first-time home buyers make
If you are selling
Tiaan Pretorius, manager for Seeff Centurion says a 'hotlist' property starts with a sole mandate as the agent will focus all their efforts on marketing and selling your property.
He says that when you sign a sole mandate it usually triggers a number of marketing activities. Apart from listing it on the agency website and the various property portals, the agent will immediately notify their 'hotlist' of buyers and add the listing to their hot property email blasts.
Homeowners are advised to make the smart decision when it comes to appointing an agent with a sole mandate or not. Sellers need to be acutely aware that by choosing to sell their properties on open mandates, they will not automatically be increasing the interest in their properties.
READ | Why a sole mandate is the best bet when selling your home
If you're selling you also need to ensure your valuation is appropriate and that the property is priced correctly to make it onto the hot property list of your chosen agent from the get-go. Research shows that properties attract the highest interest during the first month of listing. Correctly priced sole mandate properties are said to sell faster and for higher compared to the market average.
"A property becomes stale if it sits on the market for too long. Worse, the seller may need to reduce the price to reignite interest, but it is unlikely to be a “hotlist” property unless the price drop makes it an attractive proposition for buyers," says Pretorius.
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A 'hotlist' property can also be a new listing of some interest, such as a property which rarely comes onto the market, a sought-after complex or area or a home with rare and exclusive features. The agent will immediately identify such a property and include it on the 'hotlist' to ensure it gets maximum exposure.
