SA’s residential property market might still favour the buyer – even with the recent 25 basis points increase, it remains historically low. However, industry data shows the time is right if homeowners are thinking about putting their homes on the market right now.
'Rate increase no cause for alarm'
“After holding steady at 3.5% for more than a year, the announcement of a nominal increase of 25 basis points in the repo rate is not unexpected. But it’s also not cause for alarm. The groundwork has already been laid for consolidation of the residential property market and this slight shift to 3.75% should not hamper the rebound which we have seen over the past year," says Carl Coetzee - CEO BetterBond
“After an initial surge last year in first-home buyer activity, we are now seeing renewed interest from buyers at the upper end of the market as they make the most of the low interest rates. Bond applications for homes of more than R3 million have increased by almost 48%, now accounting for just over 6% of all BetterBond’s applications.
READ: SARB closes 2021 with rate hike | Here's what it means for property owners
“House price inflation is strengthening in most provinces and BetterBond’s application volumes climbed by 16.6% in October year-on-year. Notably, BetterBond’s bond registrations increased by 94% for the six months ending September. Also encouraging is that there has been a significant jump in the average approved bond size, with an increase of 14.6% in October year-on-year.
“We know that interest rates have to normalise as our economic activity returns to pre-pandemic levels, and inflation starts to rise. But we understand too that this will be a gradual increase with the prime lending rate sitting comfortably below double digits for a while yet. With a prime lending rate of 7.25%, we can look forward to further positive activity in the housing market in 2022.”
'Advice for sellers looking for a quick sale'
Marcél du Toit, CEO of fixed-fee agency, Leadhome Properties says, “The property market is in an extremely positive place right now. Buyer activity is booming.
“Our book shows that sales were up more than 50% in October 2021 versus October 2020, and over the same period the average number of days taken to sell a home reduced from 84 days to 47 days. Positively, November has seen the momentum continue with buyer activity up 15% month on month from October to November.”
Activity in the big metros is pretty much back to pre-Covid levels, and banks are still lending aggressively, with average bonds in October being granted at 0,2% below prime.
However, there are three key things sellers can do to make sure that your property sells fast, and at the best-possible price
List your property correctly
Unsurprisingly, the first thing that you as a seller should do is make sure that your property is priced right. It’s all about saving moolah (yours, in respect of advertising costs) and minutes (the buyer’s).
Leadhome Properties’ Principal, Harry Hattingh, says that the record-low interest rates are still attracting buyers into the market.
But, he says, these buyers are savvy and cost-conscious. “When valuing a property, there’s a fine line between achieving a sellers’ asking price and attracting the right buyers. Leadhome agents are very sensitive to this and are equipped to advise sellers accordingly.
Market data, valuation tools, portals, property comparisons, and historic selling prices in our agents’ specialist areas, all define the point at which buyers will make an offer. And, if you as a seller aren’t getting offers within the first 14 days of listing your property, then chances are that your property is unrealistically priced.”
Consider your buyer pool
A reputable estate agent will be able to nail down the average listing price for similar properties in the seller’s area. And, it’s no secret that competing agents may provide higher valuations in order to secure sole mandates – but at this point, if the property isn’t attracting much market interest, sellers need to ask themselves some hard questions: Is the price correct? Is it listed in the right pricing bracket to attract buyers that are willing to commit? Even: Are there feet through the door and offers on the table?
Hattingh says that if the answers to the above questions are ‘yes’, and potential buyers are physically viewing the property, then the seller just needs to be patient. Conversely, if a property is getting no foot traffic and this is reflected in the data points and across all the different property platforms, then the market is communicating that a price adjustment must be made.
Negotiate the best offer
Tracey Hicks, team lead of Leadhome Properties in Johannesburg East, South, Bedfordview and Edenvale, says that a successful transaction is what a buyer is prepared to offer and what a seller is prepared to accept. “But the negotiator is the agent.”
Desiré Ludick, team lead of Leadhome Properties in Johannesburg West, believes that negotiations start from day one. “Sign a sole mandate with an agent who knows your area and work together to prepare your property for the market – from the photos, to how the home is positioned and priced. These are the first steps towards a successful negotiation.”
READ: Festive Season lockdown rules | What to consider if you're buying or selling property
“If a property is initially priced unrealistically, there’s a challenge involved when moving it down into a bracket that attracts buyers willing to commit. Even doing so won’t catapult the property back onto the high-traffic front pages of the property portals. The early window of opportunity will have closed.”
To sum up, Hattingh says that if a property is priced realistically, it will sell in a short space of time – in other words, properties advertised at market-related prices should receive solid offers within 30 to 35 days.
Want all the latest property news and curated hot property listings sent directly to your inbox? Register for Property24’s Hot Properties, Lifestyle and Weekly Property Trends newsletters or follow us on Twitter, Instagram or Facebook.
Print
