There are many reasons why a home put up for sale may not find a buyer as quickly as the seller would like, but the two most common are overpricing and unrealistic expectations.
According to Keyter, unrealistic expectations by sellers, both with regards to price and the time required to sell, often ignore very obvious factors detracting from the home’s appeal.This is according to Stephen Keyter, agent for Alexander Swart Property group, who says in the focal areas served by the group - Brackenfell, Kraaifontein and Durbanville - house sales on average are achieved within 40 to 45 days of the property being listed, but if they are priced under R2 million the sale time will on average be reduced by half to around 21 days.
Keyter, with nine sales in four months and a further six in the pipeline, is at the moment regarded as the top-selling agent at the newly established Alexander Swart Property group. Focusing on the Brackenfell area, but also achieving successes in Goodwood and Sonstraal Heights, he has sold R16.681 million worth of property in less than four months.
On three of the homes sold by Keyter, he says he has achieved the full listing price and with one exception they were all sold within 3% of the list price.
Rowan Alexander, Director of Alexander Swart Property, says he has over the years regularly warned sellers that overpricing can easily lead to far longer sales times and the seller eventually having to bring his price down to a realistic level.
On the sale which Keyter put through above the 3% discount, this is what happened - the seller, against Keyter’s advice, insisted on adding 10% to Keyter’s original valuation, but after six weeks had to reduce it to a more realistic level, says Alexander.
Keyter says quick sales tend to result from the seller signing up a good agent and then fully trusting and supporting them in all they propose to do. This involves giving them a sole mandate in every case.According to Keyter, unrealistic expectations by sellers, both with regards to price and the time required to sell, often ignore very obvious factors detracting from the home’s appeal.
If, for example, a home obviously needs an overhaul, a wide range of repairs or is badly positioned in relation to schools, public transport and retail centres, or if the home has a tenant in it at the time of the sale, there will inevitably be fewer willing buyers, and they will probably bid lower than what the seller believes is the right price, says Keyter.
Furthermore, he says if the seller declines to ‘play ball’ with the agent by restricting the times when he can bring buyers to the property or by not allowing them to place sufficient advertisements or to hold show days and place sign boards on the property boundaries, the sale will almost inevitably be delayed.
“Certain sellers, for whatever reason, do not want their neighbours to know that the house is up for sale. This can make the agent’s life very difficult indeed. Very often the neighbours have friends who may be potential buyers," says Ketyer.
He says quick sales tend to result from the seller signing up a good agent and then fully trusting and supporting them in all they propose to do. This involves giving them a sole mandate in every case.
How does the seller know if they are getting a good agent?
Keyter says there is no better indicator than past performance, and the seller should make sure that the agent they appoint has a good recent track record. This is not as difficult to verify as some think, and it should be backed up by testimonials from satisfied clients.
“Right now, many people are slightly hesitant about both buying and selling, and the reasons for this may well include South Africa’s poor economic performance and the uncertainty regarding our political future. These factors, along with the resultant slowdown in salary increases, have played their part in eroding confidence,” says Alexander.
“However, the property market remains buoyant, and a good agent will work hard to counter these negative factors in potential clients’ minds. If they are successful in doing so, they will almost invariably, in my experience, be doing the client a favour by securing for them a sound investment and improving their lifestyle - as the testimonials of all the top agents will reveal time and time again.”
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