Putting your property up for sale is a big investment in time and effort, and if it has not attracted any appropriate offers within 30-60 days, it usually indicates that something is wrong, says Tiaan Pretorius, manager for Seeff Centurion.
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He adds that only a portion of the properties listed on the market tend to sell during a year, and this varies depending on the area. That means that your property must stand out. While the price is often the main reason why the property is not selling, Pretorius says it not always the only reason.
Sellers should always be made aware of anything that could impact the time that it might take to sell the property, and also offer the agent adequate time to get the property sold. He highlights a few of the reasons why a property may not be selling as fast as a seller would want it to.
The price is too high. This is often the main reason. The price should be competitive relative to similar properties on the market in the area. Sellers often mistakenly believe their properties are worth more, or are misled by incorrect information which delays the process as the price may then need to be adjusted downwards.
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Here are a few tips from Antonie Goosen, founder and principal of Meridian Realty who in May this year shared expert advice on how to determine the best asking price:
Meanwhile Goosen says that understanding the local market dynamics is crucial. Start by researching similar properties in your area to gain insights into their asking and selling prices.
He highlights the significance of comparing your property to recently sold ones.
- "Consider factors such as size, location, condition, and amenities when assessing comparable sales," he advises. "This will provide a clearer understanding of your property's market value."
- Seeking a professional valuation is another key step to consider. A certified property appraiser can provide an unbiased assessment based on recent sales data, market trends, and the condition of your property.
- Understanding the current market conditions is essential. "Be aware of whether it's a buyer's or seller's market. Factors like demand, supply, interest rates, and economic indicators play significant roles in determining property prices. In this regard the guidance of an experienced and knowledgeable Property Practitioner can be invaluable."
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Goosen stresses the importance of enhancing the property's value. "Investing in repairs and improvements can make your property more attractive to potential buyers," he says. "Consider factors like location, proximity to amenities, and overall condition when determining its value."
Local regulations and economic factors also influence pricing. "Stay informed about local regulations, taxes, and economic indicators such as inflation and GDP growth. "These factors can impact property prices and should be taken into account".
He also encourages sellers to align their pricing strategy with their goals. "Consider your objectives and timeline for selling the property. Whether you're looking for a quick sale or aiming for the best offer, your pricing strategy should reflect these goals".
Lastly, Goosen emphasizes the importance of flexibility in pricing. "Stay open to adjusting your asking price based on market feedback and negotiations," he suggests. "A willingness to adapt can help ensure a competitive yet fair price for your property."
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Pretorius continues that other reasons that it could be taking longer to sell a property:
The market is slow. The higher interest rate over the last year and a half has slowed the market. The result has been fewer buyers who now have a bigger selection of property listings to choose from. This usually results in a longer sales cycle, especially if the property is priced at the higher end.
The property is not well presented. A poorly presented property, even if it is accurately priced, could also be a reason for buyers overlooking it, especially in a tougher market. Regardless of what you are selling, the property should always be presented in a show house condition. Leave nothing to chance, says Pretorius.
It is not a great location. Location is an important factor. High demand locations tend to attract more buyer competition and higher prices. Locations such as those close to transport networks or busy shopping precincts tend to affect prices, especially if there are properties in better locations which are similarly priced.
The property is overcapitalised. Spending too much on renovations can push a seller’s price expectation above the market average, especially if they want to recoup the costs. Always keep upgrades relevant to property values, otherwise you may have to wait for the right buyer, or end up having to drop your price.
Security concerns. Some areas do unfortunately attract a poor reputation due to crime statistics. This will affect the value of properties, and the prices that buyers would be prepared to pay. One way to counter this is to make the property secure, and to keep your price expectations appropriate for the area.
Complex levies and rules. High levies can be a deterrent for many buyers, and the property may take longer to sell. It is always advisable that complexes keep their levies market related. Not allowing pets is another reason for not attracting buyers, or for a property taking longer to sell.
Title deed limitations. In some instances there may be title deed limitations such as servitudes related to aspects like driveway access, or municipal electricity or sewerage servitudes. These could impact the time it takes to sell the property, and sellers should be mindful of this, he says.
Suspensive conditions. If these conditions are not fulfilled, it could result in the property staying on the market for longer. Such conditions could be that the buyer’s property was sold, but the sale failed for whatever reason, or the buyer could fail to obtain mortgage finance to cover the sale.
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