To all Sellers out there, it’s a Buyer’s Market! There are no if’s buts and maybe’s about it and NO amount of wishful thinking is going to change it.  If you are in limbo because you haven’t sold your property, here are some tips on how to do so in a depressed market.  A good start is to accept that property values have come down – once you do this you give yourself the best possible chance of success.

Realistic Selling Price

Firstly, set a realistic market price. Your Estate Agent can point you in the right direction by providing you with a CMA (Current Market Analysis) when listing your property. The  CMA will give you an unbiased view as to the true market value of your property.

A good CMA will include:

• an Area Analysis of properties sold in your area,
• a Comparable Property Sales Analysis
• an Age Analysis of how long these properties have been on the market
• any special features or negative aspects specific to your property and how these may influence the selling price.
• Finally - A suggested listing price

Pick The Right Agent

During the economic downturn, almost half of all estate agencies in South Africa closed their doors. It bears to reason that the ones still standing have been doing something right and are ready to take you through these hard times with honed selling and negotiation skills. An experienced Agent will not only market your property to new buyers, but more importantly, has a network of loyal, long-term buyers just waiting for the right property to come along. These buyers trust your Agent implicitly and if your property meets their checklist - then you may have a quick sale ahead of you – fantastic! Remember, getting an offer quickly does not mean it is under priced or is a sign of things to come – it is most likely because your Agent has exposed your property to these clients.  

Buyers Will Bargain

Your price should allow for a small degree of negotiation as most offers right now will be lower than the asking price – especially if you have a cash buyer. ‘Cash is King’ because getting bond finance now is harder than ever. Don’t be fooled that the banks have ‘opened up their lending coffers’, the reality is that the true national average of bond application approvals is sitting at a miserable 35%.

Dealing With A Lower Offer

Getting a lower offer can be a tough pill to swallow. So how do you deal with it? 1) don’t be too rash to turn down an offer - take your time. 2) Don’t be insulted by a lower offer, expect it (if you had the cash, you would also do the same). 3)  Decide if you would rather have the money now and avoid further interest payments or take the chance of waiting months or years for a  higher offer. 4) Finally, understand that you have the right to counter-offer and if you show a willingness to negotiate in part, this is a good strategy to adopt.

Budget for Commission

Your Agent does this for a living.  All he does is eat, sleep and breathe property and is your biggest ally to sell your biggest asset. However he does this totally on risk (you don’t pay him a retainer to go about selling your property). Also, as commission is a percentage of the final selling price, it is in your Agent’s interest to get the best possible deal for you. In turn you need to acknowledge that if you get a lower offer, your Agent is also getting a lower commission -  so do not expect to negotiate commission down further at that point. You should be happy to pay for a job well done – especially in a tough market, so factor the full commission into your asking price.

Don’t Sell

If you don’t have to sell now, then don’t. There is nothing more detrimental than having your property on the market for months on end because the price isn’t market related. The market will bounce back, but it’s going to take time.  The choice is yours.