A 1. How to find a realistic price?
It has been proven that the longer a property stays on the market, the less attractive it becomes to Purchasers and this may occasionally result in a much lower selling price than initially planned.
It’s also important to note that nine out of ten Purchasers start their home search online. Therefore, it is crucial to consider this when setting an asking price for your property.
Most property search portals require the user to enter a price range to narrow down their search options. If the asking price is R755 000 and the Purchaser’s price range is from R700 000 to R750 000, the listed property will be missed by prospective Purchasers.
A Comparative Market Analysis (CMA) is crucial because it compares your property to properties that have been sold as well as those still on the market in the area. An agent can advise you or you can request an attorney to assist you.
Remember that deals die quickly if the parties are not open to negotiating.
A2. What is the cost of selling?
Rates Clearance figures:
The attorney will request the Municipality to render a rates clearance certificate. The figures will include the current account and an estimate of 3(THREE) months’ levies in advance.
The certificate will only be valid for a period of 2 (TWO) months and forms part of the necessary documents that need to be lodged in the Deeds Office. The Seller needs to pay the fees reflected on this document up-front in order to obtain the certificate.
Should the property be registered within the 2 (TWO) months, a credit balance will reflect on your municipal statement. The attorneys will furnish you a letter confirming the registration date and the Municipality will have to refund you the credit upon receiving your request for payment thereof.
The current bond over your property needs to be cancelled and the balance owing, needs to be paid from the purchase price to your bank. The transferring attorneys together with the appointed bond cancellation attorneys will see to this.
The Seller is liable for the payment of the cancellation costs of the bond cancellation attorney, which will approximately amount to ± R4000.00 on average.
Should the property be subject to a homeowner’s association or if the property is a section title unit, a clearance certificate will also be needed from the association or body corporate confirming that all the levies have been paid. The figures will contain the current balance and an estimate of 3(THREE) months. Should the property be registered within the indicated 3 (THREE) month period, the credit will be paid back to the Seller.
The clearance figures need to be paid upfront in order to obtain the certificate before registration.
Electrical Certificate of Compliance (“COC”)
Normally the deed of sale agreement contains a clause that a COC needs to be furnished to the Purchaser. The Seller is liable for the costs associated thereto. This will contain the cost of the certificate and any remedies or repairs that needs to be done. The certificate needs to be furnished to the Purchaser before registration of the transfer of the Property.
A3. Appointing an Estate Agent / Private sell
POSITIVES IN USING AN ESTATE AGENT:
While you may save on commission when selling your home, yourself, you will not be able to generate the exposure for your home that an agent can give you. In addition to this, agents have knowledge of all the legislative procedures that accompany the selling of a home and will be able to guide and advise you on every step of the way, saving you time and taking away unnecessary stress.
· Selecting a reputable agent with area experience will put the Seller on the right path to setting the correct asking price;
· An agent will have access to resources and information that the homeowner will not;
· They will base their assessment on facts and figures, without bringing emotion into the equation;
· An agent will be able to provide an unbiased opinion, looking at the situation from all angles, such as the home’s features, the local market, recent sales and more;
· They will ensure that the potential Purchaser is not a security threat before he/she arrives to view your home;
· They will have an extensive database of potential Purchasers and
· They will assist Purchasers in raising finance.
NEGATIVES IN USING ESTATE AGENT:
You might save the commission or you will be able to reduce your selling price.
· Are you able to deal with criticism of your home?
· Have you got security backup to avoid vulnerability from threatening strangers that might view your home?
· Have you got the available time to show your property to potential Purchasers? and
· Have you got the necessary inclination and ability to negotiate the sale to a successful conclusion?
If you have a potential Purchaser there is no need to go to an estate agent. Your attorney will be willing and able to draw up the purchase agreement and follow the registration process.
A4. Giving an Agent a sole mandate or not?
When you grant a sole mandate to one agent they will be more motivated to sell because there is no competition. Agents spend more time and more money (like advertising expenditure) on sole mandates.
You should, however, consult your attorney. You should negotiate the effect if you obtain a Purchaser yourself within the sole mandate period. You should also negotiate the extra steps the agent is going to take. Always set a termination date for the mandate.
A5. What repairs and improvements must you do to your house to improve the selling success.
Although it would be advisable to declutter as much as possible and do minor fixes to your home before a show day, a full revamp is not necessary in most cases. Not only do you stand the chance of overcapitalising, but the Purchaser might want to revamp the home themselves to their own specifications.
On show days, it's essential that you stand out from the crowd. Highlighting your home's finest features could help turn a browser into a Purchaser.
A few tips and tricks to look out for are:
· Keep the driveway neat and tidy at all times and consider minor renovations before a show day if necessary;
· A well-maintained and colorful garden adds to the appeal of a property;
· A clean swimming pool with clear water is important;
· Make sure the carpets are clean. Unpleasant smells, especially those of pets, can be detrimental on a show day;
· Light is important. Open all your blinds and curtains to let natural light in, and any decorative or track lighting should also be switched on;
· Ensure that the house is neat and free from clutter; and
· Make sure the kitchen countertops are clean and hang fresh towels in the bathroom.
A fresh coat of paint can work wonders to make your home look that much more appealing. If you are on a budget, narrow your focus to areas or rooms that look like they need some freshening up. Before painting, address any damp issues or peeling paint and fix any chips or holes left from nails in the wall.
A home that is in good repair will definitely be more attractive to a Purchaser than one that has repair work needed. From the big things like plumbing and plug points to small details such as checking all cupboard and door hinges, locks and swimming pool cleaning apparatus, Sellers should walk through each room and the outdoor areas and check them carefully for minor repairs that could easily be undertaken.
Always highlight the best ventures of your house for example the location, security system, proximity to schools, eco-friendly features, technology-friendly, kitchen, floorplans, entertainment area, great view, garden.