Why people sold property in 2019’s first quarter

Apr 30, 2019 10:19:50 PM Share this:

Downscaling, whether for financial reasons or due to life stage, is still why most people sell their homes and they will sell if ‘priced right’ as it is still very much a buyer’s market – but emigration and dual living are also trends to watch in 2019.


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Topics: Richard Gray, Harcourts South Africa, Property Markets, buying and selling, South African Elections 2019

Choosing your method of sale

Mar 25, 2019 8:00:00 AM Share this:

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When it comes to the sale of your property, there are more options available to you when choosing a method of sale than simply listing your property for a fixed price. In fact, according to the latest Harcourts figures, the number of auctions being performed around the country is up massively from last year.

So, why are people choosing to sell their homes in this way, and what are the alternatives?

Auction

We’ve all read the media commentary about rising house prices, and although there are many theories as to why this is, what it really comes down to are two factors – low supply and high demand.

Auction is the best way of achieving a premium price in a competitive market. Auction involves a short, sharp and intensive marketing campaign of a property without a price. This is to test the market to see what buyers, in a competitive situation, are prepared to pay to become the new owners of that property.

Marketing with a price limits what a keen buyer may pay. Once a listing price has been established for a property, a ceiling has been placed on what a buyer expects to pay for it. Auction, on the other hand, offers a real opportunity to get more for a property than the seller might expect.

What happens if I have chosen to auction my property, and I get an offer before the auction date?

If you wish to accept the pre-auction offer then Harcourts will recommend that you bring forward the auction and contact the other interested parties. The earlier auction can then be held with the acceptable offer as the opening bid. That way if any buyer is prepared to pay more Harcourts can obtain that premium for you.

Price by Negotiation (PBN)

This method of sale can be applied in any of these three ways:

1. No price is advertised. Buyers make offers through the sales consultants.

2. A minimum price may be advertised. Offers above this minimum price are considered by the seller.

3. A price range may be advertised. Offers within this price band are considered.

The benefit of PBN is the level of market interest will help the seller gauge a fair sale price. The ‘no price’ aspect will also attract more genuinely interested, cash-in-hand buyers as well as ensuring the sales price isn’t capped. In contrast, unlike auction and tender there is no sale date or deadline in place so there is no urgency placed on buyers to make a buying decision.

Another benefit of PBN is that this method creates competition between buyers, and this gives the seller the opportunity for stronger negotiating with potential buyers. 

Fixed Price

This means that a property is listed with a definite price. If the property is priced correctly it will attract a lot of interest, and in some cases have multiple offers resulting in a premium sale price. The fixed price also gives the buyer a price guideline and allows for a property search by price on real estate websites.

However it is easy to over or under price the property and buyers may discount the property without inspecting it, judging it solely on the price. This can effectively limit the market for that property.

Tender

Tender works in a similar way to the auction system, except there is no public auction day. Instead, tenders or offers close at a specific time on a specific date.

Tender presents another opportunity for sellers to create a competitive situation without stating a listing price. They set the terms, conditions and the deadline, and prospective buyers have only one opportunity to put forward their most competitive offer.

The seller doesn’t necessarily have to accept the highest price. They can choose to negotiate with any of the tenderers to achieve a satisfactory conclusion.

So, when you’re considering how to sell your property, take the time to work out which method suits you and your circumstances before making a decision, also take the time to discuss the best options for your property with your real estate agent. As property experts, Harcourts can help to advise you on the method of sale that’s going to work well for your property.


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Topics: Advice, buying and selling, Financial Advice

WESTERN CAPE: BUY HERE: Our insider’s guide to Brackenfell

Feb 20, 2019 7:49:39 PM Share this:

Offering many property options, this large suburb close to the Winelands has a nature reserve on its doorstep

If you’re looking for value, consider the northern suburbs. Brackenfell is a short drive to the city on the N1, offers a range of property types, has good schools
close by and a number of attractions on its doorstep.

“We’ve seen steady growth in the sale price of properties in the area,” says Denis Dunn, principal at Harcourts Dunn.

“The advantage of Brackenfell is that it is a very large region with an array of property options. The average price for an apartment starts at R900000, and a townhouse ranges from R1.1 million to R1.8m. Full-title homes are priced on average from R1.7m to R2.8m, and a larger home can cost anywhere from R4.5m and higher. The rental market is booming. For any investor who wants a high-demand property, Brackenfell is a great place to start.

“The other obvious allure of the ever-growing Brackenfell region is the developments. At Harcourts Dunn we have a specialist developments team that assists clients with all their requirements. “Brackenfell has a selection of nice developments, catering for professionals, young families and investors.


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Topics: Harcourts South Africa, buying and selling, Tips for buying, Harcourts Dunn

Eight steps to prepare your house for sale

Feb 18, 2019 8:00:00 AM Share this:

When thinking about selling, many of us fantasise of an unlimited renovation budget that will make our home irresistible.


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Topics: buying and selling, Tips on selling your home, Investment Tips

Price your property to sell in the current market

Jan 23, 2019 7:19:21 PM Share this:

Whether it is a buyers or seller's market accurate valuation and pricing of your home is imperative if you aim to have a successful transaction. Realistic pricing is relevant to accurate market value and often buyers will compare your home to the properties in the area so they can gauge an insight into the true market value.

Market fluctuations and economic pressures undoubtedly influence the price of property and we've seen some homeowners having to drop expected prices due to the external economic factors affecting the market from a holistic perspective.

Therefore, If your property is over-valuated it not only wastes valuable marketing time but it can very often gain a stigma that negatively affects the perception of the home going forward. In the end, you may end up getting far less for your property than could have been initially obtained. No matter how well your property is marketed, if the price isn't right, it won't sell.

When a property is accurately valuated and the agent commences marketing of the listing this creates immediate demand. The first 6 to 12 weeks are the most important when marketing a property.

The first step is to contact an agent with an extensive target market presence. Browse digital property platforms, forums, portals as well as published newspapers and magazines to best see which agents have a true understanding and footprint in the region you wish to sell. Then, similarly, use that research time to assess where your property's value is located in the market and try and scale it correctly. Not just comparing the size and location but added features also.

Agents use many accurate tools that take an array of factors into account when valuating your home. Pair this data with expert insights into the current climate of the market and trends of buyers and sellers and an agent is able to present your property to a diverse network exposing it to the right buyers.


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Topics: Richard Gray, Harcourts South Africa, buying and selling, Property Valuation, Harcourts Real Estate

Expect more property developments in 2019

Jan 23, 2019 6:52:46 PM Share this:

During 2018 the South African property market was under immense pressure. We saw many agents having to reinvent their strategies in an attempt to to grow their businesses. Some were also forced to evolve as the man on the street consumes information differently. However, there were certain areas that performed well, developments being one. Across the major metros developments took center stage as a lot of investment and high demand seemed to defy the downward trend of the property landscape. And without a doubt, this will continue throughout 2019.

The large scale investment injections into city living is certainly very exciting and much needed. We've seen how incredible the major commercial and residential property developments in places like the inner city of Cape Town and Johannesburg are transforming the CBDs. There is a real effort to make properties available and a effort to revitalize certain areas as well as boost already booming regions.

On the other side of the spectrum we are seeing well sought-after communities growing even more. According to reports property developers' goals are to meet the demand for housing in  areas like Sandton and surrounds. Many of these properties appeal to first-time buyers,  business executives working in the greater Sandton area as well as investors seeking an asset that will show positive appreciation and rental returns.

We expect the push to develop certain areas to continue. Especially due to the appeal of these properties. Many people view them as safer because of stringent security strategies. Also, there is often a community aspect to lifestyle estates and developments - children playing in the park and getting to know your neighbours. We've seen how the inclusion of a management body and property guidelines assist properties to have a long-term investment life.

The often overlooked aspect that certain developments bring to a community is the increased economic activity. In areas like Somerset West in Cape Town, there are developments almost the size of suburbs. This attracts commercial interest to the region, increasing employment and business growth opportunities and ensuring the local economy has a chance to grow.


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Topics: Richard Gray, Harcourts South Africa, buying and selling, Harcourts Real Estate, Property Development

Can a veggie garden add value to your home?

Aug 14, 2017 8:00:00 AM Share this:

The green revolution has become widely popular, and for good reason, with retail outlets offering organically grown food, businesses installing solar panels for residential purposes and a major surge to reduce wastage by on natural resources, it will continue to become a part of our everyday lives.

This has influenced many of us to examine our own carbon footprint. Especially from a food perspective and its role in this cycle. The knock on effects of this has caused a trend whereby families produce their own food, therefore investing in fresh produce gardens.

But can this addition add value to your home and increase demand when selling?

An aesthetically appealing garden undoubtedly adds value to your home. In the UK it is estimated that a well maintained garden can add as much as 20% to your property’s value. Taking this into consideration the added benefit of producing highly nutritious food in a garden that looks appealing to the eye will definitely add a sparkle to many buyers.

As consumers continue to educate themselves on the benefits of this lifestyle the demand for these features will continue to rise. We’ve already noticed a trend by millennial buyers for homes with improved energy efficient systems and grey water installations.

This being said, a few guidelines that might be taken into consideration so your fresh produce garden is more appealing.

  • Installing a grey water system to replenish your garden is fantastic way to ensure responsible use of water and the sustainability of the garden.
  • Aesthetic appeal has a major influence. A neat well maintained, variant identified garden has higher demand.
  • Plant varieties that will most likely form part of a family’s regular eating diet.
  • Cordoning off the area widens the scope of the buyer, as they might have children or animals that will damage the garden.

As with most upgrades to your property ensure you are able to calculate the return on investment accurately. If you’re going to spend a large amount of money expecting an unrealistic value add, you might be left disappointed.

Statement by
Richard Gray

Harcourts Africa Chief Executive Officer


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Topics: Add Value To Your Property, buying and selling