Should you sell in a flat market?

Should you sell in a flat market?

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The South African property market is currently more suited to the buyer - not much demand but many properties on sale. This means that buyers have more say in the final purchase price and that sellers need to reduce their asking price slightly.

The result of this is that property prices aren’t increasing - the market is currently flat. As a seller, should you take the risk and put your house on the market now or will it be better to wait it out? The market will pick up again, it’s just a matter of when.

However, it is impossible to predict the movement of the property market. It is affected by so many internal and external factors - government policies, laws, land debates and even a change in the leadership of the country. South Africa’s economic woes appear to be quite deep and it is taking longer than expected to rectify the situation.

There’s always a risk when selling

Even when the market is up, there are always risks associated with selling. There’s no guarantee that a property will sell for the asking price in any market. The fact is, there are still thousands of property transactions being conducted every month in South Africa. The banks are still granting many home loans.

Despite the market stagnation, the property sector is in a better place than after the 2008 crash. Now is still a good time to put your house on the market. The benefit of a flat market is that only serious buyers who have the money will make an offer. You won’t be strung along by indecisive buyers and miss real opportunities when someone else makes an offer.

Your property will sell eventually, just don’t expect to make a large profit on it at the moment. That being said, you can still recover your investment and maybe a little bit more if you choose the right estate agents to help you.

Tips for selling a house in a flat market

To make the most of the current market and get a decent price for your property, here are a few tips to consider:

• Choose the right estate agent - Do some research and try to find the agent with the most knowledge, experience and expertise in your area. The agent will be able to recommend a realistic selling price and will know where to advertise the property listing. A good agent from a reputable agency will also have access to a larger pool of buyers.

• Set a realistic price - Greed will get you nowhere in a flat market. Your property needs to be priced just right; high enough that you’re happy with the sale but low enough that it is attractive and affordable for buyers. They need to perceive value for their money in this market. The longer your house stays on the market, the lower the eventual selling price will be.

• Clean and repair your home - To maximise your chances of a quick sale, make sure your house is immaculate. Replace any cracked tiles, fix cracks in the walls, paint over scuffed walls, cut the grass, clean the windows etc. You want your house to be in top shape when potential buyers come to look at it. They’re more likely to opt for a house that needs no repair work and is in its best condition.

• Sell in the winter - Another reason to not wait is that buyers often want to spend summer in their new homes. The transfer of title deeds and associated paperwork can take a couple of months, so by selling your house now, buyers will be able to move in before December.

• Consider offers more carefully - The current market is not ideal for sellers who want to be picky about offers. Remember that any offer might just be the only one you get for a while, so before you turn your nose up at it, think carefully.

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With over half a century of expertise buying and selling properties, we understand it is more than just a transaction - this is your story - and we are honoured to write this chapter with you.

Allow us to provide you with our expert knowledge on the Tokai, Kirstenhof, Bergvliet, Meadowridge area, ensuring you have the most accurate information and support when buying or selling your property. Contact us on +27(0)21 794 5252. We are here to ensure that you prosper through property!

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Author: Seeff