What are good reasons for selling your property?
Category Expert Insight
The reasons for selling one's property are vast. Personal circumstances always play a pivotal role in every seller's choice to sell, but when should you try to hang on to your property for just a little while longer and when can you sell with peace of mind?
Steve van Wyk, Seeff's MD in Centurion, says it is easier said than done, but if at all possible you should try not to sell your property in the following circumstances:
- When the market is depressed. When the market is depressed you are less likely to achieve your listing price.
- When you have not decided where your next home will be: Selling your property before you have signed an offer to purchase on a new property (subject to selling your own) may leave you in limbo for quite some time. Temporary accommodation can also become expensive and market conditions may change in such a way that you may not be able to afford a property that you like by the time that you are ready to buy.
- When there are not many buyers: Sellers are dependent on a variety of buyers in order to achieve the best possible price for their home. The more competition there is for your home, the more likely you are to fetch the best price possible.
- When you still need to fix your house up: Unless you are selling to a buyer who wants to renovate the home as a project, your home is far more likely to appeal to buyers if it is well-maintained, in a good condition and does not seem like too much "work".
- When there are many competing homes for sale in your area: It is more difficult for your home to stand out if everyone in your suburb is selling at more or less the same asking price at the same time.
- When you have not calculated the costs of obtaining a new home: Affordability of purchasing a new home should be done well in advance of listing your current home.
Trevor Sturgess, Seeff's MD in Kibler Park, says the first question you should ask yourself before you decide to list your property is "WHY"?
"If you do not have a good answer I suggest you hold on to it, but if your answer is one of the following five "D's" it is usually a good reason for selling.
- Death: When your spouse or partner passes away and you can no longer service the bond on your own, it is not secure for you to live on your own, the home is too big and too difficult to maintain or you are lonely it is a good idea to sell.
- Divorce: Once again, this situation may make it difficult for you to service the bond or maintain the home or is may be unsafe or undesirable to live alone.
- Desperate: When you absolutely need money after exploring all other avenues.
- Downsize: When your home has become too big and too difficult/expensive to maintain or you want to save money by moving into a smaller, more affordable home.
- Departure: When relocating to another town, city or country.
Sturgess says it is also not a good idea to hang on to a property that is becoming unaffordable.
"Arrear bond payments and municipality service charges can quickly amass to very high amounts. If things are spiraling out of control rather list your property with a reputable estate agent working for a trusted brand".
Sturgess concludes that they are witnessing many people relocating closer to their work place at the moment due to the ever-increasing fuel prices.
"We are seeing property owners in Johannesburg South who sell their homes to be closer to Sandton where they work.
"Even though property is more expensive in Johannesburg North, they are willing to move and pay more, because not only will it save time and money on fuel and services, but because they'll be spending hours less time in the traffic every day and this gives them more time to spend on something that they really enjoy".
Author: Tanya van Buuren Botma