The valuation of a property can be a contentious issue. Sellers often struggle to understand what their properties are worth, which can lead to unrealistic expectations and unsold properties. It is therefore important to understand the current phase the property market is in.
The market value is largely driven by supply and demand and building costs. Building costs are driven by inflation. Supply and demand is driven by a number of economic factors, such as interest rates, disposable income, etc.
Property values usually increase when interest rates fall as this makes property more affordable and people buy rather than rent, which increases demand. Other factors that influence market value: Location, condition age, layout & current market trends.
In a declining or stagnant market one must caution against overpricing property. In a rising market it can also be very difficult to get the right balance between the best possible price and a quick sale. Overpriced properties can take longer to sell, which can be quite stressful and costly especially if the property is standing vacant and not earning income. Unfortunately a property that is on the market for too long sends out a signal that something could be wrong with it. By reducing the price after your property has gone to market you may give potential purchasers the impression that you are desperate and they may make offers under market value.
Estate agents normally use what’s called a Comparative Market Analysis (CMA) to determine the selling price of a property. This is done by analysing and comparing the property to those of a similar nature that were recently sold in the area. Your agent will also take into consideration, the property's proximity to amenities, condition and general appearance of the property, and current demand in the area for similar properties. A printed copy of the CMA will be presented to you.
Signing a sole mandate with one estate agency gives both the agent and the agency the incentive to allocate more resources, time and effort into the marketing your property.
Your agent is accountable to you, the seller. They have your best interests at heart when dealing with purchasers, negotiations and all other aspects relating to the sale of your property.
Your agent makes sure that all potential, pre-qualified buyers that are on our books are introduced to your property and that all potential buyers viewing the property see it's value for money.
Avoids duplicate buyers, therefore eliminating double commission claims. If more than one agency brings the same buyer to your property you could be held liable to pay double commission if that buyer purchases the property.
Properties linked to one brand sends a message about quality. When a property is listed with a few different agencies it may give the perception that the seller is desperate, therefore the possibility of below market value offers.
You work with one dedicated agent from one company, simplifying your life and ensuring your privacy and security. More than one board outside a property can give the impression that the seller is desperate.
Straighten up or remove newspapers, magazines, mail, toys, clothing, recreation gear, dishes etc. Ensure that every room in the property is neat and clean. Nothing makes a space look smaller than clutter.
Turn all the lights on, electric lights have an amazing capability for creating an illusion of lightness, airiness and space. Open all the curtains and blinds. Dark, gloomy spaces tend to make a space look smaller as well.
Make up the beds neatly and ensure there is nothing lying around especially in the walkways. Ensure all counter tops are clear and clean, wipe down appliances and make sure that all dishes are out of sight. Remove any other obstacles that may hide the positive aspects of the property.
Smells can work wonders for the psyche. Keep air fresheners in the cupboards, bathrooms and kitchen. Keep a set of fresh attractive towels in each bathroom. Fresh, nice smelling flowers can brighten up the space. Brewing coffee or scented candles are also great for ambience.
Soft, pleasant music in the background helps set the tone. Always put the properties features in the spotlight. As an example if you have a lovely enclosed patio for entertaining, try and make that space look it's best in order to draw potential buyers to it.
The signed sale agreement will be sent to the transferring attorney by the agent or by the seller in case of a private sale. The transferring attorney is usually appointed by the seller. The attorney will obtain all fica documentation that is required to conclude the sale from the seller and purchaser.
The purchaser must provide proof that a bond has been granted to him by an acceptable banking institution in South Africa and that the bond amount is the same under the conditions of the sale agreement. The purchaser must pay the deposit into the transferring attorneys trust account.
The title deeds or the bond account number needs to be provided by the seller in order for the attorney to request current bond cancellation figures from the sellers bank.
A Rates Clearance Certificate (a document stating that all rates and taxes for the current rates year have been paid) is obtained from the municipality by the Transferring Attorney.
The Bond Attorney advises the Transferring Attorney of the amount available for guarantees and requests the draft deed of transfer and guarantee requirements.
The Cancellation Attorney is requested to cancel the seller's bond, on receipt of a guarantee for the amount owing. The Transferring Attorney receives the title deed and bond cancellation figures and sends a copy of the deed of transfer and the guarantee requirements to the Bond Attorney.
The Transferring Attorney requests the purchaser and seller to sign the transfer assets. The purchaser pays the transfer costs and the Transferring Attorney then pays the rates and taxes and the transfer duty to the South African Revenue Service. A Transfer Duty Receipt is issued.
The Bond Attorney prepares the bond documentation together with the relevant statement of account. The purchaser signs the assets and pays the costs.
The Bond Attorney prepares and issues the necessary guarantees, forwards them to the Transferring Attorney and prepares the bond assets for lodgement in the Deeds Office. Once the Transferring Attorney has received the guarantees, they are forwarded to the Cancellation Attorney.
All Bond and Transfer assets are inspected by the deeds registry and if correctly prepared, come up for registration. At this stage the purchaser must have the balance of the cash purchase price available, and the financial institution's attorneys have the bond amount available. Allow at least 12 weeks for the registration and transfer of the bond.
The transferring attorney now draws the finale statement of account. The purchase price after deductions (bond cancellation figure; bond cancellation costs; estate agent’s commission; costs of the compliance certificates; and the pro rata share of the rates clearance figures and levy clearance figures in case of sectional title property) must be paid to the seller.