For some time conditions have favoured sellers, with high demand and low market stock favouring sellers. However, as more homes come on the market, sellers will find themselves in a far more competitive environment.
Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa, says that buyers are adopting a wait-and-see approach to the market. “The result is sellers now have to be aware of the competition they face in their own neighbourhood before deciding to list their property,” he explains.
These are the aspects sellers should consider about their neighbours before they list their home:
Who is renovating?
If possible, it would be advantageous to tap into the neighbourhood grapevine and see who is renovating their kitchen and upgrading their bathroom fixtures. These upgrades generally add value to a property and attract buyer’s attention.
Pro Tip! A real estate professional who specialises in the neighbourhood will be able look up the listing and sale prices of those homes to find out if the updates made a difference to the bottom line.
Before listing, sellers should keep an eye on how long it takes for a home to be sold in the neighbourhood. This will give some important insight into how long they can expect their home to be sitting on the market and plan accordingly. FNB Price Index indicates that on average a home is on the market for around 12 weeks before it is sold. Goslett says that, depending on the neighbourhood, properties available, and buyer demand in the area it could take less time or in some cases a bit more. “Other factors can also come into play such as pricing the home correctly at what is perceived to be fair market value for the area,” he reminds.
Take stock of the available inventory
It can be difficult to obtain a competitive price when inventory is high and buyers are few as all sellers will be competing for the same pool of buyers. “If there are several homes for sale within a relatively small radius, it might be worthwhile to wait before listing the property,” advises Goslett.
Pro Tip! An experienced agent will be able to provide information with regard to current market trends and the best time to list the property.
Stay up-to-date on any area planning and zoning news
While buyers want to purchase a property that is within proximity to amenities, they won’t want to stay there while major construction is underway. Sellers should keep au fait with any upcoming public projects that could impact their property listing timing. If there are any potential projects, the seller can discuss a selling strategy with their agent to work around possible issues.
Knowing the unique characteristics of your neighbourhood will assist you in selling your home promptly. With the shifting market dynamics it is probably best that you identify an agent who specialises in the area to gain an edge on your competitors.