Cape Town has been a property investor’s dream for some time now, but these sentiments are beginning to change as the Mother City set off to a rocky start for the first quarter of 2018.
“Our regional sales figures for the months of January to March 2018 have hinted at a change to this trend,” says Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa.
While he says that it is still too soon to tell whether or not this will be an ongoing trend for the year to come, Grant Rea, certified sales and letting specialist at RE/MAX Living, warns that sellers might need to reconsider their marketing strategy if they are in a rush to sell.
“My conversations with potential renters and buyers regularly gravitate toward how to negotiate price reductions,” explains Rea. “The City Bowl and Atlantic Seaboard remain popular with buyers. However, we still find ourselves watching a sort of Western showdown between buyers and sellers. My property rental team has noticed a marked slowdown in the demand for even the most staple of properties, such as two-bedroom apartments. The fact is that we seem to be in the middle of an insecure property market, and my suggestion to you is to rethink your marketing strategy if you want to sell quickly.”
Selling fast in a slow market
Here are Rea’s top three marketing strategies for ensuring that your property gets noticed by the folks that are ready to sign on the dotted line…
#1 All about price point – Sellers need to abandon the futile notion that pricing your property higher than the average could result in securing a lucky offer at slightly higher price point than competitors. In a down market, this is a waste of time. Buyers tend to understand the market better during these times and can filter out the chancers immediately, simply ignoring the listings that fail to offer good value. You have to remember that they want a good deal just as much as you want a good price. Cape Town buyers love to negotiate, so by all means leave some space for negotiation when setting your price, but aim to get close to your bottom line price point if you want to sell quicker.
#2 Check out the competition – Apart from your agent’s guidance, know who your competition is. Search online portals and find the properties that compare to yours, paying close attention to the ten cheapest properties in your category. As a rule of thumb, your property should be priced at an average of those top 10 cheapest results if you want to secure a timeous sale.
#3 Listen to feedback – Gather your most brutally honest friends and family and allow them to give it to you straight: from presentation, to price and every other honest opinion they may have. The key here is to remove your emotion. This is understandably difficult, especially when you have sentimental attachment to a property, but you need to remember that the buyer could not be further removed from that sentimentality, and the honest feedback you receive can help you sell your property faster.
To sell in a buyer’s market the key is to get your marketing strategy correct, this is even more relevant if you are in a hurry to make a sale.