In a real estate market beleaguered by high inflation and repo rates, economic uncertainty and slow house inflation, selling a property has certainly become a more daunting task than ever before, with homes in many areas lingering on the market for longer.
However, whilst these macroeconomic factors undoubtedly play a role, Cobus Odendaal, CEO of Lew Geffen Sotheby’s International Realty in Johannesburg and Randburg, believes that there are also several common reasons some properties aren't selling.
“Although we have no control over the interest rate and current state of the market, there are several key factors that are within sellers' control which can impact a home's saleability and, by addressing them, sellers can enhance their chances of selling their home in a timely manner, even in these challenging economic conditions.”
Odendaal says it’s essential for sellers to ensure they are putting their best foot forward and, in order to do so, they should consider and address the following issues:
- Selecting an agent
One of the most important decisions you make when selling your home is the selection of your estate agent as having the right agent in your corner can make a world of difference.
The best approach is to interview at least two or more agents in your area and make your decision based on factors such as their proven sales record and their experience in the local market.
Odendaal warns against picking the agent who promises the highest price – or the lowest fee – as, more often than not, this will prove to be a false economy as a good agent won’t massively discount their commission and won't over-value simply to win your business.
“It’s particularly important in current market conditions where uncertainty has grown, that you have a good agent working day in, day out to ensure your sale is progressing right the way through to completion.”
- Overpricing
One of the most prevalent issues hindering home sales is overpricing. In a bid to maximise profits, sellers often inflate their listing price beyond the market's tolerance, however, this is usually counter-productive and the most common reason for homes languishing on the market.
" It's commonplace for sellers to enter the market with unrealistic price expectations, but it’s essential for sellers to price their homes in line with current market conditions if they want to secure a sale.
“Conduct a comparative market analysis to accurately gauge your home's value and adjust the price accordingly.”
- Poor Presentation
First impressions matter, especially in real estate, and a property's presentation can make or break a sale. Homes that lack curb appeal or are cluttered and poorly maintained often struggle to attract buyers.
According to a survey by the Real Estate Staging Association, professionally staged homes spend 73% less time on the market than their unstaged counterparts so, even if you don’t hire professionals, take the time to invest in minor upgrades, declutter and enhance the kerb appeal of your property.
“This can significantly improve a home's marketability and expedite the selling process,” says Odendaal.
- Unaddressed Issues
Hidden defects or unresolved issues can be major deterrents for buyers. Whether it's a leaky roof, outdated plumbing, or structural concerns, overlooking these issues can sabotage a sale.
Research from HomeLight indicates that homes with major issues typically sell for 10-20% less than their counterparts in good condition so prioritise necessary repairs and consider conducting a pre-listing inspection to identify and address any potential red flags proactively.
And if you don’t have the budget or time to address certain issues, Odendaal stresses the importance of disclosure: “Not only will you save yourself potentially costly legal headaches down the line when the new owners discover issues that weren’t disclosed, transparently disclosing known issues will foster trust with buyers and prevent deals from falling through later in the process.”
- Inflexible Terms
In a competitive market, flexibility is key. Stubbornness regarding terms such as the transfer date, contingencies, or negotiation can deter otherwise interested buyers. Remaining open to reasonable offers and accommodating buyer preferences can facilitate a smoother transaction and increase the likelihood of a successful sale.
Odendaal notes that flexibility regarding viewing times is also important because if your property is unavailable, potential buyers will look at other homes and may end up putting in an offer on another property before they have even viewed your home.
- The photos aren't good enough
Another problem can be that the photos of your home online not being up to scratch. Most buyers begin their search online and will be faced with dozens of listings within their search parameters and you need stand-out, high quality images in order to be noticed.
“Presentation is key and this starts with your property photos, so if you're marketing with a few smartphone snaps instead of professional photographs then you're already at a disadvantage,” says Odendaal.
“Make sure they look professional and show all areas of the home, inside and out and If your home has been on the market for some time, it’s a good idea to take a fresh set of images that reflect the current season and entice potential buyers to take another look.”
“In a market characterised by uncertainty, proactive measures can make all the difference in achieving a successful sale,” says Odendaal.
READ: Are you having trouble selling your house? Try this…
According to the Seeff Property Group, (The role of a real estate agent : What you need to know) agents do not only sell or rent property on behalf of their clients, but also have their ear to the ground in terms of what current property values are, how much properties might sell for, and what is happening in the property market.
With so many newcomers to the market, often making lofty promises of high prices and quick sales, it is easy for sellers to get caught up in the hype. A property which simply sits on the market with no or low offers can be very frustrating for sellers.
The role of a good agent in getting your property sold as fast as possible, and for the best possible price cannot be overstated, says Samuel Seeff, chairman of Seeff. A bad agent could leave you with a lengthy and frustrating sale process.
Regardless of when you are selling, but especially in the current market, it is important to ensure you choose the right agent for your property and market. If you are not aware of who the best agents in your area are, ask around for recommendations from neighbours or friends.
Always meet the agents in person before appointing them:
This will give you a chance to ask questions and assess the agents. Check how long they have operated in the area. Each area is different and local expertise is a vital point of advantage for any seller.
Look for a successful sales track record:
Ask for a list of their recent sales in the area, how long it took to sell, and the prices achieved. A strong sales record is an important indicator of the likelihood of success and that the agent could find the right buyer for the property.
A strong brand and network is another advantage:
An established brand will have a strong online presence for maximum exposure of your property backed by the latest technology and marketing and sales methodologies. They will use best practice to market and sell your property.
Look for someone who will assist every step of the way:
Selling a property is a complex process with many legalities to be taken care of. A good agent will explain the process and guide the seller to ensure they have all the necessary documents and maintenance done for an efficient selling process.
Choosing the right agent to sell your home cannot be over-emphasised, especially if you are selling right now as you will not want to waste time, says Seeff. Choose the right agent and ensure you follow their advice.
Want all the latest property news and curated hot property listings sent directly to your inbox? Register for Property24’s Hot Properties, Lifestyle and Weekly Property Trends newsletters or follow us on Twitter, Instagram or Facebook.
Print
