After Zillow.com, a USA-based online real estate service, found last week that almost 50 percent of American homeowners believe their homes are worth as much or more than they were a year ago, the question of what constitutes good value in today's market was posed to members of Port Elizabeth's Top Professional Guild (TPG) this week.
Agreeing that the general trend among local sellers was also to base their pricing on the long-gone boom years of 2004 and 2005, they said, however, that there were some excellent examples of good value to be had in a market which was finally showing signs of stablising.
The golden rule of real estate remained location, location, location, said Ian Olivier of Ian Olivier Properties. "Then it's all about finding the property in that area that not only promises to meet current and future requirements but is also priced at or below its current market value, bearing in mind that you make money when you buy a property, not when you sell it."
In terms of excellent value, he says one of his agents is marketing a house in Linkside, which though priced in the late R2 millions today, will fetch "well into the R3 millions in the not-too-distant future".
Aside from its three living rooms, gourmet kitchen, four bedrooms and two glamorous bathrooms, it also offers a pool set in a "Keith Kirsten-like garden, double garage and two bedroom, self-contained cottage.
For Merle Mackereth, principal of Merle Mackereth Properties, one of her best all-round offerings is in the popular, middle-income area of Kabega Park. Since the price was reduced to R815 000 last week, she believes there is little to touch the neat house with its three living areas, three bedrooms, two bathrooms and large entertainment area with pool, pub and indoor braai. "Taking into account its location, size, condition and price, this is a good buy," she says.
There's not much to beat her sole mandate in Framesby Gardens, set in a very exclusive cluster of houses, avers Leigh Parry of Leigh Parry Estates. Priced at R1,325 million, it's a face brick home that offers "everything that opens and closes". A coat of paint would bring a glow to the property, which is nevertheless in very good condition, she continues. In all, it offers three good-size living areas, three bedrooms and two full bathrooms as well as a double garage and swimming pool.
At the upper end of the market, Summerstrand specialist Mariette Rossouw of Mariette Rossouw Estates says their premier property portfolio currently offers some very good buys. "Sellers are learning to understand that the market value of a property is currently much lower than the intrinsic value, and that it is now time to buy. Similarly, if you sell and buy in the same market, you put yourself in a winning position. Even for those considering an upgrade, it's a market that allows people to get more value for their rand while simultaneously increasing the value of their investments," she says. Her cases in point include a cluster home for sale in Casa d'Oro, within walking distance of the sea "at a price yet to be beaten" and a "very prominent home close to schools at a market-related price", which she expects to sell before the first show house.
For Gordon Smart of Smart Properties, the opportunity to pick up bargains is almost past. "We are coming out of the down cycle so buyers must not wait," is his advice. Among his best, all-round value listings right now is a 132 square metre, 3 bedroom flat in La Rochelle, Park Drive. "It's a popular retirement suburb and a sought-after complex," he says. "The last 3-bedroom flat sold a year ago for R865 000. The one we're marketing is in a similar condition but R200 000 less because the seller is moving to frail care and needs action quickly." – Ingrid Olivier
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