While many homeowners envision a smooth transaction leading to a lucrative sale, numerous pitfalls can arise, potentially derailing the process and impacting the final outcome. Understanding what could go wrong can help sellers to avoid some of these costly mistakes.
READ: Understanding the timeline to sell a home
Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, says that by preparing for possible issues, you can increase the likelihood of a successful and profitable sale. “Working with experienced professionals, from real estate agents to home inspectors, will also help you navigate the process more effectively.”
To help sellers become more prepared for what could go wrong, RE/MAX of Southern Africa shares the top three reasons why a sale might be unsuccessful.
Financing problems
Even if you find a willing buyer, financing issues can still arise. Cash buyers might run into trouble making the cash available in time for the transaction to go through. Buyers who are relying on home finance may fail to secure the home loan for a number of reasons, including credit problems, insufficient funds for a down payment, or changing financial circumstances. Ensuring that potential buyers have pre-approval for a home loan can help mitigate this risk.
Inspection Issues
Inspection issues such as structural problems, outdated systems, or safety hazards can lead to negotiations, price reductions, or even deal cancellations. The risk of this happening is higher on older properties because compliance laws change over time. Sometimes the whole house might need to be rewired before an electrical compliance certificate can be issued. This can be incredibly costly, and if the seller cannot afford to correct the issue, the sale won’t be able to go ahead. To avoid this issue, it might be worthwhile to conduct an inspection of the home before listing it for sale. That way there is time to save up and correct the problems before you have an offer pending.
READ: What compliance certificates do I need when selling my home?
Compliance certificates are required when selling a home
Electric compliance certificate (ECC)
Your ECC should have been issued within the last two years. There should not have been any alterations to it since it was issued.
It should cover the distribution boards, wiring, socket outlets, light switches, earthing, bonding of all metal components, including satellite dishes and antennas, and isolators for fixed appliances. It is important to check that the company conducting the inspection includes fixed appliances like the geyser, stove, fans or underfloor heating appliances.
Gas compliance certificate (GCC)
The GCC is required for built-in gas stoves, geysers, braais, fireplaces, etc. The certificate is issued once the installation has been inspected and the authorised expert is satisfied that it is safe and that the emergency shut-off valves and other components have been installed in the correct positions, for example, in relation to electrical points. Cylinders outdoors need to be a certain distance from doors, drains, windows and electrical appliances.
Electric fence certificate
This certificate must be issued every time there is a modification to the fence or the property changes ownership. It should have been issued within the last two years.
Water installation compliance certificate (Cape Town)
According to the City of Cape Town, a registered plumber should undertake this inspection and certification. It will only be issued if:
- there are no plumbing defects;
- the water meter is working;
- there are no stormwater connections running into the sewer system;
- there are no cross-connections between drinking water and any grey water, recycled water or ground-water systems; and
- the water installation conforms to the national building regulations and local by-laws.
Selected properties will also be inspected by a City of Cape Town water inspector to ensure compliance. The City will take up any issues of non-compliance directly with the plumber.
Beetle compliance certificate (coastal regions)
This certificate is only valid for three to six months and must be issued by a qualified entomologist and certified member of the SA Pest Control Association.
READ: Selling your home? There are up to 5 compliance certificates to be obtained
Suspensive conditions
Goslett says when weighing up offers, it is important for sellers to consider the suspensive conditions. For example, if the offer is on condition of the sale of the buyer’s property, it is possible that the buyer might not be able to sell the home for as much as they had hoped, or worse – they are unable to sell it at all. If the sale is dependent on the property being vacant, and the tenant in the home refuses to move out, it will be at the seller’s expense to get the tenant legally evicted before the sale can go ahead as planned.
“Selling a home can be a daunting and complex process, often filled with unexpected challenges; and, while it can be challenging, understanding potential pitfalls and leaning on the advice of a RE/MAX agent can help you avoid making costly mistakes and maximise your potential return on investment,” says Goslett.
READ: How to determine the true market value of your home
Quay1 Regional Manager, Christine Marsh, says selling a home can be a complex process, and avoiding common mistakes is crucial to ensuring a successful sale. Here are some pitfalls to watch out for:
Overpricing: One of the most common mistakes is setting an unrealistic asking price. Overpricing can deter potential buyers and cause your home to sit on the market for an extended period. Conducting a comparative market analysis and consulting with a real estate agent can help you set a competitive price.
Neglecting Repairs and Staging: Failing to address necessary repairs and properly stage your home can negatively impact its appeal. Before listing, make sure to fix any noticeable issues, clean thoroughly, and consider staging to highlight your home's best features and create a welcoming atmosphere.
Inadequate Marketing: Effective marketing is essential for attracting buyers. Utilize high-quality photos, detailed descriptions, and various marketing channels, including online listings, social media, and open houses. A well-executed marketing plan can significantly increase your home's visibility and appeal.
Not Being Flexible with Showings: Limiting showing times or being inflexible with potential buyers' schedules can reduce the number of interested buyers. Be accommodating and make your home available for viewings as much as possible to increase your chances of finding the right buyer.
Skipping Professional Help: Selling a home involves numerous legal and logistical steps. Working with a qualified real estate agent, lawyer, and conveyancer can ensure that all aspects of the transaction are handled correctly, reducing the risk of errors and complications.
By avoiding these common mistakes, you can streamline the selling process and achieve a successful and profitable home sale.
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