How to sell your property in tough times

The property market has become increasingly challenging for sellers, with demand declining and buyers facing affordability challenges. Properties now take longer to sell.

That said, there is still much activity in the market, but sellers must adjust to the new realities, said agents from the Seeff Property Group.

For sellers, the main objective is always to sell their property for the best price in the shortest time.

While this may sound easy, it is not always the case, especially when the market takes a downturn, as we are now seeing. Seeff’s agents said there was now increasingly a mismatch between what buyers wanted to pay and what the seller wanted for the property.

Sellers who set the price way above the market now realise there is not much appetite for high prices. Sellers serious about selling in the current market often face waiting it out at a degree of risk or reducing their asking price.

The reality is buyers are savvy and aware of the market. They will not overpay. It is rare to find buyers who will offer well above the asking price. Even during the Covid-boom, we did not see a noteworthy prevalence of buyers overpaying.

Seeff’s agents highlighted vital considerations for sellers to achieve a quick sale and the best possible price.

First, never overcapitalise. Ensure renovations and improvements add value. Keep finishes up to date but not overly elaborate because each buyer has their own taste. Buyers will not necessarily want to pay for finishes they do not need. Neutral is best.

Importantly, ensure your price expectation fits with the realities of the current market. Evaluate this against the prevailing sold prices in the area. Listing prices are not a guideline because many listings on the property portals are overpriced, so do not compare with these.

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Choosing the right time to sell is another consideration. If you have a particular price in mind, which is above the prevailing market prices, it might be better to wait for a more opportune time to put your house on sale. It all depends on your needs. If you must sell now, then you may need to adjust.

Do not try and sell it yourself. Estate agents still conclude more than 95% of all property sales in SA and get the best prices. It may be tempting to think you could make more money, but there is limited evidence of success.

Do not choose an agent based on the highest price promise. Rather, work with a local area specialist who can show you their experience and recent sales in your area. A proven track record is the best predictor of success.

Always choose a sole mandate. Although an open one can have many agents working on your sale, it is unlikely the agents would give it their sole attention. A sole mandate means attention from one agent and focused marketing.

Your property should be in tip-top sellable condition. With fewer buyers in the market, you want to give them no reason to hesitate or look for a price discount. Clean, paint, repair, replace and upgrade where needed. You could also get all the checks and compliances done upfront so the buyer can have peace of mind that the building works and that electrical and water installations and other aspects are compliant.

Stage the home for viewings. Pack away personal items and declutter (including kitchen and bathrooms). The house must be clean, light and airy. Put out clean towels and fresh flowers. Do not hover during viewings. Put away the pets or take them with you so buyers can view the property unhindered.

Prepare properly, and do not give buyers any reason to find fault or walk away. Ensure you have the plans, title deed, and all FICA documents handy so there can be no delays. The first offer is often the highest, so consider all of them. The agent will provide guidance. A counteroffer is often the route to success.

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