The pitfalls of selling property privately
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At first glance, selling a property privately rather than using an estate agent can seem like a good strategy. It seems to cut out the middle man, remove the need to pay estate agent's commission and put you in control of the process. On the other hand, putting your home on the market yourself means that you have to market the property effectively and value it correctly. You'll also need to find a conveyancing attorney and understand and speak some legalese. Over and above that, selling property privately also means that you have no one on hand to answer questions or help you understand the legal ramifications of every stage of the property purchase process. Here, Jawitz Properties takes a look at three of the potential pitfalls of selling your property privately.
Potential pitfall 1: Property marketing
To market your property effectively, you'll need to invest some time and money in the endeavour. The photographs that form part of your listing should ideally be taken by professionals, and there will also be costs involved in listing your property on the online portals - especially the top South African property portals. One of the big challenges you will face is not knowing how to determine the asking price for your property. Estate agents come with a wealth of experience and knowledge in this area, and an arsenal of tools at their disposal. Also, private sellers cannot afford to tie themselves to one potential buyer and stop the marketing process when someone shows interest in the hope of that person signing on the dotted line.
Potential pitfall 2: The relationship with would-be buyers
One of the important things to understand about a potential buyer interested in a private sale is that he or she is invariably looking for a bargain. Your buyer is likely to try and wrangle the price down due to the fact that a private seller will not be paying agent's commission. As a private seller, you'll need to have the kind of temperament that allows for some haggling. You'll also need to be extremely patient, as property sales do not happen overnight.
As a private seller, you'll need to be on the cutting edge of market conditions and relevant data, because your potential buyer will come armed with facts and figures - in varying levels of accuracy. Private sellers often have the unfortunate experience of having potential buyers try to twist their arm.
Another area in which difficulties may arise in the relationship between a private seller and buyer is ascertaining the would-be buyer's financial situation. While an estate agent will always ensure that a potential buyer has prequalified for a bond, it is very difficult for a private buyer to do this. Time can be wasted and other potential buyers lost while someone who has expressed interest in your property attempts to get a home loan application approved.
Potential pitfall 3: Making a mistake
By law, estate agents are required to be qualified and registered with the Estate Agency Affairs Board. In order to practice, they also need a valid fidelity fund certificate. Having these certifications in place means that estate agents have a wealth of knowledge when it comes to the legalities of the property transfer process. If you are selling a property privately, chances are that you may never have done this before. Any mistake made in a real estate sale can end up costing an immense amount of time and money.
Real estate experts agree that more often than not, private sellers end up selling their property at a lower price than that which a real estate agent would have been able to sell it for. Contact us today and allow your Jawitz #RealPartner to take care of selling your property.
Author: Jawitz Properties
