Top strategies for selling property in today's market
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One of the top questions that a would-be property seller asks is how to sell their property for the best possible price. This is especially relevant for buyers who find themselves needing to sell in the first five years of homeownership, and Jawitz Properties' Ynnis Willson provides valuable insights on property sales and the real estate landscape in South Africa. Willson is Jawitz Properties' Randburg Sales Manager and the company's National Rentals Manager. She shares her knowledge and insights on getting the best possible price for your property in today's market.
Selling a property in the first five years
Willson makes the point that depending on the buoyancy of the market at the time of purchase and the level of renovations or improvements undertaken, you may not gain a lot in terms of your property's value if you sell in the first five years. "To maximise the return on your investment, it's very important to market your home correctly," she explains. "Using the services of a well-established professional real estate agent on an exclusive mandate is the best way to achieve that."
She explains that an exclusive mandate creates a platform of competition between buyers looking to purchase, as opposed to competition between agents looking for a quick sale. "In some instances, small touch-ups can go a long way, and a professional real estate agent can offer guidance in this area," she adds.
Factors that come into play when valuing a home
"Location, accommodation and finishes have always played a vital role in determining a property's value," shares Willson. "In today's market, where there has been a shift from people working from the office full-time to a more hybrid model, accommodation and sufficient space are topping the list of buyers' priorities."
To this, Willson adds that the listing price is a key factor in attracting the right pool of buyers. "The age-old saying 'the longer your home stays on the market, the less likely you are to achieve maximum value' still stands," she explains. "We need to maximise the interest in your property from the start, and pricing the property correctly is the best way to do this."
How long should you hold on to an investment property?
The determining factor of how long you should hold onto a property is your reason for having made the investment. "There are so many external factors that affect the property market," Willson comments. "When we are in a sellers' market, the rental market is put under pressure and when we are in a buyers' market, the rental market is buoyant. If you became a real estate investor to earn a residual income, then the longer you retail your investment, the more valuable it will become to you."
Willson also explains that if you have invested in real estate to flip the property, then the investment will become less valuable to you over time.
The impact of lockdown on property transactions
In July 2020, when the real estate industry was released from hard lockdown, there was a huge surge in buyer demand. Willson accredits this to the favourable interest rates and the lifestyle changes that COVID-19 has caused. "These conditions are still prevailing more than a year on, with interest rates remaining low. There is a massive demand for property, but it is being stilted by our economy," she explains. "A shortage of properties on the market can lead to the impression that it is a sellers' market. However, buyers are astute and are looking for real value. Price is the equalising factor."
Freehold properties versus sectional titles and clusters
One of the questions frequently posed about property is the differences between investing in a freehold property and a sectional title or cluster property. According to Willson, there is no particular type of property that will necessarily fare better than others. "The best choice is to buy wisely," she shares. "Do your due diligence both in terms of what you are buying and your reason for the purchase. If you are buying into a sectional title scheme or cluster, it is very important that your request a copy of the financials and management accounts of the body corporate before you put pen to paper."
Willson states that the best advice in any real estate transaction is to deal with a professional real estate agent who can guide you and help you make an informed decision. Contact Jawitz Properties today if you're looking for advice on buying or selling property.
Author: Jawitz Properties
