Aside from how much a property will sell for, the question most often asked by sellers is how long it will take to sell? The current average is just under 12 weeks, slightly faster than the long-term average of 13-weeks, but there are many variables, according to the Seeff Property Group.
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The “time on the market” refers to the duration from listing a property to its confirmed sale date, namely, when all the conditions of sale have been met. Various factors, however, influence the time. When there is more buyer activity, properties tend to sell faster and often attract multiple offers.
If the property is in a high demand area and price range, and is priced correctly it should sell quite quickly. For example, Seeff recently sold the most expensive house for R7.95 million in Pinelands in less than a week, says Johan Meyer, licensee for Seeff Pinelands (Cape Town). Low stock levels combined with high demand means properties sell much faster, so much so that properties below R4 million in Pinelands and Thornton can now sell in under 30 days (about 4 weeks).
While some properties can sell within 4-6 weeks, others may take up to 6-months or longer to sell. In a high-demand area such as Cape Town for example, Belinda Keys, an agent from Seeff Claremont, for example recently sold a property for almost the full asking price at R8.895 million within one day, before it could even be listed. She similarly sold two further properties, one for the full asking price of R5.6 million, and another for more than the asking price at R3.85 million.
Location, region
Demand for the location and regional differences also play a key role. For example, coastal areas with mostly holiday homes might take longer to sell. A recent Lightstone study for example shows that Cape Town property sells within 11 weeks (80-days), faster than the national average (12 weeks). Joburg property, however, takes 14 weeks (100-days) on average to sell. The study also showed that about 60% of all property sales are concluded within 12 weeks, with about half of those sold within a month.
Price bands
Price bands also play a role in how long the property might take to sell, with the lower price bands generally selling much faster. Using the Cape Town Atlantic Seaboard as an example, the average time on the market for this year is around 98 days (14 weeks), based on Propstats data. It drops down to 52 days (7.5 weeks) below R10 million, but extends to an average of 143 days (20.5 weeks) for properties over R20 million.
Agent input
The agent has a lot to do with how fast a property could sell, and sole mandates especially selling much faster as a single agent focuses on the sale, says Ross Levin, licensee for Seeff Atlantic Seaboard. For example, Hilary Biccari and Lolly Unterslak from the agency recently sold 8 apartments in 8-weeks in the Sea Point/Green Point area. Meanwhile the trio of Lyn Pope, Edith Marsh and Jackie Clarke sold four houses in four weeks, worth over R100 million in Camps Bay.
Seasonality makes a difference
Seasonality also affects the time that it takes to sell a property. Demand tends to be higher in the early months of the year due to salary hikes taking effect, people starting new jobs, or needing to relocate elsewhere for work. Towards the latter part of the year, however, it tends to slow down in many areas as people get busy wrapping up ahead of the annual holiday season. Properties generally also take longer to sell over the holiday periods.
Coastal property, especially in holiday areas can also take longer to sell. Herman Spies, sales manager for Seeff Mossel Bay for example says that properties are taking about 6 months or longer to sell in the area this year. He adds that some listings, both exclusive mandates and open listings, have been on the market for almost a year as holiday buyers are taking much longer to decide.
Jaco Badenhorst, sales manager for Seeff Karoo and Country says a shortage of properties listed in an area tends to make a market highly competitive, resulting in properties selling much faster. We are finding this to be the case in many of our small towns where properties can move quite quickly, and even attract multiple offers.
Six factors which could delay a property sale
#1 – The price is too high compared to other properties listed in the area. Overpricing is a significant deterrent to a quick sale.
#2 – Low demand in the area, or an oversupply of stock which means that buyers have too much to choose from, and will opt for the property and price which presents the best value to them.
#3 – The property is not well maintained or well presented. First impressions matter immensely, especially when buyers have other options.
#4 – Difficulties in getting access to viewings. Buyers may lose interest if they are unable to view the property, or their viewings are rescheduled.
#5 – There are issues with the property, for example the title deeds, zoning or building approvals. Outstanding levies or monies owed to the local council can also cause delays.
#6 – Delays with securing a mortgage loan or payment of the deposit can also cause a delay in getting the property sold.
People typically sell their property about every 5 to 10 years with 7 years being the average, although this has been trending closer to 10-years according to recent bank data. There are always people buying and an opportunity to sell within a reasonable time. Generally, Samuel Seeff, chairman of the Seeff Property Group says that if a property is not selling within the average time frame, then it usually comes down to two options, change your price or change your agent.
