While buyers can find good deals in the market and secure favourable mortgage rates, sellers currently face the challenge of how to sell in a buyer’s market.
“We are undoubtedly in a buyer’s market,” says Samuel Seeff, chairman of the Seeff Property Group. “Factors such as the flat price growth, higher stock levels, greater urgency among sellers, and a favourable bank lending environment, all combine to favour buyers, despite the higher interest rate.”
Buyer’s versus seller’s market
One of the first things that happens in a buyer’s market is that there are fewer buyers around to compete for the greater number of properties on offer. This usually means offers are slower to come in and when they do, buyers tend to offer lower prices.
In contrast, when the market favours sellers and there is a shortage of properties, sellers are usually able to find quite a few interested buyers and can generally bank on a favourable offer and price. It is not so easy when you really need to sell, but you find yourself in a buyer’s market.
Don’t overprice
The first thing to consider if you really need to sell is to avoid the temptation to overprice your property. The days of fast offers and high prices are now largely gone, says Seeff’s agents. Instead, the market is now dictating prices.
If you are selling right now, you may well be competing against three to four similar properties in your area or property category in the same price range. Thus, unless your property is offering something more than those competing properties, your chances of success may depend on your price.
Find a reliable agent
You, therefore, need to trust and listen to your agent. Be careful of agents who are just looking for your mandate. Rather work with an agent who can show their record of recent sales. Be open and upfront about your needs so the agent can ensure no time is wasted to find a buyer for your property.
Consider all offers
Remember, an offer often presents the opportunity to negotiate and if each party gives a little, you might still be able to make a favourable deal, says Seeff. You should also consider that you may not get a higher offer.
Think about the time value of money. If you sell now, you may also be able to take advantage of the favourable buyer’s market conditions and find a better price for the new property that you wish to purchase. If you wait for a higher price, you may have to also pay a higher price.
Brookfield, Johannesburg
Offer a perfect home
It is also important that your property is in top selling condition so that the buyer has no reason to look for an opportunity to discount your asking price. The buyer should find nothing wrong when they come and view, so that there is no time wasted.
“Regardless of where we are in terms of the market cycle, there are always people looking to buy and therefore opportunities to sell. You, therefore, do not need to wait for the market to improve to sell, especially if you are looking to move or have your eye on another property,” Seeff says.
