Intimate market knowledge is a critical aspect of the service an Estate Agent provides to clients. I track homes that come to the market in the Rondebosch / Claremont area and analyse their performance.

The issue is price expectations – sellers are pricing homes for the peak of the market and holding out for their price. They do not realise that the rate of price increases has been slowing for the past 5 quarters in the Southern Suburbs.

Buyers are holding back for a variety of reasons mainly because of affordability but also because of economic and political uncertainty. These influences are beyond the control of sellers.

This is not a doom and gloom situation;  prices are still rising but not as quickly as in the past.

The current market conditions create a situation where buyers have more choices and are not under pressure to make offers, the market has become a buyers market.

Now more than at any time in the past 4-5 years it is vital for sellers to appreciate that  Price + Presentation = Saleability

Price

Know what you are up against – Potential buyers are well informed;

• They find out what properties were bought for.
• They research how long properties have been on the market and use various websites to calculate a current valuation.
• Buyers don’t have to visit a property to get a feel for what it offers. Most good agents provide internal and external photographs, floor plans and 360 degree video. There is little mystery left as to what is behind the front door.

How to get it right –

• Be realistic about your selling price; ask a variety of agents for their perspectives and ignore ‘valuation flattery’ where an agent is overly optimistic to seduce you into a mandate.
• Do your research into the competition – which other houses will your potential buyers be looking at and how does your property compare?
• Be objective, see those houses and yours through “buyers’ eyes”, it can be difficult to be rational, so get others opinions.

Presentation

First impressions count – In every aspect of modern lives, presentation is critical – both for the photographs and 360 tours which potential buyers will view and for the actual physical viewings.

Get professional help – It is not advisable to spend a lot of money when selling, but unless your home is in a permanent state of perfection, which very few are, a small investment may help you to achieve your sale price, or achieve any sale at all.

Get a professional Agent or home stager to give you an objective second opinion and recommend where to put your time and effort in getting the presentation up to the required level for photographs and viewings. Simple things such as de-personalising your home to allow potential buyers to imagine themselves living there and decluttering to maximise space and appeal, can be crucial in securing a sale.

Price Pressure

Nationally property prices have been under pressure with some suburbs showing declining real house price over the past few months.

In Cape Town; the remarkable strength of the housing market over the past few years has started to show signs of slight weakening.

The average time a home is on the market before a sale has increased over the past 6 months. It now takes close to 20 weeks on average for a home to sell in Cape Town. A market is considered to be in equilibrium when homes sell in +/- 12 weeks.

With homes staying on the market longer there is a risk of a real house price correction. There is minimal fear of a local (Cape Town) bubble and the risk of significant price declines is considered to be very low.

However, price increases in the Cape Town market are expected to gradually return to the longterm trend line for house price inflation. The spectacular increases seen over the past few years are unlikely to continue.

Have you been holding onto you home, enjoying the 10% +annual  increase in value over the past few years? Have you  also been thinking about a change? With holding costs (rates, insurance and maintenance) increasing all the time, Now may be the time to begin planning for that change.

In the Claremont and Rondebosch market we started have started to see pressure being transferred to sellers. Over the winter period, average days on the market began getting longer, and in some cases homes were removed from the market not having sold.

Strategies for serious sellers in the current market;

1. Prepare your home carefully for sale – get ready to show its best face.
2. Ensure that you price competitively relative to similar homes on offer.
3. Be ready to negotiate.

Every home is unique and offers different benefits to the market. Its always a good idea to consult a professional agent before putting your home on the market.