To all homeowners who are thinking of selling

 

We have recently conducted some in-depth research on property prices in the Summerstrand house market and we thought you may be interested to see what is currently happening in this area.


THESE ARE THE FACTS

  • During 2017, 23houses were sold for over R3m.
  • Around 38houses are for sale in Summerstrand over R3m on Property 24.
  • 22 of these have been on the market for over 3 months with many listed by multiple agencies.
  • Older listings generally achieve lower prices.
  • Open mandates mean no commitment by agents – The property becomes everyone’s listing and no one’s responsibility.
  • In 2018 (year to date) the average sold price for freehold houses in this suburb is R2 000 000.


WHAT IS MARKET VALUE?

A seller can only ever expect an agent to achieve MARKET VALUE for their Property.

Market value is the price a willing and able buyer will pay to a seller at any given point in time, in a free and open market.

Buyers buy by comparison.  They will view many properties (sometimes 14 plus) before making their decision.  Buyers are well informed about prices, value for money and make comparisons before making their decision.

BANK VALUATORS MUST STILL FIND VALUE FOR A BONDABLE SALE TO SUCCEED

Most buyers need bond finance to purchase.  Part of this process involves the bank sending out qualified valuators to the property, to advise if the property is worth the price being accepted by the seller.  Should they not find value, the bond will not be granted and the sale will not proceed.

Bear in mind that for a buyer to qualify for a R3million bond, they would need to earn in excess of R90 000!

PLEASE CONSIDER THE FOLLOWING IF YOUR PROPERTY IS ON THE MARKET AND NOT SELLING

  • How did your Agent arrive at this Price?We provide our clients with detailed market comparisons based on what has SOLD in the area.
  • Does your property offer the best value for money in the Summerstrand area? If not, it will not sell.
  • What resources does your Agent have to Market your home?
  • Does your Agent have a growing database of buyers, as a result of the fact that they specialise in the area and have regular show houses?
  • Does your Agent have experience selling in Summerstrand? We have specialised in the Beachfront area for over 20 years
  • Does your Agent have a proven track record of sales (not listings) in the Beachfront area?We sell our sole mandates in 28 days and achieve an average of a 5% variance between listing and selling price. Our last two sales achieved 100% of asking price.

 

COMMON MISTAKES SELLERS MAKE

  • To choose an agent who prices their home the highest, rather than based on their track record or ability to market and sell.
  • Price their home above market value in the initial, most crucial marketing period.
  • Neglect to ask for a marketing plan from the agents they interview.
  • Neglect to check out other properties for sale in the area (the competition)
  • Place the home on the market before it is in the best condition.
  • Fail to give proper viewing and show house access.

Has your Agent over-inflated the price of your property and lowered their commission just to get the Mandate?

 This will most certainly cost you more in the end and cause damage at the initial, most crucial stage of marketing.

If you need to sell and would like an honest, facts-based, market-related valuation, call the Beachfront specialists on 041 583 4034.

Humewood House Prices

TO ALL PROPERTY OWNERS

We have recently conducted some in-depth research on property prices in the Humewood house market and we thought you may be interested to see what we have found.

THESE ARE THE FACTS
• According to Lightstone deeds office information, since 1 Oct 16, only 5 houses were sold in Humewood for R2.8m or more. 4 of these were guesthouses and 1 was a newly built, modern home.
• There are currently in excess of 25 Humewood houses for sale over R3m on the Private Property website. Many of these are stale listings (older listings generally fetch below market value) and have been listed with multiple agencies. Open mandates mean no commitment by the agents – The property becomes everyone’s listing and no one’s responsibility.
• The average sold price for freehold houses is R2 325 000 (during Jan – May 18).

Market value is the price a willing and able buyer will pay to a seller at any given point in time, in a free and open market.

Buyers buy by comparison. They will view many properties (sometimes more than 14) before making their decision. Buyers are well informed about prices, value for money and make comparisons between the different properties before making their decision.

BANK VALUATORS MUST STILL FIND VALUE FOR A BONDABLE SALE TO SUCCEED

Most buyers will need bond finance for their purchase. Part of this process involves the bank sending out their valuators to the property, to advise if the property is worth the price being accepted by the seller. Should they not find value, the bond will not be granted and the sale will not proceed.

Bear in mind that for a buyer to qualify for a R3million bond, they would need to earn in excess of R90 000! The average household income range in Humewood is between R35 000 – R45 000 (source: Lightstone)

PLEASE CONSIDER THE FOLLOWING WHEN YOU INTERVIEW AGENTS TO SELL YOUR HOME
• How did your Agent arrive at the Price?
• Has your Agent discussed the comparable list of recently sold properties in your area with the prices achieved?
• Does your property offer the best value for money in the Humewood area? If not, it will not sell.
• What resources does your Agent have to Market your home?
• Does your Agent have a growing database of buyers, as a result of the fact that they specialise in the area and have regular showhouses?
• Does your Agent have experience selling in Humewood?
• Does your Agent have a proven track record of sales (not listings) in the Beachfront area?

COMMON MISTAKES SELLERS MAKE
• To choose an agent who prices their home the highest, rather than based on their track record or ability to market and sell.
• Price their home above market value in the initial marketing period – which is the most critical time to price it right.
• Neglect to ask for a marketing plan from the agents they interview.
• Neglect to check out other properties for sale in the area (the competition).
• Place the home on the market before it is in the best condition.

  • Fail to give proper viewing opportunities and show house access.

Don’t let your Agent over-inflate the price and lower their commission just to get the Mandate.  This will most certainly cost you more in the end.

If you need to sell and would like an honest, facts-based, market-related valuation, call the Beachfront specialists.
Kind Regards,

Nikki Strooh
Harcourts Beachfront
Mobile: 072 245 6037
Office: 041 583 4034
Email: nikki.strooh@harcourts.co.za

Calendar Events

 

1 Nov 2018 – Tourism Networking Expo – St Margaret’s Church Hall – marketing@pembba.co.za

3 Nov 2018 – Despatch Festival – Bothasrus Despatch – 082 608 5970

4 Nov 2018 – Donkin Street Festival – Heritage Cafe Central – 078 683 5274

9 Nov 2018 – Theuns Jordaan – The Barn – 083 760 0609

10 Nov 2018 – Ruan Josh & Franja du Plessis in Port Elizabeth – The Barn Greenbushes – 083 760 0609

24 Nov 2018 – Imibala Arts Festival – 076 967 7363

24 Nov 2018 – Christmas in the Park – Mount Pleasant – 079 129 9889

24 Nov 2018 – Donkin Reserve – 041 373 1796

2 Dec 2018 – Donkin Street Festival – Heritage Cafe – 078 683 5274

9 Dec 2018 – The Color Run – Port Elizabeth Harbour – 041 484 7860

 

 

WHAT EXACTLY IS COVERED BY AN ELECTRICAL WIRING CERTIFICATE?

Upon selling a property, the seller is responsible for providing a valid Electrical Certificate of Compliance by a qualified and certified Electrician.  What exactly does this include?

In a nutshell, it covers The Electrical Installation, also known as the Wiring (or even fixed wiring) between the MAIN SWITCH (point of control) and the supply terminals of appliances (point of consumption) or socket outlets.

This certificate does NOT cover appliances (ie kettle, oven, stove), however in the case where appliances are being sold with the property, it will be wise to have them checked to ensure they are functional.

Before appointing an electrician, make sure they are members of the ECA 041 363 1990.  That way you have peace of mind and added protection.

SOURCE:  ELECTRICAL CONTRACTORS ASSOCIATION (SA)

TRUST ISSUES IN REAL ESTATE

Selling a property is a big decision – it is more often than not, the biggest asset a seller owns.  It goes without saying then that it is crucial for the sale to be handled properly – Trust plays a critical aspect here.

A seller needs to have complete trust in the agent they appoint.  They need to believe that their agent is being transparent and working for them, not against them.  This is best achieved by giving a sole mandate – the agent will have a legal and contractual obligation to work in the best interests of the seller.  We at Harcourts Beachfront commit in writing, to a list of activities for our sole mandates.

When you interview agents, try to determine if they are able to substantiate their claims.  On what do they base their appraisal value?  Is it factual, or a lie to get your listing?  Do they commit to their marketing plan – and it is in writing?  What kind of service do they promise you – and is their service promise in writing?  What sort of track record and testimonials do they have?  Be sure that you are completely comfortable with their proposal and that they are committed to work for you, not against you.

Trust is something that is hard to find in today’s competitive business world.  And yet there are professional and ethical people that are an absolute pleasure to work with.  Work with the right people and value the trust that others have in you.

SOURCE:  HARCOURTS PLATINUM

CO-OWNING A PROPERTY AND THE BOND

Whether for financial or other reasons, people often invest in property as co-owners, whereby each owns an undivided share in the property. It would be prudent in these instances, to draw up a co-ownership agreement.

Buyers in this situation should not forget that no matter what they agree to with regards to split in shares in the property, maintenance, occupation or income from the property, their agreement will not bind third parties such as banks or municipalities.

For example, the bank that grants the home loan will generally insist that both (or all co-owners) agree to be ‘jointly and severally’ liable to repay that loan. This means that the bank may recover the debt from all of the debtors in proportion to their shares or, if necessary, to recover the whole amount from any one of them. So, if one co-owner should fall on hard times or stop paying for any reason, the others will be required to make up the difference.

SOURCE:  OOBA, EXPERTS IN HOME FINANCE

BUYERS ARE BUYING, BUT ARE PRUDENT

More properties are coming onto the market as property owners decide to access the equity in their property or reduce their debt.  This leaves buyers with more properties to choose from, however they are shopping wisely and are very aware of what properties are worth.  They react only to properties that represent the best value.

Our research shows that buyers generally respond to properties that are listed within 2-5% of their actual market value.  That means that if a property is listed outside this range, buyers may see it advertised but won’t respond to it.

It’s no surprise then that there may be a decrease in the number of enquiries on properties, and in many cases, properties may go weeks without enquiries or viewings.  That’s a sure sign the list price isn’t close enough to current market value – and that something needs to be done in order to attract buyers.

It’s important to realise that, if you’re a buyer who is upgrading, what you lose on the swings you gain on the roundabouts.  If you sell low, you will also buy low.  So, if you’ve made the decision to sell, then listen to the market and get your home sold.  Your ability to negotiate improves significantly once you have sold your existing property.  For more information, please contact your Harcourts Beachfront sales consultant on 041 583 4034.

SOURCE:  HARCOURTS PLATINUM