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.