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
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.
Mobile: 072 245 6037
Office: 041 583 4034
To view my properties please visit my website: www.harcourtsbeachfront.co.za