Once you have decided that you are ready to sell, you need to take a number of factors into consideration to make sure the process is efficient and beneficial for you.
If your house is priced correctly, within the first few weeks of being on the market you are more likely to attract a serious Buyer and to sell your property within a reasonable amount of time.
It would be ideal to be able to sell when market conditions are just right and you are able to get a good financial return, but for most Sellers it is not possible to hang on for the market to improve.
It may be easier to sell a property during the warmer months, when your home and garden look most attractive. Based on current statistics, this is when homes listed on a website receive the most amount of interest from the buying public.
However, throughout the year there are always Buyers, so if you have to list your home during autumn or winter, there are other ways you can create interest such as a fire in a fireplace or warm colors in the house.
Low interest rates is a sure winner when buying a house. However, the interest rate can fluctuate, and as such one should never purchase a home without looking at the affordability of Bank repayments should the interest rate rise. Use the Bond Calculator at the bottom of the page.
If the property is “worn down” it is perhaps a good idea to think about renovations. Add up the cost of the renovations and compare the most recent selling price of houses in your area. Contact Tienie for guidance on this topic. Sometimes renovations does not justify an increase in the property’s value. Sometimes the seller needs to take a cut in the profit to make the property sellable. Adding a swimming pool will not be a renovation, but fixing the swimming pool will be.
The same for a kitchen or bathroom. Redoing the kitchen can be costly, rather add some small features that makes the kitchen more friendly. Fixing the cupboards and drawers is also very important. Look at small things that may hamper the sale of your property. Even if it is winter, groom the garden; buyers will accept the seasonal changes in a garden as long as it is neat and clean – throw away garbage and old unused stuff.
If a potential buyer is pre-qualified for a home loan and does not have to rely on an selling another property, go ahead. Property sales collapse for a multitude of reasons, but one of the most common has to be the domino effect where a buyer has to sell a property before buying, in other words, the sale of your property is subject to a sale of another property. If you are not in a hurry to sell, this domino effect does not pose a problem, unless you have made an offer on another property and that property owner is in a hurry to sell.
This means while this kind of suspensive offers exist, properties with an offer to buy is not open to the market and everybody has to wait.
If you’re in a hurry to sell your property, choosing multiple agents may seem like the logical option, but it does not always make good business sense. A seller wants to sell for a maximum profit and buys at a bargain price, but that is not always the case.
You do not always get more buyers at your door, and if you do, most of them may not be financially pre-qualified. You have to handle all the administration and expensive advertising if you are a private seller or otherwise constantly calling the multitude of agents for feedback, and gradually they will start to neglect you, especially if your price is to high. Statistics show that if the initial asking price is way higher than the local market value, the property will eventually sell below the local market value, especially if the seller is getting desperate.
The worst case scenario is, you may also lose track which agent showed which buyer the property first, and it can end up a dispute with you as seller paying a double commission.
A sole mandate is a written agreement (instruction) giving one agency exclusive rights to market and sell your property. The agreement should include the length of time that the mandate is granted for (usually 90 days), the selling price, the commission rate, and any other terms and conditions.
While it might seem counterintuitive to have a single agency selling your property, it’s lower risk and higher return than other options. Some benefits of a Sole Mandate are:
Ask Tienie of Vredendal Eiendomme for a sole mandate and have peace of mind with the selling of your property.
Normally if you sell your house using a sole mandate, the answer is “no”, unless otherwise stipulated in the mandate. The agent will discuss with you the advertsing campaign and if you want to advertise in other areas and media, you probably have to pay for it yourself. When you have a Sole Mandate with Vredendal Properties, your property will be marked as Featured and will appear in prominent places on the website.
There are various CoC’s, with the electrical, gas and electrical fence CoC’s which is a legal requirement. At the coastal areas in the Southern parts of the Western Cape, a beetle-free CoC is customary, although not a legal requirement, unless the bank requires it for approving a bank loan. The cost of these certificates is for the seller’s cost unless otherwised agreed between the buyer and seller.
If the property is sold without CoC’s, then in the event of a catastrophic mishap such as damage to the house due to an electrical fire, the insurance companies may not settle a claim for the damages.
Common law determines that the seller is entitled to nominate the transferring attorney. This is because the seller authorizes the transferring attorney to transfer the property to the purchaser and by appointing the transferring attorney, the seller feels more protected. The purchaser is required to raise the purchase price by way of a bond approval or deposit, cover the transfer fees and meet any suspensive conditions.
Ask Tienie from Vredendal Eiendomme which transferring attorney they recommend, but the ultimate decision is yours.
As mentioned above with the Sole Mandate, you may choose multiple agencies to put your property on the market with the prospect of selling it. Once an agent shows prospective buyers the property, you may not sell the property to the same prospective buyers using another agent – you will then be liable for paying double commission.
If you have a sole mandate with and agency, you may not advertise your property with other estate agents or agencies and in turn other estate gents or agencies may not show the property to prospective buyers during the sole mandate period; a drive-by can be disputed as showing the property.
If you acquire prospective buyers on your own during the sole mandate period e.g. a prospective buyer knocks on the door based on a Sole Mandate advertising board, then you have to disclose the prospective buyer to the agent or agency who holds the sole mandate.
The definite answer is “No”. You or/and the buyer will be held liable for commission to the agent or agency who showed the house to the prospective buyer.
On average, to buy a house in South Africa, it takes around three months from the date of sale until the property is registered in the new owner’s name. There are various steps in the process:
1. Determine what you can afford – use the loan calculater at the bottom of the page
2. Assess your credit record – make sure that there is no findings against you.
Contact Tienie at Vredendal Eiendomme for guidance.
If possible, we at Vredendal Eiendomme try to avoid any disputes which may be costly to resolve, especially when canceling an Offer to Purchase contract or private selling while under a sole mandate, as examples. If unsure about a topic, ask the estate agent for clear written instructions.
If a dispute cannot be resolved, then a complaint has to be lodged with the Estate Agency Affairs Board.
if you have more questions