As the market transitions and more inventory becomes available to buyers, sellers will find themselves in a far more competitive environment.
An experienced agent will be able to provide vital information with regard to the current market trends and the best time to list the property.
This is according to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who says for some time, conditions have favored sellers, with high demand and a low supply of inventory, however, the market is slowly shifting as buyers are adopting a wait-and-see approach to the market. As a result, he says sellers now have to be aware of the competition they face in their own neighborhood, before they decide to list their property.
Goslett shares a few aspects that sellers should consider about their neighbors before listing their homes…
1. Who is renovating?
If possible, it would be advantageous to tap into the neighborhood grapevine and see who is renovating their kitchen and upgrading their bathroom fixtures. These upgrades generally add value to a property and attract buyers’ attention.
Goslett says a real estate professional who specializes in the neighborhood will be able to look up the listing and sale prices of those homes to find out if the updates made a difference to the bottom line.
2. How long are homes sitting on the market?
Before listing, sellers should keep an eye on how long it takes for a home to be sold in the neighborhood. This will give them important insight about how long they can expect their home to be sitting on the market and plan accordingly.
The FNB Price Index indicates that on average, a home is on the market for around 12 weeks before it is sold. “Depending on the neighborhood, properties available and buyer demand in the area, it could take less time or in some cases a bit longer to sell. It all depends on the specific circumstances that surround that particular trading environment. Other factors can also come into play such as pricing the home correctly at what is perceived to be fair market value for the area.”
3. Take stock on the available inventory
Goslett says it can be difficult to obtain a competitive price when inventory is high and buyers are few. He says all the sellers in a particular neighborhood will be competing against one another for the same pool of buyers. If there are several homes for sale within a relatively small radius, it might be worthwhile to wait for a while before listing the property, he says.
An experienced agent will be able to provide vital information with regard to the current market trends and the best time to list the property.
4. Stay up-to-date on any area planning and zoning news
While buyers want to buy a property that is within proximity to amenities, they won’t want to stay there while major construction is underway. Sellers should keep au fait with any upcoming public projects that could impact the timing of their property listing.
If there are any potential projects, the seller can discuss a selling strategy with their agent to work around possible issues.
Goslett says a real estate agent with extensive working knowledge of the local market will be able to put all aspects into perspective when considering selling. Sellers will benefit from using an agent that has an understanding of the unique dynamics surrounding their specific neighborhood, he says.
