Perhaps the most common mistake made by sellers of homes in the current market is still to insist on a price that is no longer acceptable, says Bill Rawson, Chairman of Rawson Properties.
'The plain truth,' said Rawson, 'is that Cape property prices, while continuing to perform better than most others in the SA, have come off their 2007 peak by 20%. However, when a certain type of seller finds that the offers he is receiving reflect this, he goes into a state of denial, blames the agent, the advertising or some other factor and holds on stubbornly to his original prices.
'This invariably leads to the property sticking on the market for six to twelve months, after which it is quite likely to be below its true market value because it has picked up a certain stigma. Buyers suspect that it has some hidden fault which prevents it from selling'
The right time to lower the asking price of your home, said Rawson, as soon as you realise that your price is not going to be accepted. If you do that many of the original potential buyers will regain interest in the home.
'I do realise,' said Rawson, 'that it can be emotionally upsetting for a seller to reduce the price on a home on which he has spent money and lavished care but the reality is that buyers are now in the best position that they have been in for nine years. There is, therefore, absolutely no point in sellers trying to buck the trend and talk buyers up '“ it is a tactic that almost never works'
The number of homes on the market, said Rawson, has dropped by 20% and the time taken to sell a property is now between 12 and 15 weeks, almost twice as long as in 2007. What is more, said Rawson, he does not see the situation changing noticeably for a year, although the SA Reserve Banks decision not to raise interest rates has stabilised the market and probably marks the end of the downturn.
'Despite the difficulties with getting bond finance, now is a wonderful time to buy. This is a message we need to put out into the market which, in its reaction to the downturn, have now grown overly cautious and negative. Property remains a top-line investment and this has never been truer than in todays tough sale conditions'
