SELLERS
GUIDE STEP 3
- KNOW THE MARKET
It is extremely important to know the state of the current property market. This will help you get a feel for pricing trends as well as give you some idea of whether to perhaps delay or even speed up your sale.
Your agent, if professional, will of course know this information be able to give you the necessary pointers, as well as a full Comparative Market Analysis.
Do spend a bit of time yourself though – just drive through your neighbourhood – how many properties are for sale? How do they compare to yours? Has the number of For Sale properties increased or decreased rapidly? What could the reasons be for this? You do not have to be scientific about your endeavours – just try and get a feel of things – and pass these thoughts on to your agent.
As much as Agents are professional and study their markets, there are things that could slip their attention and your awareness will help paint an overall market picture in which your home will be placed for sale.
Property Network consuts regular market testing and forecasting to prepare our agents for strategy changes - if you are interested in reading such economic analysis reports, why not as for a copy of the last breakdown if available?
HOT MARKET
This is an extremely competitive market, one that is advantageous to the seller. Sometimes, homes will sell as soon as they are listed or even before they are listed. Typically, during a hot market, multiple offers will be made on each home and often, homes can sell for more than their asking price.
As a seller, it is important that you carefully consider offers, bearing in mind the potential for higher offers in this kind of market compare to the fact that the buyer might move on. Despite the market being your favour, you must not let greed override your thoughts – know you price targeting and accept when an offer arrives in that range.
NORMAL MARKET
In a normal market, there is fairly a large number of homes available and an average number of buyers. This market does not necessarily favour the buyer or the seller. A seller may not have as many offers on their home, but he or she may not be desperate to sell either.
Again, it is the seller's responsibility to be prepared. During a normal market, the chances to negotiate as a buyer are higher than in a hot market. You as a seller must know which issues are negotiable and which are not. Have your bottom line clear in your mind.
Assess what can be done to the home to make it a hot property amongst all the others available.
COLD MARKET
In a cold market, houses may be listed for months and the prices of houses listed may drop considerably. This market is advantageous to the buyer, as they have the time to make an offer that works to their best interest. It is not uncommon to find them low-balling and to find that sellers are accommodating to meet their needs.
Sellers need to keep in mind that even though this market is a great time for buyers, you do not want to lose your capital gain on your home looking at unrealistic offers. Understandably, often a seller has no option but you still need to hold firm to realistic pricing.
In this market, generally everyone, such as loan companies, title companies, and other professionals involved are ready to bend over backwards to make it possible for the top class buyers and therefore get business. You as the Seller need to be highly motivated and ready to fully co-operate with your estate agent in making the deal happen.
Again, consider what can de done to your home to set it apart from the rest. Often something small can make all the difference.
Currently in South Africa, we are entering the end of a Cold phase and are slowly entering normal market conditions. Stay up to date with by reading our various articles on the subject, by subscribing to our newsletter or by visiting our Blog.
It is important to remember that the real estate market runs in cycles, and conditions can change without a lot of warning. This could be the perfect time to contact a good real estate agent to discuss your needs and to explore the possibilities available to you.
A MATTER OF TIMING
You have just received an offer that is slightly below what you were expecting, but are feeling pressured to make a decision. Just when you want time to consider the matter, the agent tells you that the buyer is seriously thinking about making an offer on another house, so you shouldn't hesitate if you really want to sell. What should you do? Trust your agent!
It is natural to feel some pressure from even the most easy-going real estate agent - and some uncertainty about accepting an offer. If you really need and want to sell you need to be decisive – Statistically, it is proven that the best offers you will receive are those that come in first.
Whether your local market is active or sluggish, it is sensible to assume that buyers are out there looking. Perhaps you can afford to "sleep on it", but moving as quickly as possible will minimize the possibility that the one genuine buyer you had will move on.
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