SELLING YOUR PROPERTY? Here's our 5 step plan for you
Category Property Investment
Selling your property is a big decision - it is after all often your biggest asset. Whether it's your one and only property, or whether it's one of a larger investment property portfolio, you want to get it right, sell at the best price, and in a stress-free way. So, where to start?
Choosing an Agent
Once you decide that you want to market a property for sale, the very first step should be to find the right agent for the job. There are hundreds of agencies and agents out there, and even in your area, or suburb, there will usually be a dozen or more active agents. It's easy to be overwhelmed with choice and equally easy to choose an agent at random. And the cheapest agent is not usually the best - the adage of 'you pay for what you get' - is as true in property as it is for most things in life. The best advice is to do your homework carefully. Ask family, friends and neighbours that may have sold in the area before - recommendations are always a good starting point. Shortlist the three most active agents, based on their online listings, and contact them to find out more about their experience. Ask them how long they've been a property professional and selling property in the area. Ask them how many properties they've sold in the area, or apartment complex. It's also fine to ask them for client testimonials or references. If they have a good reputation they won't mind providing you with that, or even asking previous clients to contact them. Ultimately you want to choose an agent with good local knowledge, plenty of experience and a great reputation in the marketplace. If you find the best agent, then you only need one agent. There is a common misperception that appointing more than one agent helps sell a property quicker, as the agents are competing against each other and it will have greater exposure. The reality is that most buyers that see a property advertised with multiple agents usually ask if the seller needs to sell urgently, or if there is something wrong with the property. Over exposure of a property is usually detrimental to selling it at the best price. Lastly, make sure the agency is registered with the Estate Agents Affairs Board (EAAB) for piece of mind.
Pricing your Property
If you've chosen an agent that knows the local market and that has specialized in the area or apartment block, then they will be able to give you evidence to support their valuation of your property. Pricing a property correctly is key to selling it at the best price. There are agents that will value high to secure a mandate from sellers, or even tell you what they think you want to hear in terms of price. Over pricing a property is self-defeating when it comes to selling and will lead to an unnecessarily long time on the market, over exposure of the property, price reductions along the way, and usually accepting a lower offer at the end of that journey. A good agent that knows their market will give you an honest opinion on the value of your property, and crucially, be able to provide you with solid evidence on actual recent sales values. It is always a good idea to listen to expert advice from an agent that knows their market. It is in their interest to price the property correctly in order for it to sell at a market related price. If you're happy with their advice and valuation, ask them how and where they will be marketing your property, before you formally instruct by signing a sole mandate.
Presenting your Property
Once you've decided to go ahead and list your property for sale with your chosen agent, you'll need to ensure that the property is presentable and looking it's best for the marketing photographs and potential buyers. Remember once your property goes online, first impressions count. A good agent will be happy to provide advice on what, if anything, needs to be done to show the property at its best. Proud property owners understandably want their property to shine in the market. Usually some good tidying up, a thorough clean, and touching up paintwork is sufficient. Rarely is there a need to start spending tens of thousands of Rands renovating the entire property. You will not usually add value to recoup your expenditure. Plus, most buyers will want to do their own makeover once they've bought the property. It's best to let them spend their money on doing what they what to do, which may be quite different to your chosen style and finish.
On the market and considering offers
Once your property is on the market, it's best to let the agent get on with their job. Essentially, you need to let them 'do what they do best', trust the process and allow them to work with the buyers that enquire. An agent with vast experience knows how to deal with pretty much everyone and everything that comes their way, and how to obtain the best written offer for you, the seller, the client whom they are working for. It is reasonable to expect regular feedback and updates from your agent, and good, clear communication is important throughout the process. Your agent should be able to give you specific feedback from each buyer that views the property and their reasons for liking, or not liking the property. When your agent presents you with a written offer from a buyer they will talk you through the offer and their knowledge and understanding of the buyers position and motivation for their offer. There is a saying in property that 'your first offer is usually your best', and it remains largely true. Your agent will guide you on whether to accept, counter, or reject an offer based on their knowledge. Remember, their interests are your interests, when it comes to selling at the best price in any given market.
The Legal Process
As with choosing an agent, it is also best to choose a conveyancing attorney based on recommendations from friends, family or agents. It's important, once again, to be comfortable with your choice, knowing that they conveyancing attorney will communicate regularly with you, the purchaser and agent, and ultimately transfer the property timeously. Throughout the process your agent should be able to assist and advise with all other matters pertaining to the sale, including things like electrical and water compliance inspections and certificates. The agent should be your professional partner in the selling of your property, from start to finish, and post-sale.
Author: Richard Boxford
