Tips for selling property in a buyer’s market

tips when selling in a buyer's market

Today we cover some tips for selling property in a buyer’s market.  It has been evident for some time now that South Africa is in a buyer’s market.  Our 2 major lockdowns have slowed commerce in many respects.  Now more than ever it is becoming evident that house prices are also dropping when it comes to the sales price.  Now more than ever SA finds itself squarely in a buyers market.  Meaning, that there is more stock than there are buyers.  But also because everyone of us is uncertain about the future.  Future of our jobs, the economy, and more.  But that said, the market is actually active at the moment.  Now more than ever getting the price right when you sell is the number one consideration.

What exactly is selling property in a buyer’s market?

We covered this recently, but essentially this is a time in the property market when there is more stock or houses on the market than there are actual buyers. And, sadly the buyer’s pool is getting smaller with unprecedented levels of unemployment in the country.  There really are buyers that are seeking now more than ever, good value at a good price.  In fact, buyers are wanting to buy a palace but pay for a Pandokkie.  The major movement in the market is coming from the following:

  • Vacant land near Lanseria is being snapped up for further development because there are major plans for the area.
  • Commercial property is not exactly booming and investors are snapping up commercial properties for residential conversions.
  • Families that have survived lockdown in a small sectional title unit are opting for freestanding properties.
  • And first-time homebuyers are snapping up sectional title units.

Which markets are moving?

The most significant movement all around is in the R1m is a little slower still but the traffic to these properties is high and there are serious buyers considering freestanding properties.  The luxury market is quite probably the slowest of all but these properties if priced right will sell but it will take a little longer.  The major contributing factor is the low-interest-rate environment, especially for first-time homebuyers.  Often it’s cheaper to buy than it is to rent.

Are properties more affordable in a buyer’s market?

Even in a buyer’s market, there is still significant demand in the affordable property price range because this is the busiest sector in the property market.  Again, the low-interest-rate environment is a major driving force for the current activity in the market.

Selling property in a buyer’s market: affordability?

Well, there really is never a bad time to list or to sell.  Be that the end of the year, or in a buyer’s market.  Your most important decision is the price you will list your property at.  Buyers are savvy and have often viewed a number of properties.  And buyers are the biggest critics and will spot an overpriced property a mile away.  Remember it’s the buyer that decides the price!

Don’t fall into the trap of pricing higher, expecting a 20% to 30% drop between the asking price and the sales price.  Building in fat will have negative consequences.  Your property could stand on the market for months and not get ‘eyes-on-the-property’.  Remember in order to help you sell, we need eyes on your listing, which leads to enquiries which lead to viewings, which lead to offers, and then a sale.

Getting offers overnight

It is not uncommon in a buyer’s market for buyers to put in offers that are way lower than your asking price.  Don’t stress.  And take a deep breath. A good estate agent will be able to negotiate on your behalf and drive the process through to a counteroffer being presented.  Remember that you always have the right to decline an offer, but an offer or interest for that matter is better than no offer and no interest.  In my experience given the abundance of stock in the market in certain price ranges, buyers have and will view quite a few properties before they sign on the dotted line.  Be patient though.  Know that your estate agent will need to do 10+ viewings before reasonably expecting to take an offer.

How can you make your property stand out even more?

It is fast becoming commonplace in the property market for a good estate agent to carry the cost of an HD video. This is good because it helps your property rise in the rankings on the major property portals.  Often the cost associated with this HD video is at the estate agent or the estate agency cost.  It would be a good call to work with an agent that is willing to go the extra mile with you. Present your property better online, get better viewings, and limit the number of people going through your home?  These are tough times with Covid-19 so the videos really are a good call.

What can you do to showcase your home?

There are so many things that you can do to make your house stand out from the house down the road that’s also on the market.  Start by decluttering every room in your house.  We will be covering all the following to help you get started.  But essentially, clean up, declutter and start packing away anything you don’t use for now.  A clean uncluttered house gives an illusion of more space.  And a more minimalist approach will definitely help buyers to visualise their precious belongings in your home.  And it’s definitely easier to do viewings in a home that is in good nick.

Look out for more info from us, going room by room.  We will soon provide more info about sprucing up a kitchen, main bedroom, kiddies bedroom, lounge or TV room, gardens, pavement or verges, home office, patio and entertainment area, and more.  Each of these tips is practical, effective and will definitely help you to get your home ready to sell.  But why not give me a call to discuss.  Don’t spend a fortune replacing furniture and fittings but there are some basics to take into consideration?  If you go the extra mile as a seller you will not be sorry.  But, don’t overdo it either.  If you go and spend R200k upgrading you may not get it all back when you sell.

Work with top agents that offer 3D videos

We work with a number of estate agents across Johannesburg.  And, the agents we work with are good at what they do.  Let us help you connect with a top agent that knows how to price competitively in tough market conditions.  Let us help you partner for success with a top estate agent that is willing to showcase your property at their cost to help you sell faster and for the best price in a very tough market.  Please remember there are buyers, but only if your property is priced correctly.  This tip for selling property in a buyer’s market is also very important, so speak to your agent about how they will showcase your property online.

Book your free property valuation

If you are thinking of selling your property, step 1 always starts with a free property valuation.  If you need to know the market-related value of your property we can help.  Let me connect you with a top agent from Keller Williams to get the ball rolling.  We have covered what goes into a property valuation, we have unpacked the terminology and we have stressed the importance of the right price.  So, book your valuation now, click here.  A seasoned estate agent from Keller Williams will also provide you with the property trends in your area, here we have covered property trends in Randburg (Johannesburg), but watch this space for more suburbs and even more insightful info about property trends in your area.  We would also love to share some tips with you when selling property in a buyer’s market.

Why you should bet on Red with Keller Williams

Keller Williams uses the culture of the brand to generate success.  Keller Williams is also the largest franchised real estate brand in the world.  With almost 1,500 estate agents across SA, what makes Keller Williams different is our value system.  You see the Keller Williams business model is built on sharing.  Meaning that 1,500 agents across SA all have access to you your listing.  Every single one of these agents has buyers for properties that have either been on the market or are currently on the market.  We leverage these buyers across areas and the entire model is driven by a win-win solution for all, or the deal is off.  So, you don’t have 1 agent working on the sale of your property, you have almost 1,500 agents involved.  But, you only deal with 1 agent.  And you only have 1 board on your pavement.

Estate Agents – want to know more about KW?

Keller Williams (USA) is a top real estate brand to work for.  If you are an estate agent and want to know a little more drop me an e-mail.   If you would like to leverage world-class technology to the benefit of all our stakeholders across the value chain and end up with a win-win every time, then let’s touch base.  Also, read what makes Keller Williams the best!

Get in touch with a free property valuation

So, if you need a valuation done on a property in Randburg or elsewhere in SA, I can help.  Give me, Sandy Graham a call or send me a WA to (083) 550-1220.  Alternatively, drop me an e-mail at sandy.graham@kwsa.co.za.  I have a vast network of almost 1,500 top Keller Williams agents at my fingertips who are all just dying for the opportunity to partner with you to sell and conclude your property transaction in record time.

If you want to view all the Keller Williams properties across the country click on our website to start the search for your dream home.

Bet on Red.  You will not be sorry.

Property Advice

Need to read up on more articles that you may find valuable, be sure to read through some of our content and advice:

Property Trends

Property valuations

Homeowner Tips

Get Pre-Approved Finance

Property Transfers and conveyancing