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With the average price of a house edging up to the R1-million
mark, sellers should not be tempted to negotiate on market-related offers
that appear sound.
That’s the advice from Mike Bester, CEO of Realty 1 International
Property Group, who says prevailing conditions in the South African
property sector are playing straight into buyers’ hands.
According to Absa figures, the price of an average house had jumped
from R574 300 in 2004 to R962 000 in January this year. “There
is no doubt that it is a buyers’ market right now,” says Bester.
“Anyone doubting this should take a look at current stock levels
and how long properties are taking to sell compared with two years ago.
“Competitively priced properties in the middle and upper middle
sectors are taking between two and four months on average to sell today,”
he notes further. “This is double the amount of time the same stock
would have spent on the market during the country’s real estate
boom of a couple of years ago. Then sellers could counter-sign with
confidence. Now it’s very often a take-it or leave-it situation,
with the buyer dictating price and other terms.”
While agreeing that it is common practice for sellers throughout the
world to countersign initial offers to purchase, Bester believes that
in a market characterized by high stock levels, decreased affordability
and a shortage of qualified buyers, sellers need to be careful to keep
negotiation to a minimum.
“Not only will counter-signing by the seller render the original
offer null and void,” he warns, “but it could also chase the
buyer away, straight into the hands of another, perhaps more accommodating
seller.”
His advice is not all-encompassing though. “If the price offered
or terms suggested by the prospective buyer are unreasonable, enter
into negotiations but with the focus on achieving a win-win situation
for all parties in the shortest possible time.”
Key to a successful outcome in a tough selling market is flexibility.
“Should a seller be non-negotiable on one particular issue, flexibility
regarding other aspects such as contingency time frames, repairs, repainting
or appliances could sweeten the deal for the buyer.”
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Newsletter:
3 February 2012 to 10 February 2012 - Krugersdorp, Gauteng, South Africa
