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I’m always curious to find out what kind of value a property is going for and how that will affect my financial decisions. I have an ‘it’s-been-listed-with-a-real estate agent for almost a year now, so I have a unique perspective on this.’ In my experience, real estate agents do their best to hype the property up and make it seem like a good deal when in reality it is not.

In today’s internet savvy world, many home-owners look to websites like Property24 or Private Property for information. But the questions is, “Should I Trust Property24 to Determine My House Value?”

No...

Don’t trust online listing sites for valuing your home.  Here’s why.

Margin for Error

An old adage in real estate sales is “your home is worth what someone is willing to buy it for.” This suggests that there are many factors that go into the valuing of a home.

Online listing sites, on average, can list properties anywhere from 10 to 12 percent higher or lower in home estimates. There are even reports of home values on listing sites climbing in declining market areas.

Let’s think about this for a second. For a R800,000 home, a 10 percent could mean R80,000. For higher-priced markets like Cape Town, a R3 million home could see estimations varying from R300,000 to R360,000 or more. That’s a huge difference in pricing.

These estimates could discourage potential buyers who might think a home is well out of their price range. It might also be giving sellers an unrealistic idea of a selling price point. In the end, this is the starting point of many disagreements home-owners are having with estate agents regarding properly pricing a home.

I know property valuation is a complex and often time-consuming process. I’ve already seen plenty of articles on the subject, but I think we’ve yet to see anything that really addresses the complexity of this particular topic. That’s because there’s no easily accessible resource for property valuation in South Africa.

TIP: Property24 has a really handy tool that lets you see the last sold prices of your street. You can see all the properties in your neighbourhood, or you can pick a specific one to view.

How Does Property Listing Sites Create Estimates

Websites like Property24 and Private Property do not determine the value of your property which means they do not control the listing on its site. They are just mediums through which real estate companies and home-owner use to list their properties to a larger base of potential home buyers.

While professional listings are reliant on accessing public records and user input such as realtor sales. However, they cannot discern if your home is the fixer-upper or completely redone and upgraded home everyone is envious of.

Most people will factor in the size of the house, size of the land, and all features of the home including the number of bedrooms, bathrooms, pools and highlighted features. However, this is a starting point for a true valuation of your home and should not be considered an appraisal or true value.

Estate agents find their estimates using companies like Lightstone and Windeed. But, even with all this data being collected from the deeds office there is still a high margin of error. This is because most Agent and Sellers aren’t actually looking at your home.

The More Accurate Model

Any professional realtor will tell you that pricing a home to sell requires a full understanding of the home itself, the location and current market trends in that area. In fact, most realtors look at online listing pricing with a bit of disdain because it does make pricing and managing realistic client expectation more difficult.

A realtor will take a look at sales in your area, creating a radius based on your pocket rather than an entire area code.  They will then compare your home based on size, features, and upgrades to those homes that were recently sold, thus appraised, in the previous 3 to 6 months. This range is contingent on how hot the real estate market is in the area.

The realtor will then compare this information to existing homes on the market, looking at how your home compares to what else buyers are seeing on the market. After all, if yours is a well-kept home being sold next to a completely remodelled home, you might not be able to get the same price per square foot at the other.

Additionally, realtors will consider whether it is a buyer’s or seller’s market. If you want to create a frenzy with a lot of eyes on your property in a seller’s market, you can underprice the home and let the bidding begin. This tactic works in many markets including Gauteng.

For many people, the thought of selling their home can seem like a lot of work accompanied by a long list of expenses. It might seem even more overwhelming if the property is in need of repair. However, it doesn’t have to be that way. In this post, we will explore the ways you can sell your house in Edenvale without any hassle whatsoever! 

When selling a house in Edenvale most people immediately think about hiring an agent and listing the property on the Property24 or PrivateProperty.co.za. This is a great solution for many people, however, you should know there are other options available to you. There are many ways to sell an Edenvale house hassle free. Consider your options to discover which selling method is right for you and your situation!

Sell You Home Directly to A Professional Home Buyer

You can sell your house without using an agent, ultimately saving a ton of time and money depending on the situation. There are companies such as Sproud that will buy your Edenvale house using a straight-forward and simple process.

With a direct sale, you won’t have to worry about commission, repairs, cleaning-up, or waiting for a buyer to come along that would qualify for a sale. You will immediately know the amount you are receiving as well as the closing date so you aren’t left wondering when your house will sell.

Direct sales are becoming increasingly popular, however, not all buyers are the same. Make sure you do your homework on both the local market and the buyer you are working with. A direct sale may not offer full price, but for some people, the amount saved on repairs and wasted time more than makes up for the difference in price.

Listing Your Home With An Experienced Agent

Of course, listing your Edenvale house is an option. Take the time to learn about everything that is involved and what will be expected of you. No two agents work exactly the same and there are no guarantees. Your property can be listed for any price, but there is no guarantee you will receive it. Watch out for agents who try to “wow” you with a high listing price. If it’s priced too high, it will likely sit on the market, possibly for months at a time.

You will inevitably have to lower the price, while your property drops down the list of homes available online. If you decide to list, make sure your agent prices your home to sell. Not just setting a high price to convince you to sign a listing agreement.

Offer the Buyer Seller Financing

This can work for some people who don’t have a mortgage on their home. You can elect to “be the bank” and offer your tenant a rent-to-own model at a higher than average price. They will then have the option to buy the property outright at the end of a certain period of time, typically around 2 years.

Consider Other Options

If selling simply isn’t in the cards and you need to move, there are other options. You can rent the house out as either a short or long-term rental. The trouble with this can be finding great tenants and retaining them for as long as possible.   Being a landlord is a full-time job. Renters can be quite nomadic, and tenant turnover can cost you dearly. If you haven’t done this in the past, consider hiring a property manager to help you keep everything in order.

You’ve likely heard about closing costs. But do you know everything that these costs include? Because if you need to sell your house in Gauteng fast, we can help without having to list your house, do repair, or pay agents, even when you are facing difficult situations.

Closing costs refer to all of the fees that must be paid at the closing table. Depending on where you live, the fees and costs can vary. But generally, closing costs include, but are not limited to:

• Bond Cancellation Fees
• Rates and Taxes Clearance Certificate
• Levies
• Compliance certificates
• Appraisal Costs
• Repairs and Maintenance
• Bank Fees
• Courier Fees
• Wire Transfer Fees
• Liens against the home will need to be paid to clear the title
• Home Inspection Fees
• Administrative Fees
• Attorney Fees, If Applicable
• The balance of your mortgage or loans against the home
• Possibly repairs or pest control if this has previously been agreed upon
• COMMISSIONS!

Who’s Paying For The Costs Of My SA Home?

While the buyer will usually pick up a number of these, it is important to note, that the seller typically pays 100% of the commission. This will be about 6% or more of the final sale price. Other than your possible mortgage balance, this is by far the biggest cost when it comes to costs at the closing table. Negotiating the other costs during the sale process is becoming increasingly popular. In an effort to lure in more investors, sellers are more frequently picking up the tab when it comes to the closing costs.

As a seller, you will also need to pay your share of the year’s property tax, up until the day of closing. Any levies fees or other community costs should be prorated and paid at this time as well.

Can You Avoid These Costs In SA?

Yes! By working with a direct buyer who will pick up all costs associated with the closing! A direct buyer will not charge you a commission, as they are not an agent. Many times, direct buyers will offer to pick up all costs, which will save you money and hassle at the closing table.

Are Repairs Included When I Sell My SA Home?

This is another one that is negotiated between the buyer and the seller. If the home is in need of some obvious repairs, the seller will often take care of these before putting their home on the market. However, if an inspection shows additional repairs are needed, a purchaser may make his offer contingent on repairs being made. A buyer and seller can work this out before going to closing.

We Are Local Connecticut Home Buyers

We purchase homes fast without including agents or realtors. This means that when we acquire your home there is virtually no cost to sell your home, no repair cost, no holding costs, no closing costs, and no agent fees. We offer cash for houses in South Africa and we can close on your schedule. Give us a shot and see how much we can offer for your property. Sell your house in SA to us now.

We live in a world wherein most cases everyone can do everything without expensive expert service providers. People trade stocks without a stockbroker. People create wills and trusts without attorneys. Many even renovate homes without contractors. As independent as everyone is, why wouldn’t you want to look at the benefits of selling your house without an agent in Gauteng?

Saving More Money

Agents cost money. It’s that simple. In many cases, it’s a lot of money. A real estate transaction can cost six percent of the final property sales cost. If a property sale price is R1,300,000, this can cost sellers R78,000. This is a considerable amount that is taken from the final sale price. If a seller still has high mortgage balances that need to be paid off, eliminating commission costs is a huge advantage.

The Negotiator

Even though you are not forced to have an agent, it doesn’t become negotiating power to say you are more flexible in the price if there is no outside representation. Buyers might feel they are able to negotiate a better price without an agent because they know the amount of savings in the transaction.

Beyond negotiating the sale price, sellers might feel they are more qualified to sell and negotiate the transaction than an agent. Sellers well versed in real estate transactions might be comfortable walking through the process and negotiating items at different points in the selling process.

It’s possible that the transaction might be straight forward. When a seller is comfortable dealing with a buyer, she can save at least six percent of the commissions by representing herself. Perhaps it is a new construction, or being sold as-is and the seller isn’t willing to negotiate on anything. Buyers can come in and make an offer without expectation for repairs or credits. Sellers set with their price and able to provide all disclosures and documents properly might not see a need for agent representation.

It’s Not Personal

There are times when a transaction is among well-known parties. Well-known could be family members, close friends or even business partners. In cases like this where everyone is clear who the parties are and what to expect in the sale, there may not be a need to bring on an agent. Of course, there needs to be a lot of trust among all parties in this type of transaction scenario. Even when parties to a sale know each other, legal sale requirements must be followed.

Adhere to all legal codes for disclosures and timelines. The last thing you want as a seller representing himself is to find yourself in a legal battle down the road for a property you thought you no longer had any ties to. Follow the rules to avoid legal ramifications and penalties.

Selling a property and choosing a house buyer is a big decision, with financial implications that may impact your life for many years to come. Working with a trustworthy cash buyer is imperative when it’s time to sell your property in South Africa. 

With the increasing number of companies that buy cash for houses all competing for your house, it can be difficult to choose the right one. So before you choose, make sure you thoroughly research the companies you’re considering. 

To help you out I have created a checklist of the five best ways to determine is a house buyer is trustworthy. 

1. Experience

There are many startups and new companies that are great, but when it comes to protecting your interests, go with the company that has been around for a while. At the very least, make sure they have sufficient experience with buying properties. In addition, it’s best to use a company that has local market knowledge and experience.

2. Social Proof

What we use to call reputation and testimonials, but now the favored term is “social proof.” Check out references and especially reviews at online review sites. And don’t forget to see what kind of feel their social media presence has. Do they, for example, emphasize customer service overselling their product and services?  Look for a house buyer that has a reputation for fair and honest service.

3. Accredited Business

Always use the tried-and-true method of checking if your prospective buyer is a registered business with CIPC. At a minimum, they should have a registration number, as well as no unresolved complaints. You can feel confident in choosing a buyer in South Africa – that it is a strong, reliable business – if they have few or no unresolved complaints.

4. No-Strings Offer

The company should also be willing to make an offer with absolutely no commitment on your part. If they are a reputable company, you should be able to receive an offer without having to sign any agreements or contracts. A no-strings offer is one sure sign that the company is a trustworthy cash buyer.

5. What Your Gut Says

Whatever ever you call it, first impressions or a gut feeling, just listen to it. You should have a good feeling about the house buyer you’re considering.

They should offer free consultations and be able to answer any and all questions you have (and you should have plenty of them).

In addition, staff and personnel should be approachable, personable, and straightforward, and they let you know what to expect and keep you informed of progress every step of the way. Also, you should never feel pressured or rushed to make a decision. There should never be any hard sell. 

Further, you should be able to easily contact them, getting a live person on the phone and not a voice mail. They should return your call soon after you request one. Finally, you should feel confident in their ability to do exactly what you need.

Final Thoughts

It’s important to research several cash buyers and not fall into the trap of just going with the first one that seems okay. Be sure to check out their websites and take advantage of the free consultations.

Buying and selling a home are two very different processes. First time home sellers may not know all that goes into successfully selling their house. It takes some work to find a buyer while getting the price you want. There are many moving parts to the process, but there are some things that may help you make your first time selling a home experience easier.

4 best tips for first time home SELLERS! 

The Price is Right

You want to get as much money for your house as possible. Who wouldn’t? Many homebuyers make the mistake of being overly ambitious when it comes to the price their house will sell for. The day your house hits the market, it should be priced correctly! Don’t price high and hope to snag a buyer. Your listing will slowly drop down the line and a high price up front will get it overlooked. Plus, potential buyers will be able to see any price changes you make. Continuously dropping the price will make you appear like a desperate seller or as if you don’t know what you’re doing. It can also give the impression something is wrong with the house because you aren’t able to get your asking price. Do your homework, and price the property correctly from day one.

Pack Up Before You Sell

Selling and moving go hand and hand. Do yourself a favor, and pack up before listing your home. Box things up and put them in storage, the basement or even the garage. Removing as many of your personal effects as possible will make potential buyers feel less intrusive when they are viewing your home. In addition, your listing photos should be completely free of clutter. Ads with personal items front and center often get scrolled past. Packing up your non-essential items will save you a ton of work down the road. Getting this out of the way early will make the moving process much easier for you. 

Don’t Say No To a Showing

It might seem a little inconvenient having strangers walk through your house at any given moment, but you need to make viewing of your house as easy as possible. If your agent has a buyer who wants to see the house at 9 pm, let them. If your house is all packed up, short notice shouldn’t be too much of a hassle. Do whatever you can to get your house seen. Don’t limit your showings to certain times or alienate potential buyers in any way. You can’t rely on an Open House to sell your home. In fact, the vast majority of houses sell through direct showings. Being hospitable and flexible to potential buyers will set the tone for a positive, future transaction! 

Pictures Say A Thousand Words

We can’t stress this one enough. Good photography is one of the most important things you will do when selling your house. Advertisements using bad photography, or with cluttered, messy or highly personalized rooms will likely be looked over. You have only a few seconds to capture someone’s interest when they are looking through listings, and you do this with amazing photography. Your house needs to pop! It has to stand out and make people click on your listing to find out more. You should consider hiring a professional if your listing agent hasn’t already. You might also consider creating an online virtual tour, or using drone photography.  Selling your house doesn’t have to be overwhelming or scary. Hiring the right team of professionals to guide you, will ensure you get the price you want in a timely manner.