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  • What Are The Costs Of Selling Your Home in SA?

    What Are The Costs Of Selling Your Home in SA?

    Many homeowners list their house, not taking into account what it will actually cost them. There are fees and expenses you should be aware of before you list with an agent. In this post, we will let you know what costs to expect when selling a home in Johannesburg!

    There are many things to consider before you decide how to sell your home is South Africa! Keep in mind, listing your house will cost you money both up-front and once the property closes. You must factor this in when pricing your house and deciding who you want to work with.

    The average amount it takes to sell a house in SA could cost upward of R150,000! That’s a lot of money! Keep in mind, that number varies widely based on where you live and the price of your home.

    Will Selling Cost You Money in South Africa?

    Agent Commissions – Commissions will typically run about 6-7% of the final sale price of the home. You will know the agent’s cut when you sign your listing agreement. While this money isn’t paid upfront, it is deducted from the amount you walk away with. Keep this in mind when pricing your home.

    Agent Fees – Depending on the agency, there might be additional fees charged throughout the selling process. Some agents will pass on marketing and listing fees directly to their clients. Make sure you know what’s included and what you will have to pay for when all is said and done.

    Closing Costs – Closing costs include many items that are paid at the closing table. These include bond cancellation fees, transfer taxes, appraisal costs, electrical and gas certification, and more. Expect to pay about 2% of the final sale price in closing costs.

    Taxes – When you list your home for sale, you are responsible for the property taxes, utilities and house insurance up until the day of closing. These amounts can add up to thousands should it take a few months for the property to sell and close. Once you decide to sell, the sooner it happens, the better!

    Preparing Your House for The Market – There is a lot of energy, time and money that go into getting a house ready to sell. There are repairs to make, walls to paint and carpets to clean. You will want to remove personal belongings and stage the home for selling. Whether you work with a professional or do it on your own, you are likely to spend money on new decorative pieces in the house. You should also clean up the yard but also consider some new landscaping to bring more curb appeal to the property.

    Inspections – While it certainly isn’t required, more and more sellers are paying to have their home’s inspected before listing them. This will cost approximately R3,500 and up. By doing an inspection before you list, you will be able to address any issues with the home before they pop up in your buyer’s inspection. This will also give you negotiating power during the selling process.

    Storage and Moving – While moving isn’t technically a selling cost, it is a large expense you will have to make once the house closes (if you haven’t done so already.) Whether you hire movers or do it yourself, moving can get expensive! How far are you going? Will you need a truck? You will also want to consider storage costs if you are living in the home while waiting for it to sell. Packing up unnecessary items ahead of time will make the house look nicer and give you an edge when it’s time to move.

  • Is Cash For Houses In Jozi Right for You?

    Is Cash For Houses In Jozi Right for You?

    You’ve seen the signs at almost every street corner or painted on someone’s wall, “Cash for houses” or “We buy houses.” Some of these are cartoonish signs and others might even be nailed to a light pole or street sign. Some cash for houses signs makes claims they buy houses in any condition and for competitive rates and all cash. If you need or want to sell your home, this looks like the perfect opportunity to sell quickly without the headaches of preparing a property for showing……

    You’ve seen the signs at almost every street corner or painted on someones wall, “Cash for houses” or “We buy houses.” Some of these are cartoonish signs and others might even be nailed to a light pole or street sign. Some cash for houses signs makes claims they buy houses in any condition and for competitive rates and all cash. If you need or want to sell your home, this looks like the perfect opportunity to sell quickly without the headaches of preparing a property for showing.

    Their Target Market 

    The individuals and companies putting up these signs are investors seeking quick, undervalued properties to capitalise on. By putting signs out, it takes a lot of the legwork out of researching distressed properties and homes in wanting to sell quickly. 

    The key target market includes homeowners in some negative financial situation. This includes people facing bankruptcy or foreclosure, medical issues, divorce or damaged properties in complete disrepair. They also hope to find properties transferring ownership from auctions, vacancies and even existing listing that are about to expire.

    The Thought Process Behind the Offer

    Because investors are seeking properties for quick turnaround and profit, they want motivated sellers and properties in distress that can be rehabbed quickly for resale. As the seller, this may or may not be your best play. The buyer is looking to ease your burden quickly. They know you have some emotionally binding stressor that requires a quick sale.

    As a result, the offer might be for the remaining bond balance irrespective of the value of the home. At best, investors want properties at a wholesale price, which is often below fair market value by at least 30 percent. 

    So why such a big bargain? Well like all investments, property has its fair share of risk. Just like the stock market investing cash in properties that require substantial renovation and to hold on to that property, which may take 3 to 8 months on average comes at a cost. To protect the investment these investors, use strategies that come at a cost to them. So, to make sense of a deal they need to work in those cost.

    Consider Your Position Before Negotiating

    Keep in mind there is a cost to keep a home. Everything from monthly bind payments, insurance, and property taxes must continue to be paid while you own the home. The longer you delay a sale, the longer you must pay for utilities, maintenance, and upkeep.

    Also a fact that is not well known to sellers are the cost needed for professional inspection on electricity, plumbing and gas. These will need to come out of your pocket for a buyers bank to agree upon the purchase of the property.

    Do the math then consider the average time it takes for homes to sell in your market. Based on average pricing, will you make up the difference in the cost of maintaining the home for the extended time frame? 

    It may also be urgent to sell because of an impending foreclosure or estate tax. Consider all these factors as you begin to look at offers from buyers. 

    What’s Their Intentions?

    Some might argue that these investors are predators, and there are a few who give other investors a bad name, the experienced investor often seeks to provide a service. How you may ask? They do this by providing opportunities to sellers who need to get out of tricky situations. While banks offer the most bang-for-buck there are times when the process to sell a home or wait for a buyer might be more of a hindrance financially. Lets take a look at a case-study of Sarah.

    Sarah, a full-time college student, had been living in her dads house with her mom for most of her life. Unexpectedly and sadly, Sarah had lost her dad a few months earlier. Unfortunately, Sarah was unable to keep up with the cost to maintain the house as a student with no income. To make matters worst the property was in arrears with the municipality. Due to her inability to pay off the fees associated with looking after a property as well as looking after her ageing mom, the municipality cut off their electricity.

    Sarah’s only option was to sell the house. Having researched the market and having spoken to some real estate agents she realised that she would need to put money into the house to make it attractable to buyers. The agent also told Sarah that the average time it took to sell a home in her area was 3 to 6 months. With college coming to end and her final school fees needed in order to receive her qualification, Sarah knew this was not the best option.

    Fortunately, Sarah had found a reputable investor who was willing to pay cash for her house. Having met the investor, the investor provided Sarah with options, a a result the investor was able to buy the house cash for reasonable discount. The investor allowed Sarah to rent back property while she completed her studies. Sarah was able to pay off her debts and with a significant portion of cash leftover, she was able to conservatively sustain her living standard until she found a good job. 

    Maximising the Sale Value

    It doesn’t take a lot of research to get an idea of a property’s fair market value. If you really want to know, pay a couple thousand rand for an appraisal or simply speak with a local real estate agent who will give you an idea of the value of your home in its current condition. 

    Once you know what the estimated value is based on current market conditions, look at what can be done quickly and inexpensively to improve the property thus increasing the value. 

    Do what the investors would do. These include cleaning the home inside and out, remove all weeds in the landscape and trim trees and bushes back. Replace carpet, tile the bathroom and kitchen and repaint the inside and out. They can provide the most attraction in some cases. Investors often will redo a kitchen and put in a new appliance package, thus making their margin on the property obtained at 30% below market value. You don’t need to do this, but if you have the time and money to do so, it might be worth the investment. 

    The bottom line is if you can extend your timeline of a need to sell, you can wait for a more traditional buyer to come along and give you an offer that puts some money in your pocket.

    IF YOU NEED HELP SELLING YOUR PROPERTY FAST, CLICK HERE.

  • 5 Proven Tips to Sell Your Home Faster in Johannesburg

    5 Proven Tips to Sell Your Home Faster in Johannesburg

    When choosing to sell a house, you’ll likely want the process to take as little time as possible. After all, time is money, right? The longer it takes to sell, the more it ends up costing you in the long run. Utility bills, taxes, and insurance payments only stop once the property is transferred. Statistically, the longer your home is listed, the less likely you are to get your asking price. To get the highest return on your Johannesburg house, sell it quickly!

    Get Rid of Your Stuff

    Before you list, advertise, or have a single showing, box up and store everything that isn’t vital. People viewing your home will subconsciously be turned off by clutter. They will feel as if they are intruding on your space, and will never fully be able to picture themselves living in the house. As far as decor, keep it neutral, don’t do unnecessary renovations or over the top color schemes that provide no value to the end buyer . Consider hiring a professional stager to add the right touches to your house.

    Great Photos

    The majority of people search online for homes. That means you have to capture their attention in only a matter of seconds. The pictures you use in your ad should present the house in the best possible light. Dimly lit rooms and pixelated images do not spur confidence on the prospective buyer. Consider renting a wide angle lens, or hiring a professional to help you get the right shots. Any fees you encounter are well worth it in the end.

    Curb Appeal

    They say, whether they know it or not, buyers decide right away if they will make an offer on a home. What potential buyers see as they are pulling up to the house, will set the overall tone of the showing. Unlike many other home improvements, curb appeal can usually be done at a low cost.

    • Clean up and weed the garden/lawn
    • Plant some flowers
    • Clean us unnecessary clutter or toys lying in the pathway
    • New hardware such address numbers and door handles
    • Fresh coat of paint on the door, and trimmings

    Price it Right

    Your home needs to be priced correctly. A great agent will be able to help advise you, however you should do a bit of homework on your own. What are other houses in the neighborhood actually selling for? Run some comps, and don’t price too high.

    If your neighbour sold their house at the top of the market, you might be tempted to do the same. It’s important to justify the price by comparing what was different about their house. Maybe they installed a new modern kitchen, have an open concept living room or a pool, does your property compare in a similar way?

    Listing your home at an unreasonable price, will only lead to your home being on the market for a longer time and that leads to impending price cuts. In addition, repetitive price drops will make you look desperate or give the impression that there is something wrong with the house. By starting off with a well-researched price, you will be able to hit the market and be competitive with other listings in your area.

    Highlight Your Neighbourhood

    When a person buys a home, they aren’t just buying the structure, they are buying the location and lifestyle. Potential buyer are not only looking for great home but also for convenience. The location of schools, shopping centres and medical centres play a crucial role in the deciding factor.

    Showcase all of the things that make your neighbourhood unique and inviting. Put together a packet to give to people viewing your house. Include information about recreational activities, restaurants and commute times. Let them know about parks, lakes, and anything you love about the area yourself. Is the neighbourhood tightly knit? How about parties and holiday events? Most people are looking for a great home in a wonderful atmosphere. Highlighting the area can be just as important as highlighting the home itself.