Selling your home is not a simple case of advertising it online and waiting by the phone for interested buyers to call.
In fact, this part of the selling process is one of the last things you will get to experience.
Selling a home can be a complicated process, especially for those who have never done so before. While real estate professionals are there to guide sellers, having a basic understanding of the process can help homeowners prepare themselves for what lies ahead, says Adrian Goslett, regional director and chief executive of RE/MAX of Southern Africa.
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In fact, selling real estate is likely to be one of the biggest financial transactions a person can make, so it is vital to get it done right.
“Never be afraid to ask questions if you are feeling uncertain and lean on the advice of trustworthy experts in the industry to make sure the process runs smoothly,” he says.
Property experts share their top tips for first-time home sellers.
Start budgeting
Most first-time sellers forget to budget for the upfront expenses that go along with selling their home, which can add up to be a significant amount, Goslett says. Before placing the home on the market, build up some cash reserves to pay for things such as your compliance certificates and any resulting repairs, rates clearance certificate – which is three months municipal rates paid upfront, and bond cancellation fees, if there is still a home loan in place.
Get a valuation
The first step in any property sale is to book a property valuation, says David Jacobs, Gauteng sales manager for the Rawson Property Group. And this isn’t just about setting a price-point for your sale – it’s also about getting to know a few real estate agents before you choose the one you want to work with.
“I always recommend getting two or three valuations from a variety of agents active in your area. This helps ensure the recommended price that you go with is, indeed, realistic, and also lets you compare the market knowledge and service quality of agents you might want to work with.”
A good valuation should always include a detailed comparative market analyse, complete with first-hand insights into current market conditions and competitive listings.
“Statistics only go so far to tell you what’s happening on the ground. The best agents combine facts and figures with personal, hands-on insights to give sellers a really comprehensive overview of what to expect.”
Choose your agent wisely
As a first-time seller, Jacobs says you may be tempted to choose your agent based on the highest recommended listing price or lowest commission. This, however, is a rookie mistake that can seriously backfire on your sale.
“You don’t sell a property quickly and profitably by padding your sales price, or being overly thrifty on necessary costs. You sell well by listing at a market-related price point, and using the agent best able to maximise your property’s profile within your specific target market.”
As such, he recommends prioritising qualities like experience, strategic thinking, and good word-of-mouth referrals when choosing an agent.
“Commission can be negotiated. Competence can’t.”
Goslett agrees: “The key is to find an agent who knows your area well and can tell you what properties in your area have sold for – not just what they’re marketed at. Do not simply partner with the agent who gives you the highest asking price. Setting the price too high can hurt your chances of selling and is likely to result in a much lower asking price than if you had marketed the home at the right price from the outset. Instead, choose somebody who you know is the best at what they do, who is trustworthy, and who cares about your needs.”
Jacobs adds that sole mandates are known to achieve higher sales prices than open mandates and are recommended by most property professionals.
Allow the marketing to begin
After choosing an agent, the marketing begins, Goslett says. It is advisable to get the home in tip-top shape before listing photographs are taken. The agent might recommend the use of a professional staging company and might offer some advice on what needs to change to ensure that the home is as appealing to potential buyers as it could be. Each time the agent arranges to bring buyers around, make sure the home is tidy beforehand and lock any valuables away.
Keep your emotions in check
Every home has happy – and not so happy – memories attached to it. These can make it tricky to remain objective when getting ready to sell, Jacobs advises.
“Trust that your agent has your best interests in mind when it comes to prepping your home and advertising your listing. The features you love most, and want to highlight, might not play in your favour on the market. Rather let your agent take the lead on ideas to maximise your home’s appeal to buyers.”
Also, it is vital to keep emotions out of things like compulsory defect disclosure lists.
“It might be tempting to hide a few flaws, or gloss over the extent of a situation to avoid deterring buyers, but this can cause very real legal repercussions down the line.”
Make your home show-house ready
Every home benefits from a little freshening-up before hitting the market, but Jacobs says there’s no need to go overboard on pre-sale improvements.
“The most important thing is that your home is clean, neat and decluttered. A little bit of depersonalisation – removing family photos and religious items, for instance – can also help.”
Those wanting to go one step further can focus on boosting first impressions.
“A few flowerpots lining the driveway, a freshly cut lawn, a coat of paint on the front door and sparkling windows can do wonders for putting buyers in a buying frame of mind,” he says.
Get up-to-date compliance certificates
Having your compliance certificates up to date is also a good way to reassure buyers that all is in order with your property, and that you’re serious about your responsibilities as a seller, Jacobs states.
“Compliance certificates are a legal requirement, so you’ll need to get them done sooner or later. Sooner means you won’t be fixing non-compliant items at the last minute, and you won’t risk losing buyers to unexpected compliance delays.”
Accepting an offer
Once the offers start rolling in, it is important to consider each Offer to Purchase (OTP) carefully, Goslett says.
“Once signed, the OTP is a legally binding sales agreement that cannot be broken without involving penalties. A good agent will negotiate the best deal on your behalf and will walk you through any suspensive conditions the buyer might have put in place.
“Usually, the offer with the least amount of conditions and with readily available finance in place will lead to the least complicated sale process and is, therefore, usually the most appealing.”
Transfer and registration
Goslett says the last step in the process involves quite a lot of back and forth between the transferring attorney, bond attorney, and deeds office to transfer the home out of the seller’s name and into the new buyer’s name, he adds.
“This whole process usually takes around three months but can happen quicker depending on how busy the deeds office is and how complicated the sale is.”
Bonus advice: What to do if your property is not selling?
Samuel Seeff, chairman of the Seeff Property Group, lists the following questions you should ask yourself, or things you should consider, if your property is sitting on the market.
- Is your asking price realistic compared to current selling prices in the area? Speak to your agent and get a list of latest sales to compare and price accordingly.
- Is the marketing optimal? Good quality photographs and an enticing description are important to ensure it catches buyers’ attention at first glance.
- Is the property exposed to as many potential buyers as possible? It should be listed and promoted via the correct channels to ensure it gets to as many eyeballs as possible.
- The key features should be highlighted and quickly visible. Aspects such as the finishes or extras for families such as proximity to schools should immediately catch attention.
- Too many extras might also be why it is not selling. Too many bedrooms or additional features may be superfluous to the needs of buyers who would not want to pay more for these extras.
- If there are too many similar properties on the market, you may be competing with some that are lower priced, or which offer something a little extra for the same price.
- Waiting too long for the right offer can also delay the sale. Rather negotiate; there may well be a deal to be made.
- Perhaps the agent is not giving it their best. If properties are selling in the area, but your home is just not attracting offers, it might be time to change to another agent.
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