Home-sell­ing myths busted

Lesotho Times - - Property -

A PROP­ERTY sales trans­ac­tion can be a com­plex process, es­pe­cially for buy­ers and sell­ers who have never been through it be­fore.

These days there is a world of in­for­ma­tion at our fin­ger­tips, and of course, the well-in­ten­tioned fam­ily and friends who are ea­ger to give ad­vice, but re­ceiv­ing from so many sources can lead to more con­fu­sion and un­cer­tainty.

“While there is a plethora of in­for­ma­tion avail­able to buyer and sell­ers, it is not al­ways easy to dis­cern be­tween which in­for­ma­tion is worth tak­ing note of and which isn’t,” says Re­gional Di­rec­tor and CEO of RE/MAX of South­ern Africa, Adrian Goslett.

“As a re­sult, there is a num­ber of home-sell­ing myths have be­come com­mon­place in the prop­erty mar­ket.”

Goslett pro­vides truths and facts to ex­pose the fic­tion and steer sell­ers in the right di­rec­tion: 1. Fic­tion — The prop­erty’s sell­ing price is de­ter­mined by sell­ers Fact — While it is the seller who will make the fi­nal de­ci­sion as to what their prop­erty sells for, the sell­ing price of the home will largely be de­ter­mined by sev­eral key as­pects such as its lo­ca­tion, size, con­di­tion and the mar­ket.

If buy­ers do not per­ceive the home to be priced at fair mar­ket value, they will not be in­ter­ested in pur­chas­ing it.

Buy­ers in the mar­ket will have a large in­flu­ence as to the sell­ing price of a prop­erty. If the home is in de­mand it will fetch a higher price than if it is not. The ini­tial ask­ing price of the home can vary greatly from the ac­tual sell­ing price. 2. Fic­tion — Over­pric­ing leaves room to ne­go­ti­ate Fact — Of­ten over­pric­ing will have the op­po­site ef­fect to what the seller in­tended.

In­stead of leav­ing room for ne­go­ti­a­tion, over­pric­ing drives buy­ers away, es­pe­cially if they have re­searched homes prices in the area.

In­flat­ing the home’s price will alien­ate buyer pools, in that buy­ers who could per­haps af­ford the home at its true mar­ket value will over­look it.

Equally, those who can af­ford the in­flated price will soon re­alise that the home does not com­pare to oth- ers in the same price bracket. As a re­sult, the home could stag­nate on the mar­ket and sell for far less than what it may have sold for if listed at the cor­rect price from the start.

3. Fic­tion — It is not nec­es­sary to make repairs and pre­pare the home for sale Fact — There is no doubt that there is a mar­ket for buy­ers who are look­ing for a prop­erty they can ren­o­vate them­selves, how­ever, most buy­ers are look­ing for a home that is ready for them to move into. A home in ill-re­pair will gen­er­ally be far less at­trac­tive to buy­ers than a home in pris­tine con­di­tion.

While largely de­pen­dent on the seller’s bud­get and time frame, it is rec­om­mended that all ma­jor repairs are seen to be­fore the home is listed.

The prop­erty will be viewed as “move-in” op­tion, and the agent can also men­tion the repairs as a sell­ing point in the mar­ket­ing ma­te­rial.

If any de­faults are found dur­ing an in­spec­tion, the seller can then dis­cuss op­tions with the buyer re­gard­ing ad­di­tional repairs or drop­ping their ask­ing price. 4. Fic­tion — All ren­o­va­tions and home im­prove­ments pay for them­selves Fact — Although cer­tain ren­o­va­tions and home im­prove­ments will in­crease the home’s value, it is sel­dom that the seller will re­ceive all the money back that they have in­vested in the project.

There­fore, be­fore de­cid­ing on any project, it is best to get ex­pert opin­ions on what should be fixed or changed, and what kind of re­turn can be ex­pected as a re­sult.

“Know­ing the facts will as­sist home­own­ers to get the most out of their prop­erty sale,” says Goslett.

“If ever un­cer­tain of any as­pects re­lat­ing to the sale, sell­ers can seek guid­ance from a rep­utable real es­tate pro­fes­sional who will be able to nav­i­gate them through the process.”

— Prop­erty24


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