Stubborn sellers refusing to recognise reality of the recession
THE RECESSION is still biting severely – but some property sellers persist in not accepting this reality.
“Every major estate agency at the Cape has in the last few months warned against over-pricing,” says Anton du Plessis, CE of Vineyard Estates, “but we still come across clients who rigidly refuse to accept valid valuations. In some cases they have even suspected us of bringing down the price to get a fast sale. No matter how much accurate market information we produce to substantiate our valuations, they just will not accept reality.
“Serious buyers have to accept reductions of 10 to 15 or even 20 percent on the 2006/2007 prices – or waste their own and their agent’s time. When faced with realistic market prices some sellers immediately go into denial,” says Du Plessis. “In a recent case we advised the seller that the value of his home at present is R4.5 million to R5 million, but he insisted that we list it at R6 million.
“In another case, a southern suburbs seller with a home priced at just under R4 million was unable to get any offers within R600 000 of his price, despite keeping the house on the market for a whole year. Instead of accepting a reduction to get a sale, he then contacted another agent, who agreed to list the property at R700 000 more than the original price.
“I really do have a problem with agents who behave in this way. Presumably they hope that an ignorant or reckless buyer will turn up – but in my experience that almost never happens. What can they be hoping to achieve? In this case, they advertised the house as a ‘new release’ which was a complete deception.”
Du Plessis says he has three times had to refuse mandates because owners insisted on pricing unrealistically.
Du Plessis sees lower interest rates taking effect in the market by 2010.