sellers consider the option of trying to sell their home privately – and most
to their regret. Sadly, the envisioned savings of going it alone are lost
through many factors not considered.
average home in South Africa
is now going in the region of R750,000. Would you consider going to court on
your own for a R10,000 tax fine? Would you get into the stock exchange for
R100,000 without using a broker’s advice and services? Why risk your greatest
investment without the services of a professional?
there are many “Private Seller” type sites out there, it is well worth your
while to actually look at real activity. We recently did some research and had a browse through three
such sites and on average, of what little they had to offer, 95.4% were NOT
private sellers but agents and auctioneers using the platform.
being paid to market someone’s property as broadly as possible and using the
opportunity. Some of these sites are actually aware of the practice and in fact
encourage it! Simply because if they did not, they would have nothing to list.
of the matter, is that there are hardly any private sellers out there – because
it just does not work.
anticipate selling privately in order to pocket the "savings" by not
paying commission? If you do, then please first ask yourself the following
questions as well as reading the article on Saving with an Agent.
AND IN CLOSING
- Under what
conditions will strangers be permitted to enter your home? At what times and
who will screen them so as to ensure your security?
- Who will
"Show" your home? Will you be able to emotionally remove yourself from
negative comments? Who will get your home “Show” ready? Have you considered
that agents have studied human behaviour and know what tone to set, what music
to play and exactly how to approach each visitor. You might just be your own
- How much
will you budget for advertising? Have you considered the major cost of print
media? Do you have access to a variety of other electronic media such as
internet sites, property referral web pages, Multi Listing service networks. Do
you have a dedicated Facebook page with thousands of “friends” – all in the
- Who will
write the adverts for your property and place them? What segment of teh market are you targeting?
- Will you
hire, make or buy signs? Do you know that your local Council has restrictions
on the when and how of signs and that you could get penalised?
- When will
you advertise, and how often? How long will you continue for – bearing in mind,
the longer your property is on the market the lower offers are going to be –
proven statistics. How many thousands are you prepared to spend before saying
enough is enough?
today buy by comparing other homes. Who will discuss these other homes with the
buyers? Or will you risk them walking away because you never had an opportunity
to counter offer and negotiate. Perhaps it was something small that made them
decide on another property – but you will never know.
- Buyers will
be reluctant to tell what they don't like about your home for fear of offending
you. How are you going to ensure they are being forthright as opposed to just
walking away? How would you deal with any objection they may have? Are you
familiar with “Subject to” clauses so as to allow you to negotiate?
need to be followed up. How would you do this without appearing anxious to
sell? How often?
- Can you
assist the buyer in advising them how you property relates to historic sale sin
your area and provide evidence of this so as the make them feel assured of
value. Can you counter any valuation they give with hard evidence of what your
property is worth – prepared by a professional. Do you have any negotiation
skills – not the R2 reduction on a bundle of wood at the roadside type – but real
professional skills that allow you to confidently talk values of R100’s of
special conditions do you want? Will you pick up an off the shelf agreement to
use? Or consult and pay a lawyer for drafting a contract? Legally, how is the
property described and where are the title deeds located?
you qualify the buyer financially? Can you assist the buyers with
best financing solution available? There are many options available
and securing great finance might just mean closing the deal. Banks are
current running on around 40% rejection rate on applications. Do you
negotiating power with the banks due to business you give them. How
you give them to secure finance?
- What will
the buyers monthly payments be? Their transfer costs? Their other costs? Can
you assist them in giving them clarity on this as well as indicative ongoing
costs. Can you reassure them of affordability by means of sitting with them and
budgeting? Will they even be prepared to disclose financial information to you –
you might use it against them.
only some of the considerations you must make if opting for the private
route. We could write pages of horror stories we have heard from private sellers calling on us for help.
If you have already gone this route and like many others are now
calling an agent - give us a try. It will take special effort to revive
the marketing making it look fresh and new and we have the skills to do
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