Due to the fact that the current property market offers buyers a wide selection of homes to choose from, the selection process can sometimes be tough.

Adrian Goslett, says that while most buyers probably have a good idea of what they are looking for in a home, there are a few steps they should follow to help with their final selection:

1. Make a wish list

Goslett advises buyers to write down everything they need and want in a property. The first aspect buyers should consider when making their list includes the type of property they prefer.

Buyers need to decide if they are looking for a freestanding home, a cluster or a unit in a sectional-title complex or secure estate, he says.

Then they need to decide if they would like a home they can renovate or one they could just move right into without changing a thing, Goslett advises. “A property in need of attention should have a lower asking price than one that’s fully renovated and a place that’s two or three years old will be cheaper than one that’s brand new.”

He says that buyers should also determine the details in terms of the number of bedrooms they require, the entertainment and garden space they would need, etc.

2. Differentiate between wants and needs

Once a wish list has been drawn up, Goslett recommends that buyers separate out items that fall into the wants category, which are the nice to haves but not essentials, from those that fall into the needs category, which are specifications that the buyer cannot compromise on.

“Buyers need to determine whether or not they really need that swimming pool and a large stand, or if they could compromise by buying a smaller stand in an estate that has communal facilities, instead, for example.”

3. Work out affordability

Determining a price range, Goslett says is one of the most crucial steps in the selection process. Buyers need to figure out how much they would be able to afford on monthly costs, including bond repayments, maintenance, levies and rates, etc.

“Since this exercise will undoubtedly impact on the type and size of a property that a buyer can actually afford, many buyers may choose to revisit their wants and needs list after adding up the cost and change some items that impact most on the price.”

4. Pre-qualify for a bond

Buyers will just end up wasting everyone’s time by looking at homes that they cannot afford to purchase.

By getting a pre-qualification on a bond, buyers will be able to determine whether or not they qualify for the necessary finance and will get an idea of the estimated amount that the financial institution would be willing to lend, says Goslett.

“This, along with the step above, will determine the price range in which buyers can begin searching for properties.”

5. Location

The emphasis on the importance of location remains as strong as ever. When looking at areas in which to purchase property, Goslett says that buyers should consider what locations they need to reach regularly, how they plan to travel there and how long the journey will take.

Schools and other amenities will also play a large role in this step of the selection process for many buyers.

“Buyers should make a list of their favourite or ideal neighbourhoods and then make sure that their budget matches what the homes cost in these areas, which will help to narrow the list down,” he says.

6. Start the search

The internet is the ideal starting place to begin a house hunt. There are numerous specialised websites that have easily-searchable property listings.

But because property websites don’t always cover everything that’s for sale in every area, local newspapers are also a good research tool for buyers, says Goslett.

He advises buyers should also visit their local estate agents to ask what’s coming onto the market, or drive around their favourite areas to spot any for sale boards going up.

Most estate agents will also take note of a buyer’s specific requirements and will cross reference this with properties the company has on their books, he says.

7. Choose a good estate agent

It is essential for a buyer to find an expert to work with, according to Goslett. “Ask for referrals and interview various candidates in order to ensure you select an agent that is professional, experienced and ethical.”

He says it is also best to select an agent that has good knowledge of the areas in which you are thinking of buying a property.

8. Learn the real estate market

The more knowledge a buyer has about the property market in which they are thinking of buying, says Goslett, the more equipped they will be to make an informed decision.

He suggests that buyers ask their agent to send them a list of homes that have recently sold in the area within their price range as well as a comparative market analysis of the area to help determine where the best value lies.

9. Find out what is for sale

Aside from making a shortlist of the properties found on the internet, through the local newspaper, from driving around or from an agent, buyers need to match the list with all of their criteria including their accommodation requirements, price range and location.

The next step is to set up appointments to view the properties on the shortlist and begin comparing them.

10. Practice your patience

Goslett warns that for some buyers, depending on their requirements, it may take time to find the ideal home.

Buyers may look at everything for sale and not fall in love with anything, he says. “In cases like this, buyers should ask their estate agent to add them to their email list to receive notification of suitable listings as they come on the market. Patience here is key.”

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South African homebuyers make a comeback

Wealthy local and international property buyers are reportedly snapping up homes in Cape Town’s sought-after suburbs of Clifton and Bantry Bay.

According to Dogon Group Properties, despite a slowdown in the property market currently, the group have sold 17 prime properties to the value of over R400 million in Clifton and Bantry Bay on Cape Town’s Atlantic Seaboard.

Nine out of 17 properties were sold to South African buyers some of whom relocated from Gauteng and KwaZulu-Natal to Cape Town.

Foreign buyers included an Indian liquor baron, West African and Asian industrialists, European royalty and Captains of industry from Germany and the United Kingdom.

Two of the 17 properties sold have been sold three times in the past four years.

An apartment in one of the most prestigious blocks on the water’s edge in Clifton sold twice in a two year period, initially for R25 million and later again for R28 million.

Denise Dogon of Dogon Group Properties says both local and foreign buyers of properties in the sought after Nettleton Road and beachfront areas of Clifton still see great value in investing in these locations.

She explains that in good or bad times investing in property is always about the position.

In Clifton, buyers in recent months have paid up to R60 million for a villa while a penthouse was sold for R33 million.

“Buyers are still seeing value in Clifton property and many have been looking to buy in Clifton for years and when the right property comes onto the market, they are quick to respond,” she says.

However, Dogon notes that there are contradictions in the market – on the one hand buyers are looking for bargains in the wake of the global economic slowdown and on the other hand the prices they pay are setting new records for sales in the area.

One example is of a sale in Nettleton Road for R45 million. This is definitely one of the highest prices ever for a piece of land, as the buyer has effectively bought a plot because he intends demolishing the house and building his own, she says.

“In some cases, sellers make profits but and in some, they take less than they paid for the properties in an effort to liquidate assets”.

Dogon says a bungalow on one of the biggest stands on the beach in Clifton, previously marketed for R40 million was recently sold for R26 million and two other bungalows – one for R34 million and the other of R20 million were both sold for the full asking prices.

“South African property still offers excellent value for money and a superior lifestyle when compared to other countries.”

Dogon says Clifton – unlike other suburbs in South Africa was clearly governed by demand and supply principles and that the rare ‘gems’ such as the properties on the ocean and in Nettleton Road achieved top prices irrespective of the state of the rest of the property market.

Top-end properties also seem able to maintain their growth in recessionary times because there is always a shortage of prime properties.

While there are not many buyers in this league, those operating here are very discerning and know what they want.

Sellers are definitely more negotiable as we have been able to work within a band of up to 20 percent discount differential between the listing and selling price, she says.

High income earning property buyers and investors will pay any price as long as the location is right.

According to Seeff Properties, the Atlantic Seaboard and City Bowl locations hold an inherent capital appreciation and even when prices drop, those who buy smart still make money.

Seeff Atlantic Seaboard and City Bowl managing director, Ian Slot says a five-year sales trend analysis reveals that on freehold property sales, Bantry Bay achieved 22 percent and Clifton at 18 percent average annual capital growth over 4.9 yy/mm while Fresnaye achieved 17 percent over 4.8 yy/mm.

Since 2010, 11 homes above R30 million to the total value of R392 414 000 have sold at a capital appreciation of between 10 percent and 18 percent over 4.1 yy/mm and 3.6 yy/mm respectively, he says.

The highest price achieved in 2010 was R60 million for a villa located in Nettleton Road, Clifton, while a villa in Kloof Road, Clifton sold for R45 million this year.

Slot says without a doubt, location still sells. As an example, he says a four bedroom villa in Ave Disandt in Fresnaye was recently sold for R11.5 million within three days of listing it.

Seeff estate agents say location remains a drawcard for Camps Bay buyers.

In Mouille Point, agents report that buyers are prepared to pay between 10 and 15 percent more for sea-front properties such as a one bedroom unit in Fortuna sold in September for R1.75 million.

In Sea Point, the good location buys are without a doubt the beachfront properties where a total of 17 units have sold in Beach Road to the value of R73.06 million, according to Seeff estate agents.

Pam Golding Properties (PGP) recently sold a luxurious family home in Bishopscourt for R35 million.

The property located on Klaassens Road was purchased by a South African buyer drawn to its expansive entertainment areas, privacy and security as well as its generous accommodation.

PGP’s area manager for the Southern Suburbs, Howard Markham, says the sellers demolished an existing older house on the property in the early 2000s, creating the space to build their dream family home.

Markham says the location in the southern quadrant of Bishopscourt, bordering the Constantia Valley, offers some of the suburb’s best views.

The entire suburb of Bishopscourt is known for its large family homes on extensive grounds and it is only fitting that properties in this location regularly fetch well above R20 million.

“This particular sale was a cash deal concluded with a local buyer, confirming our experience that there is still demand from South Africans for top-end executive homes in the best suburbs, regardless of current economic conditions,” he adds. – Denise Mhlanga

Please contact us if you require any further information or would like to apply for finance:

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