5 no-no’s when selling your home

Sellers are understandably usually quite emotionally attached to their homes, and in being so, can often be their own worst enemy, potentially jeopardising a successful sale.

International real estate trends expert, Steve Murray, who is also the editor of REAL Trends, a trends research and publishing firm based in Colorado, will be visiting South Africain August by invitation from RE/MAX of Southern Africa, to share some of his key property insights with local agents.

Peter Gilmour, Chairman of RE/MAX of Southern Africa, says that Steve will undoubtedly enrich the working strategies of many of the agents he comes into contact with. “While we are certainly well on the road to a market recovery, current market conditions remain somewhat challenging, and any real estate professional could certainly benefit from tips and insights to better their working practices.

However, says Gilmour, estate agents are not the only ones who need to up their game. “In order to get the best price for their property in the shortest possible time, sellers need to up their game too.”

He refers to an article recently published on real trends courtesy of Brendon DeSimone, a realtor based in San Francisco, a contributor to the Zillow Blog, and collaborator on multiple real estate books, which describes five things that sellers do that could potentially jeopardise a sale.

The article notes that home sellers today are under a lot of stress. It’s a tougher market, home prices have fallen and many are trying to get as much money as possible to recoup their investment. While real estate agents feel sellers’ pain and are on their side, sellers sometimes do things that make it harder for an agent to sell a home for what it’s worth.

Here are five not-so-great things sellers do that make their real estate agents cross their fingers and hope for the best:

1. Sellers who think their property is unique, thus worth more money
Sellers consider their homes special; most likely they’ve put a lot of heart, soul, and money into fixing it up. It may be where they started a family or built a lifetime of memories. When a seller believes their home is unique, however, they also believe it is worth more. Sellers then end up fixating on an asking price that’s too high, despite the advice of an agent. If it’s priced too high, a home will sit on the market for months. Unfortunately, nine out of 10 times, the seller will end up selling for less money than they would have gotten if the home was listed at an appropriate price from the start.

2. The home is a mess
Sellers: It’s important to pick up the home before a showing. Potential buyers touring a home usually don’t appreciate stepping on a child’s toy and fail to see the charm of a dog’s discarded tennis ball. Buyers want to feel that a home is clean and well maintained. If it’s not, they’ll likely move on to the next.

3. Sellers who hang around during an open house
There’s a reason why real estate agents don’t want sellers sticking around when potential buyers arrive. While a seller may be perfectly friendly and agreeable, they can alienate buyers or make them feel uncomfortable without even knowing it.

4. Holding out for extra money at the last minute
Say a buyer made an offer that was less than what the seller wants. The agent and the buyer have gone back and forth with a series of counter offers. The seller is close to achieving their dream price but they insist on trying to squeeze more out of the buyer. In demanding more money, the seller may have created bad will, as well as stressed those involved in the purchase. When it comes down to it, extracting that extra little bit may actually cost the seller more at the end of the transaction.

5. Sellers who don’t clean up before turning over the keys
Sellers should imagine themselves as the future buyer. Would they want to walk into their new home and find twelve cans of old paint in the garage? Or an old sofa with a broken leg in the storeroom? The tip to sellers is to try to make the home as spotless as possible for the new owners. They’ll appreciate it and so will the agent.
“In the current climate, those who want to get the best price for their property are going to have to work a little harder,” says Gilmour.

“Sellers need to view their homes with a critical eye. When a person lives in a house for an extended period of time, they tend to turn a blind eye and overlook problem areas.

Learn to think like a buyer, says Gilmour, and always assume that potential buyers are going to spot the faults. “At the end of the day, sellers need to remember that a well-priced, well-maintained property will appeal far more than an over-priced, under-maintained home.”

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

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

Basic South African Property Laws

Before considering buying a house or apartment / flat etc in South Africa, it is recommended that potential buyers first familiarize themselves with some of the country’s basic property laws. This will provide the buyer with valuable insights into the local property market, processes and the various costs and fees involved.

Inspection Before Purchase

Though standard practice in the UK and US, home inspections are not required by law in South Africa. As a result of this, buyers are purchasing properties without any guarantees, and cannot hold the seller liable for any hidden defect or problems on the property. This is commonly known in South Africa as the “Voetstoets Clause”.

Though not a legal requirement in South Africa, home inspections are well within the rights of the buyer, and might very well be in the best interests of the buyer. Costs involved in this process may vary anywhere from between R1500 and R3000 depending on the size of the property, but in the long run it will prove to be a valuable investment due to the fact that such an evaluation might reveal any potential problems with the property. Typically, the buyer will receive a report which includes detailed information regarding issues such as structural cracks, dampness, electrical circuits, the geyser and plumbing system, visible foundations and roof construction.

The Voetstoots Clause

The Voetstoets clause plays an important role in the buying and selling of property in South Africa, and refers to the buying or selling something as is, regardless of its condition. This clause works well to protect the rights of the seller.

As a potential buyer however, the clause does not yield many benefits. There are two exceptions however, which entitle buyers the legal power to take action either for a reduction in selling price, or to cancel the contract entirely.

The first of these exceptions applies if the seller was aware of problems or defects to the property, but did not disclose these issues with the purchaser. The second applies when fraudulent or innocent materials were misrepresented. The latter is only valid if the latent (hidden) defects were to such an extent that, had the purchaser been aware of them, they would not have bought the property.

Patent and Latent Defects

The voetstoots clause refers to patent and latent defects, so in order to gain a full understanding of the clause, the differences are explained as follows:

Patent defects are those which are clearly visible upon an inspection by any person who does not have specialized or professional knowledge on the subject. Patent defects include visible cracks in walls, damage to roof tiles or the roof itself, missing tiles, broken windows, sagging gutters and other defects similar in nature. It is in the instance of patent defects that the buyer cannot claim post purchase that he was unaware of the defects. It would be in the best interest of the buyer to familiarize themselves with the condition of the property, and negotiate and possible changes which need to be made before the finalizing of the contract.

Latent defects are those which cannot be seen with the naked eye, and it is under these circumstances that the buyer should be advised to conduct a formal inspection of the property before purchasing it. By having an inspection done by a reputable professional, the buyer will be able to determine such issues as rising damp or moisture behind closets, defective geysers, rusted internal plumbing, roof leaks and any other hidden faults.

Latent defects are not clearly visible, and the voetstoets clause holds the seller liable to reveal any such defects in their knowledge.In instances where certain defects were known by the seller, yet were not disclosed to the buyer, the seller may then be forced to refund  a portion of the selling price or even accept cancellation of the purchase altogether.  This depends on the nature or degree of the latent defects.

The only time when a seller may be excused from making compensation for latent defects is if they were unaware of the defects at the time of sale.

Late Discovery of Defects

The late discovery of defects on a property can be a frustrating and expensive mistake to make, depending on the severity of the defect and costs involved to rectify the situation.

Problems such as a roof which leaks may seem fine at the time of purchase, however months later it may cause cause great difficulties at the onset of the rainy season, when the problem will be made apparent. If it can be proven that the seller was aware of the problem at the time of sale, and failed to disclose it to the buyer, then he or she will be liable for the costs of the repairs.

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

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za