What could happen if you wait too long to sell
Wait too long to sell your property, and you might lose out advises property experts. With house prices on the rise leading to the rise in transactional prices, getting a higher price for your home might be negated by the high price you could pay for your new home.
Property experts advise homeowners who are thinking of selling in order to buy a bigger or a better home had better be quick if they want to get the best deal. A common trend is for homeowners to hold back on selling in the hopes of getting a higher prices later on in the year, but the current property climate may not be hospitable to this becoming a reality.
A number of factors today make selling sooner rather than later a more attractive option. Property prices are forecast to rise by 6% this year, which if they do, means buyers will need to offer more on a deposit, and will need to have saved more to qualify for an 80% bond. While the thought of getting a higher price through the sale of your home is attractive, it could be negated by the fact that you might end up paying more for your new home, whether you’re wanting to purchase property in Krugersdorp or the centre of Johannesburg.
Berry Everitt, CEO of the Chas Everitt International property group advises that with the supply of homes for sale reducing, and the number of buyers increasing, buyers could ultimately find themselves in a tough situation where they have to compete for a property they wish to buy. Ultimately buyers will most likely have to pay a high premium for their new home.
In addition, if property prices rise, all the transactions that occur with the sale of a property will rise in price too. Transactional costs such as transfer duty, bond registration and legal fees will become more expensive, making the entire process less affordable.
While some might choose to buy a property that has been owned before, instead of a brand new development in order to curb building and new property costs, pre-owned homes run the risk of possible maintenance or structural issues. This being said, 2017’s statistics show that newly-built homes are about 30% more expensive than comparable pre-owned homes, and building prices have continued to rise since then, showing year-on-year growth of 4,6% in February.
Deciding whether to purchase a pre-owned or new home can be a tough decision. Both property types come with a set of pros and cons according to one’s financials. What is clear though, is that if you wait too long to sell in the current property climate, you might lose out on a good deal in terms of both selling and buying regardless of whether the property you want is brand new or not.
