With a projected increase in buyers boosted by the recent interest rate cuts, and the potential for further cuts in the first half of this year, the tide could well be turning for sellers this year, according to Samuel Seeff, chairperson of the Seeff Property Group.
Mortgage originators such as ooba have started reporting notable increases in home loan applications following the interest rate cuts last year, and the market is expected to pick up further momentum as a result of the latest rate cut, says Seeff.
This is great news in areas with high stock levels where sellers had to compete with many other sellers. It is therefore recommended that sellers should take advantage of the favourable opportunities to sell. Don’t wait too long for a higher price.
While further interest rate cuts are on the cards, the Reserve Bank has cautioned that these are not guaranteed. Waiting too long for a better offer or higher price might result in the seller losing out. There is also no guarantee that a higher price offer may be forthcoming.
In areas with high stock levels, sellers should also be mindful that they may be competing with other property listings. If the asking price is already at the higher end compared to other properties on the market, it may result in buyers rather looking at competing properties.
The advice is that sellers should be ready to capitalise on opportunities in the market. Ensure the property is in great shape and well maintained so that there is nothing that will put buyers off. Prepare well for viewings by ensuring the property is clean and decluttered.
Sellers should also leave nothing for buyers to quibble about by ensuring their property is priced correctly, and that the asking price is in line with similar properties on the market. If not, you may well end up simply driving buyers to competing properties.
To speed up the sale and transfer of the property, sellers should ensure that all the paperwork pertaining to the property is in order, and that the property is compliant. This will also provide peace of mind to the buyers, and facilitate a smooth and efficient transaction.
Sellers should also be aware of the transaction costs that they are responsible for. These include the estate agency commission which is usually negotiated upfront and payable on registration of transfer.
Additional costs that the seller is responsible for include repairs needed for obtaining various Certificates of Compliance for aspects such as electricity, water, electric fence, and other connections, as well as any repairs necessary to make these compliant.
There may also be bond cancellation costs payable if there is a mortgage bond registered over the property
The seller will also be required to ensure that all outstanding costs to the local municipality are settled. The transferring attorneys will obtain the necessary clearance from the municipality, and some municipalities require upfront payment of rates and services for up to four months depending on the municipality. Any surplus can, however, be claimed back after the registration of transfer of the property.
In the case of a sectional title or estate property, the clearance certificate will be provided by the Body Corporate or Homeowners Association. The seller will need to ensure that all levies are up to date, including any special levies which may need to be paid up before the property can be transferred.
Issued by: Gina Meintjes
