Coronavirus property outlook

“Over the past few days, I have been chatting to clients and colleagues regarding the outlook on the property market in the coming months,” says Debbie van Rooyen, team seven RE/Max Toti.

While trying to be as positive as she can, we have to be realistic and the crisis we are going through will be life changing for most and the months ahead are going to be tough on everyone.

“I predict that once the financial effects of the lockdown truly set in, we are going to have a lot of defaulting tenants and a lot of distressed home owners offloading their properties as they are forced to tighten their belts. I think this will also be the case for those holding investment properties that under normal circumstances generated a good return on investment.”

The knock-on effect of this lockdown has impacted thousands of landlords (residential and commercial) whose tenants just can’t pay their rent due to reduced or lost income.

Having said that, in any real estate market there are always opportunities, even in the most uncertain times. It is during such markets that brave investors and confident buyers can strike gold. Having the right agent to guide you is priceless in this market and as professional agents, we will need to step up our service and communication now, more than ever.

If you’re a property owner thinking of selling your property in the near future, her advice as a seasoned professional of 19 years is as follows:

• Find yourself a professional, dedicated agent who is a specialist in your area, an agent who knows their stuff, an agent who will present you with a detailed marketing plan, an agent who will present your property to the market in the most professional manner (with an emphasis on good quality photographs and video), an agent who will keep in regular contact with you.

• Listen to your agent’s advice on preparing your property for the market.

• Heed your agent’s advice in terms of pricing your property in a depressed market. Overpriced properties will not sell in this market – unfortunately buyers do not care what your personal needs are.

• Commit to your agent with a sole mandate at a fair service fee, a time period relative to the current market conditions and the price range of your property (remembering that the upper price ranges are already depressed). Agents are straight commission earners who dedicate their professional time and funds entirely at risk. In this type of market, agents will be forced to be selective in terms of properties they will spend their hard-earned money and efforts on. A well-priced sole mandate will warrant their commitment and full attention with the sad reality that over-priced properties and the majority of open mandates will unfortunately receive very little attention from agents and buyers alike.

• Set realistic expectations so that you and your agent are on the same page.

• Stick with your agent as this market will take a lot out of your agent (emotionally and financially) and if they put in their best efforts on your property, they deserve your reciprocal commitment. Extend that mandate if you are happy with their service and don’t feel pressured to jump to another agent or agency who calls you continuously making all sorts of promises (remember, their buyers come from the same pool who will see your agent’s adverts on the same portals). Professional agents will always act in your best interest and share the mandate with like-minded agents who have qualified buyers.

• Be patient and stay positive. Property remains one of the best long-term investments and people will always need somewhere to live. Buyers will buy, if the property suits their needs and offers good value.