Good news amidst difficult times - interest rates cuts make purchasing more affordable than ever!
Category Market Update
Almost 17% cheaper to pay off a bond now than in January 2020 (Source OOBA)
There is still much uncertainty and it is difficult to predict how the market will play out over the coming months, but working with what we currently know, conditions are favourable for buyers. The interest rate cuts have made property more affordable than what it has been in decades.
This has created an excellent window of opportunity for sellers and investors, but rising stock levels is now giving buyers a wider choice. They are also well aware of the worsening economic conditions and offers are beginning to come through at well below the asking prices.
This puts sellers in a difficult position - either consider taking their property off the market until conditions improve, or if they need to, or want to sell, adjust to the conditions to ensure that they do not risk losing out during this favourable buying phase.
How do you prepare for a fast sale in view of the current economic climate?
Be upfront about your financial needs. Discuss your urgency with your agent. If you are in a situation where time is of the essence and your financial position requires a fast sale, discuss this with your agent who can assess and advise on a potentially best-case outcome for your property.
Discuss your price. Speak to an area agent who will provide an objective view of the right asking price for the current market. Prices are expected to deflate by 5% to 15% (up to 30% at the top end of the market) and chances are that you may need to adjust your price or risk losing out on offers.
Is it the best time to sell? If you are not in a hurry to sell, then it might not be the best time to have your property on the market. If the prevailing price guideline is not within your needs, then rather consider taking your property off the market until conditions improve.
Repair rather than renovate. A poorly maintained and cluttered home is off putting and unless the buyer is looking for a fixer-upper, they will want to do as little as possible to their new home. Consult with your agent about essential repairs that it is needed.
Curb appeal. Although common, this is a vital phrase in real estate and means that your property must look especially good from the outside. The exterior and garden must be neat, or the buyer will enter the property with an already poor impression.
Prepare for the viewing. Buyers need to visualise themselves living in the property so clean and declutter. Ensure curtains and blinds are open so that the home is bright and airy when viewed. It always helps to stage it with clean towels and perhaps a bunch of flowers to welcome the buyer.
Consider all offers and the time value of money. Money in your pocket right now is worth much more than a hope that you may get a higher offer later. Work with a credible area agent who will not risk their reputation and will provide the best guidance on whether a particular offer should be considered.
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Author: Gina Meintjes
