This is according to the manager for Seeff Centurion’s Tiaan Pretorius, who said something may be wrong if a property does not receive any appropriate offers within the first month or two.
He said that, depending on the area, only a portion of properties listed on the market tend to sell during a year. This means that a property has to stand out.
Although the price is often the main reason the property is not selling, Pretorius noted that it is not always the only reason.
Pretorius gave many reasons why a property may not be selling as fast as the seller wants it to.
Reason #1 – The price is too high.
This is often the main reason a property is not selling.
The price should be competitive relative to similar properties in the area.
Sellers often believe their properties are worth more or are misled by incorrect information, which delays the process as the price may need to be adjusted downwards.
Reason #2 – The market is slow.
The high interest rates over the last year and a half have slowed the market.
This has resulted in fewer buyers with a far more comprehensive selection of possible properties.
This reflects a longer sales process, especially for those at the higher end of the market.
There could be some relief in the near future for sellers, with the South African Reserve Bank set to cut rates even more, following a 25 basis point cut last week.
Reason #3 – The property is not well presented.
Even if accurately priced, a poorly presented property could cause buyers to overlook it. This is especially the case in a more challenging market.
The property always need to be presented in a show house condition.
Reason #4 – It is not a great location.
Location is also crucial, as high-demand locations tend to attract more buyers competition and higher prices.
Locations such as those closer to transport networks or busy shopping precincts tend to impact prices, particularly for those in better places, which are similar priced.
Reason #5 – The property is overcapitalised.
Spending too much on renovations can impact a seller’s price expectations above the market average, particularly if they want to recoup costs.
Sellers need to keep upgrades relevant to property values; otherwise, you may have to wait for the right buyer or end up having to drop your price.
Reason #6 – Security concerns.
Some areas attract a poor reputation due to crime statistics. This affects the value of properties and the prices that buyers would be prepared to pay.
Sellers can counter this by securing the property and keeping price expectations appropriate for the area.
Reason #7 – Complex levies and rules.
High levies can also deter many buyers, making it more challenging to sell a property.
It is recommended that complexes keep their levies market-related.
Complexes that do not allow pets are another reason that property may take longer to sell.
Reason #8 – Title deed limitations.
There may also be deed limitations, such as servitudes related to driveway access, municipal electricity, or sewerage servitudes.
These could impact the time it takes to sell a property, and sellers should be mindful of this issue.
Reason #9 – Suspensive conditions.
If these conditions are not met, it could lead to the property staying on the market for longer.
These conditions could include the buyer’s property being sold but the sale failing for whatever reason, or the buyer could fail to obtain mortgage finance to cover the sale.
