Real Estate Investor Magazine South Africa Dec/Jan 2016/17 | Page 26

SELLING

Auctions vs

Realtors
How to Maximise returns in the Super Luxury market
BY SAMANTHA BARTLETT

T

he global super luxury property market has
greater immunity to standard economic
fluctuations than most residential property
and South Africa is no different, but the one rule that
applies whether you’re selling a studio in Illovo or a
mansion in Clifton is that the property needs to be
priced correctly for its market in order to sell.
That’s according to Lew Geffen, Chairman of
Lew Geffen Sotheby’s International Realty, who says
sellers’ expectations in this market can be out of synch
with valuations for the area and property type – often
because they’ve invested so much of themselves in
creating what is their perfect home.
“But what is perfect for one person isn’t necessarily
perfect for everyone, and when one starts looking at
the market above R50 million it’s a good idea to take
guidance and advice from the experts before you put
up the ‘For Sale’ sign.”
Geffen says while the market – especially in the
Western Cape – is still strong in the luxury bracket,
the length of time properties spend on the market has
risen.
“There is appetite for luxury properties, especially
in areas like the Atlantic Seaboard, Constantia and
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DEC/JAN 2017 SA Real Estate Investor

Bishopscourt, but it has slowed since the 2014 peak
and property owners need to manage and adjust their
expectations.
“Holding out for an unrealistic price could prove
costly in the long run if the home spends an inordinate
amount of time for sale, and it becomes stale. It’s
therefore essential to appoint a real estate agency that
not only has a proven track record in this market but
also an extensive database with global reach.
“Cape Town’s super luxury market tends to attract
more international buyers with the purchasing power
of Pounds, Dollars or Euros and these buyers love the
city because in property terms it offers far more bang
for buck than most other comparable cities around the
world.
Geffen says that realistic expectations and real
estate agency selection are especially vital when the
bulk of a seller’s capital is tied up in the property and
debtors are insisting on settlement, one might need to
try another sales strategy such as the auction platform
for a faster way to the market and subsequent sale.
That said, whilst many people perceive auction to
be a desperate measure or the depressing consequence
of foreclosure, this is not always the case, especially
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