Real Estate Investor Magazine South Africa July/August 2019 | Page 24

SELLING
Debunking the
myth that winter
‘chills’ sales
Property sales are not
seasonal dependent
A
s the winter months have finally arrived, property
owners looking to sell during the colder months
should not be deterred by the season. There is a
widely held perception that property sales slow over the
winter period along with reservations at rooftop bars and
sunset cruises. It is important to note that while certain in-
dustries are season dependent, the property market is not
one of them.
Regional Director and CEO of RE/MAX of Southern
Africa, Adrian Goslett explains that property sales are not
completely impacted by the weather.
“Homes are most likely to sell for full value if they are sold
within the first two months of being listed. However, homes
that have been on the market for more than 6 months are
likely to sell for 10% less than their initial asking price.
Sellers would stand to benefit from timing the sale of their
home correctly so that they have the best chance of selling
within the first two months,” Goslett explains.
A graph formulated by RE/MAX Southern Africa explains
how the listing price can decrease due to the time period
which the house has been listed on the market.
“The need to buy and sell real estate exists year-round.
This becomes apparent if we analyse our sales trends over
the last three years. The only steady pattern throughout
the years is that January and December are consistently
slower months. This is largely owing to the December
leave period during which both our agents and many
buyers take vacations, driving the property market (along
with many other corporate industries) to a bit of a halt,”
he said.
The diagram below showcases the reported sales by
RE/MAX Southern Africa for a period of three years, from
2016-2018.
Sellers are not wrong for wanting to time the sale of
their home correctly. According to Goslett, time spent on
the market can have a huge impact on the likely returns.
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JULY/AUGUST 2019 SA Real Estate Investor Magazine
Goslett advises sellers that now is the perfect time of
the year to put their home on the market. “Sellers who put
their home on their market in May will have six months to
sell before the slower months of December and January
arrive. Provided they partner with a reliable real estate
professional and market their home at the correct price
from the get-go, it is entirely possible to have their home
sold within this period.”
“In fact, it is even more achievable if they partner with a
RE/MAX agent because, every 30 minutes, a RE/MAX agent
sells a home in Southern Africa. This statement is based
on the fact that we consistently sell about 1,000 homes
in Southern Africa every month. If you divide that by 30
days and then further by a 14-hour work day, you’ll get
2.4 per hour which is more than 1 home every 30 minutes.
Statistically speaking, partnering with a RE/MAX agent will
therefore provide sellers with the best chance of selling
fast this Winter,” Goslett concludes.
RESOURCES RE/MAX Southern Africa