Real Estate Investor Magazine South Africa October 2018 | Page 24

ACQUIRING
How to maximise your
sale in a buyers’ market
BY GINA MEINTJIES
W
ith the weak economic outlook persisting, we can
expect the current buyer’s market phase to last until
well into next year, but what does this mean for
buyers and sellers?
  What is a seller’s market?
When the economy and property market is in a positive
growth phase, buyer demand for property tends to be high
with loads of competition for properties. During such a phase,
sellers are in the driving seat and they can generally call their
prices and buyers will pay higher prices just to get their hands
on their dream property. This is referred to as a sellers’ market.
What is a buyer’s market?
When the economy and property market goes into decline,
there are usually fewer buyers while the number of properties
listed on the market increases. In such a case, buyers are in the
driving seat and they can usually call the prices. This is usually
referred to as a buyers’ market.
 By now, sellers and buyers should be well aware that with
the economy and property market in decline, we are firmly
in a buyers’ market, but all is not lost because there are
opportunities in every market.
Selling in a buyers’ market
The most important thing to bear in mind, is that your asking
price needs to match the market. If it is too high, you will
simply scare off potential buyers and they will look elsewhere.
Remember, buyers have many properties to choose from and
they will want good value for their money.
 It does not meant that you have to sell for cheap. In fact, far
from it. If the buyer is serious, they will put a serious offer on
the table, but they will be well aware of the market conditions
and current selling prices. If you are asking a price that is
22
OCTOBER/NOVEMBER 2018 SA Real Estate Investor Magazine
higher than the current selling prices, your property will in all
likelihood just stay on the market.
  Another piece of important advice, is to guard against
giving a mandate to an agent on the basis that they can get you
a high price. Before you agree, ask for a Comparative Market
Analysis and ensure that they include the last five sales in the
area so that you can see what has sold and for how much. If the
recommended price is too low, then your best advice might be
to take your property off the market until it improves.
  Buying in a buyers’ market
This is of course the best position that you would want to be
in, if you are a buyer. It generally means that you are in a fairly
good negotiating position, but it does not necessarily mean
that sellers will be open to bargain hunting it. Sellers will still
expect to receive a fair price for their property.
  The best advice if you are serious about a property is to
put in a serious, but not overpriced, offer. Be sure to leave a
bit of room to negotiate, but don’t take too big a risk. A good
property at a fair price will always attract buyers regardless of
the state of the market, especially in high demand areas.
 Another piece of good advice, is to get a pre-qualification
done if you require a home loan. That way, you can shop
around for your property knowing that you are in a good
position to negotiate. If you are able to put down a reasonable
cash deposit, you will be in an even better bargaining position.
  Finally, if you find a property that you really like and it
is well priced, don’t risk losing it. Rather secure it while the
market is down, because it is almost impossible to predict what
the market will do next.
SOURCE
Seeff Properties