The average length of time to sell a property in South Africa is 17.8 weeks. If a property has not sold in this time the most common reason is overpricing.
Helen Melon Properties offer a Comparative Market Analysis (CMA) (valuation) service to sellers who have mandated them to sell their property. The company also offers the service to buyers, at a fee, for a property(s) on which they are considering making an offer.
Property is more often than not the largest single asset in a homeowner’s portfolio, and unlike other asset classes, when it comes to purchasing or selling a home, emotion invariably plays a large role in the decision making process.
Property markets are cyclical in nature with booms and recessions a natural and often unpredictable occurrence.
Numerous factors influence the price of property; location, economic and political conditions, infrastructure and supply and demand to name but a few. Homeowners who purchased their properties during a boom period often find themselves needing to sell their property in a recession, when the value has dropped. This makes accurate price setting critical to a timely sale.
Plettenberg Bay, and most coastal resorts throughout the country, has been particularly hard hit by the current property recession. The estimated number of properties for sale in the area is purported to be 1500.
While registered evaluators are able to produce a thorough property valuation report, this can be costly.
A (CMA) is a desktop valuation based on recent sales and trends in the area. A local, knowledgeable agent will also be able to provide additional information such as location, proposed developments, building restrictions and zoning for the area, which will be factored into the CMA.
Why a CMA is so highly recommended for both buyers and sellers?
It gives sellers an accurate report of actual sales prices being achieved in an area and enables them to price their property to sell.
Initial overpricing of a property has the potential to devalue it. Properties that have been advertised at over inflated prices do not sell and, in many instances, are subsequently sold at substantially lower prices than they were initially marketed at.
The marketing of a property takes place primarily on the web, making it easy for potential buyers to compare similar properties, gauge value and monitor any changes to the asking price.
Properties that have been noticeably discounted often attract ‘cheeky’ offers from buyers and sellers often find themselves in a position whereby they have to accept offers lower than the market price.
Potential buyers not familiar with a particular area will often request an independent CMA allowing them to make an informed decision.
Agents are mandated by the Seller (the agent’s client) and it is the agent’s mandate to obtain the highest possible price for the seller, often to the detriment and expense of the buyer.