Raad vir Eerste Koper en Verkoper

Article from Paarl Post 23/24 February 2012

VIR die eerste koper of verkoper van eiendom is die oordrag van die eiendom ’n onbekende proses en kan soms ’n vreesaanjaende ondervinding wees.
’n Paar punte om in gedagte te hou wanneer jy die mark betree:
As eerste koper
) Skakel met ’n eiendomsagent om ’n geskikte eiendom te soek. Eiendomsagente kan ook vir jou ’n aanduiding gee vir watter bedrag jy moontlik sal kwalifiseer indien jy om finansiering gaan aansoek doen.
) As die eiendomsagent die ideale huis vir jou gekry het wat ook jou begroting pas, sal die agent vir jou ’n koopooreenkoms laat teken waarin jou aanbod aan die verkoper vervat is.
Die ooreenkoms sal voorsiening maak vir ’n spesifieke tydperk waarbinne jy as koper ’n geleentheid sal kry om aansoek te doen om finansiering by ’n bankinstelling.
Die feit dat jy eers moet kwalifiseer vir ’n verband, word as ’n opskortende voorwaarde in die ooreenkoms gevoeg. Die ooreenkoms tree dus eers in werking nadat jou verband goedgekeur is.
) Nadat die verkoper ook die ooreenkoms onderteken het, neem die koper dan die ooreenkoms na ’n bankinstelling wat eers moet vasstel of jy vir ’n verband kwalifiseer.
Die bank neem verskeie faktore in ag om vas te stel of jy vir ’n 100%-verband gaan kwalifiseer of nie. Die bank kan ’n verband toestaan van 80% tot 100% van die koopprys. Dit sal beteken dat jy moontlik ’n deposito van tot 20% van die koopprys uit jou persoonlike kapitaal moet finansier.
) Die bank stel ’n verbandprokureur aan wat jou as koper sal kontak om die nodige dokumente te onderteken.
) Die verbandprokureur sal aan jou ’n rekening oorhandig.
) Die eiendomsagent stuur die koopooreenkoms aan die oordragprokureur, soos aangedui deur die verkoper in die koopooreenkoms, nadat die bank die verband goedgekeur het.
) Die oordragprokureur sal jou weer kontak om die oordragdokumente te kom teken.
) Die oordragprokureur gaan vir jou ’n verdere rekening oorhandig.
) Dus moet jy as koper begroot vir: die deposito, die verbandkoste van die verbandprokureur; en die oordragskoste van die oordragprokureur.
As eerste verkoper
) Kry ’n geskikte eiendomsagent wat jou eiendom kan bemark.
) Soms is dit beter om ’n alleenmandaat met ’n agentskap te teken. As verkoper is jy dan redelik seker dat jou eiendom vir ’n tydperk van drie tot ses maande intensief deur die agentskap bemark gaan word.
) Stel ’n koopprys vas wat realisties is.
) Kopers maak gewoonlik ’n aanbod wat minder is as die koopprys. Hou dit in gedagte met die vasstel van jou koopprys, maar bly steeds realisties.
) Die eiendomsagent se kommissie, tesame met BTW moet gevoeg word by die prys wat jy as verkoper in jou sak wil hê.
) Wees bereid en gereed om voornemende kopers op verskillende tye in jou huis toe te laat om die huis te besigtig.
) Indien ’n koper belangstel in jou eiendom, word ’n koopooreenkoms, wat deur die eiendomsagent voorberei is en reeds deur die koper onderteken is, voorgelê.
) Indien jy tevrede is met die aanbod in die koopooreenkoms, onderteken jy as verkoper die koopooreenkoms.
) Die verkoper is geregtig om die oordragprokureur te kies.
) As verkoper is jy verantwoordelik vir die uitstaande balans op jou verband.
) ’n Prokureur word aangestel deur die bank wat die verband gaan kanselleer. Jy is verantwoordelik vir die verbandkansellasie koste.
) Jy moet die elektriese sertifikaat en moontlik elektriese herstelwerkkoste betaal.
) Jy moet ook die kewersertifikaat en enige moontlike kewerbehandeling betaal.
) Wat dus van jou opbrengs afgetrek word is: balans uitstaande op jou verband, verbandkansellasie koste, elektriese herstelwerk (indien nodig) en elektriese sertifikaat, kewerbehandeling (indien nodig) en kewersertifikaat en die agentkommissie.
Hou in gedagte dat elke instansie betrokke, naamlik die eiendomsagent, verbandkansellasie prokureur, oordragprokureur en die bank van jou Fika -dokumente gaan vereis.

Top 10 steps to find a home

Article from Paarl Post, 23/24 February 2012

DUE to the fact that the current property market offers buyers a wide selection of homes to choose from, the selection process can sometimes be tough.
Adrian Goslett, the CEO of RE/MAX of Southern Africa, says while most buyers probably have a good idea of what they are looking for in a home, there are a few steps they should follow.
) Make a wish list: Goslett advises buyers to write down everything they need and want in a property. The first thing buyers should consider is the type of property they prefer.
“Buyers need to decide if they are looking for a freestanding home, a cluster, or a unit in a sectional title complex or secure estate. Then they need to decide whether they would like a home they can renovate, or one they could just move right into without changing a thing.”
)  Differentiate between wants and needs: Once a wish list has been drawn up, Goslett recommends separating items that fall into the wants category – the nice-to-haves that are not essential – from those that fall into the needs category, which are specifications the buyer cannot compromise on.
)  Work out affordability: “Determining a price range is one of the most crucial steps in the selection process.”
Buyers need to figure out how much they would be able to afford on monthly costs, including bond repayments, maintenance, levies and rates, and so on.
“Since this exercise will undoubtedly impact on the type and size of property a buyer can actually afford, many buyers may choose to revisit their wants-and-needs list after adding up the costs and change some items that impact most on the price.”
) Pre-qualify for a bond: Buyers will just end up wasting everyone’s time by looking at homes they cannot afford.
“By getting a pre-qualification on a bond, buyers will be able to determine whether they qualify for the necessary finance, and will get an idea of the estimated amount the financial institution would be willing to lend.”
)  Location: The emphasis on the importance of location remains as strong as ever.
When looking at areas in which to purchase property, Goslett says buyers should consider what locations they need to reach regularly, how they plan to travel there, and how long the journey will take.
Schools and other amenities will also play a large role in this step of the selection process for many buyers.
)  Start the search: The internet is the ideal starting place to begin a house hunt. There are numerous specialised websites that have easily searchable property listings.
“But because property websites don’t always cover everything for sale in every area, local newspapers are also a good research tool for buyers.”
)  Choose a good estate agent: It is essential for a buyer to find an expert to work with.
“Ask for referrals, and interview various candidates to ensure you select an agent that is professional, experienced and ethical.
“It is also best to select an agent who has a good knowledge of the areas in which you are thinking of buying.”
)  Learn about the real estate market: The more knowledge a buyer has about the property market in which they are thinking of buying, the more equipped they will be to make an informed decision.
)  Find out what is for sale: After making a shortlist of the properties found on the internet, through the local newspaper, from driving around or from an agent, buyers need to match the list with all of their criteria, including their accommodation requirements, price range and location.
)  Practise your patience: Goslett warns that, depending on requirements, it may take some time to find the ideal home.
“Buyers may look at everything for sale and not fall in love with anything.
“In cases like this, buyers should ask their estate agent to add them to their email list to receive notification of suitable listings as they come on the market. Patience here is key.”

You cannot take it with you!

When it comes to what fixtures and fittings goes and what stays in a house move, any property professional will have numerous stories of stinginess and spitefulness of sellers removing, to the horror of the buyers, everything from towel racks, shelves in a bathroom to even all the light bulbs in the house!

In terms of our common law, a seller cannot remove permanent fixtures. Some things are traditionally a source of conflict: curtains, carpets, fireplaces, gas, white goods, plants, door furniture and light fittings. Others are subject to fashion.

The decision whether a movable item which is affixed to an immovable one loses its identity and becomes an integral part of the immovable, depends on the following factors, namely objectively, the nature of the thing and the manner of its annexation and, subjectively, the intention of the owner of the movable at the time of its annexation. The intention of the owner is of lesser importance if an examination of the physical features produces a conclusive result. The subjective intention of the owner becomes important only if the physical features are not decisive.

Buyers (and estate agents) should be wary of assuming inclusion and sellers should be careful not to throw into negotiations content they may discover they need for their new home.

Sentimental attachment to seemingly unimportant goods can be a further complication and it is always a good idea to check with both spouses or partners who are selling.

The removal of valuable fixtures is most prevalent when a seller feels particularly hard done by. Be a tough negotiator but leave some goodwill. It's when someone feels they've really been done in that the resentment starts.

In some instances, it is advisable to conduct a pre-completion check, even holding back a certain amount of money if there is doubt over compliance.

In theory, you would have legal redress but could you cope with all the time, trouble and expense to enforce this? If you do, the small claims court is one inexpensive avenue that can be utilised.

To summarize, be wary of assuming inclusion. Candid negotiations will serve as a buffer against mounting resentment on the part of the seller and the estate agents should play a leading role in the negotiations to avoid the acrimony associated with the removal of permanent fixtures.

Article by : Van der Spuy & Partners Co
36 Thom Street, Paarl, South Africa, 7646T: +27 021 8601240 F: +27 021 8601241

Home prices lowest in 4 years . . .

The average price of a mid-segment house was almost 14 percent lower in November last year than it was in August 2007, according to Absa's latest property price indices released on Thursday.

"The average real price of middle-segment houses, calculated at constant 2008 prices, was in November almost 14 percent below its peak of August 2007," Absa Home Loans property analyst Jacques du Toit said in a statement.

"[This] was the result of average nominal house price growth being below the average headline consumer price inflation rate over the past four-and-a-half years."

Nominal house price growth -- where the effects of inflation are not taken into account -- in the middle-segment of the South African housing market was 2.2 percent in 2011.

This was down from growth of 7.3 percent in 2010.

In real terms, when average annual inflation of five percent was factored in, house prices deflated by 2.7 percent in 2011.

The average nominal house price of small homes (80m² to 141m²) in December 2011 was R694,400, Du Toit said.

Medium-sized houses (141m² to 220m²) registered an average nominal house price of R985,400.

The average nominal house price of large homes (221m² to 400m²) was R1,548,200 in December.

Unchanged interest rates in 2011, rising inflation, relatively high levels of debt, damaged credit records and tight labour market conditions all played a role in dampening house price growth and demand for housing.

Du Toit said house price growth would probably remain subdued in 2012.

"Based on the outlook for the global economy and domestic growth, inflation, interest rates and the consumer sector, house price growth is forecast to remain relatively low this year, while prices are set to decline further in real terms," he said.

The trends are based on the Absa house price indices for small, medium-sized and large homes in the middle-segment of the housing market for which the bank received and approved applications for mortgage finance.

iafrica.com

List your home for the right reasons . . .

Article from Moneyweb
Author: Francois Venter
09 November 2011

Don’t put your property up for sale just to see what offers you get, particularly if you’re hoping for an inflated price.

Too many property owners are going on fishing expeditions, hoping to get the kind of prices they might have three years ago. They flirt with the idea of selling, only to wind up getting lower offers than they want and overexposing their property in the process.

Property owners should make sure they’re selling for the right reasons, or take their properties off the market. The old cliché still holds that if you don’t need to sell your home, don’t. If your motivation isn’t death, divorce, debt or departure, think hard about why you’re selling.

In today’s market, property owners need patience to realise the value of their investment. Buyers have become more astute, and aren’t wiling to pay prices that aren’t in line with the market.

Start by establishing what the market will pay for your home before discussing what the market won’t pay. Every seller wants to sell at the highest possible price, while every buyer wants to buy at the lowest possible price that he can. That’s the central contradiction in residential real estate.

Often, the first offer a seller receives is the best they’ll get, and holding on for another, better offer can result in lower offers or none at all. You’re more likely to get an offer when the property is new to the market, and your agent is actively generating buyer interest and activity, particularly if it’s priced correctly from the outset.

There is a window of maximum opportunity when selling a home, and once that window starts to close, and momentum is lost, so interest and activity start to dwindle.

In any market, the asking price is the key ingredient, but especially when it’s a buyer’s market, as it is right now. Homes that are overpriced and don’t sell become the basis for comparison for competing homes that offer better value and that will sell in a shorter time period. This rule applies to almost any location and any price level.

If a home isn’t selling, buyers aren’t rejecting the property, they’re rejecting the price. When a home has been on the market for a while, sellers need either to adjust their price or take it off the market. Alternatively, move to a cheaper property and rent your home out until the market turns.

If you can afford it, buy it -- Property24, 9 September 2011

Currently, low house prices and interest rates offer a once-in a lifetime opportunity for buyers to enter the residential property market.

A low interest rate environment allows individuals to qualify for larger loan amounts or pay lower instalments on a loan than would otherwise be afforded.

Standard Bank Home Loans reports that while house price growth remains lacklustre, the current property market conditions do present an opportunity for buyers who can demonstrate affordability.

This follows the banks Median House Price Index report that indicates that house prices grew by 1.6 percent year-on-year (y/y) in August from 2.4 percent y/y in July.
Research analyst for Standard Bank Home Loans, Sibusiso Gumbi says house prices are still way off their boom levels in most areas and interest rates at their lowest levels in more than 30 years.

A low interest rate environment allows individuals to qualify for larger loan amounts or pay lower instalments on a loan than would otherwise be afforded.

“The economy’s strong first quarter performance was not repeated in Q2 2011 as consumers continue to bear the brunt of rising inflation, tepid credit growth and a struggling labour market,” says Gumbi.

He says consumers are facing tough times currently and looking ahead, the residential property market is likely to remain subdued for the remainder of 2011.

Gumbi explains that the market is no doubt a buyers’ market and the bank is open for business for would-be buyers who can prove affordability on application for home loans.

As for sellers, he says if ideally, it would be best to hold on to the property until the market turns as many sellers are getting less than their asking prices.

However, he notes that the rental market for those who can afford to buy a house is buoyant as many sellers opt to rent instead of buying again immediately.

The report reveals that consumer creditworthiness continues to show improvement with the number of summonses issued for debt and the number of civil judgements recorded for debt continuing their downward trend in June (recording declines of 18.3 percent y/y and 29.6 percent y/y respectively) and the number of insolvencies by individuals and partnerships declined by 31.9 percent y/y in June.

Homeowners can brace themselves for increases in the costs of home ownership (in some cases in the double digits). Eskom’s electricity tariffs have risen by an additional 25.8 percent in 2011 and are set to rise 25.9 percent in 2012, with the higher tariffs expected to be passed on to the consumer.

Municipal services such as water, refuse removal and sanitation have all incorporated budgetary increases in 2011 in major metropolitan cities across South Africa, says Gumbi.
Standard Bank anticipates an increase in interest rates in the third quarter of 2012 from its earlier expectation of the first quarter of 2012. The bank says it expects 200 basis points by the end of 2013.

“Standard Bank’s median house growth is forecast to rein in low single digits in nominal terms for the remainder of 2011 into 2012,” he says.

Estate agents say that buyers with money can take advantage of distressed properties, which are expected to continue to come on stream for the next five years.

According to RE/MAX of Southern Africa, positive trends in the real estate market are by no means an indication that distressed properties are a thing of the past.
Since January this year, the agency has listed approximately 600 distressed properties, of which 10 percent were in the Cape, 20 percent in KwaZulu-Natal with the majority of 70 percent properties located in Gauteng.

Peter Gilmour, chairman of RE/MAX of Southern Africa says of the distressed listed properties in KwaZulu-Natal, more than 40 percent have successfully been sold. These properties spent an average of 48 days on the market and were priced between R250 000 to R2 million.
Grant Gavin, broker/owner of RE/MAX Panache, which operates in the northern suburbs of Durban from Umgeni Park through to Umdloti, says they sold two distressed properties in Glen Hills and Effingham an outlying suburb.

“The properties sold within one week of being listed and this is much quicker than most of the other overpriced homes currently on the market.
He says distressed properties in his areas of operation are either priced under R500 000 or in the R1.5 million price bracket.

“Distressed properties sell so quickly because they are priced right, are generally in good condition and appeal to buyers who also generally have reduced costs when purchasing a property in the banks distressed program,” says Gavin.

Huur of koop -- albei het voordele

Sake Rapport - 26 Junie 2011

Die koste verbonde aan huisbesit kan voornemende huiskopers wat glo dat koop beter is as huur, weer laat dink.

Mnr Ewald Kellerman, eiendomsontleder by FNB, se omdat huiskoop waarskynlik die grootste finansiele besluit is wat 'n voornemende koper ooit gaan neem, is dit raadsaam om dalk eers te huur voordat hulle hulle daartoe verbind om 'n eie huis te besit.

Albei die opsies het egter voordele en nadele.

Om 'n eie huis te koop het in die eerste paar jaar 'n hoe prys. Nie net is daar hereregte en prokureursgeld om oor bekommerd te wees nie, daar is ook aanvanklik 'n groot maandelikse verbandterugbetaling. Dit raak goedkoper namate die huis in waarde toeneem en die huislening kleiner begin raak, se Kellerman.

Daarteenoor is die aanvanklike goedkoper om te huur, maar die huurgeld styg elke jaar sonder dat die huurder die voordeel geniet van 'n toename in die waarde van die eiendom. Die styging in huurgeld kan dit mettertyd duurder maak as om 'n huis te besit.

Koop is dus duurder in die eerste paar jaar, maar raak later goedkoper, terwyl huur al hoe duurder raak, se hy.

Die gelykspeelpunt, waar dit min of meer dieselfde kos om te koop as om te huur, word op tussen ses en agt jaar geraam, afhangende van die verbruiker se finansiele posisie en hoe die eiendomsmark vaar. Huispryse het die afgelope drie jaar so swak gevaar dat dit selfs tot 10 jaar kan toeneem.

Mnr Erwin Rode, eiendomswaardeerder en -ekonoom van Rode & Genote, reken dis uit 'n suiwer beleggingsoogpunt nou beter om 'n woonplek te huur as om een te besit.

Iemand wat die verskil tussen wat 'n paaiement op 'n huislening sou wees en sy huurgeld op 'n soortgelyke huis getrou in 'n ander bateklas met 'n beter totale opbrengs (inkomste en kapitaal) bele, sal oor vyf jaar stukke beter daaraan toe wees as wat hy sou gewees het as hy 'n huis gekoop het.

Hy se min mense het egter die dissipline om dit so te doen. Kellerman se om te huur en enige ekstra kontant te bestee, is veel erger as om 'n huis te besit en dit dan oor 'n kort ruk weer te moet verkoop.

SELL YOUR HOUSE : 5 TIPS

by SAPTG - South African Property Transfer Guide on Friday, 01 April 2011 1. Out of sight, out of mind! Hideaway anything you would not see in a 'model' home. This is especially true regarding trash! Remember to empty all trash bins and remove them from sight. Keep in mind that potential buyers look at everything! A clean property equates to a well maintained property that will get offers! 2. Never underestimate the sense of smell. It is important that your property passes the "smell test". This may be accomplished by using many of the various room fresheners available today. I recommend a long lasting product and prefer the plug-in style. Consider placing one in each room. Place in an inconspicuous area that is not easily noticed by potential buyers. 3. Do you hear what I hear? This is especially important in creating an atmosphere of peacefulness. You do not want potential buyers to hear the geyser turn on or listen to outdoor traffic. Consider playing music that will not offend most people. Rock & Roll is a no-no for your open house! We suggest playing soft background music that contains no lyrics. 4. Potential buyers will be touching surfaces in your property. Not intentionally, but because they have to! Be certain that all banisters, handrails, doorknobs and taps sparkle! You do not want people to 'feel' that your home is anything but squeaky clean! 5. I like to suggest leaving a treat-filled dish out for potential buyers. You can fill it with various individually wrapped sweets or biscuits. EVERYONE loves chocolate and it will visitors remember your property! On showhouse day have fresh coffee available. The aroma sends lots of feel-good messages to prospective buyers. Having appealed to the five senses, here are some other important tips... CLEAN, CLEAN, CLEAN! This cannot be stressed enough and I mean EVERYTHING! Buyers will look inside your oven, refrigerator, microwave, dishwasher and everywhere else. Consider your open house a home inspection performed by an Army drill sergeant! Nothing should be overlooked! Now if I have not completely terrified you, here is some more advice... # Check for cobwebs that seemingly come from nowhere. # Wash all light fixtures so they sparkle like new. # Clear any signs of clutter and hide away all personal items. # Consider shampooing the carpets for a fresh smelling, clean look. # Organize and clear clutter from every closet and cabinet... Buyers ALWAYS look inside to determine storage space. # Wash windows inside and out. (Pay attention to window sills/frames.) Buyers will typically inspect every window. # Place fresh flowers close to the entrance door for a warm welcome. # Finally, go out for a nice meal and try to relax during your open house. You have earned it! Good Luck!

More owners selling their homes for less

Micel Schnehage - Real Estate Web 17 March 2011

Quarterly survey shows slight increase in demand, but supply increasing too.

JOHANNESBURG - An FNB estate agent survey has reported an increased percentage of home owners having to ultimately drop their asking price to make the sale.

In the first quarter of this year, the number of homeowners having to do this increased by 5%.

This suggests that while there has been a slight increase in demand, supply has also surged. The survey has also shown a significant increase in the average time homes spend on the market prior to sale. This has gone from a previous 15 weeks and six days to 19 weeks and one day, in the first quarter of this year. It says this may suggest that stronger demand has not yet led to an improved market balance, possibly because it is being matched by stronger supply of residential stock on the market.

From a property owner or investor's point of view, one would typically like to see a strong market. This implies that demand is strong relative to supply of residential stock. This would then lead to solid capital growth of the asset, contributing to total financial returns on one's property. However, the past few years have not seen any meaningful capital growth, due to generally weak demand relative to supply.

In the past two quarters (covering the end of 2010 and the beginning of 2011), the survey has begun to show that estate agents are of the view that there has been a strengthening of housing demand. This may be due to two further interest rate cuts by the Reserve Bank in late 2010.

From an agent residential demand activity rating of 5.66 (between a scale of one to ten), the level has increased to 6.07 in the first quarter of 2011. The agents surveyed have also reported a significant increase in the number of people viewing show houses that are perceived to be "serious buyers".

The survey says there are signs that supply is becoming stronger. One is that FNB's valuers have on average been giving stronger supply ratings in their valuation reports in recent months. Estate agents surveyed from late 2009 and through to the winter of 2010 say "stock issues" have declined considerably in the fourth quarter of 2010 and the first quarter of 2011.

The survey says there is evidence of improved supply of stock coming to the market too. This lies in the fact that agents have reported an increase in the percentage of people "selling for non-negative reasons". These include people selling to downscale for a variety of reasons, selling to relocate or selling to move closer to work or amenities. FNB says: "We believe that a greater portion of such categories of sellers are not in a rush to sell, compared to those selling in order to downscale due to financial pressure for instance, and thus are possibly more willing to bide their time, coming out of the woodwork in larger numbers when they perceive it to be a relatively good time to sell".

The survey says a significant increase recently in sellers selling for "non-negative" reasons suggests there has been an improvement in the confidence that sellers have in their ability to getting their price, thereby bringing more aspirant sellers into the market. It says this apparent development on the supply side is part of the long residential market healing process. It should be expected that after an improvement in demand there should at some stage be an improvement in seller confidence as well.

This would also serve to slow the pace of return to a better market balance, with this ultimately being reflected in a significantly shorter average time of properties on the market, along with a smaller percentage of sellers having to drop their asking price. This would also likely delay the return of respectable growth to house prices, but this is the slow nature of residential property market recoveries.

Transfer duty

Transfer duty rates have changed effective 23 February 2011.

Properties which are not subject to VAT on the acquisition of property by all persons (thus including close corporations, companies and trusts) acquired under purchase agreements concluded on or after 23 February 2011, will be subject to the following rates:
Value of property
R0 - R600 000 : Rates of tax = 0%
R600 001 - R1 000 000 : Rates of tax = 3% of the value above R600 000
R1 000 001 - R1 500 000 : Rates of tax = R12 000 + 5% of the value above R1 000 000
R1 500 001 and above : Rates of tax = R37 000 + 8% of the value exceeding R1 500 000

Kopers neig meer na kleiner huise

Die Burger, 8 Maart 2011

Kleiner, meer bekostigbare huisvesting speel op die oomblik ‘n groot rol in die Suid- Afrikaanse huismrk.

Nie net dwing huiskopers se finansiële posisie hulle om deesdae op kleiner eiendomme te fokus nie, maar dit lyk asof ontwikkelaars van hoë-digtheidsbehuising ook die afgelope paar jaar kleiner eiendomme na die mark bring.

Die kleinhuis-kategorie (80 m² - 140 m²) het in Februarie die beste gevaar ten opsigte van prysgroei en huispryse was 4,3% hoër as in Februarie verlede jaar, blyk uit ABSA se nuutste huisprysindeks. Dit het die gemiddelde prys van ‘n huis in die kategorie op R784 623 te staan gebring teenoor die R752 486 in Februarie verlede jaar. In die jaar tot dusver het die kategorie huisprysgroei van 5,3% op ‘n jaargrondslag gelewer.

Mnr Jacques du Toit, senior eiendomsontleder by ABSA se huisleningsafdeling, sê dit lyk asof ontwikkelaars deesdae kleiner eiendomme na die mark bring. Sedert 2004 het die bou-oppervlakte van hoëdigtheidseiendomme soos meenthuise en woonstelle beduidend afgeneem.

Volgens Statistieke Suid-Afrika (SSA) se syfers het die gemiddelde grootte van meenthuise wat voltooi is, in 2010 afgeneem tot 96 m² van 147 m² in 2004. Hy skryf die tendens toe aan ‘n voortgesette skaarste aan grond wat van dienste voorsien is in metropolitaanse gebiede.

Huispryse van middelgrootte-huise (141 m² - 220 m²) het in Februarie afgeplat tot groei van 1,5% op ‘n jaargrondslag. Dit het die gemiddelde prys van ‘n huis in die kategorie op R982 200 te staan gebring.

Du Toit sê die lae groeisyfer weerspieël die druk waaronder die middelinkomste-segment verkeer. “Die huishoudings het ‘n hoë skuldlas en dis ook die segment waar werkverliese in 2010 ‘n uitwerking gehad het.”

Die pryse van groot huise (221 m² - 400 m²) het in Februarie groei van 3,7% getoon, wat die gemiddelde prys van ‘n huis in die kategorie op R 1 949 600 te staan gebring het.
Hy sê die lae groeisyfers in huispryse gaan implikasies hê vir verkopers, veral diegene wat hardnekkig vasklou aan onrealistiese prysverwagtings. Soos die huismark nou daar uitsien, is dit grootliks ‘n kopersmark, waarby kopers met toegang tot finansiering gaan baat vind. Vir die jaar as ‘n geheel verwag hy dat huispryse teen sowat 1,5% sal toeneem.

Living well in less space: tiny houses catching on

AP Associated Press
SUSAN ZEVON Published: Mar 2, 2011
found this interesting article through a-cottage-in-the-woods.blogspot.com

Tiny houses are going mainstream.

Just look at the Katrina Cottage, originally designed by architects Andres Duany and Marianne Cusato as a dignified alternative to the FEMA trailer for flood-ravaged New Orleans. The tiny charmers with pitched roofs, nostalgic front porches and 300 to 1,800 square feet are becoming popular elsewhere; Lowe's home stores sell the blueprints and materials.

The cottages are being used as affordable housing, guesthouses and vacation cottages.

It's part of a larger trend toward living small.

The average size of the American home expanded from 983 square feet in 1950 to 2,340 square feet in 2004, up 140 percent. This boom was largely driven by a belief that living big meant living well, and that real estate was a great investment so the bigger the house the better the investment.

The recession is one thing killing that notion. Millions of foreclosures have meant "people have lost a ton of equity," said Boyce Thompson, editorial director of Builder magazine. Add in high unemployment and energy costs, and no wonder small might seem better.

According to the American Institute of Architects in 2010, 57 percent of architecture firms reported a decrease in the square footage of homes they designed.

Another factor is people's desire to live more ecologically, less wastefully.

And there are demographic changes. Thompson points out that one-third of American home buyers are now single; people are marrying later, and many don't want to wait until marriage to invest in a house. Moreover, as Americans live longer, many widows and widowers are downsizing to small homes.

And with elderly parents and grown children returning home, there are more multigenerational families, increasing the demand "for small auxiliary buildings," Cusato says. Tiny dwellings allow generations of a family to live side-by-side with privacy.

HOW SMALL IS TINY?

Some people don't just want small; they want minuscule.

Mimi Zeiger, author of "Tiny Houses" (Rizzoli International, 2009) and the new "Micro-Green" (Rizzoli International, March 2011), defines tiny houses as around 1,000 square feet, although "some enthusiasts cap them at the 300- to 400-square-foot range," she says.

In "Tiny Houses," Zeiger presents three-dozen international examples, including some in the United States. She believes that America's abundance of land and materials has traditionally made us less conscious of conservation than people are elsewhere, but that is changing.

Cusato credits Sarah Susanka's book "The Not So Big House" (Taunton), first published in 1998 and expanded in 2009, with starting a movement to change the way builders work. "People started saying they wanted their houses to be smaller, but better," Cusato says.

Susanka, who considers a tiny house to be one measuring no more than 500 square feet, once lived in an 8-by-12-foot flatbed trailer truck.

"There has always been a fascination with tiny houses and an underground interest in them that surfaces when the economy goes down," Susanka says.

The best solution for housing in America, she believes, will be in the middle ground: 1,500 to 2,500 square feet.

"The gift of the recession will be that Americans will believe that bigger is not better," she says.

MAKING A TINY SPACE LIVABLE

"You have to be very disciplined to live in a tiny space," Susanka says.

Zeiger, who lives in a small studio apartment in Brooklyn, N.Y., says, "The most important thing that makes a tiny house livable is efficient space planning and clever storage. Like on a ship, things need to have dual purposes. You also need good light and air, so that the space isn't claustrophobic or hut-like, but is a space you want to spend time in."

Her table, for example, serves as both kitchen table and office desk.

Cusato agrees that light is essential in a small space. She recommends "windows on multiple walls in a room, two at a minimum - three or four are ideal. Tall ceilings - 9 feet in a small space feels great. When living in a tiny house, lots of storage is essential. Nothing makes the walls close in faster than clutter."

Proximity to a public space is fundamental, she believes, and recommends that porches or terraces connect to street life or a garden.

"The house does not need to be the size of an entire town if it is connected to a town," Cusato says.

Zeiger notes that it's easy for urbanites living in tiny spaces to go out and engage with the rest of the world. When her apartment starts to feel cramped, she goes to a neighborhood coffee shop.
And since she doesn't have space for a lot of bookshelves, she takes full advantage of the public library.

There is also in America the tradition of Thoreau's Walden, the tiny cottage in the wilderness where natural surroundings become part of the living space.
___
On The Net:
http://www.cusatocottages.com/
http://www.lowes.com/cd_The+Katrina+Cottage_634317861
www.notsobighouse.com
www.littlediggs.com
www.resourcesforlife.com/small-house-society
http://tinyhouseblog.com

How to better your chances of being approved for a Home Loan

Article from Private Property Newsletter - 27 Jan 2011

Although the home loan approval rate has improved since 2010, the prime lending rate is at a 37-year low and it is a buyer’s market, the fact remains that it can be challenging to qualify for a home loan.So how do you increase your chances of being approved for a home loan?

Here are some tips that will stand you in good stead when applying for a mortgage:Work on your credit scoreYour credit history is one of the first things that the lending institutions look at when they review your home loan application. It clearly outlines a person’s financial and credit performances in the past which holds a serious weighting as to whether or not you qualify for a loan, the amount you qualify for and the interest rate you stand to pay.You are entitled to apply for a credit report on yourself every year from the government credit bureau, free of charge.

You should carefully analyse your report before applying for your home loan so that you can take steps to improve it wherever you can. Be on the lookout for incorrect records and if there are any mistakes, write to the credit bureau in question, explaining what needs to be changed and why. Remember to send your requests through with all the necessary supporting documentation wherever necessary.

Calculate affordabilityCredit providers have to perform an affordability assessment before granting credit. This process takes into account all your financial obligations, such as home loans, vehicle finance, overdrafts, credit cards, secured loans, and domestic expenditure, which are compared to the value of your assets and income in order to calculate your current financial standing.

You should do your own assessment by using one of the many affordability calculators on the various bank’s websites. Here, you can input all your current monthly payments, debts and other expenses in order to calculate what size home loan you can afford. This is a very good exercise, as it will show you what you could possibly cut back on in order to qualify for a higher loan.

However, you need to remember that the mortgage repayment is not the only thing you need to factor in with regards to affordability.

Owning a home involves various additional expenses, such as paying rates and taxes, electricity and water bills, homeowners insurance, sufficient life cover on your mortgage, as well as the cost of maintaining your property. It would also be prudent to factor in headroom for any potential interest rate hikes – you should be able to cope with a minimum of a 2% increase over the next 12 to 18 months.

Any lender needs to determine that you have had a stable income for at least two years. As such, self-employed individuals or commission earners will need to prove this aspect of their income before a home loan will be granted.Save, save and save some moreIt is essential that you improve your disposable income by as much as you can, as credit lenders will take this into account when they calculate the size of home loan you qualify for.

For every R1 300 you can save on your monthly financial obligations, you will be able to increase your home loan spending power by a full R100 000. Also, being able to save a big deposit of around 20% to 30% offers the lenders assurance that you are working towards a good credit rating and that you have the financial means to meet future obligations relating to the loan.

The bottom line is that the more money you have saved to put towards buying your home, the better chance you will have for being approved for a home loan.Work with a home loan originatorIn order for you application to go through smoothly, you should get all the required documentation ready beforehand.

Applying for your home loan with the help of a mortgage originator instead of taking the DIY approach will greatly improve your chances of success.

Mortgage originators are professionals who understand the various procedures of the different banks. They know which paperwork to submit to motivate your application, they can help negotiate the best possible interest rates and they will help you through the entire process until your home loan is finally registered.

The best part is that this service is free of charge for the homebuyer.

The right price will expedite a sale

Article from Private Property Newsletter - 27 Jan 2011

Peter Gilmour, Chairman of RE/MAX of Southern Africa, takes a look at recent trends in asking prices set by sellers in the global property market and concludes that getting the pricing right is becoming an art that demands extensive experience and expertise…

In South Africa, estate agents participating in the most recent FNB Estate Agent Survey revealed that the percentage of sellers having to drop their asking prices remained unchanged from the previous quarter at 81%, with the average price drop estimated at -12%.

“This indicates that many sellers in South Africa are still hoping to obtain unrealistic prices given the current state of the market,” says Peter Gilmour, Chairman of RE/MAX of Southern Africa. “The consequences of unrealistic pricing are clearly reflected in the average time properties remain on the market - 15 weeks and 4 days. Realistic asking prices are those that are in line with the current market, and such pricing brings the average time a property is on the market down to eight weeks or less.”

Gilmour notes that this trend in which sellers are forced to drop their asking prices to make a sale is not a South African phenomenon. “Sellers in property markets across the globe are facing similar challenges, and although the exact percentages vary from one market to another, the trend of reducing asking prices is a global one.”

In the UK, it has been widely reported in the media that home owners in the UK are forced to accept offers of 10% below the asking price to sell their properties.

On the other side of the globe, data released by the Real Estate Institute of Western Australia reveals that 67% of sellers in Perth are prepared to drop the asking price by an average 6% to get a sale, as the average paid for a property in the city has slumped. The average time required to sell a property in Perth today is 63 days.

Give your agent the right information

Cyberprop.com Newsletter - 18 Februarie 2011

The more information you are willing to give to your agent, the quicker you’ll find the house of your dreams, at a price you can really afford, says Adrian Goslett, CEO of RE/MAX of Southern Africa.

Everybody wants a bargain and for this reason, many people are often unwilling to tell agents exactly how much they can afford to spend on a property.

“The usual scenario in cases like this is that the buyer will say that they can only afford to buy a home at a much lower price than they actually can afford. This is done mainly for two reasons; they are testing the market to see what is out there and at the same time hope to pick up a gem for as little as possible. The other reason may be based on trust as buyers often assume that an agent is looking for the best deal for themselves and will only show them homes that are priced in the top half of the limit, hoping to secure a higher commission.”

Goslett maintains that a good agent always has the best interests of both the buyer and seller at heart and wants to find the buyer the perfect home in the shortest time possible. There are bargains to be had but these tend to be snapped up quickly. The faster you get in and make an offer, the better.”

Goslett says that buyers who approach property purchases in an upfront manner, disclosing all of their needs and exactly how much they are willing to pay for those, are going to walk away from the exercise far happier than those who don’t disclose their affordability levels.

“Agents have been trained to listen to buyer’s needs,” says Goslett, although he notes that this is not necessarily an easy exercise, particularly when a husband and wife are looking for totally different aspects in a home. For example, although the number of bedrooms and bathrooms may easily be agreed on, other aspects may prove to be a problem. “Different things appeal to different people. Some love older homes with loads of wooden features, others prefer the more modern look and desire something packed full of stainless steel and glass. When couples have the same likes and dislikes, house-hunting tends to be much easier. However, when they disagree on what makes a perfect home, problems can arise.”

Therefore Goslett says that anyone considering investing in property, particularly those who have differing tastes should consider making a list of their wants, if necessary, compromising of certain factors. “Having a clear idea of what you want makes the whole process simpler.”
While it may be rare for buyers to find exactly what they are looking for, it certainly becomes more challenging for agents to find a home for a couple with varying tastes. “Sorting out your differences before you meet with an agent will make your lives and the chances of finding the ideal property far easier,” says Goslett.

Forming a relationship with an agent who understands your wants and needs can also play a vital role in successful house hunting.

“We have agents that deal with the same people time and time again, often reselling the same property to different people. These agents take the time and put in the effort required to maintain these relationships. They understand the buyers exact needs and are literally willing to go the extra mile to ensure that these needs are met.” concludes Goslett.

Insure your home for replacement value

Property 24 Newletter - 10 Nov 2011

Home insurance should be calculated on what it would cost to rebuild a property, not on its market value, said an insurance company on Tuesday.

"A home insurance policy should not be calculated on what you paid to purchase your home but rather on what it would cost to rebuild the property," said Christelle Fourie, managing director of MUA Insurance Acceptances, in a statement.

Referring to recent research by Absa showing that building a home is often more expensive than buying an existing property, she said home owners could under-insure their properties if they only considered its market value.

The research found it was 29.5 percent cheaper to buy an existing home than to have a new house built in the third quarter of 2010.

If the rebuild cost of a property was not assessed properly, a home owner could suffer a huge shortfall if they filed an insurance claim.

Giving the example of a property estimated to be worth R1 million damaged by flooding, Fourie said: "When the insurer assesses the damage they estimate that it will cost R200,000 to return the property to normal.

"However, the assessor also determines that the property should have been insured for R1.5 million. As a result, the property has been underinsured by 50 percent and the insurer will therefore only pay out half the claim, leaving the consumer to make up the R100,000 shortfall."
The opposite situation could occur, where a home owner over-insures their property.

"It's not uncommon for clients to pay very high premiums on a property purely as a result of the inflated cost of the land," Fourie said.

A property in Clifton, Cape Town, could cost over R40 million, however the cost of replacing the actual building might only be R20 million, she said.

"By insuring on the market value, consumers can end up paying an inflated premium, however, they will not be paid out a higher value in the event of a loss."

She recommended that home owners get their property independently evaluated when they want to take out insurance cover. - Sapa

How to pick a great estate agent

My Property, 2011/01/24

Although sales activity in the property market has picked up recently, it is still at much lower levels than before the recession, making it all the more important for home sellers to pick a great estate agent to help them get their property sold. “And price should definitely not be the deciding factor,” says Harcourts Africa CEO Richard Gray. “Now more than ever, homeowners should be looking for agents with passion, commitment and proven ability – not just those who give them the highest estimated selling price.”

Most people that have never sold a home before think it’s a simple task, but an agent who does not tackle it with energy and know-how can cost the homeowner much more than a few week’s delay, he says.

“There is a great risk of losing potential buyers if the property is not immediately advertised widely and well, and the longer the property is listed without being sold, the higher the holding costs for the seller and the less likely it is to realise its market value.

“In addition, sellers could easily miss out on the opportunity to buy their next house at the best price.” Consequently, says Gray, owners should not shy away from asking some searching questions before awarding their mandate to any agent.

“They should ask, for example, whether the agent works full-time or part-time, because it stands to reason that full-time agents that depend on making sales for their livelihood will work harder to get the property sold.

“They should also ask what qualifications the agent has and for proof of these and of registration with the Estate Agency Affairs Board. Agents who are not currently registered with the board are operating illegally, and by the end of this year, it will be compulsory for agents who entered the industry after July 2008 to have a proper NQF level 4 or 5 qualification.

“Third, they should ask for references from some of the agent’s recent clients and call them. This is the best way to check on an agent’s performance and track record.”

And finally, he says, sellers should ask if the agent has a specific marketing and advertising plan and is willing to commit to this in writing. “Such an undertaking shows that the agent is not there just to secure a mandate but has a real intention to provide a professional level of service.”

Who pays for property improvements done by tenants?

Article from Real Estate Web, 17 November 2010
Article by Lanice Steward

What two recent court rulings said.

At least two recent court cases have shown yet again that the tenant who improves a property while in occupation has no "ownership" or "compensation" rights to those improvements - even if it can be shown that they have significantly raised the value of the property.

If the tenant feels that an improvement is essential and that, if he handles it himself, he should be entitled to compensation, he should do a deal with his landlord before the work is undertaken.

This is, in fact, obligatory in law because a tenant may not alter a property without the landlord's consent. In getting this consent a deal should also be struck on who is to pay for it. In some cases the landlord and tenant can go 50/50 on these costs.

In the current not-too-buoyant property market, landlords may well neglect to paint walls, to treat the wood or resurface the floors of their properties, thereby almost forcing the tenant to do these jobs himself.

In these circumstances the tenant must apply as much pressure as possible to see that they are paid for any maintenance carried out.What tenants most want is an alarm system and burglar bars. This is normally negotiated before a lease is signed if the house does not have adequate security measures.

However, problems arise if the tenant wishes to do further improvements after they have moved in. The golden rule is to communicate with the managing agent or landlord prior to any work being completed

Beware of pre-qualification from banks

Article from Property 24, 11 November 2010

People who have applied for mortgage finance from a bank may receive a notification telling them that they have pre-qualified for a bond worth a particular amount but this should not be taken as a guarantee that the bank will grant a bond once the offer-to-purchase has been signed and accepted.

“Many buyers take this pre-qualification as a pledge from the bank that it will grant the bond and this is simply not the case,” warns Rob Lawrence, national manager of Rawson Finance.

“What happens is that when the bond application is submitted the banks do a much more thorough investigation into the client’s financial position and, in many cases, they then change their minds and decide not to grant the loan,” he says.

If a buyer is bidding on a property without a clause that makes the sale subject to a bond being granted then they could be in serious trouble and could be sued by the seller for damages.

There are a number of reasons that a bank may decide not to grant a loan. These include:
- Affordability based on the applicant’s financial standing;- The condition of the property or the fact that it might be over-valued in the opinion of the bank’s valuators;- The purchase price of the property;- The deposit being offered.

Currently the success rate for bond applications is under 55%.Lawrence points out that the pre-qualification by the bank is not a pledge and is not binding in any way so any buyers should insist that the clause making the sale subject to a bond being granted must be inserted in the offer to purchase.

Eienaar van eiendom kan nie van diensgeld wegkom

Artikel uit die Burger, 10 November 2010

Die konstitusionele hof het die howe se onverbiddelike standpunt dat eienaars van vaste eiendom verantwoordelik gehou moet word vir munisipale dienstegelde Vrydag onderskryf.

‘n Vaste eiendom in Bellevue in Johannesburg was ter sprake in die geding waaroor die 11 regters van die hof ‘n bevel uitgevaardig het.

Die eienaar van die gebou is die maatskappy Real People Housing (RPH). Die eiendom is verhuur. Die maatskappy was ontsteld toe hy ‘n rekening van meer as R106 000 van die stadsraad van Johannesburg gekry het vir agterstallige dienstegelde.

RPH se verweer in die Suid-Gautengse hooggeregshof was die stadsraad skryf in munisipale regulasies voor dat eienaars en huurders van vaste eiendom bepaalde geskrewe ooreenkomste met die raad moet aangaan oor die verskaffing van dienste.

Nog die maatskappy nog sy huurder nog een van die vorige eienaars van die gebou – wie se agterstallige dienstegelde ook van RPH geëis is - het ‘n gesrewe ooreenkoms met die stadsraad gesluit, het RPH betoog.

Dit sal dus ongrondwetlik wees van die stadsraad om eise teen die eienaar in te stel omdat dit daarop sou neerkom dat die stadsraad sy eie regulasies ‘n nulliteit maak wat geen regskrag het nie.

Die hooggeregshof het die argument verwerp en RPH het in die konstitusionele hof om appel aansoek gedoen.

Die regters van die hof het korte mette van RPH se aansoek gemaak en gesê dit word verwerp omdat dit geen vooruitsig op sukses het nie.

Daarmee het die konsitusionele hof as hoogste hof in die land dit bevestig dat eienaars van vaste eiendom nie kanse moet probeer waag wat betref hul plig om te sorg dat stadsrade se dienstegelde betaal word nie.

Freehold properties appreciate more

Property 24 Newsletter - 27 Oct 2010

Freehold properties are appreciating at almost double the rate of sectional title properties according to the Lightstone Residential Property indices, which has just released sales figures for June.

These figures show that inflation in prices of freehold properties rose by 9,6% in June compared with sectional title properties that rose by just 4,7%.

The national average inflation in house prices for June was, according to Lightstone, 7,2% and this is in line with the figures produced by various banks for the third quarter of this year.
The Western Cape topped the list of higher prices with an average rise of 8,6% followed by Gauteng at 6,1%, Eastern Cape at 4,0% and KwaZulu-Natal at 3,9%.

Interestingly, the affordable housing market (on a national basis) showed the highest price growth with prices up by 14,6% in June compared with luxury homes that rose by only 6,0%, high value homes by 6,1% and mid-value homes by 9,2%.

The average rise in prices in Tshwane was 7,8% compared with Cape Town and Ekurhuleni at 7,3%, Nelson Mandela at 6,1%, Johannesburg at 4,8% and eThekwini at just 2,5%.

Demand for coastal properties was also low as price inflation there was just 3,7% compared with 7,3% for non-coastal properties.

Unlike the average house price figures that are supplied by various banks, the Lightstone figures are based on repeat sales of properties that have been transacted at least twice in a particular period.

The figures are drawn from the Deeds Office in South Africa and each record contains the legal details of the property and the transaction. Author of the report, Andrew Watt says that for the purposes of this report, no farms have been included in the figures and any new developments have also been excluded.

He says that the figures also exclude sales-in-execution and any township sales.

“The repeat sales methodology is used by many international organisations to provide an accurate measure of what is actually happening in the property market,” he says.

Kopersmark is nou die beste in 30 jaar

Artikel uit DIE BURGER Eiendomme, 16 Oktober 2010

Suid – Afrika se wooneiendomsmark beleef ‘n kopersmark met ‘n intensiteit wat 30 jaar gelede laas ervaar is.

Hierdie feit word egter nog nie ten volle aanvaar deur eienaars wat hul eiendom nou probeer verkoop nie. So sê mnr. Tony Clarke, besturende direkteur van Rawson Properties.

Hy wys daarop dat die Rawson Groep ‘n jaar gelede vasgestel het dat die bemarkingsprys en verkoopprys gemiddeld 15% van mekaar verskil. Dit wil sê die uiteindelike verkoopprys was 15% minder as die aanvanklike bemarkingsprys.

‘n Ontleding van die jongste verkoopsyfers dui daarop dat daardie verskil nou 22% aangegroei het.

Dit is sekerlik die duidelikste bevestiging van ‘n kopersmark wat ‘n mens kan kry, want dit is inderdaad die grootste verskil wat die afgelope 30 jaar aangeteken is.

Nuut bemarkte wooneiendomme verg nou gemiddeld vier tot vyf maande om te verkoop.

‘n Jaar gelede was hierdie wagtydperk egter net sowat ses tot agt weke.

Pogings om pryse by vorige vlakke te hou, gaan sekerlik misluk, omdat die bekostigbare huisvoorraad beskikbaar tans baie hoog is.

Beleggers, gekwalifiseerde verbandgewers of kontantkopers wat die mark slim benader, is juis nou op die uitkyk vir winskopies.

Die mark word egter skeefgetrek deur die groot aantal huise wat deur verbandnemers (finansiele instellings) teruggekoop word en eiendomme van verbandgewers (leners) wat in die moeilikheid is, wat in die mark gestort word.

“Aangesien baie van die eienaars van teruggekoopte eenhede 90% tot 108% lenings verkry het en die banke bereid is om vir 10% onder die leningswaarde te verkoop (dus nie teen die eiendomswaarde nie), kan die afslag op die eiendomswaarde tot 30% of meer beloop.

“Banke is byvoorbeeld bereid om op ‘n eiendom ter waarde van R1,1 miljoen met ‘n lening van R1 miljoen ‘n koopprys van R750 000 tot R850 000 te aanvaar.”

Indien die huiseienaar uit vrye wil sy eiendom wil verkoop, moet hy dus ook bereid wees om ‘n soortgelyke verlaging in prys (soos die banke) te aanvaar.

“Die ongemaklike feit is dat die eiendomsmark bepaal word deur wat kopers bereid is om te betaal, en kopers besef dat hulle nou goeie winskopies kan kry,” sê Clarke.

Die huidige toedrag van sake is dat eienaars dus langer aan hul eiendomme wil vashou. Indien dit nie moontlik is nie, kan die verkoper hom daaraan troos dat hy ook in baie kompeterende mark gaan koop.

Die verlies kan vergoed word wanneer die mark eendag draai.

A house on show is quicker to go . . .

Article form Property 24 -- 27 Sep 2010

The quickest and most effective way for sellers to get exposure for their properties and improve the chances of a sale is to put their homes on show.

“Show days remain the most effective marketing tool for properties. People who put their homes on show not only increase their chances of a quick sale through greater exposure but they are also more likely to get a market-related price for the property.

“It is our human nature to want to see, touch and experience things before we buy them, and this is especially true for major investments such as a house. The wise buyer wants to open cupboard doors, turn on taps and inspect aspects of a house close up. A show day allows potential buyers to wander through your home at their own pace and under no obligation. It also offers them an opportunity to compare a home with other show houses in the vicinity while their experiences are still fresh in their minds,” says Jason Rohde, CEO of Lew Geffen Sotheby’s International Realty South Africa.

He says that while private viewings also provide potential buyers with an opportunity to see and experience a home, they are limited by a number of factors.

“Usually there’s a lot more admin, liaison and legwork involved with taking potential buyers through a home on an individual basis. This can delay the selling process. For a start there’s the juggling of schedules between the agent, the buyer and the seller, and often, private viewings have to be done after hours, which can be an intrusion for the seller. Of course, there are also advantages to seeing a home in the day, with natural light.

“Sometimes it is impossible for everyone on the ‘buying team’ to be available at the same time, which means that individual visits by a wife and then a husband for instance have to be planned. With a show house on a Sunday, you are more likely to get them there together.

“Getting a home ready for inspection also requires some preparation and sellers are not always in a position, or have the time, to prepare for ad hoc visits as they arise. People also feel less restrained to inspect a home closely without the seller on the property or the agent in toe.”
Rohde believes that the decision not to show a home can be detrimental to achieving a market-related price when it finally sells.

“A show day quickly exposes a property to a big audience and facilitates effective comparison with other similarly-priced properties. Furthermore, because houses that are not put on show take longer to sell, they can become overexposed. Over-exposure through an extended period of time on the market can result in the seller having to drop their price to get a sale,” he explains.
There are times when a show house is not effective. For instance, hosting a show day at inopportune times, such as during the school holidays when families are out of town, on rainy days when people aren’t likely to take a Sunday drive looking for show houses, and when the property is in a poor or unfinished condition.

“It is important to pick the right time for a show house, and it may be necessary to host more than one show day.

“If a property is in a bad condition, is in the throes of renovation or is unfinished, a show house would not be advisable. Instead, it would be beneficial to host private viewings with the seller present to pre-empt concerns and address questions on a one-on-one basis,” advises Rohde.