Why this is a great time to sell
Category Area Focus
Sellers often ask whether it is a good time to sell. In other words, does the market favour sellers and will they get a good price for their property?
The ability to time the market and say with some degree of accuracy that it favours sellers or buyers can usually only accurately gauged with a degree of hindsight.
That said, there are usually signs that the market is favourable for sellers. Working with an experienced local property practitioner is a good start as they will quickly assess based on an increase in buyer activity.
How to assess whether this is a great time to sell?
An increase in buyer enquiries and a willingness to put in offers is usually the first sign for sellers according to the Seeff Property Group. We have seen this especially in the mid-2020 to mid-2021 period, but it continues despite a slowing in the buyer frenzy initially experienced.
An increase in buyers usually lead to an increase in demand and consequently more offers start coming in and more properties start selling as we have seen over the last 18-months.
As more properties sell, stock levels usually deplete, especially in the high volume price bands in the low to mid-priced sectors of the market. A shortage of stock is a good signal that it is a great time to sell.
Lifestyle shifts also lead to higher demand in the market. Here, we have seen that the Covid-pandemic has been a boost for property in coastal hotspots, hence making it a great time to sell.
Higher prices is also usually a signal that it is a great time to sell although this is not that prevalent in the current market given that the current "boom" is driven by the pandemic-induced low interest rate rather than an economic boom.
The motivation of the seller also plays a key role in determining whether it is a great time to sell. In the current market for example, we see that sellers are keen to sell and also take advantage of the interest rate savings and favourable mortgage conditions.
What should sellers do in this market?
Ensure you list with a local area property brand with a track record of sales and award them with a sole mandate for the best chance of success.
Consider all serious offers. There may well be room to negotiate because a serious buyer will not want to lose out on a good opportunity.
Price your property realistically for the current market. Take advice from a local agent who can give guidance on current selling prices for comparable properties in the area.
Consider all serious offers. If it is a cash or clean offer it might still be a good offer despite being slightly below your asking price.
Finally, the most important aspect of the market is that it is always a great time to sell provided you price realistically for the market.
Author: Gina Meintjies
Author: Gina Meintjies
