Top three ways to successfully sell your home now
Category Seller Advice
If you are looking for the top ways to successfully sell your home ASAP, there are several options available to you. Each option has its pros and cons so carefully consider every approach before you make your decision.
1. Sell your house in a private sale
Fact: You do not have to use an estate agent or estate agency to sell your house. If you are the owner of your property, you are legally allowed to handle the sale of your home by yourself.
Not many sellers know about this option and very few homeowners choose this route, with good reason. But it is nevertheless good to know that this approach is available to you.
What exactly does selling your property privately entail? It means you alone are responsible for taking care of every step of the selling process. You'll have the help of transfer attorneys and conveyancers once you've found a buyer, but you'll be the one promoting your property, showing your home to potential buyers and assisting buyers with the documentation required to make an offer.
The process of selling your house has multiple steps, and each step needs to be completed thoroughly, accurately and in line with South African legislation. This process is not for the faint of heart, which is why estate agents are carefully trained to take it on. If you want to sell your home privately, it will take a lot of research, time, work and, unfortunately, there is also risk involved.
That doesn't mean it's impossible to sell your property on your own, but just that it takes a particular type of homeowner to pull it off.
Here's what you stand to gain or lose from selling your home privately:
Benefits:
- You don't have to pay a commission to an estate agent
- You might feel like you are in more control of the sales process because you are at the centre of all communications between parties
Disadvantages:
- It takes take time and effort to read up on the sales process and regulatory requirements of selling a house
- You have to try and identify the right price at which to promote your property without the benefit of a local estate agent's knowledge
- You'll have to source the right contracts and find the best transfer attorneys and conveyancers on your own
- It can be complicated to get your property onto popular property portals and social media channels without the help of experts who do this day in and day out
- When you open your house for viewings, there is a personal safety risk, which estate agents typically help you avoid by vetting potential buyers before the viewing
- You also run the risk of getting scammed because unfortunately, criminals target private sellers in South Africa, and these sellers can lose out on profit or incur serious financial losses
2. Get it sold at auction
Selling your house in an auction is another option available to you and one that few South African homeowners know about. The misconception is that only homes that have been repossessed by the bank can be sold at auction or that selling your property in an auction should only be a last resort.
But there are a few instances where selling via auction could be a good idea. The benefits depend on your situation and require that you understand the auction process well.
If you choose to sell your property at auction, it is called a voluntary auction. It requires you to reach out to a property auction house and also decide on a minimum price you want for your home, which is called the reserve price. You'll still have to make your house available for viewings from potential bidders and some fees still apply.
A date will be set for your property's auction, either a physical event or an online auction. Your house will be considered sold as soon as someone offers the reserve price for your home. After that, bidders can offer higher prices to outbid one another. In physical auctions, the highest bidder is expected to pay 10% of the property on the spot and the rest within 28 days. In an online auction, the buyer and seller meet to sign contracts and payment is made later on.
The auction process can be a faster way than selling your house in the traditional way. The bidding process could also be a way to get a higher price for your home. At the same time, there is no guarantee that anyone will offer you the reserve price for your property, and you may have to go home empty-handed.
Here's why it may or may not be a good idea to sell your home in an auction:
Benefits:
- The fees and commission are lower than those charged by estate agents and agencies
- You don't have to pay for Certificates of Compliance because your property is sold as is
- If your property has defects, you are not obliged to make them known and you cannot be held responsible for them after the sale
- Your house has a larger chance of selling faster because buyers have one chance to make an offer
- There is a chance that you could get more for your home if there is demand for your property on auction day
Disadvantages:
- Potential buyers will still come to view your property and they may have several questions about your property
- There is a chance that you will only get offered the minimum price that you were hoping for, which might not be the best deal
- Some fees still apply, which depends on the auction house you choose
3. Sell your property with the help of an estate agency
The final option available to you and one that most homeowners in South Africa choose is to sell via an estate agency. Estate agencies usually have a team of agents who are well-trained and continually guided by the agency's principal.
Sellers mostly choose to work with estate agents because of the convenience they offer and because there is less risk involved. These realtors handle every aspect of the sale on the homeowner's behalf, and all you have to do is make decisions and sign documents.
That doesn't mean just any estate agent will do. Some agencies are more active and successful in specific suburbs than others so you still need to do a bit of homework when you opt to sell your house through an agency.
You also need to use common sense to make sure you don't get manipulated by overeager realtors. Just as selling your house privately or at auction has its risks, there is a risk with realtors who may try to make you believe that your property is worth more than it is.
Shop around for agencies and don't fall for the estate agent that values your house higher than other realtors do. Agents like these may just be out to get your business without being able to sell your home for that price.
And there are serious consequences to pricing your house too high.
But once you've found the right estate agent, the process should be smooth sailing. And while paying a commission to an agency is not always fun, it does feel good to know one of the biggest financial investments of your life is in expert hands.
Here's what you will and won't love about selling your home with the help of a realtor:
Benefits:
- You don't need any prior knowledge of real estate
- You'll get in-depth advice on how to price your home correctly and competitively
- The estate agent can advise you on minor upgrades to your home that will help it sell faster for a better deal
- You'll get introduced to the best transfer attorneys and conveyancers in your area
- Your estate agent will remind you to cancel your bond in time, if you have one, to avoid penalties and guide you when it comes to Certificates of Compliance
- Your agent will promote your property to a much wider network of potential buyers than you have access to
- The agency that your agent works for will support your realtor and provide additional guidance where necessary
- The realtor can help you adjust your sales strategy during the sale, if necessary
- Your estate agent will vet buyers before bringing them to your home and you don't have to be there if you don't want to
- The estate agent has the necessary training to make sure the sale goes smoothly without interference from criminals
- Once you've started this journey with a good realtor, you'll have a property partner for life to fall back on for advice and guidance with your next purchase
Disadvantages:
- You have to pay a commission to the estate agent
The NS Property Solutions team prides itself on giving honest advice and guiding homeowners to understand what they can realistically expect from the sale of their property.
Contact us to find out how we can help you take the next step in your property journey.
Author: NS Property Solutions