What to expect from your estate agent in 2022
Category Seller Advice
The 2022 property market is very unique and requires a special kind of estate agent to sell homes quickly, efficiently and profitably. But what should you look for in an estate agent if you're planning to sell your house this year?
Jacques Esterhuyse, director at ESI Attorneys and a conveyancing specialist, believes that sellers need honest, experienced estate agents now more than ever. He shares his thoughts about the real estate industry with NS Property Solutions below.
What makes 2022 such a challenging year for the real estate market?
"We are living in a very unpredictable society and there are forever things happening nationally, geographically and internationally that have an effect on our local economy," says Jacques. This, in turn, affects the real estate industry, he says. Changes in prices and property demand are the main issues affecting the property market at the moment. These include:
Changes in the cost of home loans
Jacques points to fluctuating interest rates as one of the factors that make the property market so challenging to work in. During the COVID-19 pandemic, the South African interest rate decreased so much that home loans became affordable for more people than ever before. This made the demand for homes for sale higher, but also meant that fewer people wanted to rent houses.
Interest rates increased again in 2022 when the repo rate was upped in March. Analysts expect this rate to go up even more later this year, which will make bank loans more expensive. This might make it harder for homeowners to sell their properties quickly because it may take longer to find a qualified buyer.
A need for properties in small towns
The semigration trend is also making it harder to predict exactly what the demand for homes in cities will be.
The phenomenon of homeowners 'emigrating' out of cities to smaller towns started in the last few years and has caused a sudden boom in demand for properties in the countryside and some rural areas.
"With semigration and people seeking a better lifestyle, smaller towns have an opportunity to reinvent themselves and attract a new generation," explains Jacques. "These towns are definitely going to benefit in the long run if they have the necessary infrastructure."
While this might be good news for the economies of far-flung villages, it makes the need for homes in cities less certain. While the credit bureau TPN reports that the rental market in the Western Cape is now more stable than it was during the COVID-19 pandemic, semigration still makes it difficult to predict what the demand for homes will be in urban areas going forward.
Price changes due to the war in Ukraine
"Although South Africa is geographically far from most world events, we are undoubtedly always affected as can be seen by the rising petrol and food costs," says Jacques. He explains that these rising costs, as well as higher electricity and interest rates, affect how much buyers can spend on properties this year.
What should you expect from your estate agent in 2022?
If you're a homeowner looking to sell your property this year, then you'll need the right estate agent by your side to help you navigate these complicated conditions.
Knowing what to look for in a realtor will allow you to choose the right property partner and reach your goals, no matter what the market looks like.
Here's what to expect to get from a proper estate agent:
Your realtor should understand the property market inside out
Jacques notes that one of the top things to look for in an agent this year - and any year - is knowledge of the market. "Your agent needs to know and understand the current property market to enable them to give proper and professional advice."
The right estate agent will know whether it's more beneficial to sell or rent your property right now. They'll also understand that buyers are looking everywhere for homes, not just in urban areas. If they're good at what they do, they will be able to price your property correctly to make it attractive for such buyers.
Wondering which price to choose for your property? Read our article on Pricing property: How to choose the Right Price for your home.
You can test your prospective estate agent by asking their opinion on the property market and what challenges they think it poses. If they can't answer, they don't have what it takes to get your home sold in 2022.
They should know the real estate industry like the back of their hand
In a competitive property market, there is no room for estate agents to make mistakes, as Jacques explains: "Real estate agents need to be educated in all things property, including the area, the property conditions, the legal aspects, et cetera."
The smallest hiccup in the sales process could delay the sale of your property - or worse. That's why your estate agent should be trained and experienced. Choose a registered property practitioner that is supported by a respected estate agency with lots of sales under its belt.
Make sure the realtor knows your neighbourhood too. An estate agent that specialises in your area will use their knowledge of past sales in your suburb and future plans in your location to promote your property at the right price to the right people.
Your estate agent should have the right personality for the job
In 2022 you'll need a realtor who really knows how to sell. According to Jacques, an engaging personality is vital.
"You need someone who understands the various reasons and situations why people are buying and selling property," he says. This is because your real estate agent should understand your prospective buyers' needs in order to highlight the opportunities that your property offers.
The right agent will also be willing to spend time with you to answer your questions and provide advice. It takes a special type of personality to make both a seller and a buyer feel supported and taken care of during the sales process.
They should be honest to the bone
We all want to work with people of integrity, but this year you'll need a realtor that will tell it like it is.
Jacques feels very strongly about this point: "For me, the biggest problem is the fact that so many agents overprice a property just to secure a mandate." He recommends working with an estate agent that helps you price your property correctly from the beginning so you won't have to reduce the price later on.
"Estate agents who overprice properties for the sake of securing the client create unnecessary tension," he notes.
Drama is the last thing you want when you're selling your home to take the next step in your property journey. Get someone on your side that manages your expectations even if it's hard to hear.
Once you've found an honest property partner with in-depth knowledge of the market and industry and the right personality for the job, you're all set to sell your home quickly, efficiently and as profitably as possible.
Book a free valuation of your home from NS Property Solutions to get started.
Not sure 2022 is the right time to sell your house in the Western Cape? Read reasons why it might be the perfect moment to do so in our article Why now is a good time to sell your Western Cape home.
Author: NS Property Solutions