There is no doubt house prices are starting to weaken. This week Standard Bank’s Property Gauge showed an 8,6% fall in property prices for April. Houses are increasingly being sold at below their initial asking price and are staying on the market for longer, says the bank’s report.
It says there is evidence of a rise in distress selling and housing stock for sale. This suggests sellers have to revise their price expectations downwards, placing downside risk to house prices. Estate agents say it takes on average 16 weeks for a house to sell. This is not good news for sellers, but according to ooba (formerly MortgageSA) there are a few measures you can take to reduce the time your house sits on the market.
1. Drop the price
You will have to accept that prices are weaker and hanging on to your perception of what your house is worth could lose the sale. To price a house correctly, choose three of the most active agents in your area and ask them for a valuation. “Tell the agent you want honest, realistic figures, then apply a margin in excess of this figure, depending on how urgent the sale is. Note that houses priced too high in a slow market, like the one we are experiencing, are unlikely to move,” says Jenny Rushin, provincial sales manager for ooba.
2. Curb appeal
First impressions count and these are created as prospective buyers approach the building. Mow the lawn, trim hedges, weed flower beds, plant a few conspicuous shrubs so that it looks well kept and tidy.
3. Declutter
Ask an honest friend who has not seen your property for a while to advise on what to hide or throw — a fresh perspective always helps. “Remember that kids and smelly dogs can be a big turn off for buyers,” advises Rushin.
4. Don’t stuff everything into cupboards
Tidying up doesn’t mean you should chuck everything into a cupboard and hope it doesn’t burst open. You’ll never find your stuff again and, besides, lots of potential buyers like to open cupboards to get a sense of the storage space.
5. Move out spare furniture
But don’t turn rooms into a barren space as they can look surprisingly small when empty. “It’s also harder for a buyer to imagine what the house will look like furnished,” says Rushin.
6. Definition
Make sure each room is kitted out for the purpose for which it is intended — buyers will be better able to conceptualise a room’s purpose if it is obvious.
7. Create an appealing environment
If your home is sparsely decorated it might require acquiring new furniture to give prospective buyers an impression of how comfortably they would live in the property.
8. Do basic repairs
This is really important as buyers mark the price down the more work they see for themselves. The amount they mark down is usually far more than it would actually cost you to do the repair. Go through each room and do any minor jobs you see that might improve the finish, such as touching up paintwork, filling cracks, regrouting, straightening cupboard doors and replacing or polishing door handles. Make sure you fix dripping taps, cracked panes of glass and peeling wallpaper.
9. Clean
And then clean again. Make sure everywhere is spotless, particularly bathrooms and kitchens.
10. Don’t spend money on expensive improvements
Making a home saleable is not about expensive or time-consuming improvements, such as installing a new kitchen. The idea is to make properties more appealing to a broader range of sellers without having to drop the price. Minor paint jobs and sprucing up each room to an equal standard is key.
If you have dirty carpets, however, cleaning them or putting down cheap, alternative flooring might be a good idea. If you do repaint, keep to neutral colours. Not everyone has the same taste in decorating and the new owners can make their own changes with their furnishings.