How to spot a bargain property
Get a little more than you bargained for
How do you know if a property is a bargain? These are some of the criteria that buyers can use to find a cheap property.
A “bargain property” is classified as a property that can be picked up at below market value according to Steve van Wyk, from Seeff.
While the property market in South Africa is very competitive and sellers sometimes need to be creative to make their property stand out from the rest, not many are priced below market value.
Sellers who use reputable agents are well informed and well advised, making it tricky to pick up a bargain, but there are exceptions.
Van Wyk said that a property’s market value is determined by using a comparative market analysis (CMA). When doing a CMA estate agents compare a seller’s property to other properties that are listed and that have been sold in that specific area.
“Properties generally only sell at less than market value when factors like an economic slump, an unfavourable area, an area with high crime, an oversupply of properties within a certain area and properties in a poor condition come into play. If a buyer is willing to compromise, it is in these situations that they are most likely to strike a bargain.”
Additionally personal circumstances like debt or emigration could also make a seller more anxious to sell and herein also lay opportunities for buyers.
Anything that puts money into your pocket every month is considered an investment. If it costs you money, it is a liability, whether obtaining it was a bargain or not.
• Information courtesy of Private Property.
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