Why your home won’t sell

A home is one of the biggest investments that you will make in your lifetime, so when it comes time to sell, it’s imperative that you set yourself up for success.

Making informed decisions early in the process can be the difference between profiting from the sale of your home, or potentially facing a failed transaction.

Sellers are up against a host of uncontrollable factors and therefore it is important to control the controllables.

A prolonged buyers’ market, increased financial pressures and a high-interest rate environment could affect the sale of your home.

It is vital that you take the necessary steps required to give yourself the best chance to succeed – regardless of where you are in the home selling journey.

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Four key factors to consider:

1) If the price is right

The sale of a home almost always comes down to price – particularly in a buyer’s market. Make sure the price is market-related.

Buyers will almost always (except in a case where there are multiple offers) try to offer a lower price, so take this into account.

Clearly communicate your lowest price to your agent so that they know upfront and can work with the potential buyer to negotiate.

2) Know your why

Selling a home can be an emotional process, but where possible, I strongly advise you to take the emotion out of it.

There’s a clear difference between selling because you must and selling because you want to.

If a home is sentimental and you simply cannot part with it for a lesser price, then clearly communicate this with your agent and be prepared to wait for the right buyer at the right time.

If, on the other hand, you are determined to sell because of financial pressures, downscaling, upscaling or even emigrating, then you may be more willing to negotiate further.

When opting to hold on and decline lower offers, one should weigh up holding out for a better price and the costs associated with monthly repayments, levies and maintenance in the interim.

Another option may be to consider getting a good tenant to cover your expenses – particularly given the robust state of the rental market at present.

3) Know your buyer pool

While a great agent has a clear understanding of the market and will offer you all the data that you need, it’s important that you, too, are clued up.

Take time to properly research the area, talk to people around you, see what homes are selling, what their specs are, what they are listed for and what their clear points of differentiation are from your home.

The rental market is buoyant and some potential buyers may want to rent for the time being until the interest rates begin to drop.

Put yourself in the shoes of a potential buyer and remember all the things that stood out to you about the home in the first place – perhaps it’s close to schools, has a home office or it’s in a secure complex.

4) The right agent is everything

It’s vital to do one’s homework before signing an agreement.

Meet various agents and prepare a Q&A to determine how they would best market the property and what differentiates them from the rest.

The right agent will know the right buyers and have a clear understanding of the market.

If something isn’t working, they will come up with another solution.

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Most homes on market for 12 weeks

FNB’s latest Property Barometer Data (July 2024) indicates that the average time that a home spent on the market in Q2 2024 was 12 weeks and two days – up from 10 weeks and six days in Q1 ’24.

While the Western Cape continues to outpace the rest, properties are still selling below their asking price.

Property24 data highlights an average selling price of R1.61 million versus an average asking price of R2.3 million in 2024.

Another key factor to consider is surplus stock. In Johannesburg, 2 663 new listings came to market in August, but there are an additional 17 000 existing listings that you may or may not be competing against.

According to the latest FNB Property Barometer, most of the estate agents rated the price brackets of R250 000 – R750 000 an average of 7.5 out of 10.

However, if you aren’t in this price bracket, don’t lose hope; the market is turning and improving.

There is an improved outlook spurred on by an imminent interest rate cut, the lowest petrol and diesel prices seen since the first half of 2023, a deacceleration in headline consumer inflation and a subsequent rebound in national house price inflation (+4.7% in July 2024).

These factors will aid homebuying – particularly in the firsttime homebuyers’ segment and bring much relief to sellers.

• Smee is managing director of Only Realty Property Group

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