Friday, 31 August 2012
Hello From Plett - September 2012
Spring is upon us, at last. Let's all say a resounding goodbye to winter. Everything is green and flourishing and is starting to bud. Hopefully, this is a sign of good things to come and a prosperous year ahead.
August has been a sad month in Plett, with our Lagoon's new mouth claiming six lives in a tragic, family fishing trip gone horribly wrong. Members of the Wildeman, Waits and Figland families, including an eight year old boy, drowned when their small boat capsized in the river mouth. Extensive searches by NSRI, AMS Helicopters and police divers resulted in the recovery of four bodies, two men are still missing. The whole community mourned these deaths involving three old Plett families.
On a lighter note, we are very proud of our RE/MAX Sales Associate, Bruce Noble, who has stirred, fried and grilled his way into the final of Plett's "So You Think That You Can Cook" competition, with a prize of a family trip to Mozambique. Good Luck Bruce!!
We have seen a definite increase in interest in property over the past couple of months. Volumes of sales have increased but prices remain low, with many bargains to be had. Buyers still have plenty of choice.
August has been a sad month in Plett, with our Lagoon's new mouth claiming six lives in a tragic, family fishing trip gone horribly wrong. Members of the Wildeman, Waits and Figland families, including an eight year old boy, drowned when their small boat capsized in the river mouth. Extensive searches by NSRI, AMS Helicopters and police divers resulted in the recovery of four bodies, two men are still missing. The whole community mourned these deaths involving three old Plett families.
On a lighter note, we are very proud of our RE/MAX Sales Associate, Bruce Noble, who has stirred, fried and grilled his way into the final of Plett's "So You Think That You Can Cook" competition, with a prize of a family trip to Mozambique. Good Luck Bruce!!
We have seen a definite increase in interest in property over the past couple of months. Volumes of sales have increased but prices remain low, with many bargains to be had. Buyers still have plenty of choice.
Understanding Capital Gains Tax
It is important for property buyers and sellers to be aware of the implications of capital gains tax (CGT) and how it could affect their future property transactions. CGT is tax payable by the seller of an asset or fixed property on the profit made from the transaction, and applies to all South African resident taxpayers, companies, close corporations and trusts.
It includes any capital gains made from the sale of assets both here and overseas. Resident taxpayers who are not South African citizens and who sell immovable property in SA are also liable for CGT. However, Adrian Goslett, CEO of RE/MAX of Southern Africa, said there were certain exclusions applicable to CGT. 'For example, if an individual sells their primary residence they will need to make more than R2 million profit on the sale before CGT is applicable.' A primary residence is defined as a property that is owned by a natural person. It must be the main residence of the individual and must predominantly be used for domestic purposes. Deductions would be made from the exempted gains to account for periods when the property was not used as a primary residence or was used as a business property.
According to Goslett, where a primary residence is registered jointly in the names of a husband and wife, they would each benefit from a respective R2-million abatement on their share of the capital gain as both are considered taxpayers. However, both parties would have to reside in the property and a husband and a wife could not each have a primary residence. No exemptions apply to capital gains from the sale of a second house or holiday home.
'To calculate the capital gain of a transaction, sellers need to deduct the price of the property sold from the base cost of the property. 'The base cost is calculated by adding the original price paid for the property to the total cost of buying and selling the property, including the estate agent's commission, attorney fees and the cost of any inspections by electricians or plumbers. 'The cost of any renovations that qualify as improvements to the property can also be included; however, costs of routine maintenance may not,' says Goslett.
He said the SA Revenue Service wold then calculate CGT based on the net profit realised. 'The capital gain amount will then be added to the individual's income and taxed according to the tax brackets. 'The CGT becomes payable when the individual's income tax return is submitted at the end of the financial year during which the property was sold.'
It includes any capital gains made from the sale of assets both here and overseas. Resident taxpayers who are not South African citizens and who sell immovable property in SA are also liable for CGT. However, Adrian Goslett, CEO of RE/MAX of Southern Africa, said there were certain exclusions applicable to CGT. 'For example, if an individual sells their primary residence they will need to make more than R2 million profit on the sale before CGT is applicable.' A primary residence is defined as a property that is owned by a natural person. It must be the main residence of the individual and must predominantly be used for domestic purposes. Deductions would be made from the exempted gains to account for periods when the property was not used as a primary residence or was used as a business property.
According to Goslett, where a primary residence is registered jointly in the names of a husband and wife, they would each benefit from a respective R2-million abatement on their share of the capital gain as both are considered taxpayers. However, both parties would have to reside in the property and a husband and a wife could not each have a primary residence. No exemptions apply to capital gains from the sale of a second house or holiday home.
'To calculate the capital gain of a transaction, sellers need to deduct the price of the property sold from the base cost of the property. 'The base cost is calculated by adding the original price paid for the property to the total cost of buying and selling the property, including the estate agent's commission, attorney fees and the cost of any inspections by electricians or plumbers. 'The cost of any renovations that qualify as improvements to the property can also be included; however, costs of routine maintenance may not,' says Goslett.
He said the SA Revenue Service wold then calculate CGT based on the net profit realised. 'The capital gain amount will then be added to the individual's income and taxed according to the tax brackets. 'The CGT becomes payable when the individual's income tax return is submitted at the end of the financial year during which the property was sold.'
Should You Rent Or Buy In Today's Market?
While current conditions have opened up the property market to many buyers that may not have been able to purchase property during the boom period, some consumers are still hesitant to dip their toe in the property ownership pool and would rather continue to rent, says Adrian Goslett, the CEO of RE/MAX of Southern Africa.
"For certain buyers, it is a question of whether they feel it is currently more financially sensible to buy their own property or to just rent one until they see more drastic improvements in the market," says Goslett. "However, for others there is far less choice in the matter. While the number of South African homeowners has risen over the past 10 years, many are still struggling to show the necessary affordability levels required by financial institutions and have no choice but to rent. The South African personal debt-to-income ratios remain relatively high and many aspiring homeowners are working on reducing debt levels in order to take advantage of the opportunities available for buyers in the present market."
With banks' lending criteria still strict and approximately 51% of home loan applications being approved, demand for rental property has increased dramatically over the last few years. The rental market continues to see an influx of tenants looking for rental property at reasonable prices. "The increased momentum in the rental market has been greatly welcomed by investors that have a buy-to-let portfolio. There is a constant demand for rental property and it is relatively easy to find tenants.
"From an investment perspective the low interest rates have meant that investors who have financed their purchases will be paying less on their monthly bond repayments and seeing a greater return on their investment," says Goslett. "The market conditions are also primed for investors that have the access to finance to purchase additional property and to build their portfolio."
According to Goslett, in some cases it is more feasible for consumers to rent, particularly if they are unsure of their future plans or where they want to be in the next five to ten years. "Purchasing property is a long term commitment, while some consumers may want the freedom to relocate to a different city for employment reasons or a change in lifestyle. Sometimes tenants can also find property that they can afford to rent, that they probably would not be able to afford to buy," he says.
Goslett says the money saved by renting could be put towards buying property at a later stage or could be used to bring down household debt levels. "However," he says, "many consumers end up increasing their living standards rather than saving that money and paying off debt." Therein lies the crux of the matter. Many consumers lack the restraint to withhold on living above their means so they can save. Goslett says the big argument for buying a home instead of renting one is that owning your own home is in fact a kind of forced saving. "The reality of the matter is that most South Africans do not save enough money for their retirement. The country's current household saving rate is around 16%, which is relatively low when compared to other emerging markets.
"However, being able to sell your home that you paid off over 20 years, and downsizing will no doubt offer welcome financial relief when it is needed most. South African's that have rented for their entire lives will have no asset to sell." To make the most out of property investment, the secret is to get into the market as early as possible, advises Goslett. "While a buyer may have to initially tighten their belt to meet the monthly repayments, assuming there are no drastic changes, a 20 year bond will decrease in real terms as the buyer's salary increases, making the bond more affordable as time passes. This means that the earlier a buyer gets into the market, the better off they will be," he says. "If possible, homeowners should also try and put any extra money into their bond to reduce the terms and save on the interest paid on the loan."
Whether renting or buying, each option has its own advantages and disadvantages. "Each consumer is at different stages of their lives which involve different needs and levels of affordability. Renting can give a tenant the flexibility they may require before they make a long term commitment, while buying can provide a homeowner with an asset to their name that will certainly show good returns in time to come," Goslett says.
Low Rates Assist Property Homebuyers
The interest rates have remained at a 30-year low since November 2010 and are likely to stay there a while longer, says Adrian Goslett, CEO of RE/MAX of Southern Africa. Why is this important for the South African property market and homeowners? "The majority of South African homeowners and buyers are loan dependent and require financial assistance to purchase property. This means that the interest rates will affect most consumers at some stage of their lives in some way," says Goslett.
He notes that the interest rates have a massive affect on the property market and particularly consumers who are already homeowners. If a person has chosen to fix their interest rate amount then they will be much less affected by the fluctuations of the rates over the term of their loan. However, homeowners who haven't fixed their rate will have reduced monthly repayments the lower the interest rate and increased repayments if it goes up. "A low interest rate could give a homeowner the ability to pay extra money into their bond, reduce the term of the loan and pay it off faster, without affecting their monthly budget to severely," he comments.
During the boom period banks were offering a repayment percentage on residential property of prime less two. This is no longer the case and most financial institutions are offering a rate of prime. "However," says Goslett, "this still translates to a reduced repayment on new loan agreements because since the boom period the prime interest rate has been reduced by 5,5%. In fact, in today's property market the overall monthly bond repayments are a great deal cheaper. This, coupled with where property pricing is at the moment, makes it an ideal time to buy property."
Aside from the possible fluctuations on repayments for homeowners, the interest rate directly affects buyers wanting to purchase property and how much they can afford. Since the introduction of the National Credit Act, banks have put a lot of emphasis on affordability levels. "The interest rate will impact the size of the bond which a buyer will be approved for. If the rate is lower, it is likely that the buyer will be able to afford a larger bond, provided all other aspects are in place," he mentions. "Paying interest at a lower rate will indirectly put more disposable money in the buyer's pocket and drive demand in the property market. More and more buyers with a clean credit record are finding it easier to raise finance and purchase property. The increased demand will push property pricing up at some stage and increase the home's value over time."
From an investment perspective the increased demand in property and the reduced monthly repayment will result in investors gaining more from their property portfolios. Property investors who have a rental portfolio, for example, will be able to charge the same rental for their units, while paying reduced bond repayments resulting in greater profit. The less interest that is paid on an investment property each year means the less net return that will need to be realised for the owner to see a return on their initial investment.
"Consumers who are interested in making the most of the current interest rates and want to invest in the property market should approach a bank or a reputable mortgage originator such as Betterbond, to ascertain exactly how much they can spend. Some may be surprised at the opportunity the interest rate has created in the market," concludes Goslett.
He notes that the interest rates have a massive affect on the property market and particularly consumers who are already homeowners. If a person has chosen to fix their interest rate amount then they will be much less affected by the fluctuations of the rates over the term of their loan. However, homeowners who haven't fixed their rate will have reduced monthly repayments the lower the interest rate and increased repayments if it goes up. "A low interest rate could give a homeowner the ability to pay extra money into their bond, reduce the term of the loan and pay it off faster, without affecting their monthly budget to severely," he comments.
During the boom period banks were offering a repayment percentage on residential property of prime less two. This is no longer the case and most financial institutions are offering a rate of prime. "However," says Goslett, "this still translates to a reduced repayment on new loan agreements because since the boom period the prime interest rate has been reduced by 5,5%. In fact, in today's property market the overall monthly bond repayments are a great deal cheaper. This, coupled with where property pricing is at the moment, makes it an ideal time to buy property."
Aside from the possible fluctuations on repayments for homeowners, the interest rate directly affects buyers wanting to purchase property and how much they can afford. Since the introduction of the National Credit Act, banks have put a lot of emphasis on affordability levels. "The interest rate will impact the size of the bond which a buyer will be approved for. If the rate is lower, it is likely that the buyer will be able to afford a larger bond, provided all other aspects are in place," he mentions. "Paying interest at a lower rate will indirectly put more disposable money in the buyer's pocket and drive demand in the property market. More and more buyers with a clean credit record are finding it easier to raise finance and purchase property. The increased demand will push property pricing up at some stage and increase the home's value over time."
From an investment perspective the increased demand in property and the reduced monthly repayment will result in investors gaining more from their property portfolios. Property investors who have a rental portfolio, for example, will be able to charge the same rental for their units, while paying reduced bond repayments resulting in greater profit. The less interest that is paid on an investment property each year means the less net return that will need to be realised for the owner to see a return on their initial investment.
"Consumers who are interested in making the most of the current interest rates and want to invest in the property market should approach a bank or a reputable mortgage originator such as Betterbond, to ascertain exactly how much they can spend. Some may be surprised at the opportunity the interest rate has created in the market," concludes Goslett.
Thursday, 30 August 2012
Pros and Cons of Property Partner Purchases
While property pricing and market conditions favour buyers, many are still struggling to meet the lending criteria of financial institutions. In light of this, many buyers are choosing to partner with a friend or family member to purchase property together, says Adrian Goslett, CEO of RE/MAX of Southern Africa.
In today's property market, co-ownership has become an especially attractive option as the shared costs make it a much more affordable venture.
Although some banks no longer offer joint cheque or savings accounts; Goslett says that due to the vast number of buyers who are choosing to co-own with another party, many lenders do offer joint home loan accounts or mortgage packages that cater specifically for this situation.
"There are definitely advantages of buying property with a partner, such as the greater prospect of finance being approved as well as the possibility of obtaining a bond for a higher amount. Additionally, there is the benefit of a reduced individual financial commitment as all costs during and after the purchase process are shared. Both parties can contribute to the deposit, transaction costs, bond repayments, as well as the maintenance and utilities bills," says Goslett. "However, it is important that co-ownership is handed in the correct manner and that all aspects are discussed before any transaction has been concluded. It is advisable that there is an agreement in writing that is signed by both parties, should any dispute arise in the future."
Goslett notes that some of the points that should be discussed and agreed upon between the parties are aspects such as what each one wants from the venture, how long they plan to live together, and what happens if one wants to sell their share of the property in the future. The future plans of both parties will have a major impact on the partnership and how viable it is.
Each of the respective parties will have to be in agreement with regards to their expectations as well as their individual responsibilities. "Along with the shared costs, also comes shared responsibility. To protect both co-owners, each partner should keep a record of all documents and payments made that relate to the property they jointly own. If one person defaults on any of the payments, all partners will be held liable. It is for this reason that choosing the right person to buy property with is so important and should be considered carefully. The relationship must be based on trust and each partner should be open and hones with the other. All financial matters or difficulties that could affect the property should be discussed, so that they can be dealt with appropriately before a problem arises. For precautionary measures each partner should also have a will drawn up that addresses what will take place should anything happen to either party," advises Goslett.
He notes that those who want to purchase property with a partner have chosen the right time to do so. "The conditions in the market such as ideal property pricing and low interest rates have given rise to many opportunities in the property sector.
Through sharing the deposit and bond repayments, those who are unable to show the necessary affordability on their own, can still take advantage of the current buyer's market by investing with a trusted partner," Goslett concludes.
In today's property market, co-ownership has become an especially attractive option as the shared costs make it a much more affordable venture.
Although some banks no longer offer joint cheque or savings accounts; Goslett says that due to the vast number of buyers who are choosing to co-own with another party, many lenders do offer joint home loan accounts or mortgage packages that cater specifically for this situation.
"There are definitely advantages of buying property with a partner, such as the greater prospect of finance being approved as well as the possibility of obtaining a bond for a higher amount. Additionally, there is the benefit of a reduced individual financial commitment as all costs during and after the purchase process are shared. Both parties can contribute to the deposit, transaction costs, bond repayments, as well as the maintenance and utilities bills," says Goslett. "However, it is important that co-ownership is handed in the correct manner and that all aspects are discussed before any transaction has been concluded. It is advisable that there is an agreement in writing that is signed by both parties, should any dispute arise in the future."
Goslett notes that some of the points that should be discussed and agreed upon between the parties are aspects such as what each one wants from the venture, how long they plan to live together, and what happens if one wants to sell their share of the property in the future. The future plans of both parties will have a major impact on the partnership and how viable it is.
Each of the respective parties will have to be in agreement with regards to their expectations as well as their individual responsibilities. "Along with the shared costs, also comes shared responsibility. To protect both co-owners, each partner should keep a record of all documents and payments made that relate to the property they jointly own. If one person defaults on any of the payments, all partners will be held liable. It is for this reason that choosing the right person to buy property with is so important and should be considered carefully. The relationship must be based on trust and each partner should be open and hones with the other. All financial matters or difficulties that could affect the property should be discussed, so that they can be dealt with appropriately before a problem arises. For precautionary measures each partner should also have a will drawn up that addresses what will take place should anything happen to either party," advises Goslett.
He notes that those who want to purchase property with a partner have chosen the right time to do so. "The conditions in the market such as ideal property pricing and low interest rates have given rise to many opportunities in the property sector.
Through sharing the deposit and bond repayments, those who are unable to show the necessary affordability on their own, can still take advantage of the current buyer's market by investing with a trusted partner," Goslett concludes.
Monday, 20 August 2012
Ask The Right Questions
As the biggest investment decision many South African consumers will ever make, purchasing property is not one to be taken lightly and it is important for buyers to ask the right questions before committing to such a large investment.
The most important factors that buyers need to think about
when searching for property in which to invest are:
Tuesday, 7 August 2012
Tips For Buying Investment Property
Purchasing an
investment property can be an intimidating and often risky business, but it is
also a way to ensure a solid financial future for those who can master it.
While seasoned
property investors will generally have a vast understanding of the property
market, many first-time buyers or those relatively new to the property game
will often make the wrong and sometimes very costly decisions. Although
lucrative opportunities can be found in the current market, it is important for
buyers to avoid certain pitfalls that can impact on their return on
investment.
Any property buyer
should take note of the following tips:
Have patience, don’t be in a hurry - Take the time to do the necessary
research.
Location is everything – The importance of buying in a prime location cannot
be over emphasised. A property in a bad location will never fetch a premium
price, even in a boom period.
Don’t make assumptions - It is always advisable to have a professional home
inspector to take a look at the property.
Seek help, don’t do this alone - Rather learn from other people’s
mistakes than your own. Most buyers should seek guidance and advice from other
seasoned investors and real estate professionals.
Keep an eye on the budget - Investors should undertake an in-depth budget and
cash flow analysis in order to ascertain their accurate financial position.
Buyers should also compare financing deals from various financial institutions
before deciding to secure their home loan.
Proper maintenance - Whether the property is bought as a primary
residence or as part of a rental portfolio, keeping the property in good order
is a vital part to ensuring a good return on that investment. Buyers should include maintenance costs as part
of their budget and plan and ensure they have the time or capacity to properly
manage and maintain their property.
Don’t put all your eggs in one basket - When buying property specifically for
investment purposes, it is imperative to diversify your portfolio. This
will largely minimise exposure to risk. Buyers should try to buy different
kinds of properties in various areas, rather than buying a few properties in
one development.
Property buyers
should learn as much as possible about the environment they are trading in,
consult various experts and make use of professional, reputable and
knowledgeable estate agents to assist them in the sales process.
Friday, 3 August 2012
Hello From Plett - August 2012
Winter has certainly made itself felt in Plett this year, with daytime temperatures down to 6 degrees at times, but as is always the case, in the area, this freezing and very wet weather has been interspersed with the most stunning, bright, crisp and gorgeous sunny days!
The worst of the weather over July caused the Bitou and Keurbooms Rivers to flood again, from excessive rainfall in the high lying areas, bringing a wave of trees and debris into the Keurbooms lagoon, and most dramatically, being instrumental in the opening of a new mouth in the lagoon, almost opposite Plett Caravan Park. We now have two mouths vying for dominance, causing much speculation as to which one will remain and which will close up. Local residents are closely watching developments here, which could have an impact on the Poortjies area.
The shock announcement made by Human Settlements Minister, Tokyo Sexwale, on 31st July, of the disbanding of the Estate Agent's Affairs Board, has left the property industry reeling. Bad service delivery by the Board has been a complaint from the industry for many years, and we eagerly await an announcement of the way forward.
We have all been glued to our television sets watching our athletes and swimmers at the Olympic Games in London. At the time of going to print, we have two gold medals from swimmers Cameron Van Der Burgh and Chad Le Clos and a third gold medal from our rowing team, Sizwe Ndlovu, Matthew Brittain, John Smith and James Thompson. Well done boys! We are so proud of you! I think that each and every one of us gets a little teary eyed when we hear our National Anthem being played.
GO SOUTH AFRICA!!
Get It Right - The First Time
Although it sounds a little ridiculous, there are some sellers out there who treat the sale of their home like a game of Russian roulette. Even those who are serious about selling and fully understand that they have to sell within a certain timeframe have been known to ignore their agent's advice and try to sell their property at a higher than recommended price. Adopting a 'let's see what happens' approach, sellers, it seems, do not appear to understand that they stand to lose in the long run.
Statistics indicate that a property sold within a month of coming onto the market, is generally sold for the full asking price; this, of course, if the home is in good condition and was priced correctly to begin with. On the other hand, properties that stay on the market for between 5 and 12 weeks, generally sell for three percent less, while those on the market for between 13 and 24 weeks will sell for approximately six percent less. It gets worse. Houses that have been in the marketplace for 24 weeks or more are generally expected to sell for up to 10 percent less than the original asking price.
You would think that the more desperate a seller is to sell, the more realistic he would become, but sadly, this doesn't appear to be the case. Ask any agent and they will tell you that a large percentage of property on their books is overpriced. While it is understandable that some sellers simply can't afford to sell for less because they paid a premium for the property during the boom, there are also those who are stuck in 'boom mode' and cannot accept that although they may well have achieved their price during the upswing, they have little or no chance of doing so now that conditions have changed.
Property has never been regarded as a short term investment and although there are investors who make a great deal of money out of this commodity, it very seldom happens overnight. It seems that while we often hear about those who made a mint and set themselves up for life by buying and selling property, we seldom, if ever, hear about those who took a gamble and failed.
The tragedy of the situation is that this happens far more often than we realise. There is a great deal of money to be made if you buy and sell at the right time. Unfortunately, if you invest at the wrong time or perhaps, more importantly, try to sell at the wrong time, you stand an excellent chance of being on the losing end of the deal.
Your average homebuyer is not an investor and does not expect to make a killing when he sells the home that he has been living in for the past three years. However, if, like so many other South Africans, he bought his home at the height of the boom when prices were at their peak, he may now struggle to sell the home for what he deems a suitable profit.
It's not all doom and gloom out there and generally speaking, house prices are on the rise. However, sellers still have to be reasonable and understand that there are a lot of other sellers out there who are as keen as them to sell. Price it right and reap the benefits, or overprice it and risk endless frustration - you choose.
Article By Lea Jacobs
Statistics indicate that a property sold within a month of coming onto the market, is generally sold for the full asking price; this, of course, if the home is in good condition and was priced correctly to begin with. On the other hand, properties that stay on the market for between 5 and 12 weeks, generally sell for three percent less, while those on the market for between 13 and 24 weeks will sell for approximately six percent less. It gets worse. Houses that have been in the marketplace for 24 weeks or more are generally expected to sell for up to 10 percent less than the original asking price.
You would think that the more desperate a seller is to sell, the more realistic he would become, but sadly, this doesn't appear to be the case. Ask any agent and they will tell you that a large percentage of property on their books is overpriced. While it is understandable that some sellers simply can't afford to sell for less because they paid a premium for the property during the boom, there are also those who are stuck in 'boom mode' and cannot accept that although they may well have achieved their price during the upswing, they have little or no chance of doing so now that conditions have changed.
Property has never been regarded as a short term investment and although there are investors who make a great deal of money out of this commodity, it very seldom happens overnight. It seems that while we often hear about those who made a mint and set themselves up for life by buying and selling property, we seldom, if ever, hear about those who took a gamble and failed.
The tragedy of the situation is that this happens far more often than we realise. There is a great deal of money to be made if you buy and sell at the right time. Unfortunately, if you invest at the wrong time or perhaps, more importantly, try to sell at the wrong time, you stand an excellent chance of being on the losing end of the deal.
Your average homebuyer is not an investor and does not expect to make a killing when he sells the home that he has been living in for the past three years. However, if, like so many other South Africans, he bought his home at the height of the boom when prices were at their peak, he may now struggle to sell the home for what he deems a suitable profit.
It's not all doom and gloom out there and generally speaking, house prices are on the rise. However, sellers still have to be reasonable and understand that there are a lot of other sellers out there who are as keen as them to sell. Price it right and reap the benefits, or overprice it and risk endless frustration - you choose.
Article By Lea Jacobs
Selecting The Right Agent
A professional, fully-qualified estate agent from a reputable agency can be an invaluable asset for sellers wanting to market their property at the best possible price and sell it in the shortest possible time, says Adrian Goslett, CEO of RE/MAX of Southern Africa.
"A good agent has in-depth market knowledge, resources and the ability to value a property at its true, market-related value, as well as ensure that the property is marketed to the right target audience with maximum exposure," says Goslett. "This is highly important to the success of the property sale transaction as statistics show that a correctly priced home which is exposed to the right audience will sell within a relatively short period of time."
According to Goslett, the key for sellers is selecting the correct agent to do the job. So how does the seller know if they are dealing with the right agent? "The change in legislation within the real estate industry has meant that estate agents are required to have a certain qualification to practice their trade and sellers can be assured of a level of professionalism across the board. However, it is important for a seller to be working with an agent that has specific knowledge of their particular area and someone that they can trust and feel comfortable with," says Goslett.
He notes that the initial step for sellers is to see which agents are working in their area by looking at the marketing and advertising boards in their region. Goslett advises that working with an agent from a brand that is well known and highly-regarded in the industry is essential. "Top names in property got there by having solid marketing strategies in place and constantly looking at ways of improving the service that they offer. Although the public has become more aware of the importance of dealing with a professional agent, very few ask to see evidence that the agent is legally registered. Buyers and sellers alike should request proof that both the agent and the agency are in possession of the necessary certificates," he says.
As part of the process in selecting the right agent, Goslett advises sellers to arrange an interview with any potential agent. "A seller's home is often the greatest financial asset that they have, so it is vital that they meet with the agent and ask them questions regarding other properties that have sold in the area. While it may be an easy task to list large numbers of properties, the real expertise lies in selling. Closing a deal and seeing the transaction through to transfer takes a certain amount of skill and dedication, therefore it is vital for sellers to choose an agent who has a proven track record in sales," he says, "A seller should ask the agent how many properties they have sold, what the original asking prices were and what selling prices were achieved. Sellers should also request that any agent listing their home provide a detailed plan, laying out how they intend to maximise the chances of selling the property."
He notes that the estate agent and the seller must be able to communicate effectively and both understand each other's perspective. "The seller must feel as though they can trust the agent and that the agent cares about and understands their situation. If the channels of communication are open, an agent and seller will be able to work together to achieve the agreed upon objectives. Essentially the agent and the seller both want the same thing, which is to sell the property for a realistic price in the fastest possible time," he says. "Buyers are also looking for the right property at the right price. A professional, qualified estate agent will be able to match all of these elements to ensure a successful sale," Goslett concludes.
"A good agent has in-depth market knowledge, resources and the ability to value a property at its true, market-related value, as well as ensure that the property is marketed to the right target audience with maximum exposure," says Goslett. "This is highly important to the success of the property sale transaction as statistics show that a correctly priced home which is exposed to the right audience will sell within a relatively short period of time."
According to Goslett, the key for sellers is selecting the correct agent to do the job. So how does the seller know if they are dealing with the right agent? "The change in legislation within the real estate industry has meant that estate agents are required to have a certain qualification to practice their trade and sellers can be assured of a level of professionalism across the board. However, it is important for a seller to be working with an agent that has specific knowledge of their particular area and someone that they can trust and feel comfortable with," says Goslett.
He notes that the initial step for sellers is to see which agents are working in their area by looking at the marketing and advertising boards in their region. Goslett advises that working with an agent from a brand that is well known and highly-regarded in the industry is essential. "Top names in property got there by having solid marketing strategies in place and constantly looking at ways of improving the service that they offer. Although the public has become more aware of the importance of dealing with a professional agent, very few ask to see evidence that the agent is legally registered. Buyers and sellers alike should request proof that both the agent and the agency are in possession of the necessary certificates," he says.
As part of the process in selecting the right agent, Goslett advises sellers to arrange an interview with any potential agent. "A seller's home is often the greatest financial asset that they have, so it is vital that they meet with the agent and ask them questions regarding other properties that have sold in the area. While it may be an easy task to list large numbers of properties, the real expertise lies in selling. Closing a deal and seeing the transaction through to transfer takes a certain amount of skill and dedication, therefore it is vital for sellers to choose an agent who has a proven track record in sales," he says, "A seller should ask the agent how many properties they have sold, what the original asking prices were and what selling prices were achieved. Sellers should also request that any agent listing their home provide a detailed plan, laying out how they intend to maximise the chances of selling the property."
He notes that the estate agent and the seller must be able to communicate effectively and both understand each other's perspective. "The seller must feel as though they can trust the agent and that the agent cares about and understands their situation. If the channels of communication are open, an agent and seller will be able to work together to achieve the agreed upon objectives. Essentially the agent and the seller both want the same thing, which is to sell the property for a realistic price in the fastest possible time," he says. "Buyers are also looking for the right property at the right price. A professional, qualified estate agent will be able to match all of these elements to ensure a successful sale," Goslett concludes.
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