ARE YOU TRULY READY TO SELL YOUR PROPERTY?
Category News
CERTAIN SELLERS ACT ON AN IMPULSE, SAYS ALEXANDER SWART DIRECTOR.
There are good and bad reasons for selling property and those contemplating this should analyse and understand their motives, especially when not under pressure to sell, i.e. he is not forced by extraneous factors to do so. Rowan Alexander, Director of the Cape Town Northern Suburbs estate agency Alexander Swart Property, says sadly many sellers actually do not have much choice. From experience estate agents have learned to define "Three D's" as such reasons for selling: Death, Divorce and Debt. Whenever these apply, the seller will often have little choice: he has to sell and may well have to do so urgently.
When the death of a homeowner or the owner's partner necessitates a sale, this can result in a complex situation for two main reasons. One or more of the family's offspring or beneficiaries may have strong emotional ties to the property which could cloud their thinking and all too often the beneficiaries will disagree on how the property should be handled. Should it be sold, rented, subdivided or occupied by one or more of the heirs? An arbitrator may have to help them come to an equitable solution. "These wrangles can make it difficult for the estate agent," says Alexander. "He may find himself in the position of family counsellor or support, using very diplomatic skills to prevent friction between the beneficiaries."
When selling the home has become essential as a result of a divorce, there is sometimes a tendency for one or both former marriage partners to spite the other. They may show this by being very unco-operative and insisting on measures that will be to the former partner's disadvantage. Again the estate agent may be called on to be the calm centre point in the storm - this requires huge reserves of patience and detachment.
When debt makes it imperative that a sale goes through, says Alexander, fast action is often the paramount necessity. "Debt has a tendency to rack up swiftly, especially when the owner loses his job or is involved in a damaging legal case. The threat of foreclosure by the mortgage-issuing bank or other creditors then becomes very real and an urgent sale is necessary to stave them off. It is a well-known fact that repossessed properties often sell below their true value. An independent quick sale by the owner and his agent can bring at least some temporary relief and may give the seller time to reinstate himself financially."
When selling to downscale or upscale, a whole new scenario comes into play: the seller is very much in control; it is his decision and his alone. In such a case there is a fairly strong chance (as in many other cases) that he will have unrealistic expectations about the value of his current property. Knowing what he needs, to procure his next home can easily lead to expecting too much for a current property. Once again, the onus, says Alexander, is on the agent to help him clarify his ideas, bring reality to his thinking and ensure that he is emotionally and financially able to handle this big step forward.
"Anyone with experience of the property market will testify that often these matters are not thought through well and acted on a whim, a short-lived impulse. Such uncommitted sellers are likely to object to having a "For Sale" sign on their properties or to holding show days. They often change their minds and withdraw their homes from the market when it becomes apparent that they have not worked through all the pros and cons of their position and subsequent events do not go exactly as they had naively expected.
"In all these difficult situations the good agent will act in the best interests of his client and will make the client aware of what lies ahead," says Alexander." It may well be that it is NOT to the agent's financial advantage but a good agent puts his client's welfare ahead of all other considerations."
For further information, please contact Rowan Alexander on cell phone 082 581 3116 or by email: rowan@asproperty. co.za
Author: Independent Author
