D-I-Y HOME SELLERS DO THEMSELVES A DISSERVICE IN NINE CASES OUT OF TEN
Category News
With the home buyers' market now more alive than it has been for 18 months as a result of the lowest interest rates since January 2020, an occasional seller is once again tempted to go the d-i-y route and try to operate without an estate agent---but this tactic almost invariably has very sad consequences, says Rowan Alexander, Director of the Cape Town estate agency Alexander Swart Properties.
The reason for this, he says, is that 9O% of serious buyers choose to work through a reputable agent - because they know that serious sellers will do the same. The sellers, too, know that nothing can take the place of the negotiating skills of a good agent who is up to date with the market and who can differentiate between a fair price and an over or under-priced one. The better agents will , therefore, always attract the bulk of the stock, including the better and most accurately priced homes.
"To understand this market," says Alexander, "one has to understand that there are four main types of buyer-and each has to be handled in his or her own way. The first and most genuine type is the buyer who, often as a result of having to relocate to a new area, has to find a replacement home fast. He may have already sold his previous home and does not have months to find a replacement home. He will invariably work through estate agents because he cannot afford to waste time. He will also probably know exactly what he can afford. The d-i-y seller almost certainly has no access to this type of buyer".
The second type of buyer, says Alexander, is also "genuine" i.e. he really intends to buy and he, too, tends to have a close relationship with one or more estate agents -- but he is more cautious because he is not in a hurry. He is likely to have a fixed idea in his mind as to the quality, position and facilities of his new home -and is prepared to be patient in his quest. He will be reliant on the estate agent for advice and information. In this category are most first time home buyers-and they tend to refer to and rely on the estate agent to "hold their hands" and see them through their first purchase. Again the d-i-y seller is unlikely to have access to these types of buyers.
The third type of buyer, says Alexander, is the bargain hunter. He is hoping against hope that he will find a seller who can be talked into offering his home at a discount-perhaps because he is financially up against it and needs cash fast. The d-i-y seller, says Alexander, is especially prone to being taken for a ride by the bargain hunting buyer and can sometimes be talked into selling at a seriously low price which an experienced estate agent would never countenance.
The fourth type of buyer, says Alexander, is found at all levels of the property spectrum: he is the "dreamer" who quite probably does not qualify for the house he wants to see and in fact never buys-but he enjoys the viewing experience. Astute agents are trained to ensure that before such so called buyers are given a ride to the home for sale they verify that they do qualify for such a purchase financially. An investigation will often show that they do not. "So we do not waste time helping them to indulge their house viewing hobby", says Alexander, "but these people can and do give much trouble to the d-i-y seller."
All things considered, therefore, says Alexander, every bit of evidence-and his own experience-point to the conclusion that for almost all home sellers it is extremely unwise to try to sell one's home without the help and back-up of an estate agent. Those who do try this, he repeats, are highly likely to find themselves dealing mainly with bargain hunters or dreamers, none of whom will in the end be able to offer a fair market price and sale conditions fair to both the seller and the buyer. Furthermore the d-i-y seller will all too often find that he is emotionally involved in the sale process: if he has loved and cared for his home and has been happy there, he will be unable to stand back and take an objective and rational view of the deal. This can lead to tensions and mistakes in the handling of the buyer which in turn can result in his walking away from the deal.
As he has done before, Alexander confirmed that Alexander Swart has "got to grips" with the pandemic conditions and is now turning over 20% more sales revenue than they were a year ago.
"Anyone who thinks that the Northern Suburbs residential market has been brought low by this pandemic is out of touch with what is actually happening," he says.
For further information, contact Rowan Alexander on email : rowan@asproperty.co.za or by cellphone on 082 581 3116.
Author: Rowan Alexander
