G1. Seller Requirements

  • Establish the Seller’s needs

This is primarily to determine how genuine the seller is – i.e. does he want to seriously sell or is he only thinking of selling. This will determine how to approach the particular seller

  • Determine the Seller’s selling options

 

  Pros Cons
Sell the property

privately

  • No contractual commitment
  • No commission payable.
  • Have access to buyers via internet advertising.

 

  • No, support network as far as the sale is concerned. Estate agents network regularly with other agents, bond originators, bank officials, and attorneys.
  •  Typically, no access to property statistics may lead to fixing a wrong price.
  • Limited exposure to potential buyers, which theoretically means a home can take ten to fifteen times longer to sell as agents usually have access to an existing buyers base, private sellers don’t.
  • Typically, the buyers they will encounter have not been qualified as far as finance is concerned.
  • The longer the home is on the market, the lower the selling price.
  • Typically, the selling/buying process begins AFTER the buyer leaves the home. I.e. contract negotiation, liaison with attorneys, etc.
  • Most buyers find it extremely awkward to negotiate or even talk directly with sellers & therefore avoid private sale properties.
  • The majority of qualified buyers are working with experienced real estate professionals.
  • Notably, they are opening their home to any stranger off the street.
Sell by giving an open mandate
  • No contractual commitment
  • Available to all agents.
  • May sell privately and avoid paying commission.
  • Agents are reluctant to work on a property that has no guarantee of return for the effort.
  • After the initial 6-week period, agents tend to forget about the property resulting in limited exposure.
  • A seller opens himself up to liability of ‘double commission” as an effective cause of sale can be argued.
  • Too many “For Sale” boards give the perception of either being overpriced or that there is something wrong with the property.
Sole Mandate
  • Total control through one Agent of buyers visiting the home.
  • Commission structures are more easily negotiated
  • Sole mandates typically receive the agency’s highest priority.
  • Comprehensive CMA’s are done to ensure the property is priced right.
  • The perception that sole mandates bind too tightly legally.
  • Concern that other agents may have buyers.

 

Give exclusive RNS mandate

 

 

  • Maximum exposure to the market channelled through one Agency.
  • Agents work together to the benefit of the seller.
  • The agent controls the selling process.
  • Open hour allows the property to be ‘exhibited’ to as many agents as possible, thereby establishing a market related selling price.
  • Reduces marketing time
  • Agents usually have access to an existing buyer base.

 

  • Possibility of same buyers being brought to the home more than once which results in last-minute cancellation of appointments.
  • Overpriced listings are not worked by other agents and seller may get the perception that the system does not work.

 

  • Inspect and faults

Even though the Seller is not required by law to complete a defect list, it is advisable for him to do a brief one just to ensure that he is aware of all defects, especially latent defects that can cause issues later on.

  • Seller actions needed

The seller will be required to prepare himself as well as the property for sale. Things he would need to consider are: –

  • Bond cancellation

Advise the bank that the property is on the market and that the bond will be cancelled. The banks require 90 days’ notice (up to 180 days)

Example

Attention:  Home Loan Cancellation Department

RE:  BOND ACCOUNT NUMBER: ___________________________

To Whom it may concern,

We hereby wish to advise you that we are intending to sell our property and would like to give the requisite 90 days notice on the bond account noted above to ensure that there is no penalty interest raised on the cancellation of this bond.

Kindly confirm once this notice has been noted on your systems.

 

  • Electrical Compliance Certificate

Contact an electrician to issue an electrical compliance certificate.

  • Nominate a Conveyancer

Decide which conveyancers you wish to use. Get contact details.

  • Rates & Taxes

Get an up-to-date account for the Council and settle all or any queries on the account.

  • Sectional title units

Obtain a copy of the house rules and latest financials (this will be needed by the attorney as well as the banks).

  • SARS

Ensure there are no taxes owing to the Receiver – also get tax numbers for all parties (even if the spouse is not working, she will still require a tax number).

  • Documents

Make copies of documents – see below.

  • Telephone

Get transfer documents from Telkom or cancel the line.

  • Security / Alarm

Get transfer documents or make arrangements to cancel the alarm.

  • De-clutter

Pack up and store as much as possible – get the property ready to be viewed.

  • Important points a SELLER should consider when selling/marketing a property
    • Priced to SELL!
  • The marketability of a property is improved by pricing correctly.
  • Price is the most important negotiation factor for the buyer.
  • Price compensates for a property’s shortfall or inadequacies.
  • Interest sells houses – not time.
  • Realistic pricing creates interest.
  • Initial marketing time is crucial.
  • Buyers buy by comparison and elimination.
  • Buyers compare price and value for money.

Do’s:

  • Combine realistic asking price with an initial surge of interest.
  • Maintain negotiation advantage and realistic pricing.
  • Avoid overexposure from unrealistic pricing.

Don’t:

  • Eliminate buyers by out pricing them.
  • Choose an agent on ‘promised price’ but on competence
  • .Spoil your single chance to make a ‘first impression’ on a buyer
    • Correct Pricing

Benefits:

  • Creates an impression of comparatively good value.
  • Increases advertising response.
  • Stimulates buyer interest.
  • Achieves maximum exposure at the optimum time.
  • Maintains negotiation advantage.

Consequences:

  • The maximum price achieved.
  • Marketing period minimised.
  • Disappointment and haggling reduced.
  • Least disruption and fewer show houses.
    • Overpricing

Disadvantages:

  • Loses interested buyers.
  • Extends marketing time.
  • Attracts lower offers.
  • Reduces advertising response.

Consequences:

  • Buyers are reluctant to make offers.
  • Competing properties become more attractive.
  • The property becomes over-exposed.
  • Lack of buyer interest.
  • The seller loses the best marketing time – the first six weeks.

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