Factors to consider if you are thinking of selling

Factors to consider if you are thinking of selling: When considering whether to sell or keep your home, there are numerous aspects to consider. These include current real estate market conditions, selling costs, personal financial circumstances, and the physical appeal of the house to prospective buyers, according to the report.

Market Trends Unpacked

According to the FNB House Price Index, rising living costs, as well as greater borrowing and debt-service costs, are reducing affordability, particularly among lower-income groups. The Index’s annual growth rate decreased in May, averaging 1.9% year on year, down from 2.1% in April. This stalemate indicates a gradual decline in the market’s buoyancy, with property appraisers also noting an increase in the number of available properties for sale.

Due to the increasing strain on affordability, homeowners are seeking less priced alternatives. This is reflected in FNB’s Reasons for Selling, where 24.1% of sellers are downscaling due to financial strain, a decrease from 17% of sales volumes in 1Q23 and a greater percentage than the historical average of 18% since 4Q07. Other factors include lifestage downscaling (21.1%) and relocation (11.6%). Lower-income groups are feeling the pinch even more, with financial stress accounting for 32% of sales.

In addition to the increasing number of available properties, their time on the market has expanded to 12 weeks and one day (85 days), up from 75 days in 1Q23.

According to FNB, the rate of mortgage extensions is “moderating steadily,” with a year-on-year increase of 6.6% in March, down from 6.9% in February. This rate of growth continues to surpass the post-Global Financial Crisis (GFC) average of 3.9%.

Factors to consider if you are thinking of selling

Although understanding the market’s temperature is critical, personal circumstances are as important to consider. Stevens suggests posing the following crucial questions: Do you require a larger home? Will keeping the property create financial hardship? Have you received an offer that is higher than the market worth of your home? Or, have you discovered a “bargain” property that requires you to sell your current house in order to take advantage of the opportunity?

Stevens also advocates weighing the financial repercussions of selling, such as agent commissions and the price of obtaining financing for any later home purchase. It is critical to understand that changes in income or financial condition may affect your eligibility for the same bond amount as when you purchased the property.

• Properties for sale
• House
• Apartments
• Lands

Preparing the Property for Sale

When you decide to sell, certain efforts can be made to increase the desirability of your house without considerably increasing the asking price. A seemingly simple cosmetic change, such as a fresh coat of paint or a well-kept yard, can significantly improve a property’s attractiveness.

Repairing small concerns like broken door handles and dripping taps, as well as replacing worn and dated fixtures, will help increase the property’s desirability. Even seemingly insignificant details, such as clean kitchens and bathrooms and a lack of clutter in living rooms and bedrooms, can have a big impact on a potential buyer’s image.

Investing in professional property photography is one approach to accentuate these qualities. High-quality, appealing images may dramatically improve a property’s web presence, presenting it in the best light to prospective buyers. Another option to explore is home staging, which is the art of making a house look as appealing as possible without performing major modifications.

Balancing Upgrades and Cost

While improvements can boost the value of a property, it is critical to find a balance. Built-in cupboards, solar panels, or better security measures can significantly increase the value of a property, but they must be consistent with the property’s ceiling value and the nature of the neighborhood. Installing costly countertops and appliances, for example, may add minimal value to a studio apartment in a student-oriented building.

According to Stevens, the decision to sell your home or keep it in anticipation of a higher price should be founded on a thorough study of market trends, personal circumstances, and the future value that can be generated from the property.

“It is highly recommended that you consult an area expert to fully understand your property’s current value and to prepare for the possibility that your property will not sell as quickly as you hope.” Remember, today’s purchasers are well-informed, and overpricing is often the primary reason a home fails to sell,” Stevens says.