Factors To Selling
Factor 1: Reason for selling
It is often more emotional to sell a home than to buy a home and the reason for selling your home may be a determining factor in the urgency of the sale. The urgency may also have an effect on the price of the property.
It is important to take the following factors that can influence the sale of your home into consideration:
• Reason for selling
• Condition of property
• Design / style
• Accessibility to schools, colleges, malls and access roads
Factor 2: The cost of selling
It is very important to first calculate the expenses that may be incurred while selling your home. This knowledge is absolutely necessary because it helps you to determine a good price for the house, as well as the potential profit that you can realize. The cost of selling your home includes factors like the commission to be paid to the agent, capital gain taxes, bond cancellation fees, advertising costs, electrical certificates and clearance certificates.
Factor 3: Price
The most important factor when putting your home on the market to sell is setting the right price. The price at which your property is marketed can make or break the deal.
Over-pricing of the property may result in:
• A smaller buyers’ pool;
• Prolonged stay in the market that will result in lower offers being submitted.
• Under-pricing of the property may result in:
• You losing money on your investment;
• A buyer offering an even lower amount due to a negative perception about the property or area.
Factor 4: Location
Although you cannot do anything about the location of your property, the location plays a very important part in the marketability of your property. It is therefore important to take the following into consideration:
Is your property price in relation to what the market offers in your area?
Have you over-capitalised for the area in which your property in situated?
Is your property a fixer-upper?
Factor 5: Condition of your property
Once you've found a home you love, the next step is making a compelling offer. It's important to remember that a home is an investment and your agent will give you information on the properties in the neighbourhood to help you ensure you take an informed decision. Look to your agent to explain and guide you through the offer process.
The three basic components of your offer to purchase are price, terms, deposit, transfer and bond costs.
Price is the amount you are willing and able to pay.
Terms cover the suspensive or special conditions as well as the financial and timing factors that will be included in the offer.
Deposit, transfer and bond costs are those costs over and above the bond amount which you qualify for.
Factor 6: Size
Just because you love a particular property doesn't mean that it's perfect. In fact, this is where reason has to trump emotion. Your agent must issue you with a seller declaration form with respect to possible defects known to the seller. It is, however, recommended that have a property inspection done (which we highly recommend you attend) that will expose hidden issues. This way you'll know what you are getting into before you sign closing papers.
Your main concern is the possibility of structural damage. This can come from water damage, shifting ground, or poor construction when the house was built.
Don't sweat the small stuff. It's the inspector's job to mark everything discovered no matter how large or small. The inspectors report may be long, but, things that are easily fixed can be overlooked for the time being.
If you have a big problem show up in your inspection report, you should bring in a specialist and if the worst-case scenario turns out to be true, you might want to walk away from the purchase.
Even if your home passes inspection, you'll still need to buy a home owner's insurance policy that protects you against loss or damage to the property itself.
Factor 7: Accessibility
Accessibility is major issue in many parts of the country. This is usually accessibility to good transport links, main roads, shopping centres, schools and other educational institutions. Once again you cannot do anything about the accessibility to any of the above but it does play a role in the price of your property.
There is a higher demand for properties in the catchment area of schools and/or other educational institutions with good reputations and easy access to all the major routes in and out of the area.