THE RIGHT STEPS TO TAKE IN SELLING A PROPERTY

Selling a home successfully, for the majority of sellers, it means achieving the highest possible selling price in the shortest possible period of time. In order for you to achieve this it is imperative that your home be evaluated and correctly priced by a professional and ethical estate agent. Too many sellers base their choice of estate agent on the price that the estate agent promises to obtain for
the home – don’t make this mistake. Be realistic – an estate agent cannot get a buyer to pay more than market value for the property just because the estate agent has promised the seller an inflated amount.
Don’t let yourself get caught up in a bidding war.

The estate agent has no control over the market – he or she does not actually buy or sell houses. All that the estate agents controls is the actual marketing of the property and if a particular property is over-priced, then no matter how well the estate agent markets the property he or she will be unable to negotiate a price for a home in excess of what buyers will be willing to pay. Estate agents who accept mandates from sellers at any price and do not counsel sellers on the potential dangers of such over-pricing are not the type of estate agents with whom you want to enter into a business relationship. The only way to arrive at the correct selling price for your home is by studying the prices of similar properties sold recently in your area. The value of a home, beyond the costs of replacement or municipal valuations, is what a financially and legally able buyer is willing to pay.

Your estate agent has the responsibility of providing you with the facts regarding recent sales of comparable properties in the area – a professionally prepared Comparative Market Analysis is essential in determining price. Your estate agent should also be able to advise you as to the present state of the market and how your property compares in value to similar properties already on the market. The amount of time that a property is on the market affects the eventual selling price. If a property is initially over-priced it has a good chance of eventually selling below market value because purchasers learn to wait, i.e. they wait for a seller to become urgent and then submit low offers. The estate agent that you select to market your property should be the one who is the most professional – the best negotiator, the best marketer and one to whom you can entrust the marketing of your most valuable
asset.

WHY CHOOSE HALL REAL ESTATE?

You have a confusing array of estate agents to choose from, each one claiming to sell quicker and at a higher price than the other. Whilst these claims, without a proven track-record, are nothing but hot air, it is a fact that some agents are better than others.

The estate agent you select will need to be a person with whom you can communicate comfortably. Although it may appear that you are retaining the services of a company when you sign a mandate, it is in fact the individual estate agent who will, or will not, afford you the degree of service that you and your property require. Hall Real Estate is a dynamic and innovative association of top –performing estate agents. Representing Hall Real Estate in your area, is a team of specialist, professional estate agents who all share one common trait –
an absolute commitment to their clients and the development of their areas.

On listing your home, no estate agent in the employ of Hall Real Estate can claim to be in a position to sell your home quicker than anyone else, but he or she will commit to marketing the property in such a way that a maximum selling price is achieved in the shortest possible period of time. Hall Real Estate’s associates are fully professional. They have proven results. They will always keep you informed and you will always be able to trust them to work in your best interests……

…Isn’t that what you want?

OUR BUYERS COME FROM...

Our extensive lists of existing prospective purchasers in our buyer data-bank;

• Referrals from active Hall Real Estate agents in Bedfordview, Edenvale, Germiston, Kensington, Alberton, Boksburg/Benoni, Northcliff, Randpark Ridge, Randburg, Fourways and Cape Town.
• We also send and receive regular referrals from throughout Southern Africa and some from as far afield as Europe, Australia, North America and the Far East;
• Weekly showday invitations to local residents who may be looking to up-or down-grade or who may have family members, friends, or acquaintances who wish to move into the area;
• Regular advertising in the printed media which includes local Homefinders and The Star;
• By means of specialized property promotions and exhibitions held from time to time, as well as via the Internet and Expo Centre;
• Comprehensive and factual brochures delivered to all prospective purchasers and showhouse attendees for personal reference;
• Showhouse referrals – should any prospective purchasers not attend your property’s showing, these buyers will be thoroughly qualified by any one of our associates in this area and across Gauteng.

PRICING... THE ISSUES

Correct Pricing:

BENEFITS……
1. Creates an impression of good value to purchasers
2. Increases advertising response
3. Creates an impression of seller commitment
4. Achieves maximum response in optimum time
5. Maintains seller negotiating advantage

CONSEQUENCES………..
1. Maximum number of offers
2. Maximum selling price achieved
3. Marketing period minimized
4. Discourages bargain hunters
5. Least disruption of seller’s lifestyle
6. Property sold within shortest period of time

Over Pricing:

DISADVANTAGES…..
1. Loses interested buyers
2. Prolongs marketing time
3. Attracts low offers
4. Reduces advertising response

CONSEQUENCES……
1. Buyers reluctant to make offers
2. Property gains stigma
3. Competing properties become more attractive
4. Property becomes over-exposed
5. Seller loses crucial marketing time
6. Bargain hunters wait for sale to become urgent

OVER PRICING... THE BIG SLIDE

CORRECT PRICING - THE TIME FACTOR

SOLE MANDATE VERSUS OPEN MANDATE...

The Great Debate

There is no doubt that the sole mandate contract has been abused by unscrupulous estate agents, perhaps you know of someone who has suffered from disreputable conduct and who has warned you against even contemplating entering into a sole mandate for the sale of your property? The facts are simple. Professional, qualified and hard-working estate agents will not commit 100% of their
resources, time and effort on properties where there is no protection afforded to them by a seller who does not have the confidence to entrust the marketing of his property to them under a contract, wherein both the seller and the agent have set guidelines in which to conduct their business relationship.

Hall Real Estate agents do not receive salaries. They only get paid for their successes. The major focus of their efforts will always be those properties where they have entered into a written agreement with a seller. Properties do sell under an open mandate – but, nine times out of ten, these properties sell for less than actual market value. Ask your Hall Real Estate agent for more detailed explanation and then ask yourself what monetary value you will be prepared to gamble with in respect of the eventual selling price of your property. A signed agreement between you and Hall Real Estate will ensure that you are guaranteed a professional service from which you can only benefit.

Not only is the individual estate agent bound to you by the guidelines of the mandate, but Hall Real Estate, working within the constraints of the Estate Agent’s Board Code of Conduct, will also have an obligation to ensure that you are always dealt with in an ethical and open relationship. A sole mandate for a reasonable period of time, will not only protect your property from the ravages of interagency
competition, but you will also be able to expect constant feed-back, regulated and controlled marketing and the best possible selling price, according to prevailing market conditions. Where, on the odd occasion, a competing estate agency may be able to find a prospective purchaser not already being dealt with by one of your estate agents, Hall Real Estate will make every effort to secure a shared sale.

Hall Real Estate will be accountable to you. Hall Real Estate will spend money on ensuring that your property is marketed correctly. Hall Real Estate will ensure that your property is exposed to the widest possible range of prospective purchasers.

The Decision Is Yours………

UNDERSTANDING THE SOLE AUTHORITY TO SELL DOCUMENT

The Authority is structured to afford sellers protection from claims for double commission and allows the appointed estate agent time in which to market the property correctly, thereby ensuring that the property achieves the maximum selling price according to prevailing market conditions. It is a common concern of sellers that signing an Authority with a company precludes other estate agencies from selling the property. It is a policy of Hall Real Estate to allow our estate agents to share listings with other selected estate agencies
– we shall make every effort to ensure that the property is sold.

CLAUSE 1 – The purchase price is determined by you as the seller and should reflect the current market value of the property, which is determined by what willing and able purchasers would
pay for the property. The value of a residential home is therefore not calculated according to replacement, municipal or insurance values. It is the estate agent’s responsibility to inform you as to the market, by means of a Comparative Market Analysis.

CLAUSE 2 – Commission is calculated on the gross purchased price plus Value Added Tax. Commission is earned on the conclusion of a valid and binding agreement of sale and the fulfillment of suspensive conditions contained therein (if any) and is payable on registration of transfer of the property into the name of the purchaser.

CLAUSE 3 – The agent is afforded protection in the event of a seller selling the property during the course of the Authority, either personally or through the services of another estate agency and without the consent of Hall Real Estate. On the conclusion of the Authority and if the property remains unsold, the agent will supply you with a list of parties who expressed interest in purchasing the property. This list should be made available to any other estate agency, which subsequently markets the property, so as to avoid claims for double commission.

CLAUSE 4 – The expiry date of the Authority which must be expressed as a calendar date.

CLAUSE 5 – At the agent’s discretion, a “FOR SALE” board may be displayed on the property during the course of
the Authority.

CLAUSE 6 – An opportunity is afforded to you in which to disclose any defects to the property of which you may be aware. The clause further stipulates that on the sale of the property, you will be required to provide the purchaser with a Certificate of Compliance, regarding the electrical installation on the premises.

CLAUSE 7 – Should you not fully understand any of the clauses in the Authority, please do not hesitate to ask the agent. Please remember that you, as the seller, will determine how quickly your property will sell and at what price. You will set the price, the terms and conditions – the agent will market the property according to these stipulations.

UNDERSTANDING THE OFFER TO PURCHASE DOCUMENT

The initial clause contains the full descriptions of the parties involved, their choice of legal address and full description
of the property.

CLAUSE 1 – Provision is made for the purchase price, the purchaser’s price, the purchaser’s deposit (and the period for the payment thereof) as well as a provision for the payment of the balance of the purchase price in the form of guarantees within a certain time period.

CLAUSE 2 – Any rent accruing from the property and the obligation to insure the property (risk) shall pass to the purchaser on the date of transfer.

CLAUSE 3 – The conditions of transfer which shall be effected by the seller’s appointed conveyancing Attorneys. The purchaser is obliged to sign all documentation when called upon to do so.

CLAUSE 4 – The purchaser’s application for a home loan, the granting of which shall be a suspensive condition i.e. the sale shall be deemed to be valid and binding once the loan has been approved. The amount of the loan is specified and the seller, or the agent on the seller’s behalf, is authorized to make the application for the loan, The purchaser warrants that his earnings are sufficient to qualify for the loan as contemplated. An extension of time is granted for the provision of guarantees, should the loan not be granted within the
time period as contemplated.

CLAUSE 5 – Estate agent’s commission. Commission is earned on fulfillment of all suspensive conditions and is payable on registration of transfer of the property into the name of the purchaser. Should the sale be cancelled by reason of breach of the terms and conditions of the agreement, the agent is entitled to claim commission from the defaulting party. Please note that Hall Real Estate is a vendor and is required to charge Value Added Tax on commission.

CLAUSE 6 – Any legal action instituted by either of the parties will be settled in a local Magistrate’s Court so as to avoid unnecessary costs and time delays.

CLAUSE 7 – The terms and conditions as a result of breach by either party.

CLAUSE 8 – Fixtures and fittings included in a sale. It is important that, prior to a sale, you draw the agent’s attention to any items that you may wish to remove or that are not in good working order.

CLAUSE 9 – Occupation of the property by the purchaser and the occupational rent payable by the party in occupation of the property when the other is entitled to such.

CLAUSE 10 – Utilized should the purchaser elect to form a Close Corporation or company as a vehicle in which to purchase the property.

CLAUSE 11 – A warranty from the purchaser that he is legally entitled to purchase the property.

CLAUSE 12 – Authorization for the agent to erect a “SOLD” board on the property – usually done on the fulfillment of all suspensive conditions.

CLAUSE 13 – A section in which to include any other matters that pertain to the sale of the property.

PLEASE NOTE : At the section in which you will sign your acceptance of the offer, you will give a warranty to the effect that the property does not contain any structural defects of which you are aware and that all improvements to the property have been approved by the relevant Local Authority.