Why is my lovely home not selling?

BY BONNY FOURIE bronwyn.fourie@inl.co.za

Real estate experts and agency bosses from across the country answer this and other pertinent property questions

Q: My home is on the market but I have not received any suitable offers. How long should I wait before I take it off the market? And if I do this, when should I relist it, and should I use the same agency or a different one?

A: The number one reason for not getting any offers or very few is that your asking price does not match the current market realities – what buyers are willing to pay for homes like yours in the same area. You should not wait too long and let your home become “shop soiled” in the eyes of potential buyers. Your choice is either to make a swift price adjustment or to withdraw from the market and wait for prices to increase to a level that would make your asking price more competitive. Frankly this is unlikely to happen for the next year or two. You can relist as soon as you like. Our advice is not to change agents or agencies unless you feel that you were given the wrong advice. – Berry Everitt, chief executive of Chas Everitt International

Q: I have put in an offer on a house that I am in love with, but it is getting a lot of attention from other buyers too – and offers. I have offered the asking price in a bid to beat the competition but I am worried it is not enough. Is there anything else I can do to secure the house ahead of other buyers?

A: Being a cash buyer will definitely count in your favour. If not, then a substantial deposit, together with pre-approval from your bank, will make your offer more attractive. Remember, if you are reliant on mortgage finance, the “72-hour clause”, which is a feature of offers to purchase, will allow the seller to continue marketing the property for this period. If he receives a better offer and you are unable to match it, you could lose out. It is therefore best to ensure your offer is as solid as possible. – Gerhard van Linde, managing director, Seeff Pretoria East.

Q: I have the option to buy a plot of land and build my own home, and I am very excited. I have this perfect idea of a home design in my head but I do not want to make any silly or costly mistakes. Is there anything I should consider?

A: Think about the style of home you want to build. This can have surprising cost implications and you would do well to seek professional advice from an architect, developer or qualified builder before you make a final decisions. For example, you might like the idea of an open-plan layout, but because there are fewer walls to hold up the roof, the beams required to do so will be more expensive. You may also need more costly wiring and plumbing solutions, and open-plan homes are generally also more expensive to heat in winter. By contrast, you might think it would be more expensive to build a double-storey home than a single-storey with the same floor area, but it actually could be cheaper – and more suited to a smaller stand – because it requires much less roofing and a smaller foundation. – Gerhard Kotzé, managing director of RealNet

Q: We are thinking about moving to a more central area now that we can afford to buy our own home, and have found a property we may like to buy. However, it is a busier area with many younger people and even at night there seems to be a lot going on. There is also much development taking place so we are worried about the noise factor. Is having peace and quiet unrealistic when we want to live in a much more hip-and-happening area?

A: A certain level of noise is an inescapable part of urban and suburban living, and residents accept that they will regularly be subjected to a fair bit of noise of various levels, including traffic, construction work and, quite often, neighbours. In recent years the level of noise has been exacerbated by the densification of cities, especially in the suburbs where new residential properties are being built and commercial centres expanded to meet growing demand.

You should be aware of any new zoning regulations which may have been passed, especially if you are considering buying residential property in a mixed-use area. It’s always best to be forewarned as to what is permitted in an area where you are looking to purchase property and to decide whether or not your needs and lifestyle could be impacted.

If you like to be asleep by 9pm every night and value peace and tranquility, then buying a home in vibrant suburbs like Cape Town’s De Waterkant or the heart of Joburg’s Rosebank is probably not a good idea. It’s also wise to look into an area’s sub-division and development laws and the prevalence of development in that suburb if living next to a building site for a year would drive you crazy. – Yael Geffen, chief executive of Lew Geffen Sotheby’s International Realty

Q: I am starting my own business and will be working from a home office. Will I need to make any changes to my home insurance policies? Or take out any new insurance policies?

A: To kickstart a new venture and saving ongoing costs, many new or part-time businesses start (and often remain) at home. Many personal short-term insurance policies provide a limited amount of cover for small businesses. An example might be offering sewing services, or pursuing an avenue not intended to be a fully-fledged business. However, you will need to disclose your dealings to make sure you’re appropriately insured. Depending on your specific line of work, you may need more than a standard policy.

Remember that your insurer needs to know what is happening in the home you are insuring for it to be covered sufficiently. A home office used occasionally isn’t the same as having staff working from your home daily. The risks involved (for example, fire) may mean an increased premium – but a fire without cover can mean the end of owning a home, let alone having a venue to work from. Equally as important is ensuring that the value of your home and its contents are reflected correctly in your insurance policy. – Bertus Visser, chief executive of distribution at PSG Insure

A busy and trendy area may be too noisy for some people.