Seeff shares how sellers can adapt to the higher interest rate
Economists predicted a lower percentage interest rate hike. And while the property market had already factored in an interest rate hike, the latest interest rate hike of 50 basis points still came as a shock. The implications for buyers and sellers are certainly notable.
Sales volumes have declined over the past year. Some areas, particularly in the Cape, report a scarcity of available properties, resulting in a more competitive environment for buyers. Furthermore, sales in other areas have begun to slow down, placing pressure on asking prices and prolonging the time it takes to sell a property. Demand for property fluctuates depending on the area.
Despite these challenges, the Seeff Property Group maintains that the market is still largely stable, supported in part by the favourable mortgage lending environment. While buyers must factor in the impact of the increased interest rate on debt repayments, sellers can take advantage of the stable real estate market and interest rate impact by setting a realistic asking price when selling property.
Tips for Selling Property During the Interest Rate Hike
To secure a successful sale amid the interest rate hike, you must choose a realistic price when selling property. Gone are the days of unrealistic asking prices as the booming market has come to an end. It's now time for sellers to take the lead and set their prices realistically if they want to attract buyers.
The following are two things you can do to improve the chances of selling your property:
- Set your asking price in line with current market values. Buyers are now savvier than ever before and are searching for negotiable deals. Thus, sellers must be strategic; choose an asking price that makes sense within the area and the surrounding properties.
If you overprice your property, there’s no reason why buyers won’t walk away and consider a more affordable residence down the street.
- Focus on presentation. Your property should be in immaculate condition, staged appropriately, and marketed effectively - inside and out. Make your home visually appealing, clean it, set a vase of fresh flowers in the entrance hall, and even make coffee to encourage a delicious aroma throughout your home.
We cannot overstate the importance of a well-maintained home when selling property. You don’t want to give buyers a reason to ask for a price reduction.
If you are ready to start selling property in the current market, get in touch with a reputable Property Practitioner. Their expertise and experience will prove invaluable throughout the selling process.
In the event that your property doesn't sell immediately, don't lose heart. Instead, stick with your Property Practitioner and be open to making adjustments to your marketing plan or pricing strategy. By staying committed and adaptable, you increase your chances of finding the right buyer and achieving your desired outcome.
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