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I IIssue: April 2006
I Editor: Berry Everitt I |
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Your Area Specialist:
Chas Everitt International
sales agents have all the latest market information
regarding local property values at their fingertips
– and are committed to the highest standards of
personal service when it comes to selling your home.
In addition, the Chas Everitt International property
group offers you, the homeowner, the best possible exposure
for your property in both national and international
markets. So if you are thinking of selling your home,
call your nearest Chas Everitt International office
today for the name of your local area specialist - or
visit www.chaseveritt.com
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Every month the Property
Signpost Newsletter will be issued to all our
subscribers, filled with real estate information to
help you make an informed decision, whether you are
buying or selling a property.
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Contents
1. Welcome
By Publisher
2. Quick offers
no cause for alarm
3. Take
extra care when buying to extend
4. Pantries
back in vogue
5. Spotting
bargains among the clutter
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1.
Welcome By Publisher
As we predicted, the weeks
since the municipal elections have turned out to be
a bumper sales period, with many of our offices around
the country notching up record numbers of transactions.
And only a small amount of this additional
activity can be ascribed to buyers who sat on the
fence for two weeks in February as they waited for
the new transfer duty dispensation to take effect.
Most is the result of growing confidence in the economy
as a whole and the increased buying power of individual
consumers, which can only bode well for the market
going forward.
Speaking of growth, Chas Everitt
International continues to be one of the fastest-growing
real estate groups in South Africa, having established
more than 70 operations around the country in the
three years since it began franchising.
And applications to join the group
keep pouring in. However, our strategy is still to
select top-notch franchisees and work at achieving
significant market share in key areas rather than
just increase the number of offices.
Meanwhile, we are proud to note that
although the latest franchisees to join the Chas Everitt
International “family” have extremely
diverse backgrounds, they have all said they chose
this group over other real estate organisations primarily
because of our evident professionalism and unwavering
commitment to ethical business practices.
We think that’s a real feather
in our caps – and proof that we are remaining
true to the strong values instilled by our founders
even as we gain a reputation for marketing and technology
leadership in our industry.
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2.
Quick offers
no cause for alarm
Homeowners who plan to sell usually list a market-related
price and a quick transaction as their top priorities.
But, all too often, they develop grave misgivings
if their wish is granted and they receive a strong
offer shortly after listing. As most seasoned estate
agents know only too well, sellers in such a situation
almost immediately conclude that their asking price
was too low and opt to hold out for a better offer.
Sadly, however, a better offer usually does not
come along and the property languishes on the market.
And eventually, frustrated by delays, the seller is
reduced to accepting an offer much lower than the
original one.
Consequently, sellers should not be too hasty to
believe that a quick offer means their asking price
was too low. What it is more likely to indicate is
the increasing efficiency of the real estate marketplace.
These days, technologically capable agents are able
to give many prospective buyers almost instant access
to new listings – and savvy buyers are quickly
able to evaluate and act on a competitive asking price.
A quick first offer that is slightly below the asking
price should not be rejected out of hand either, but
should be viewed as the starting point for negotiations.
Buyers these days are much more likely to test the water
by offering slightly less than they are really prepared
to pay and skillful negotiation by an experienced estate
agent may well result in second offer that will satisfy
the seller – and allow him to get on with the
job of finding a new home.
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3.
Take extra
care when buying to extend
These days, many buyers keen to enter
the market before prices rise even further are opting
to purchase smaller homes with the intention of expanding
them later.
But they need to take note of some
potential pitfalls, the first of which is that if they
buy in an area of smaller homes on smaller stands, it
is quite likely that their plans to expand will be limited
by zoning restrictions that regulate building size relative
to stand size.
Secondly, even in areas where such
restrictions are not a factor, the extended home will
need to fit in with others in the neighbourhood to make
sure the owner’s additional investment is not
lost when the time comes to sell. It is all too easy
to over-capitalise a property and find that the costs
of the improvements cannot be recouped.
Even in the best of markets, owners
should not undertake improvements that push their home’s
value beyond 20 to 25 percent above the current average
price in the area. And in a slower market, they should
be very careful to keep their home’s value in
line with that average price.
And even buyers who are lucky enough
to find a smaller home that can be profitably expanded
to fit in with surrounding larger properties should
think carefully about the upheaval inherent in any building
activity, especially if they will occupy the home during
renovations. Consumers often complain that building
projects take longer or turn out to be much more complicated
than they expected.
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4.
Pantries
back in vogue
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Pantries have become a popular feature
in new upmarket homes and the trend is now filtering
down to mainstream homes.
These utility rooms went out of fashion
in the early 1960s with the advent of supermarkets
and the rising popularity of convenience food stored
in the fridge or freezer. But health-conscious people
are increasingly opting for home-cooked meals prepared
with fresh or organically-grown ingredients.
And even people who don’t take
issue with chemical additives prevalent in modern
mass-processed food are in favour of the additional
storage space that pantries offer. Bulk shopping still
saves time and, in many instances, money.
The “nesting” trend that
took root in the 1990s is also contributing to the
reviving fortunes of the humble pantry. People exhausted
by the fast pace of modern life are increasingly making
their homes a retreat and rediscovering the therapeutic
value of age-old skills such as preserving fruits
and vegetables and making jam – and those rows
of bottled tomatoes and cling peaches require shelf
space that is not to be found in most modern kitchens.
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5. Spotting
bargains among the clutter
Most homes for sale
are scrupulously scrubbed and tidied to show the property
off to its best advantage – but it may just pay
to have a closer look at properties that at first glance
appear to be grubby and cluttered.
Prospective buyers
often turn on their heel when shown a property that
is not in show-house condition but those who can spot
substance over style may just find a real bargain.
In a forced sale, such
as in cases where the owner has died or has been suddenly
transferred to another town, there usually has not been
time for anyone to prepare the property for sale, and
clutter may disguise good underlying value.
And although a dirty
home may indicate long-term neglect and the possibility
of substantial repair bills for a new owner, a closer
inspection might just reveal that all that is actually
required is a good scrub and a few coats of paint.
Such a property may
also offer scope for serious price negotiations. A buyer
can point out that it will require time and money to
restore the property to acceptable standards and will
be justified in subtracting the estimated total cost,
including labour, from the price he is willing to pay.
It is, of course,
a good idea to have any property professionally inspected
to check that the structure, plumbing and wiring are
sound before making a firm offer. But if they are and
the owner is prepared to settle for a lower offer, all
that will remain is to roll up your sleeves and turn
your bargain into a clean and tidy home to be proud
of.
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