16 August 2020 :: Newsletter

This Week's Top Properties

Propenomics

Currently, there has been a rise in the property price, most likely due to the low interest rate which makes it cheaper to buy than to rent. 

So, if you need to or want to purchase a property without paying to much due to a seller taking advantage of current circumstances, you can most like negotiate based on the following principles which might safe you some money:

When Could You Offer 20% Below Asking Price?

  • Rare in the primary market below R1.5 million but more prevalent in the market above R20 million depending on various factors including the motivation of the seller.
  • When the seller needs to make a quick sale, or if the property requires significant work, or if he really just wants the property off his hands. Another could be where the price is significantly higher compared to peer properties because the seller wanted to “test the market” and it has now been on the market for some time with no offers.
  • When could you offer 10% below the asking price?
  • Older properties with seriously dated finishes or an urgent seller may consider a 10% discount, especially if the property has been on the market for a while.
  • An urgency due to relocation to another city or emigration. A property overpriced compared to peer properties in the area may also offer the opportunity for a 10% discount if the seller is motivated to sell
  • If the property has been on the market for several weeks without much interest.

When Could You Offer 5% Below Asking Price?

  • If you are a cash buyer or do not have to sell a property first, the seller may well be willing to accept a lower price as it means that the transaction can be wrapped up quite quickly
  • If the seller has already put in an offer elsewhere, they may be willing to accept a lower offer to speed up the process.

When Should You Offer More Than The Asking Price?

  • When there are multiple offers on the table, the seller will typically accept the highest offer.
  • If the property is in a great location and well-priced, your best chance to secure the property would be to offer higher than the asking price. 



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