Choose the right agent as market conditions shift to buyers

After two boom years for the property market, data shows that conditions are now shifting in favour of buyers. Although the decision by the Reserve Bank to keep the interest rate unchanged is a relief for the market, the reality is that buyers are feeling the impact of the higher interest rate.

The latest FNB House Price Index shows the market has softened notably due to the higher interest rate. The outlook for house price growth is also adjusted downwards to 1.8% for 2023, compared to 3.5% in 2022 and the economic challenges are set to remain into 2024 keeping prices under pressure.

The upside of this is that the market is now more favourable for buyers. They are generally able to find good stock and while they must now pay a higher interest rate, the bank lending conditions are still very positive for the market.

The downside is that asking prices are generally now under pressure as buyers are able to dictate prices in the market. The result is that sellers will now really have to price accurately, and they should take care not to wait too long for the right buyer.

That said, we continue seeing neighbourhoods such as the Southern Suburbs as high demand areas for buyers due to the convenience, lifestyle offerings and access to excellent schools and academic institutions, but sellers must now be mindful of the market shifts.

In a challenging market it becomes even more important to work with the right local area agent. Such an agent will have experience in your area and will have sold properties which are similar to yours which already puts you at an advantage.

An experienced local agent understands the market and will in all likelihood already have the right buyer in mind when they see your property. They will have a qualified buyer's list that they can call on and will provide the best guidance in terms of how to present and market your property.

When choosing an agent, look for someone with a good presence in the area, or ask for recommendations. It is best to interview the agent/s. Ask various probing questions including evidence that they are registered with the Property Practitioner's Regulatory Authority as well as for a list of recent sales concluded by them.

Check how long the agent has operated in the area. You should also look to see if the brand that they represent offers a large footprint as this will increase the chances of targeting a bigger pool of buyers. A skilled agent should present a market analysis with a suggested price as well as a marketing plan that offers a substantial digital and social media component.

A good local area agent with a strong footprint will provide the most credible advice and guidance, including the correct pricing for the current market. Take care not to waste your time with someone who just wants the mandate and does not offer any real potential for a successful sale.

Home is our Story and property our passion. As local area specialists, Seeff Southern Suburbs agents offer experience, expertise and a track record of successful sales, backed by the Seeff Property Group, a top real estate agency in the country. Please feel free to contact one of our agents to discuss your property needs.

______

Make sure to follow us on Facebook, Instagram, and LinkedIn for the latest tips and trends in the property industry, as well as some of the most relevant news about the area you call home.