Know upfront what your home sale could net
Planning to sell your home? If so, you probably want an accurate idea of what you will have in your pocket after the transaction so you know how much you can spend on your next home.
“The amount of money a home seller nets depends on three key factors,” says Dean Hewitt, co-founder, director and principal of Nu Generation Homes. “These are the price the home is likely to fetch in the current market, the estate agent’s fee and the balance owing on your home loan.”
Setting the right price
“Overpricing is the most frequent reason why homes don’t sell. Many home sellers believe there is a buyer for every home, but they often ignore that the buyer ultimately determines the selling price of a home,” says Dean.
An unrealistic price often works against the seller, as most estate agents and potential buyers see new listings within 14 days. If your home is overpriced, even by as little as 5%, it will be noticed and interest in your property wanes fast, especially if you show no intention of reducing your price.
“Inflated prices also knock out buyers who are unable to obtain higher financing. Even if you find a buyer, the financier who appraises your property may object to providing finance for an overpriced property,” says Hewitt.
When Nu Generation’s agents suggest a value, home sellers can be assured it is market related and the chance of being offered the price is good. We always encourage buyers to achieve the maximum potential market related value for their home by suggesting how to improve the look of their home or minimise any detracting points.
For instance, if you have an older home that is competing against newer homes in security developments with attractive prices and community amenities, a few cosmetic touches can make your place look more inviting. This could be as easy as applying a new coat of paint, planting flowers in the garden and cleaning the carpets.
In addition, if your home is not ideally located, you can still do something about that. Planting foliage can dampen traffic noise, while garden screens can provide privacy from adjoining properties. It’s also recommended to do small repairs and fix damp problems or leaks before your home goes on sale.
We also take into account whether you are selling in a buyer’s or a seller’s market and advise what to expect and explain what options are available. In a ‘sellers’ market’, homes sell fast. When there are few homes for sale in your area, there is less competition for homes. In a ‘buyers’ market’, you are competing against a large inventory of properties already on the market. There may also be new cluster home developments and a growing rental market, so buyers are generally more picky and may want to negotiate the price.
Fixed fees for estate agent services
Unlike traditional estate agents, Nu Generation Homes has a fixed fee for selling homes. “Our clients know upfront the cost for our agents to sell their home,” says Hewitt. In addition, they are likely to enjoy a better deal than if they used an estate agency that charges a traditionally higher percentile commission.
“Applying our proven marketing techniques, we can sell clients’ homes cost effectively in a reasonable time frame at a market related price, while still offering all the services of a traditional estate agency. In the last 18 months, we have sold 62 clients’ homes in Durbanville, Brackenfell and the surrounding Northern Suburbs of Cape Town, and saved them over R5,5 million in commission.”
As Nu Generation Homes sets market related pricing and has a fixed fee for estate agency services, it’s easy to calculate how much money you are likely to end up with after selling your home. Simply deduct the estate agent’s fee, as well as your home loan balance from the price you are likely to obtain for your home, and you’ll have a fairly accurate idea of the amount you will net. This makes planning your next move way easier, and the dream of purchasing your ideal home a likely reality.
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