Where is 2022 rushing to?

YOUR FUTURE LOOKS BRIGHT!

We are on the cusp of the third month in 2022 and we have to ask ourselves, “where is 2022 rushing to?”

The roads are busy again, the beaches are full again and people are rushing up and down again, as if there’s no tomorrow.

It is also a time where it seems as if the world has lost patience with everyone.  In fact, Russia invaded the Ukraine on Thursday 24 February 2022 and not that there are no other fighting and bombing going on in the world.  Israel and the USA are still fighting and bombing continuously.  It’s doubtful whether this is ever going to stop. 

But life goes on.  We all still need to eat, we need to clean ourselves, we need to clean our homes, we need to go to work, we need to earn a living, we need to sleep, people are buying and selling businesses as well as property. 

But things have changed.

Food prices are increasing, the price of fuel has increased and so will the prices increase of everything that is related to fuel.

Along with the uncertainty and fear, property prices are impacted negatively.  The market has changed and we are sitting in a buyer’s market at the moment.

We find that sellers refuse to understand this.  We are not sure what their reasoning is. They need to understand that the market is dynamic.  It doesn’t stay the same.  Sellers must understand that the market and the buyers determine the price of a property. 

No matter if clients have installed golden taps in their bathrooms and kitchens or whether they have Persian carpets in their garage, the price that the buyer wants to pay for the property, remains the selling price.  A seller cannot will the buyer to pay a higher price than what the buyer deems is fair.

And then the seller with the overpriced house always wants to add that “I don’t have to sell the property if I don’t get my price”. 

To this type of seller, we estate agents should say, “perhaps you should sell your property next year or the year thereafter, when the market is more suitable to your selling price”. 

Because this type of seller only costs money and they are an expense to us. 

It is not worth getting this overpriced property on your books.  Not only will you spend money on designing and creating an advertising campaign, but you will spend time placing the advertisements, spend money on the placement of the advertisements and spend time and money promoting the property on social media.  Then you have to field and make calls regarding this property and even do some viewings.  But the price that the buyer will offer for the property will inevitably fall well short of the asking price.  And the seller’s answer to the offer will be that “I don’t have to sell the property if I don’t get my price”.   

Estate agents have to be careful with their budgets because they work at risk.  And continually working on overpriced stock can be detrimental to their business in the long run.

It is imperative that property that you promote and sell are well-priced and in line with the current market situation.  You are better off doing nothing than having a portfolio of overpriced properties.

Every investor knows that during times like this, property prices are negatively impacted and there is a saying that “the best time to invest is when there is blood in the street”.  And there is blood in the street sellers, you cannot ignore it.  You do not live in a vacuum.  Whatever happens in the world affects you and your assets.

Chances are great that there will be estate agents who will take your overpriced property on their books, but this is by no means a guarantee that you will obtain an offer in line with your expected price.

Maybe the best thing for you, and the fairest thing to the real estate professionals would be to wait for the market to improve before you put your property up for sale at the price that is not in line with the market.

WhatsApp or call me now on 084 517 5033.