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I IIssue: July 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. Sellers:
How to boost your chances of a quick sale
3. Buyers:
It’s never to soon to start
4. Tenants:
It pays to follow the rules
5. Homeowners:
Getting up the courage to renovate
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1.
Welcome By Publisher
Perhaps it’s soccer fever or
the scent of an early spring, but there’s definitely
a new feeling of optimism in SA right now that can
only be good for the property market. Such confidence
is of course an ephemeral thing, and easily damaged
by the crime, bungling and bureaucracy that we encounter
all too often, but an increasing number of South Africans
nevertheless do seem positive about the future.
And we do have much that is good to build on.
The country once again received excellent international
exposure during the recent Soccer World Cup, for example,
and our economy is holding up really well in the face
of the financial turmoil resulting from an increasing
number of violent conflicts globally. Speaking of
which, the attraction of SA as a peacemaker and ‘safe
haven’ from terrorism is definitely growing
in circles outside this country, and the recent highly
publicised government commitment to at last address
and combat serious crime is a cause for celebration
within.
Consequently, it is probably not surprising that the
recent interest rate rise has done virtually nothing
to dampen demand for both residential and commercial
property, or that Chas Everitt International continues
to expand apace.
Indeed, our group’s confidence in the property
market going forward is such that we have launched
no less than 22 new operations - representing a multi
million rand investment - since January, and are already
laying plans now to maximize the marketing opportunities
that will be presented when SA hosts the Soccer World
Cup in 2010.
Meanwhile, we’re doing all we can to promote
home ownership in SA, because that’s the best
way we know to create wealth - and sustain the current
optimism.
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2.
Sellers:
How to boost your chances of a quick sale
While it is in the agent’s interest as much
as the owner’s to sell a property as quickly
as possible and at the best possible price, the responsibility
for doing so does not rest solely with the agent.
Indeed, homeowners hoping for a quick sale can do
much to speed up the process, beginning by ensuring
that their asking price is realistic. It is unrealistic
to expect buyers to queue up to make offers on your
property if they can find better value elsewhere –
or to expect your agent to keep advertising and marketing
a property that buyer reaction has revealed to be
overpriced.
Also remember that you get what you pay for. The level
of agent’s commission is, of course, negotiable
but if you expect sterling service for a pittance
you are bound to be disappointed. Keep your expectations
realistic and be prepared to pay for the service you
require.
And, perhaps even more important than negotiating
the commission, sellers should ask their agents to
provide a written marketing plan. This plan should
clearly outline which sector of the market the home
will be aimed at and how that target will be reached.
Then once the property is in the market, it is up
to sellers to present it at its best to prospective
buyers by ensuring that it is in good condition, clean
and neat, especially on showdays.
Lastly, agents must be given reasonable access to
the property. It is almost a given that most prospective
buyers will want to view your property at exactly
the same times that you might want to enjoy free time,
such as over weekends or after work. But by accommodating
your agent and those buyers, you increase the chances
of clinching a quick sale and minimising the disruption
to your life in the long run.
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3.
Buyers:
It’s never to soon to start
Getting a toehold in the property market
as soon as possible is a smart move – even for
young single people taking the first steps on a career
path.
Young adults often delay buying their first property
until they are settled in a career or until they tie
the marital knot. They argue that they may be prime
candidates for job transfers precisely because they
are single, or that they may be saddled with property
that would be unsuitable once they get married.
But they lose sight of the facts that property is an
excellent saving mechanism and a commodity that can
be sold or even rented out if they are transferred to
another city or decide to get married and start a family.
They should also keep in mind that there is never a
better time to buy property than as soon as they can
afford to pay for accommodation. Money spent on renting
property pays off the landlord’s bond and could
be far better employed on paying off the bond on their
own property.
And while the advice to buy property as soon as possible
holds true irrespective of the state of the property
market or which way interest rate adjustments are headed,
buyers who get into the market right now stand to benefit
especially. Property economists widely predict that
the market will move sideways for the next couple of
months, before again starting to gain momentum –
which means faster growth in value – towards the
middle of next year.
A word of caution though: Like all other buyers, young
buyers should make sure they do not over-extend themselves
financially. They should take a careful look at their
budgets and calculate precisely how much they can afford
to spend.
They also need to take into account how much it will
cost to maintain the property and the advice of a seasoned,
reputable estate agent is likely to prove invaluable
in finding the perfect “fit” that will set
the young buyer on the path to profitable homeownership.
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4.
Tenants:
It pays to follow the rules
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Most property experts agree it is
better to own, rather than rent, a home but if you
are forced through circumstances to rent accommodation
you can make sure your stay will be a happy one by
acquainting yourself with the lease contract - and
by becoming the model tenant.
It is vital – for tenants as well as landlords
– that the lease contract is in writing. Without
a written document neither party will have proof of
their case in the event of a dispute (and chances
of a dispute increase if such a document does not
exist).
Tenants should carefully read lease contracts and
make sure they understand all stipulations
before they sign. If there is any doubt about any
matter at all they should ask the landlord to explain
it in detail – and to their satisfaction –
before committing themselves.
And if they come to an agreement with the landlord
about something not covered in the standard lease,
they should insist that it is written down in a separate
document that is also signed by both parties.
Then once you become a tenant, make sure that you
obey the rules set out in the lease. Also keep the
lines of communication open with the landlord or his
letting agent. If your circumstances change and you
cannot abide by any condition of the original lease
contract you should inform the landlord without delay.
Any clause in the lease agreement that is broken by
a tenant without the landlord’s approval may
result in the tenant being turned out, losing his
deposit and even getting a black mark on his credit
rating.
However, if you have been a “model” tenant,
chances are much improved that your landlord will
want to keep you in the property, and be willing to
renegotiate the contract to accommodate your changed
circumstances.
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5. Homeowners:
Getting up the courage to renovate
If you long to renovate
your home but have nightmares about the time, money
and inconvenience involved, you are not alone. Homeowners
are often anxious or even scared to begin renovation
projects – and with good reason. This is a big
deal, and many things can go wrong. However, their worries
usually fall into one of four main categories, and there
are ways to deal with these.
The most common fear is of crooks. Unfortunately one
hears all too frequently about unscrupulous home improvement
contractors who swindled unsuspecting homeowners out
of thousands of rands, and about people working for
contractors who take the opportunity to scope out properties
and return later to burgle them.
The way to address this fear is quite simply to work
only with established companies and hire only registered
contractors who have been personally recommended or
whose references and previous work you have personally
checked. Their price is likely to be higher, but they
will inevitably cost you less in the long run because
they will try to do the job right from the start –
and if they do make mistakes, will not try to make you
pay for these.
The second most frequent home improvement worry is money.
It’s a fact that most homeowners underestimate
the true cost of renovating. Once a project begins,
the work may expose bad or outdated electrical wiring,
leaky plumbing, termite damage and so on, and whether
planned for or not, these problems will all have to
be fixed.
Consequently, homeowners planning an improvement project
should budget for it to cost at least 30 percent more
than they originally estimated. They should also make
sure that they have a proper contract (drawn up by their
attorney if necessary) which stipulates how much they
will pay at each stage of the job – and should
never, ever be persuaded to part with their hard-earned
money upfront.
Other common home-improvement
worries are:
* Disappointment.
Most homeowners fear that after spending all that time
and money, they won't get what they really had in mind,
and for many, a two-dimensional plan does not provide
enough information for them to be able to visualise
what their projects will look like. The answer is to
try to obtain photographs or three-dimensional sketches
of similar work, and to visit décor and home
improvement shops and exhibitions before you embark
on a major project.
*
Disruption. There is just no escaping
the fact that renovating is tremendously disruptive
and invasive, so homeowners need to be mentally prepared
to be without their kitchen or bathroom for weeks, and
to contend with mess, noise and interruptions to their
daily routine. Again, the answer is to deal with a reputable,
experienced contractor who understands your anxiety
and will keep the disruption to the minimum –
so that he or she can earn your word-of-mouth recommendation
for the next project.
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