| New market means new strategies |
There is no doubt that a buyers' market is in full swing - and
sellers need to adapt their selling strategies accordingly.
With many homes on the market, sellers should attempt to make their
properties stand out from the crowd, and one way of doing this,
is to "sell the deal" instead of selling just another
property.
For example, if your agent suggests dropping the selling price,
you could turn things around and instead of advertising the property
for less, advertise that you will pay the first few months' bond
repayments for your buyer.
At the end of the day, you would still only receive the discounted
price for your home but at least you would have put the rest of
the money to positive use by incentivising potential buyers and
quite possibly achieving a faster sale.
Another incentive may be to include appliances with the home. This
will probably appeal to buyers who are saving every penny for the
required deposit and transfer costs. Similarly, custom-made blinds
and curtains or a new carpet of the buyer's choice could be included
in the deal.
If you are selling a holiday home, you could consider selling it
as a furnished property, or even include extras for which you will
no longer have any use, such as a beach buggy or boat.
However, the trick is to include incentives in your initial marketing
plan. Your aim should be to attract as many prospective buyers as
possible by offering an attractive deal - there is little marketing
value in offering the incentives only when prospective buyers are
already on your doorstep.
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| Tenants need to insure their own belongings |
Tenants often labour under the misconception that
their personal belongings are covered under their landlord's insurance
cover for the property.
The confusion probably arises because the insurance
policy on the owner's bricks and mortar may cover damage to a tenant's
belongings if that damage is caused by something that went wrong
with the building itself - a burst geyser, for example.
However, damage caused by any other event, such
as storms, or loss through theft, will not be covered and for that
tenants have to take out their own household insurance.
But before signing up for an insurance policy,
they should:
* Get at least three quotes from different companies
so that they can compare apples with apples and choose the best
cover, for the most reasonable monthly premiums, and with the lowest
excess payments in case of claims.
* Be very honest about the value of the goods they
are insuring - if their estimate is too high, they are going to
pay higher premiums than necessary, and if too low, any claim will
only be proportionally paid out.
* Make sure what will be excluded from the cover
and which items will have to be included in the all-risks section.
All-risks items usually include goods that are often taken out of
the home, such as cell phones, sunglasses or golf clubs.
* Check that possessions will be covered if they
often go away for work or on holiday. Some policies will not pay
out if the home is unoccupied for more than 30 days a year.
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| The HOA: Get it right from the start |
Getting a homeowners' association (HOA) on a sound
footing from the word go can go a long way to protecting value in
a residential development, to the benefit of all owners.
Simple steps that need to be taken include:
* The HOA should without delay elect a management
committee, which should hire independent legal counsel to assist
it in all legal matters;
* The committee should compile and assemble all
documents relating to the HOA constitution, project documents, the
developer's marketing materials, financial records and all correspondence;
* Next the property should be professionally inspected
and any structural or maintenance defects immediately taken up with
the developer and / or building contractor;
* The HOA should appoint an independent accountant
to audit its finances and to determine whether or not the developer
has paid all required capital contributions and assessments. If
not, the matter should be resolved without delay.
* Simultaneously, the management committee should
draw up a budget to cover the running and maintenance costs within
its remit and create a reserve fund to cover the cost of all foreseeable
repair and replacement costs.
* The management committee should seriously consider
hiring a property management company that specialises in the management
of gated developments. An important benefit of such an appointment
is that an external manager will be able to remain objective if
any disputes arise among the members of the HOA.
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| Take care when using CFLs |
Compact fluorescent light bulbs (CFLs) are generally
welcomed as a more efficient alternative to incandescent bulbs -
but environmentalists and health experts are now concerned about
their long-term impact.
While the bulbs are extremely energy efficient,
they contain mercury, a neurotoxin that can cause kidney and brain
damage. The amount in each CFL is tiny, about 5mg - or just enough
to cover the tip of a pen, but that is enough to contaminate about
30 000L of water beyond the safety limits set by international research.
What concerns environmentalists is the cumulative
effect on water resources when increasing numbers of CFLs are dumped
and the tubes are shattered, releasing the mercury to the environment.
On the other hand, accidental breakage of globes
in homes and workplaces is what concerns health experts, who warn
that mercury contamination of a home or office should be cleared
by experts to prevent mercury becoming a health hazard to residents
or workers.
And even intact CFLs could cause misery for people
who have light-sensitive skin disorders, medical experts have warned.
People with skin conditions such as lupus, eczema and psoriasis
have reported that CFLs cause painful rashes, swelling and a burning
sensation on their skin. The main concern is the intensity of the
ultraviolet light from the low-energy bulbs.
One alternative for people with susceptible skin
conditions is halogen bulbs. These resemble normal bulbs and are
slightly more expensive, however they use only about 70% of the
energy used by incandescent bulbs to emit the same amount of light.
Meanwhile, consumers who do switch to using CFLs
are advised to take due care not to break the bulbs and to find
sites that can safely dispose of them.
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FROM
BERRY EVERITT
