Sellers advised to look at marketing options



Sellers advised to look at all marketing options; South African property sellers should not be shy to ask questions about the various selling options available to them prior to signing a mandate with an Estate Agent who should be a member of the Institute of Estate Agents. While there are still some estate agents who fail to acquaint potential sellers with the various options open to them, the Real Estate Industry is committed to improving its service levels and ensuring that agents adhere to the Ethical Obligations as determined by the Institute of Estate Agents. Sellers are completely within their rights to ask agents to explain the pros and cons of selling their property either by sole mandate, open mandate or through a shared multiple listing service mandate. Each selling method has its own advantages, which should, as a matter of priority, be fully explained to the seller who could then make an informed decision on the method best suited to their needs. Highlighting the benefits of each, Arnold Nel advises that the sole mandate selling system was the most popular in the South African property market. Sole mandates have a long tradition within the industry, which has allowed professional estate agents to perfect the accompanying marketing plans , ensuring that the marketing of the property receives their full attention and commitment. The sole mandate is most effective when embraced by well established agencies with strong market penetration in the area in which the property is situated, and whose budget allows for extensive media advertising. Sole mandates also ensure the most possible privacy and least amount of inconvenience to sellers and protect them from possible double commission claims. The multiple listing system, while most frequently used by sellers in the USA has merit in the South African environment. The property is listed by the agent/agency of the sellers choice, is then opened up to the local multiple listing members( Property Network here in Pietermaritzburg ) all of whom have a mandate to market and sell the property, guaranteeing good market exposure and possibly multiple offers. Lastly the open mandate, while liberating sellers from signing any documents, was the least effective form of marketing since professional agents were relunctant to actively promote the property in terms of advertising and show days. Agencies prefer to spend advertising money on sellers property where the seller is committed to the agent in the form of a sole mandate. Property Trends: Much has been said about the positive sentiments towards the South African property market, my comment about the future of the market here in Pietermaritzburg is based on the historical shortage of residential homes; Pre 1994 the South African property market was driven by a minority of possible buyers which were mostly government employees, resulting in a negative growth rate. Post 1994 the South African property market is driven by a number of factors, new middle class who no longer want to live in the “ township environment”, a new South Africa which is seen by the international community as an ideal place to invest excess cash, a vibrant economy growing in leaps and bounds, a province that is progressive in attracting foreign investment/ tourists, a provincial government which establishes Pietermeritzburg as the Legislative and Administrative capital of Kwa Zulu Natal, resulting in thousands of government employees relocating back to PMB, causing an over supply of buyers and a huge shortage of sellers and a shortage in the rental market as well. Last year produced an average of 34% increase in the price of property in Pietermaritzburg, resulting in the average price of a home increasing from R365000-00 to R489000-00. The next year will see a further increase of at least 20 to 30%. So Invest in Property Now!!!