Chasing Rainbows

So, you have finally decided that now is the time to sell your house. Before you put your house on the market, please read this blog about the pitfalls of overpricing your home.

Most people want the best price for their homes. Ok, you’re right, everyone wants the best price for their homes! But research shows that if you overprice your house by just 10% it can sit on the market for as much as 6 months longer than a house that is priced right. Before you jump in there and say, “But, we’re not in a hurry to sell, and when we are, we can reduce the price”. There are more serious issues involved than your house just sitting there.

 

Firstly, estate agents don’t work as hard on overpriced houses as they know that their buyers will not be interested in looking at them, and if they do look and even put in an offer, the offer will be so low as to be insulting to the seller. In most cases, however, buyers do not make offers on overpriced houses.

Secondly, most buyers are educated about the value of property at the time that they are house hunting. In fact, I would go as far as to say, they are the experts on property value. They know what a property worth $300 000 should have, and if your home does not measure up on paper, they won’t even bother looking. You therefore lose the buyers before they have even seen your house.

Thirdly, overpricing helps the competition. What competition? Well, the other homeowners who are trying to sell their houses. If your house is overpriced, the buyers will snap up the cheaper houses thinking they are getting a bargain and you will be left high and dry, with no one to come and view your house, as all the buyers in that price range will have bought cheaper homes.

Another point to remember is, when you eventually do realize that you need to lower your price, the house will have become stale. The buyers will ask themselves what is wrong with the house if it has been on the market for this long and now the price has dropped. You will lose buyers again, as no one wants to buy a white elephant. Stale listings have a negative perception in buyers’ minds, even once the property is on the market for the correct value.

In my experience, I have found that most overpriced houses end up selling for less than the lowest price the seller was initially prepared to accept or even less than the Estate Agent valued it at.

Before you list your property do some research. Buyers are forced to do research in the course of their house hunting. Studies shows that buyers view between 10 and 15 properties in their price range before buying. Sellers should look at other properties on the market too. You should also seek professional help from Estate Agents. It is probably best to get 3 market appraisals.

 But beware the unscrupulous agent who overvalues your house to get the listing.

In the Real Estate Industry this is called “Buying a Listing”. Some agents believe that by giving you a high value for your house you will list it with them. But always keep in mind, the estate agents give you nothing more than a GUEstimate when they value your house. Estate agents don’t determine prices, buyers do, and as already discussed, they know the true value of a property. Just as you want the best price for your house, they want the best house for their buck!

Another point to consider about agents who “buy” listings is that most buyers know who these agents are. They rarely go to them to view houses. So be sure to choose a reputable agent who has a fair understanding of market trends and will give you the best advice.

 

Oh, but wait! What about those mythical buyers you have all heard of, who pay hundreds of thousands of dollars over the asking price or value of the property because they love it so much. Well, they are just that: mythical. You are as likely to see a unicorn in your back garden or find a pot of gold at the end of the rainbow, as you are to find a buyer uneducated enough to pay more than a property is worth.

So remember, more tends to result in less, and less can sometimes result in more. If you place your property on the market at the correct price, you are likely to end up with more money in your pocket, than if you list it at an inflated price.

And for those of you who are still not in a hurry to sell, then either delay putting your property on the market, or put it on the market at a realistic price and only accept offers at that price.

Until next time, be happy, stay safe and please don’t overprice your house!

 

NICKY

Goal setting and investment

Wow! Another week gone already…I have been reading a lot about success and property investment this week, and so I thought I would share some of the insights I have gained. You never know, they might just be the push you need to take control of your financial future.

First things first, if you are going to be successful, you have to set goals. How will you know if you have succeeded without goals? Goals achieved are the benchmark for how successful you are. “A goal is a dream with a deadline,” says Napoleon Hill. If your goal is to own your own home or a profitable property business, then if you don’t set a timeline for this, you are only a dreamer. Life passes dreamers by. The first thing you need to do, is decide on your dream, however frivolous it may seem to you, and then set a deadline to achieve it. This could be relatively short (say 6 months) or long term (10 years.)

This next part applies primarily to those people who would like to invest in property as a business, but the choices you make when buying a family home should also be based on these points.

Ok, so now you know you want to invest in property, ask yourself why you want this. There could be any number of reasons. Being rich, is not a good enough one, by the way, so get creative. It could be security in your old age, a family home for each of your kids, or more philanthropic, like helping the homeless with low cost housing. Knowing why you want something, makes it easier to stick to your goals when the going gets tough, which it will, I promise.

Now, the hard part starts; do some research, in fact do lots and lots of research. Find out which parts of the country or town are going to be most sought after in the near future. These suburbs or areas will have cheaper houses than the current favourites. For example all the areas just outside the “golden triangle” will become more popular as the population grows and when all the professionals in the diaspora return. There are not enough properties in the upmarket areas to service the growing needs of Zimbabweans. Greystone Park, Chisipite, Alex Park, and Mt Pleasant are all areas that have fantastic growth potential.

Find out which areas are good “water” areas, as some properties are priced below value as there is no borehole, but if you were to sink a borehole and get water the value of the property would increase immediately.

 Find out what the market is looking for. Do people want to live in cluster developments or large properties with their own gardens and extras, like a pool and a tennis court? I have found quite a shift recently towards cluster or closed community developments, probably because of the security which these types of property offer. Zimbabwe does not have enough cluster developments to meet demand, and this fuels the ever increasing prices of such developments.

Remember as a property investor it is your job to try and predict the future growth of the property market. We all know that property is a great investment and that in the long term prices will continue to go up. But the rate of this escalation is not so easy to predict, and different areas grow in value faster than others. Research is the only way to make an informed investment decision. Remember property investment should not be made with the heart, but clearly with the head and a little bit of gut instinct. And always buy with the profit already in the investment, in other words if you were to put the same property on the market the next day, without doing anything to it, you need to know that you will be able to sell it for more than you bought it for.

 Of course, the points above are not exhaustive, and I am sure you could all think of many other points to add, but I wanted to get your minds thinking about property investment in Zimbabwe and how to achieve your goals.

OUR NEWS…

Last Thursday we had the pleasure of attending Sabre Business World’s Seminar on the 25 Secrets of Business Success at the Meikles. It was a fantastic day and I think we all left feeling highly motivated and ready to take the Zimbabwean business world by storm.

Thank you to Sally and Brendan Palmer for this inspirational seminar. For more information about Sabre Business World, visit www.sabrebusinessworld.com

And always keep in mind :

“ People often say that motivation doesn’t last. Well neither does bathing…that’s why we recommend it daily.” Zig Ziglar

 Keep yourself motivated and keep improving yourself, and you will achieve everything you have ever dreamed you could have or be!

LATEST LISTINGS

 KWEKWE       $110 000

 

22,6 Hectares of virgin residential land
Ideal for a large scale residential development
(Here’s a chance to invest in property in Zimbabwe!)
All services in place to the boundary of the property, so serving of stands is required.

NOT SO NEW...

ENTERPRISE RD - DRASTICALLY REDUCED TO $290 000

Ideal Office location
4 bedrooms/ offices
Boardroom
Open plan lounge and kitchen
Separate dining room
Borehole
Lots of parking
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URGENT SELLER

STAY SAFE AND BE INSPIRED!

Nothing quiet about Christmas in my life!!!

Firstly, I must apologize for going quiet for so long. I wish I could tell you that it was because I was flat out selling properties, but that's not the reason. As Christmas approaches and all 4 of my children are home from boarding school, I have let the demands of family life take over. This realization has inspired this blog.

There is a perception in the Real Estate industry world wide that the Christmas season is not a great time to buy or sell property as the market is quiet. I've thought about this idea over the last few days and realised that, as always your reality is created by the way you see the world and the thoughts you think. If you think your life is hard, it will be. If you think your are the luckiest person in the world, you guessed it, you will be.

So using this theory, surely, if we think the Christmas period is quiet, it will be. We allow all the other things to take priority in our lives, when, really during the rest of the year we have exactly the same amount on our plate, we just don't have the excuse to say, "Well, it's Christmas, the markets quiet anyway."

In fact, this time of the year may be the very best time to sell your property.

• Families from all over the world reunite over Christmas, so the buyer's pool is much bigger. 
• Zimbabwe is the most beautiful country in the world and even though someone may have moved away permanently, they will always have a yearning to return. If they have money, buying a property here is a good reason for them to eventually move back here.
• Many, many home owners go away for the holidays. If you happen to be staying at home, and make your house available for viewing, you will be in the pound seats, as the pool of houses during this period shrinks.

I advise all homeowners, seriously wanting to sell, to make their homes available during this holiday period. Let your agent know which days and times best suit you and don't be too rigid about this.

For buyers, you also need to have some flexibility in your viewing times, and give your agent lots of notice so that the agent can organize the viewing time that best suits all parties concerned.

I've changed my concept of the holiday period. It is busy, busy, busy! Busy with family and friends, busy with clients and busy closing sales! We all know Christmas is a busy time, it's just what we choose to be busy about! There is nothing quiet about Christmas in my house, so why should my business be quiet!

Stay safe and have a wonderful time with your family and friends this festive season!

Buying a home is like choosing a lover!

Before you fall in love with a house, there are certain questions you need to keep in mind. Buying a home is very much like finding a life partner, you fall in love, become blinded to all reason and then wake up later to find that the deal you've signed up for is not as rosy as you first thought. You heart can be broken by a failed purchase just as easily and devastatingly as by the love of your life.



Start by making a list of exactly what you are looking for in a property:

• Area
• Price range
• Borehole
• Swimming pool
• Number of bedrooms
• Number of living rooms or areas
• Security
• Lock up garage
• Domestic quarters
• Other special features particular to your needs

Once you have a list, decide which are non negotiables or "must haves". Estate agents can be very convincing when trying to get you to see a house that does not meet your criteria. Remember you have to spend a long time with this home and like a lover, you must be as picky as you like! (Or face the consequences of a broken heart, disappointment, etc, etc.)

Once you have a clear idea about your ideal home and possibly identified it, you need to ask your agent the following questions:

1. How long has the property been on the market? 

2. How long has it been listed at this price?

3. How many offers have been received?

4. What were the reasons for the offers being rejected? (These 4 questions help you determine what price to offer when you make one.)

5. How long does the seller expect to remain in the property after the conclusion of the sale? (This can be a big one...you've found your dream home, but the owner wants to stay for 6 months while he finds another house to buy...we all know long distance relationships rarely work, so why agree to have a long distance relationship with the home of your dreams!)

6. Ask to see up to date utility bills to ensure that these are all paid. If they are not, it will delay transfer and could, in the worst case scenario, mean the property has been attached by the authorities for unpaid bills.

7. Ask to have a professional electrician and plumber check the wiring and plumbing. In Zimbabwe, you buy a house as is, and you don't want any nasty surprises for the latent defects you haven't seen.

8. Often the borehole is a make or break in the deal. You have every right to have the capacity of the borehole tested. 

Unfortunately, these checks are done at your expense, and if you are unhappy with the findings you may be out of pocket. But better to lose a little cash on insuring your decision, than buy a white elephant! (You'll be seeing a lot of pink elephants while you drown your sorrows for a bad buy!!!)

Don't rush into anything until you have had it all checked out. If the agent or seller is reluctant to allow these checks, you have to ask your self: "What are they hiding?" Rather walk away and look for something else! Just as your mother used to tell you, "There are lots more fish in the sea," I'm here to tell you, "There are lots more houses to see!"