Dealing with Clutter when Selling your luxury home

Lose the Clutter, Clean and Set the Stage to Sell! This advice applies anytime you sell a property but particularly when that property is falls in the luxury category (usually R10m and upwards).

When buyers are looking at a multi-million rand home, they expect to see something that looks like a million dollars.  They don't expect to see your clothes lying all over the place on the sofa and doors that won't shut properly.

Dealing with Clutter includes personal family photos. That photo of you and your favorite politician may be something you're proud of, but it may turn off a buyer who votes for the opposition. Rather put them away. It will give you an edge on packing up when your home is sold if you've already boxed the personal items.

Most luxury home owners have household help to keep their homes clean.  It's easy for someone who cleans a home to get into a routine that may skip some of the things a stranger (prospective buyer) will notice immediately. The surfaces get polished but do they get into the corners?  Buyers (especially if they really like the place and are considering putting in an offer) may open cupboards and look under sinks that you never notice. Don't let them find a collection of dust. Ask the household staff to give everything a thorough cleaning before you list, and keep it maintained in best condition during the viewing/selling period.

Take an honest look at your home and decide if it looks like a luxury home.  Would you be bowled over by it if you didn't live there?  If the answer is no, you may want to do a bit of staging. If you need more advice on staging, I have a professional home staging team who can help.

Tips for Buyers in a Sellers Market

A Sellers Market is usually a situation where there are many buyers but low inventory of homes for sale. What happens in this scenario is houses that are priced correctly will sell quickly and sometimes for more than the listing price. Prices will be on the rise until the point at which it would be cheaper to buy a brand new property (when the building costs per square metre are less than the price per square metre that the Seller wants for his second hand home).

In a Sellers Market, there are a few things the Buyer can do to ensure you get your dream house.

Have a deposit ready (down payment or earnest money deposit) Lending requirements change from time to time, but even where financial institutions may be prepared to loan up to 100% only half of Buyers who apply for home finance are actually successful on their Bond application. A Buyer who is able to put down even a small deposit has a greater chance of securing hone finance. If you as a Buyer can work to secure a pre-qualification from a Bond originator, you are more likely to be treated as a serious Prospect by an agent, and will be in a better position to make a successful offer.

Time is of the essence in a Sellers market. Don't wait for the weekend for a viewing appointment: the property you want could be sold.  If you waste too much time in making a decision to put an offer down on your "dream home" there may be a few Buyers after the same property and you could lose the opportunity.

Asking for favours. This us not the time to negotiate for the Seller to fix things or to repaint. Since there are many Buyers the Seller can choose a Buyer that does not have to put in a suspensive clause where they buy subject to the sale of their own property.

Safety tips for Sellers and Real Estate Agents

I was advising a client yesterday because we have had 3 incidents in the greater Johannesburg this year where an estate agent was tied up and robbed of valuables as well as their car stolen by criminals posing as Buyers. An important precaution is to identify and pre-screen Buyers before working with them. At the moment we are in a "Seller's market", which means one might quite possibly get hundreds of queries from interested "Buyers". A Buyer who isn't willing to work with you on these pre-screening requests may not be ready to buy yet or may not qualify financially to buy the property (or worse, may have criminal intent). All of these factors add to the reasons why I believe it is unwise for a Seller to contemplate a private sale, since estate agents are experienced at minimizing risks to themselves or the Seller.

A few tips:

• Always tell someone where you are going when showing a house and report back afterwards
• Let the client walk ahead (never behind or in your blind spot) when showing/viewing a property
• Before a private showing, scout the neighborhood and be alert to anything unusual or out of place, or for safety concerns
• Identify each of a home’s exits/escape routes prior to a showing or open house. Keep exit doors unlocked
• Take a self-defense class (Krav Maga is the best)
• Let your client follow you to the property in their own car
• Don’t wear expensive watches or jewels
• Maintain a professional image including clothing 
• Buy a personal security app for your cell phone, always keep your cell phone in your hands and lock another valuables (iPad, laptop) out of sight in the car
• Be ready to defend yourself. Travel with pepper-spray
• Trust your instincts, if something doesn’t feel right, remove yourself from the situation, don't  worry about offending a client

Getting ready to sell

Are you ready to sell? Here are some things you can do that will ease the process:

Get the paperwork together: How much do you owe on the bond? It's better to find out how much equity you have in your home before listing rather than getting an unpleasant surprise later. If your financing is with a bank there may be a 3 month cancellation clause with penalties, contact the bank to give notice. Some transfers can take less than 3 months, and you might not want to drag the transfer process out because this step wasn't thought out.

• Put all the built-in appliance manuals in a safe place (the new owner will want these). 
• Start interviewing to secure the agent with the best knowledge of the market.
• Pack away or cover valuable assets. You may not want that expensive art piece to be in the photos.

Use this opportunity to de-clutter and perhaps even start packing (boxes could be stored in the garage or storage room). Staging your home is an art in itself, there are some things you can do, but your agent might be able to recommend a staging expert. If your agent is going to use a professional photographer it becomes more important to have everything looking great for the photo shoot. Part of de-cluttering includes removing personal photos. Provide a neutral canvas that the prospective buyer can imagine themselves in.

Questions to ask before listing your luxury home

It may be tempting to hire a friend or relative who just started out in real estate.  Your best friend may have a son or daughter at university trying to earn extra money selling houses on weekends. Although it is kind of you to help out, it probably isn't the best thing to do when selling your most valuable asset, or it may still be on the market a year later. A house loses value in the public perception if it doesn't sell: "must be something wrong with it".

Start interviewing your local luxury home experts. Ask what their marketing strategy will entail. How will they pre-qualify buyers? You don't want strangers walking through your house just to see "how the rich live" or worse, to see what they can steal.
How many other listings do they have in the area?
Do they have a blog giving advice for the luxury home market?
Do they have a website that ranks well on the search engines when using the terms "luxury homes in ________"? www.alexa.com gives rankings of various websites across many internet search engines. You know a brand's website doesn't have much reach if it doesn't even rank on there! Most people start their house hunting online, so it is important that you list with an agent whose website has great SEO.

An experienced agent is your best choice but you may want to consider a newer agent, in which case be sure to ask how they will market your property. It's crucial that they're prepared to spend money on professional photographs, ads and marketing. Ask if the office they work with has other agents who work in the luxury market? Can they call on those agents for advice? Do they network with luxury home agents in other areas? If the answer to those questions is yes, they probably already have a network of agents who may have the right buyer for your home.