If you’re in the market to sell your home, you may be concerned about whether you will be able to sell your home, at the price you want given all the latest economic developments.
South Africans are still grappling with how the downgrade of South Africa to ‘junk status’ by two ratings agencies will impact them financially. While the full picture will most likely take some weeks and months to emerge, what we do know is that the cost of credit and inflation will go up.
“Taking heed of the prevailing economic conditions and consumer sentiment is important. The reality is soon home buyers will find it more difficult to get credit, and it will come at a higher cost. It’s also likely that the economic and political uncertainty will put a damper on consumer confidence and the desire to spend on big ticket items such as property and cars. On the flip side, consumers who do have cash reserves and a solid credit record will have more negotiating power in the market, which means sellers have to work a lot harder and pay attention to their pricing.
“But before you succumb to the prevailing gloom and think that all is lost, take a leaf out of the book of resilience. The ratings downgrade won’t mean a major default of the property market, but it does mean that you need to be savvier about your sales strategy. When consumer confidence is low, you need to be able to demonstrate that your property sale brings more to the table in terms of peace of mind, security and creating trust between buyer and seller,” explains Lee-Ann Dobrescu, Head of Group Business Development at Hollard and co-creator of Hollard’s Home Warranty.
So even if the economy is looking a little pallid, there are ways to speed up the sale of your home and get that fair market-related price you’re asking for without having to sacrifice your profit – and it starts with selling with a Hollard Home Warranty in place. You may assume that a warranty is all about protecting the buyer, but that’s simply not true as the benefits for sellers, especially in a tough economy, are priceless. Here’s why:
1. Sell with the promise of peace of mind
Sell your home with a Hollard Home Warranty and let qualified buyers know you’re serious about trust and the peace of mind that comes with a guarantee that there is nothing untoward lurking in defects and the disclosure list. A home warranty couples a professional property inspection to an insurance policy that protects the buyer and seller against the financial and legal ramifications of any defects that may emerge in the property for two years after taking transfer.
2. You can trust me
There are many prospective buyers on the market, but the truth is that there is a real shortage of qualified buyers who can secure the necessary finance. Attaching a home warranty mark to your home makes it instantly more marketable and appealing to buyers. It shouts, “trust me!” A home warranty also speeds up the selling process because it means your home has been passed with a clean bill of health from an independent and professional inspector, bridging the inherent trust deficit that exists in a property sale. Think about this simple example - if you have to choose between buying a used car, one with a two-year warranty against all defects, and one with no warranty at all which means if anything goes wrong, you’re on your own, which one would you choose?
3. Get your fair price
It can mean getting a higher price for your property. The buyer knows that they don’t need to worry about any unexpected additional costs or the need to build in any buffers for “what ifs?” making the sale that much more appealing and less likely to be negotiated down. You will know of any excluded or minor repairs that need attention on your property, and what the cost is to do so. You can choose to do the repairs beforehand and ensure maximum sale price for your property. But if you prefer to sell as is, you won’t end up overcompensating by bringing your price down further than what the cost of the repairs would be.
4. Protects your pocket
It protects sellers against the potential financial and legal comebacks related to property defects, some that you may not even have known about or fully investigated the extent of.
5. It’s a differentiator
most importantly, a house sold with a Hollard Home Warranty differentiates yours from the rest - buyers are more likely to consider your home first. Sold!
No matter the market conditions, a Hollard Home Warranty will give your property sale a serious up on the thousands of other competing properties on the market. When it comes to selling your property, peace of mind is an invaluable tool. And it’s as easy as getting a Hollard Home Warranty in place for a ‘for sale’ sign that shouts ‘trust me’. The cost of the home warranty is covered by the seller - premiums are determined on an individual basis, but typically you can expect to pay around R12 000 for a warranty on a R1million home, R17 400 for a R2million home and R27 500 for a R5million home.
To find out more about Hollard’s Home Warranty or get a quote, click here
