What factors could potentially delay the sale of your property?
WHAT ARE THE POTENTIAL DELAYS TO THE SALE OF YOUR PROPERTY
There are several factors that can result in delaying the sale of your property and delays can occur when:
- Concluding the actual sales agreement and/or
- Concluding the actual transfer
The delays can be easily avoided by having good communication between the selling agent and the conveyancing attorneys, as well as focusing on some of the below factors.
However, it is extremely important that the seller is well-organised and takes necessary action to facilitate a smooth selling transition. These actions would include the following:
- Having approved house plans ready
Although the seller is not obliged to provide copies of the approved plans to the buyer, it is also the legislative right for a buyer to request the plans, so it is best for the seller to have the approved plans available before placing the property on the market, to avoid any delays in the sale.
If you don’t have approved plans at hand, then a copy can be easily obtained from the local municipality.
There may be instances where the municipality doesn’t have any plans on file in which instance you will need to have plans drawn up.
If you only discover this when the buyer requests the plans, this delay could have a disastrous effect on the sale of your property and may even result in you having to take the property off the market until you have the plans drawn up and approved by the municipality. This process may take months.
Tip: Therefore, before placing your property for sale ensure you have approved plans.
- Ensure you have compliance certificates
The seller is obliged by law to provide a number of compliance certificates to certify that the property for sale meets the standards to be sold.
The following certificates have to be provided to the conveyancing attorney to effect the transfer of the property to the buyer:
- Electrical compliance certificate
This compliance certificate certifies that the electrical installation for the property complies with the required legislative standards.
This certificate is usually valid for two years from the date that the electrical contractor issues it but it has to be reissued if you have made electrical additions to the property since receiving the electrical compliance certificate.
Tip: You should use an accredited electrical contractor to provide you with an electrical compliance certificate.
- Beetle certificate
This certificate is the only certificate that can be waived by agreement. It certifies that the property is free of any infestation of wood-destroying insects, such as woodborer.
This certificate is usually only valid for 3 to 6 months, so it is best you do this certification as a last step before placing your property on the market.
Tip: Provide access to all areas to the Company undertaking the beetle inspection to ensure that the inspection is thorough and leaves no possibility of liability if a full inspection is not done.
- Gas compliance certificate
This certificate is only needed if you have any gas installations on your property. This compliance certificate accordingly certifies that the gas installations on the property comply with Occupational Health and Safety standards.
Tip: A new certificate of compliance must be obtained with each new installation.
- Plumbing certificate
This certificate confirms:
- that the water installation meets the National Building regulations
- that no stormwater goes into the sewerage system
- the water meter is working
- there are no major plumbing defects
It is very important to note however that the certificate does not need to note that the plumbing installation is in good working order and will not cover the following:
- Water pressure
- Blocked drains
- Broken toilets
- Underground leaks
- Leaks inside walls
Tip: Employ a certified reputable plumber to provide a plumbing compliance certificate and obtain this certificate first before placing your house on the market, as there are often repairs that are needed before the plumber can issue a clearance certificate.
You don’t want these repairs to delay a sale if you leave this compliance certificate too late.
- Electric fence certificate
This compliance certificate only applies if your property has an electric fence surrounding it.
The electric fence certificate certifies that the electric fence installation is functioning and complies with the safety standards as set out in the Occupational Health & Safety Act.
An electric fence certificate is valid for as long as there is no change to the existing installation.
If the property being sold is in a Sectional Title scheme, then you would need to obtain the electric fence certificate from the Body Corporate of that scheme.
Tip: Ensure that you keep the original fence compliance certificate as this may have been passed down from a previous seller. It will save you the expense of having to obtain another one as this could be quite costly given that an installer will need to conduct a full inspection and test, before providing a new one.
- Ensuring that there are no glaring repairs needed
It is advisable to undertake a thorough inspection of your property to identify any issues or faults before listing your property.
It is usually during these inspections that you identify leaking taps or general items that you may not have noticed previously.
You really don’t want a potential buyer picking up repairs that are needed while viewing the property and then these issues becoming a suspensive condition in the Offer to purchase. This is just going to delay the offer from being concluded and the sale proceeding.
Tip: Use an experienced maintenance company to identify issues that you as a layman may not see and then have them repair & resolve the issue.
- Be realistic with the selling price of your property
Do some research before you list your property. Try not to list your property at a price that is seen as too expensive as this will delay the sale of your house. It will even influence the thoughts of potential buyers as a house on the market for a long time suggests to the buyer that they can offer a reduced price.
Ultimately an overpriced property just leads to undue anxiety and potentially a financial loss.
Tip: Engage with a professional estate agency to provide you with guidance as to what price you can realistically obtain for your property. Be prepared to accept a suggested price lower than your expectation as all sellers have high expectations, sometimes unrealistically so.
- Facilitate showhouses
The property will need to be showcased to potential buyers. Be patient and flexible with the estate agent wanting to show your property to potential buyers. Although having a showhouse can be convenient, it allows the selling agent to invite multiple buyers in one day to view the property. Having showhouses will save the inconvenience of agents showing buyers your property at other more inconvenient times.
Not giving the Estate agent time to showcase your property is just going to delay the sale of your property.
Tip: Ensure your property is clean, tidy, and not cluttered. This will definitely assist in creating a better impression with the buyers and you may even be offered a higher selling price.
- Use an experienced estate agent
Using an inexperienced agent is not a good idea. You want to use an estate agent that is visibly present in the area you are selling your property, as they will be familiar with the market. An experienced agent will facilitate the full selling process, expedite any problems, and manage both the seller’s and buyer’s expectations and wishes.
You would also want to use a reputable agent that is honest and upfront. You prefer not to use an agent that promises the world as this may translate to a buyer receiving misrepresented information about the property.
Tip: Use an estate agent that a family or friend has referred based on their experience with the agent.
- Be prepared to negotiate
Make sure that you are prepared to negotiate. Buyers are always going to try to obtain the best price for the property and will look for reasons to reduce the selling price.
Be prepared to negotiate repairs that may be reasonably needed to conclude the deal.
Treat each request with diplomacy & understanding as outright disagreement may just scare a buyer away and ultimately delay a possible sale.
Repairs that are observed by buyers will often be included in an offer to purchase and unless attended to, will just delay the process especially if a buyer still has to obtain bond approval.
Tip: Keep your property well maintained leading up to the sale. Ensure that all visible issues are attended to before potential buyers see them.