The residential property market in South Africa remains weak as our economy struggles to come to terms with underperforming SOEs, growing unemployment and poor business confidence. This isn’t the first time South Africa has found itself in this situation, and while most seem confident the economy will recover, it doesn’t help house sellers in the short term. 

Property, like most markets, behaves in a rational manner – it responds to supply and demand and sets prices based on economic realities. Unfortunately, no matter your aspirations, you generally can’t beat it, and this presents a problem for seniors needing to sell the family home in order to scale down, liberate capital or move into a retirement village. 

Many sellers hold onto an aspirational price for their homes – even when the market clearly indicates that they are overpriced by 10%–20%. There are those who are in a position to take their homes off the market and wait until things improve. But for those facing challenges other than financial ones – they may need to move for family, health or other reasons – the sale of the family home becomes even more stressful. 

So, how can seniors win in the face of a soft property market? Here are some thoughts.

1. Manage uncertainty
No-one knows how long the market will take to recover, so if you intend wait for a price lift, make sure that the non-financial consequences of your delay, and the missed opportunities, don’t outweigh the benefits. Your perception of what your family home is worth is often driven by emotion rather than reality and you could end up worse off if you decide to wait. Make sure that you are advised by a trustworthy real estate agent. 

2. Strive for a neutral outcome
If you’re planning to sell and buy in the same market, aim for a neutral outcome. In other words, if you need to accept 15% less than the asking price for your family home, match this, as best you can, with a discount on your new home. While it’s difficult to get this right if you’re buying down, as the price adjustment of more expensive homes will be greater than the smaller home you’re scaling down to, it is still possible to achieve a relatively neutral outcome.

3. Consider a Life Right
The Evergreen Life Right is one way to win in a depressed property market. Taking the needs of its purchasers into account, Evergreen has introduced flexible pricing which allows them to emerge cash neutral in the current market. How? By offering reduced prices on new Evergreen homes, offset against a reduction in the terminal capital due to your estate when the Life Right terminates. Being able to purchase an Evergreen Life right at 10%–20% off the list price, will enable you to reduce the selling price of your family home by 10%–20% and remain cash neutral. Many purchasers who do not wish to wait for the soft market to strengthen are finding this flexible pricing extremely valuable. In addition, Evergreen’s internal realtor will help you sell your home at a preferential sales commission, ensuring a stress-free back-to-back transaction.

So, while you probably can’t beat the property market, you can still win with our flexible pricing policy if you consider an Evergreen Life Right and take us up on our Partnership for Life promise which offers excellent physical security, financial peace of mind, continuous care facilities and an authentic sense of community.

Talk to us about how our flexible pricing can help you live the Evergreen lifestyle. Call Sharon on 087 808 7000 for more information.

Keen to find out more about Evergreen’s flexible pricing? Download our free comprehensive guide today.