It’s every seller’s dream to make a quick, successful sale. In order to do so though, it’s important to target the correct segment of the market.
The market can be split into six basic segments:
- Entry-level buyers
- Family buyers
- Mature or second-time buyers
- Investment buyers
- High-end buyers
In South Africa, property ownership ranks high on the agenda and moves have been made to open up the market, particularly to first time buyers who make up a large portion of the market. It’s important to keep in mind that if you are marketing your home to this segment that many buyers will have limited budgets, want real value for money, and will probably negotiate hard to get what they want.
Family orientated buyers have very specific requirements when it comes to buying a house. Deciding factors for these buyers typically include proximity to good schools and all necessary amenities, such as hospitals. Generally speaking, family home buyers look for secure properties where their children can grow up in safety, yet earn a decent return on their investment when their children leave the nest. Other deciding factors for such buyers include value adds such as a swimming pool, a sizeable garden, and an entertainment area.
As people live longer, the demand for homes that cater to this segment has increased.Mature buyers at or near retirement age require certain features that are non-negotiable. These include single-story residences and well-proportioned bathrooms with features such as handrails and emergency buttons. Security is also a big concern for such buyers. Homes for mature buyers will inevitably need to be close to medical facilities too.
Leisure buyers typically seek holiday or second homes which are easily accessible, close to numerous attractions, are easy to maintain and secure. If you think your home fits into this category and you to want to attract buyers in this segment, be sure to focus on these points.
Buyers in this segment usually buy a property with a view to leasing it out. For these buyers, such purchases are not based on emotions but are usually driven by investment return figures. In other words, for a home to appeal to an investment buyer, it needs to show potential for both capital appreciation and rental income. To a large extent, investments buyers are going to be savvy as there are risks and expenses involved. For example, one of the threats investment buyers are aware of is not being able to find suitable tenants. There are also tax implications which need to be considered. As such, sellers need to do their homework on these aspects if they hope to attract investment buyers.
For many buyers, the ‘right’ address is incredibly important. Exclusive features such as superior en-suite bathrooms and high-end fixtures and finishes are also essential considerations for these buyers. Good security and close proximity to major arterial routes, including important business nodes, are all aspects that hold equally important standing in this market’s decision-making processes. These should be factored into your marketing plan accordingly.
Although different factors apply to different buyers, a few common rules apply to all homes for sale.
- First impressions last, so make the most of the exterior of your home
- Make sure the home is clean, uncluttered and well maintained
- Make your home move-in ready. Buyers will feel far more positive about a potential purchase if any cosmetic or structural issues have already been addressed