Katima Mulilo Property Sellers Warnedas Overpriced Homes Hit Brick Wall

MOST PROPERTIES AT Katima Mulilo are struggling to sell because they are overpriced.

Many sellers are putting properties on the market without doing proper valuations or checking current market trends.

In many cases, the price is based on what the owner believes the property is worth rather than what the market is actually willing to pay.

This often leads to properties sitting on the market for long periods without serious offers.

On top of that, a lot of these houses are in poor condition, which makes it hard for banks to approve home loans. If the bank can’t fund it, the sale simply doesn’t go through.

Some buyers might like the property, but if the bank valuation comes back lower than the asking price, the buyer is left with a gap they must pay themselves. For many buyers, especially first-time homeowners, that is simply not affordable.

Some of the prices are even competing with Windhoek and Swakopmund, which doesn’t make sense because Katima Mulilo does not have the same level of business activity or industries driving the market. Most buyers here are civil servants, so affordability is limited.

Katima Mulilo’s doesn’t have a booming business sector or industries that will influence the market. The local economy is much smaller compared to bigger towns, which means property demand is naturally lower.

Of course most people will feel their properties are worth more but the big question is, is the price you want a realistic price, is it in accordance with the market?

Banks do not finance properties based on the selling price but the market value of that property. This is something many sellers overlook when they decide on an asking price.

If sellers want their properties to move, prices need to be realistic and in line with the local market.

– Neil Sinvula is an estate agent.

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