Lake Properties Lake Properties
Lake Properties Lake Properties
Let’s break down in more detail how to find properties under market value in South Africa—what it means, where to look, and how to act effectively:
✅ What Does “Under Market Value” Really Mean?
A property is under market value when it’s priced below what comparable properties in the same area are selling for. This could be due to:
- A motivated seller needing a quick sale
- A distressed situation like repossession, divorce, or death
- A property needing renovation or having legal complications
- A seller unaware of the current market value
You profit by buying low and later renovating, reselling, or renting at full market rates.
π 1. Distressed Sales — Where Real Bargains Live
These sales are urgent by nature, and sellers often accept lower prices to close quickly.
π₯ Types of distressed sales:
- Bank Repos (Repossessed homes): Owners default on their bonds, and banks reclaim the property.
- Deceased estates: Family members often just want to liquidate quickly.
- Divorce cases: One or both parties want to move on.
- Job relocation or emigration: Sellers need quick cash.
π Where to find them:
- MyRoof.co.za – Bank repos, sheriff auctions, fixer-uppers
- SAHomeTraders.co.za – Search for “urgent sale”
- Estate agents – Ask for their off-market or distressed listings
- Facebook groups – Local investment and property groups
π️ 2. Property Auctions — Higher Risk, Higher Reward
Auctions can offer properties well below market value, but you must be informed and cautious.
π₯ Types:
- Sheriff’s auctions (court-mandated): Typically the cheapest, but can have hidden costs (like rates owed)
- Bank auctions: Less risky, as banks often clear outstanding rates
- Private auctions: Estate agents or auction houses
π‘ Tips:
- Visit the property if possible
- Check the title deed, rates/taxes owing, and occupancy status
- Attend a few auctions first before bidding
π Where to find them:
π 3. Property Portals – Filter for Value
Most major websites allow filtering for “urgent” or “price reduced” listings.
π Use filters like:
- “Price reduced”
- “Negotiable”
- “Urgent sale”
- “As is”
- “Needs work”
π Best platforms:
- Property24
- PrivateProperty.co.za
- Facebook Marketplace
- Gumtree or OLX for unconventional or off-market deals
π¬ 4. Leverage Relationships with Agents & Wholesalers
Real estate agents often have access to “pocket listings” — properties not yet advertised.
π Ask:
“Do you have any motivated sellers, price drops, or properties that’ve been sitting too long?”
π€ Also connect with:
- Property wholesalers – They find below-market properties and assign contracts to investors for a small fee
- Attorneys dealing with estates or divorces
π️ 5. Fixer-Uppers: Turn Ugly into Opportunity
Properties that “look bad” are often neglected gems. Many people avoid them, which means less competition.
π Look for phrases like:
- “Needs TLC”
- “Sold as is”
- “Investor’s dream”
- “Handyman special”
Renovating smartly (especially in high-demand areas) can create instant equity.
π 6. Do a CMA: Is It Really Below Market?
Before you act, analyze value:
- Compare the property to 3–5 similar properties sold in the last 6 months
- Look at price per square meter
- Consider current market trends in the suburb
π Use tools like:
- Lightstone Property – Paid, but highly detailed
- Windeed – Title deeds, sales history, etc.
- Ask estate agents for valuation reports
π§ 7. Direct-to-Seller Tactics (Off-Market Deals)
These are hidden deals you get before anyone else.
How to find them:
- Driving for Dollars: Drive around looking for neglected homes. Knock, leave flyers, or send letters.
- Community groups: Join suburb-specific WhatsApp or Facebook groups.
- Door-to-door in high-potential areas. Ask:
“Would you consider selling if the offer was fair and hassle-free?”
This works especially well in older suburbs or townships where some owners inherited and don’t want the property.
π§Ύ Bonus: Deal Calculator & Checklist (optional)
Would you like me to give you:
- A property deal calculator to assess if a deal is under market?
- A checklist to run due diligence before buying?
Both help reduce risk and speed up decision-making.
π Summary
| Strategy | Pros | Caution |
|---|---|---|
| Repos/distressed sales | Cheapest, fastest deals | Can have legal/rate issues |
| Auctions | Below-market potential | Risky if not researched |
| Online filters | Easy access | High competition |
| Fixer-uppers | Value-add opportunity | Requires renovation capital |
| Agent/wholesaler leads | Off-market access | Relationships take time |
| Direct-to-seller (off-market) | Little to no competition | Time and effort intensive |
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