There’s no denying that it’s a tougher market for vendors.
House prices have fallen around 2%-6% across Australia’s capital cities over the past 12 months and auction clearance rates show that buyers have the upper hand.
In times like this, our advice is that if you don’t have to sell, don’t. The market is going through a correction but the demand drivers for property in Australia remain and we expect growth to return within a few years.
However, some property owners will be in a situation where they simply must sell. So here are some tips to ensure you do it well:
1. Aim for perfection
Fewer properties are being listed than was the case 12 months ago, which means vendors face less competition.
But in today’s market, buyers know they can be choosy and are less willing to compromise.
Understand where demand for your property will come from and what buyers want, and try to tick all of their boxes.
2. Be realistic about price
Demand for property has not evaporated, and you can expect to obtain a reasonable sale price in most circumstances.
But it’s not reasonable to expect the returns vendors were seeing in 2017.
Don’t disregard a great offer while holding out for an unattainable result – your property could languish on the market as buyers seek better deals elsewhere.
3. Prepare to negotiate
Most properties up for auction are still selling, even if they aren’t sold under the hammer.
Invariably they are sold within hours or days of the auction.
This is where negotiation skills are crucial. In these situations, knowledge is power – if you do your homework on the prevailing market for your property, you can negotiate with confidence.
4. Get help from the best
In a falling market, it’s not just about finding a good agent; you’ll need an experienced agent who has survived a few market ups and downs.
The right agent will use their substantial skills and techniques to seek out prospective buyers, create competition for your property and negotiate a good result, whatever the market conditions.