Avoiding the pitfalls of selling in 2018/2019
(Under 3 minutes reading time)
There is a lot of fingernail biting going on right now for those with a vested interest in the Melbourne market. Buyers and sellers are reading media articles that discuss seemingly negative lower auction clearance rates, price cuts and the Royal Commission into the banking sector. Some sellers currently on the market are noticing reduced numbers of buyers in attendance at open homes and for those that are selling by private sale, the time needed to obtain a finance approval may be longer that it previously has been.
As the clearance rate for Melbourne auctions has declined to 47% last weekend this has meant that there is a gradually increasing number of homes still unsold on the market which is adding to the burgeoning stock levels. As basic economic principles of supply and demand dictate the market value, we are seeing more affordable property than we have seen in quite some time which is providing a variety of choice for those looking to purchase a property.
If you are planning to sell in this current climate there is no benefit in concerning yourself with these supposedly negative elements, the market is always changing and opportunities are available everywhere to those that are prepared to accept the facts and be smart about it. The main pitfalls we are seeing sellers fall into at the moment are the same as those they were subjected to a year ago but they are now magnified somewhat. They are as follows;
Presentation: It's always been important to present your property well, but in this market some sellers are choosing to save the money on presentation in order to mitigate their losses should their property not sell. This is of course a false economy as it is pushing the property further away from being salable in a market where the buyers have an abundance of choice. The homes that are the most appealing will always get the attention of buyers. Spend the time and effort in paint, new carpets, staging etc.
Marketing: Likewise there is a tendency to want to minimise the expenditure involved in reaching buyers using marketing material such as digital media and printed media however the reality is that an extra effort is required to notify buyers in the current market. Many buyers reflex is to say 'no' at the present time so the more prospective purchasers you can reach, the greater chances of being noticed by the serious buyers.
Pricing: In a rising market even properties that hit the market with a price that is a little on the high side will still sell when the values catch up to the asking price however at present, the most noticeable properties are those that are priced fairly. In fact, when the correct price is advertised, there are sometimes multiple buyers that jump in to make an offer. As always, when there is more than one interested party, the competition may push the price beyond your expectations. It's tempting to compare your property with similar homes that were sold many months ago however it is vital that your agent works off recent comparable sales and not ones that are too old as the old prices are no longer relevant in the new market.
The market: The market is what it is, a market with a market value associated with each property for sale. The market forces dictate the value of each property and the same market dynamics apply across more or less all properties advertised for sale. Naturally if you are purchasing another property at the time you are selling your property, the same conditions will apply to both the sale and the purchase which means you are not disadvantaged by what the market is doing. In fact, if you are willing to accept this fact earlier than your competitors you will be at a distinct advantage by achieving your goal of selling within a reasonable space of time. Then you can focus your energy on your important objective of securing your destination property. As the old adage goes, the profit is in the buying.