SELLING YOUR PROPERTY IN A DIFFICULT MARKET
Regardless of the wildly varying predictions about the real estate market, one thing is for sure; the market has slowed to a snail pace. We are now faced with greater supply than demand, making it a buyer’s market in some areas.
If you are planning to sell your house, it is important to be realistic about setting your price. There are several steps you can take to ensure you get the best price for your property and that you achieve a sale within a reasonable time frame.
Buyers select properties based on their lifestyle, emotional and financial circumstances, and now in the current market they have increased buying power. If you optimise the look and feel of your house, you lessen the risk of buyers overlooking your property because of a few minor disadvantages it may have.
The Look of Your Property You need to see your property from a buyer’s perspective, and ensure it is aesthetically pleasing. Make sure your house is immediately livable. Buyers will expect to pay a bargain price for a house requiring work before they can move in. The buyer’s first impression of your house is the front yard, and a well presented, tidy yard will always add value. Mow lawns, trim shrubs and repair any visible damage - always keep garbage bins out of sight. Outside the house, a fresh coat of paint on window trimmings or new varnish on the front door can make a big difference to the appearance. Inside your house, de-cluttering can make rooms seem more spacious. If your house is cluttered, aim to remove at least one piece of furniture from each room and put it into storage. Brighten up your home with better lighting and a fresh coat of paint wherever needed. Replacing worn carpet can also have a huge effect on the appearance of your house. Fix the little things you have neglected, such as wall dents and cracked light switches. Make sure the house is sparkling clean prior to the inspection. This includes a clean and well presented kitchen and bathroom with no visible mould. You may also need to clean and reorganise the inside of cupboards, as people will often open these.
The Feel of Your Property You need to appeal to the buyer’s emotional side, so that they see your house as their own, not someone else’s.
Take away excessive personal that may appear as clutter to a buyer. These items might include sporting trophies, pennants, hobby items etc.
During the house inspection Turn on heaters in winter so that it is warm and cosy inside. Make sure there are no bad odours by keeping your home well ventilated prior to inspections and burning some pleasant smelling oils or dispersing air freshener beforehand. Remove pets and their feed bowls so they do not distract prospective buyers from the house, or deter those who do not like animals. If the furniture has been removed, rent some. People find it easier to imagine living in a home if there is attractive furniture around.
Stay ahead of your competition Think of other houses on the market as your competition. Research the market by going to open house inspections in your area to see what other homes are offering in a similar price range. Are the other vendors doing something you can also do to make your house more presentable and competitive? Make sure your property is accessible by making it available for private inspections during the week as well as on the weekends. Make sure your real estate agent is actively seeking buyers by contacting people who have shown interest in your area. Buyers may also desire flexibility regarding the settlement term. Be prepared to negotiate an agreeable settlement period.
Auction or Private Treaty? When there are plenty of buyers, auctions often produce better outcomes, faster, as they encourage competition between buyers and drive up the sale price. However, with auction campaigns typically lasting about four weeks, this may not be enough time to generate substantial interest if supply exceeds demand in your area. Ask for your agent’s advice. Private Treaty Sales allow time for buyer interest to develop, but it’s important to set a realistic asking price early in your campaign. This method lacks the urgency of auction and the risk is that buyers become suspicious if they think the home has been for sale for a long time.
Price realistically This is the golden rule to gaining genuine interest in your property. Make sure it is priced according to what the market dictates. Pitching too high will not attract interest as your property is only worth what buyers are prepared to pay for it. Think about the why you are selling your property. Don’t forget, if you are selling and buying in the same market, if you have to sell for a lower price then you should also be able to buy for a better price too!
