It’s all over the news, cries of property prices exploding and bursting bubbles. As an Inner West agent, I’m right at the forefront and thought I would share with you exactly what I’m seeing on the ground.
So has the bubble burst? I’ve definitely seen a shift in buyer confidence. Buyers are cautious and certainly not rushing in if they aren’t finding the perfect home for them. Some agents and owners have become more nervous which you can see in the number of homes selling before auction. With saying this, buyers are still out and about, they are still eager to buy, people are still wanting to shift, upgrade and even get into the market for the first time. Yes, there has been a comparable shift in auction clearance rates, however at 74 per cent last weekend, they are still clearing.
So what are my three tips for people thinking about selling in what is considered a “slower” market than six months ago?
Choose an agent that does more than just open the door. There are two distinct types of agents in the industry. Those that open the door and think a home can sell itself, and those that build relationships with buyers and really take the time to understand and remove perceived objections they may have about your home. There are plenty of agents who have never seen difficult selling conditions in their careers and mediocre agents can be hidden in a fast moving market. A slowing market is when you see the true value of a quality real estate agent, one that works closely with buyers is going to help you achieve a far better price.
Price your home right. Buyers have already adjusted their price expectations. This time last year, waiting an additional six months to find the perfect home could have cost a buyer an additional $100k where as now, they are seeing that prices aren’t shifting dramatically. Sellers however are generally slower to adjust expectations as they may have made their decision to sell a few months ago when the market conditions were fast moving. It’s sometimes hard to let go of the excitement that you may just get that crazy price that was possible just three months ago.
In the past couple of weeks, there has been an increased number of homes hitting the market prior to the spring rush. If you and your agent don’t get your pricing right, there’s a stronger chance that buyers will see more value in a comparable home that is priced at their expectations. A good agent will help you work through the pricing strategy to understand where buyers will see value in your home.
Remove buyer objections. Again the value of a good agent will be someone who really knows what buyers do and don’t like and will work with you to remove perceived objections in your home. Objections can cost you money in a fast moving market, but in a slowing market, they can cost you the sale of your home. Real estate agents should be problem solvers. Every property has its own issues, but the way your agent can talk about and resolve these issues could mean the difference between having maybe one or two bidders at the auction or having four or five.
This is my most recent sale at 50 Cardigan Street, Stanmore which sold at auction on Saturday with seven registered bidders.
If you are thinking of selling I hope these tips have helped you understand what’s important in the market right now.
I’m always happy to chat one on one about a specific plan for your home, so please call me if you would like to understand what all of this means for your Inner West Address.
ph: 0478 750 750