Even though the property market is booming, vendors still need to have a strategy for selling.
In a rising market, it can be tempting to think real estate sells itself. But even though your property is likely to sell, you should still have a strategy, especially if you’re planning on buying something at the same time.
With that in mind, here are our seven tips for selling in a seller’s market.
1. Be prepared
Just because prices are rising, there’s no excuse for taking your foot off the pedal. Even in a sellers’ market, buyers will almost always pay more for homes that are marketed properly and presented well. Besides, even though it’s likely your property will sell (the auction clearance rate for Brisbane is above 80% right now), that doesn’t always mean it will sell for as much as it could. The best real estate agents work just as hard for a property when times are good, as they do in a slow market.
2. Choose the right sales method
Different sales methods tend to suit different properties but in a hot market, the rules sometimes change. For example, we often advise people selling a high end or unique property to sell off-market. However, with so much unfulfilled demand right now across all price points, we’ve taken some ultra-premium listings to auction, with fantastic results.
3. Buy first, sell second
You’ll still need somewhere to live, even once you’ve sold your home. And, while this may be a great market in which to be a seller, it can be a challenging one in which to buy. If you’re buying and selling, we’d generally recommend you buy first and sell second, especially if you’re upsizing. That way you won’t just have already secured somewhere to live by the time you sell, you’ll also give yourself the opportunity to capitalise on any future price rises and narrow the gap in price between your purchase and sale.
If you want to avoid having to pay bridging finance, you could also try to negotiate a longer settlement period on the home you buy so that you can settle your sale and purchase simultaneously.
4. Be ready to act
A full real estate marketing campaign can take some time to play out. For example, it’s standard practice to allow between three-to-four weeks for an auction campaign. But in today’s market, with demand so high, we’re encouraging sellers to be ready for a much quicker sale. We’re often taking buyers through a home by private appointment before it officially goes to market. That way, we can create exclusivity and a buzz. We’re also encouraging them to have complete due diligence on the property to make it easier for buyers to buy. Don’t be surprised if you get an offer beyond what you’d anticipated even before the property goes to market.
5. Be flexible
When a market is moving daily, it can be difficult to accurately gauge a property’s value. That’s even more true when you consider that, when it comes to Eastern Suburbs property, there are markets within markets and not all segments have experienced the same rate of growth.
For example, right now houses generally tend to be in higher demand than units. Brisbane-wide the median apartment price lifted 3.2% over the March 2021 quarter, while the median house price rose 6.2%.
With this in mind, it pays to be flexible about what to expect. Often you won’t get a proper sense until you’ve tested the waters and worked out just how far buyers are prepared to stretch.
6. Be realistic
While it’s true that this market is a strong one, that doesn’t always mean your property is worth the same as your neighbour’s. If they have an extra bedroom, a better aspect, a more family-friendly layout or even better presentation, they’re still likely to command a higher price. The same laws of supply and demand apply in a seller’s market. Buyers will always pay more (or less) for certain things.
7. Use an experienced real estate agent
It may be tempting to believe a good real estate agent only matters in a down cycle. But our experience is that it’s in times like these, where prices are rising, that an experienced and capable agent matters even more. After all, being able to seek another 5-10% out of buyers in a strong market could be the difference when it comes to setting you up financially.
If you’d like advice on buying or selling in today’s market, get in touch.