In recent months, record auction clearance rates have been seen across Australia and many suburbs across the country have been in boom real estate conditions, with properties selling for top prices.
For many sellers, it’s never been a better time to get a good price.
But selling in a hot market comes with a unique set of considerations. And you still need to be prepared when you sell.
Are you selling in a hot market?
Determine whether your area is a hot market by asking:
Are clearance rates substantially above the long term average for your area?
Are homes consistently selling for record prices or over reserve at auction?
Are days on market and vendor discounting reducing?
Are median prices and sales numbers trending upwards?
If you are in a hot market, consider the following to make the most of the opportunity:
Play hard ball.
Sellers automatically have the benefit in a hot market, so you can afford to play harder with buyers. This doesn’t mean asking unreasonable prices: you still need to meet the market. So while a strong initial bid may be worth considering, speak to your agent about whether you may get something better. You can also negotiate on other terms like longer or shorter settlements.
Consider an auction.
Auctions are more common in hot property markets as they can really draw out competition between buyers. So in a hot real estate market talk to your agent about whether they recommend an auction for your property.
Go big or go home
Even in a hot market properties don’t sell themselves. A hot market can mean more competition. So hit the market with a splash. Be prepared with strong advertisements. Give yourself the best opportunity by getting to the top of the listings pile.
Be ready to sell – fast
While some vendors list with a “wait and see” approach to the transaction, in a hot market offers can come thick and fast. Be mentally prepared and ready to sell so you can take advantage of the opportunities that may come. Think through the scenarios in advance, know what price you are happy to sell at and allow your agent to use their knowledge and experience to guide you.