How to sell in a buyer’s market

Wednesday 19 Dec 2018

There’s no denying that Australia’s property market has entered a new phase, with a number of factors contributing to fewer buyers seeking homes, as well as a general cooling in the market.

But while it might therefore be a great time to be a buyer, it doesn’t mean there aren’t still good opportunities to achieve a great price as a vendor, too.

It might, however, require a slightly different approach to how you might have tackled the sale of your home two years ago.

Here are some key tips you might consider as you get ready to sell.

Get your agent right

Gone are the days of simply putting your property up online and watching as dozens of potential buyers roll through the door at your open for inspections.

In a softer market, the skills and resources of better agents inevitably come to the fore, so it’s important to find the right agent to market your property. When the market is going through a rebalancing period like it is at the moment, it’s probably when the best agents really perform.

When the market’s really buoyant and everything’s selling well over reserve it’s very easy; anyone can stand and take names and numbers at open for inspections and let the auction take care of itself. But when the market’s slower or softer, that’s when you really need to have an agent that’s very enthusiastic about the process and really utilises their buyer database, rather than just expecting buyers to come to the property.

Having an agent that’s got a good network and spends a lot of time with buyers and have good relationships with buyers, they’re much better able to bring buyers to properties that those buyers may not otherwise have considered.

Good agents will know their potential buyers intimately, and will have strategies to attract people who have the budget required to get you the price you want.

If you’re selling a house that’s worth $1 million and you’re bringing buyers that have got around $900,000 or $950,000 to spend then it’s going to be a real stretch for them. But if you bring buyers that have $1.1 million to $1.2 million, even in a market that’s a bit softer that’s when you’ll get a real upswing in the result.

Drill down on marketing

A blanket, formulaic approach to marketing your home is unlikely to yield the best results in a buyer’s market.

Advertising that works well for a four-bedroom family home in the outer suburbs is unlikely to work as well for a sleek, inner-city warehouse conversion, and vice versa.

So ensure you’re spending your marketing dollars in the right areas for your specific property.

These days there are a wealth of tools out there – particularly online – that will help put your home in front of the right people, more often, and will give you the best bang for your buck throughout your campaign.

So think carefully about how your advertising dollars are being spent, and consider what type of campaign might be right for your home.

Educate yourself

The easiest way to ensure you’re happy with a result as a vendor is to know where your price sits in the current market.

Taking the time to do your research, speak to agents and attend other auctions means you’ll have a much better idea of what your property is really worth, and what represents a good result.

Few properties are soaring past their reserve at auction like they once might have, so framing your own market will go a long way to ensuring you’re happy with the price you end up with.

The market going through a bit of a transition means that the quoted price ranges are far more accurate than they were 12 months ago. Properties aren’t running way over like they would have previously.

The most successful auction results lately, have had vendors that are well educated around the current markets and market environment, and have been relatively realistic in their expectations.

Though auctions are still the method that will give you the best chance of a surprise boom price. Having the momentum of an auction is where you can get a really good runaway result.

With Cripps & Cripps, we have the experience to know how to react to changing market conditions.  If you’re looking to sell your home this year, experience the difference with us.  Contact us on 9523 6511.