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While property markets in Sydney and Melbourne continue to boom, conditions for selling property in other areas of Australia, such as Perth, Darwin and Adelaide, are quite challenging and can best be described as a buyer's market.
Blogger: Shane Kempton, CEO, Professionals Real Estate Group
In many regional capital cities and towns, the buyer is ‘king’ and anyone who is considering selling their property has to come to terms with this fundamental reality in market conditions.
Buyers now have literally thousands of properties to choose from and as a result are taking months to make a final decision on the property they want to buy. For example, init now takes on average 71 days to sell a property whereas two years ago it took on average 49 days.
If you need to sell one of your investment properties in the current real estate market then all the three Ps of marketing a home have to be precise at the outset – pricing, presentation and promotion.
The most important reason that properties are not selling in the current market is that they are overpriced. In a rising market, an overpriced home will eventually sell because the market catches up with the price. In the current market overpriced properties simply remain on the market without any interest from buyers. Even an average home that is overpriced by $10,000 will not sell.
When appointing a real estate agent to sell your property, ask for independent information on the most recent property sales in your area (within a month) for similar type homes. This will give you a good indication of the true market value of your property. Once you have determined a price for your home, you could include the word 'negotiable', which will give you some flexibility with home buyers.
The first impression a home buyer has of your property is from the street. This street appeal will largely determine if the home buyer even inspects your home. As a result, you should ensure that the gardens are well presented and the exterior of the home is well maintained.
Inside the home, areas such as the kitchen and bathroom are key selling points for the home and they should be always kept clean and tidy. Simple tips for improving the interior presentation of the home is to paint the walls in a light colour and the maximum use of external light by keeping windows clean and using mirrors in smaller bedrooms.
You should also remove and store non-essential furniture and items that might clutter the home. These tips will make the home more inviting to home buyers because they often make their decision on buying a home on their emotional reactions.
Promotion is critical to informing potential home buyers about your property. In the current market, the property has to be promoted to the widest number of potential buyers and that means aggressively using print and electronic marketing.
When selecting a real estate agent, you should ask them to present a market strategy for your property that is properly targeted to potential home buyers. For example, the property might appeal to investors. As a result, the advertising should promote issues such as rental return and potential capital growth for investors.
Getting the three marketing components of selling a home correct (presentation, pricing and promotion) is very important during the first weeks the property is listed for sale because a new property for sale generally attracts the highest level of interest from potential home buyers during this period. Most Perth properties that meet this marketing benchmark generally can sell within a relatively short period of time after being listed for sale. Therefore, if the property is properly presented, priced and promoted, it should sell fairly quickly once listed for sale because of this high initial level of interest from home buyers. The longer the property is on the market, the fewer home buyers it will attract over the longer term and this will compromise the eventual selling price of the property.