After months of owners holding onto their properties tightly and bolstering prices, the pendulum is swinging back in favour of buyers, and especially for Kiwis who are seeking to upgrade.
The recent 0.25% reduction in interest rates – the Official Cash Rate (OCR) has now fallen from 5.25% last August to 3.25% – is offering upsizers additional flexibility.
One of the most misleading assertions in property is that a buyer’s market is bad for owners.
That’s not entirely true. Why? Because owners are also the majority of buyers, often seeking to upsize or relocate.
Of course, some people are offloading their real estate – death and divorce being primary reasons – and others may be downsizing. However, the biggest buyer segment are the upsizers.
If that’s you, we recommend you take in the latest market trends.
Here are a couple of key observations: While you may not achieve your desired price of your current property, you should more than make up for that disappointment with the purchase price of your next home.
In this instance, you’ll actually make a bigger gain overall from your transactions when upsizing.
Another plus for buyers – upsizers and first homebuyers – is the fact the NZ market has rarely seen so many homes for sale.
The change in the number of properties for sale since the end of Covid is remarkable. In April 2021, NZ is said to have had 15,838 homes on the market. That number now stands at somewhere between 36,000-44,000, depending on the data source.
This plentiful supply is having a bearing on the market’s price trends.
Realestate.co.nz data from April says homes declined for the second successive month, dipping to $851,746, a -3.8% fall from $884,995 in February.
Here are six tips for selling your home in the current market:
Presentation is paramount: To maximise the value of your home in the current market conditions, it’s vital you focus on presentation. Consider painting inside and out, and hiring a professional company to “stage” the property. First impressions are critical when buyers have choice.
Fix the problems: Don’t open yourself up to strained conversations about fixing silly little problems that can lose you buyers, or be a source of leverage in a price negotiation. You want your home to feel ready to move into straightaway.
Gild the lily: You can make a huge impact by updating fixtures such as lights and even light switches. And if you have a garden, it’s worth spending time and a little cash to present it beautifully.
Price strategically: Overpricing is a significant deterrent no matter what mood the market is in, but it’s fatal right now. Work with your agent to identify your key buyer segments, and do your due diligence on recent sales of nearby properties that are similar to yours.
What’s your USP? Let the so-called Unique Selling Propositions (USPs) of your home come to the fore. Make sure buyers know about features, such as your proximity to schools and shops, or the fact you have energy-efficient features, like solar panels. All these things count.
It’s a virtue: Patience is key in today’s market. Be flexible with showing times and expect buyers to take their time. Right now, they’re under little pressure to act quickly. If you can work with your agent to create a little tension between two or three buyers, your deal may be sealed faster than you imagine.