Inflation and interest rises are changing the real estate landscape after one of Australia’s strongest-ever growth eras, in which values increased an average of 35% in two years.
Buyers’ so-called “Fear of Missing Out” (FOMO) has gone now, and industry researcher CoreLogic is reporting mild value falls for houses and apartments nationally.
While its analysis does not necessarily reflect the value of your home, or indeed the prices possible in your suburb, it’s an indication that higher living costs are tamping down buyer exuberance.
As an experienced agency, we have outlined for you three key factors that sellers should consider when a market mood changes. We hope you find them useful. And if we can sell your home, we’d love to talk to you.
Price
If your home has been on the market for a while and isn’t getting much attention now, then 90% of the issue in a changing market will be price.
Remember, you are now in a competitive environment for buyers – and your rivals are properties of similar size and style in your area.
Sometimes, it’s worth re-listing a property with a 5-8% reduction in price. A home that remains on the market so long that it goes stale sells for much less or doesn’t sell.
Most owners will not be out of pocket as their next home will face the same value challenge. However, discuss your circumstances and any concerns with your agent.
Presentation
It’s essential you invest time and dollars in making your home beautiful. Talk with your agent to discuss elements of your home that will command a premium with prospective buyers and exploit them for all they’re worth.
Simple projects that deliver a great return include repainting, landscaping and renovating a tired bathroom or kitchen.
Declutter like crazy. Space as a selling point is often crushed by oversized furniture and the clutter of everyday living. Remove unnecessary furniture and personal bric-a-brac to enhance the feeling of space in your home.
Marketing
You need to invest in marketing, and it’s important to discuss with your agent how they’ll spend your money.
Video, social media and advertising on the major portals are part of that picture. For us, high-quality still photography is essential.
As the market returns to more usual behaviours, sellers appear to be spending more on marketing, according to the real estate firm CampaignAgent. By the way, your agent might call marketing VPA or Vendor Paid Advertising.
Sellers who delay paying their agent for VPA actually spend more than those who opt for a flat fee upfront. According to CampaignAgent, the reason is that sellers become increasingly willing to promote, attract as many buyers as possible and, ultimately, maximise the value by creating competition between buyers.
NOTE: The information in this article is general in nature and provided as a general overview only. Always consult your financial advisor or accountant for advice specific to your personal circumstances.