In this informative 14 minute clip, I describe the most important things home owners need to consider when selling their property. The video covers topics such as choosing the agent, presentation, pricing, and method of sale.
If you would like to receive a free Market Report on your suburb, detailing trends, demographics and recent sales, click here. I have also prepared some helpful information in my report “The 7 mistakes home sellers make”. You can order your copy here.
For more information on preparing for your sale, call me on 0412 247818, or Freecall 1800 302027.
I’m not sure The Clash had Real Estate in mind when they wrote that song in the 80’s, but I’d like to thank them for the heading, because it is something that I have been asked fairly frequently in the past month or so, as owners weigh up their options as to whether they should accept an offer or hold out for more money in a different market.
My first response is – “It depends on your own circumstances, and what you are trying to achieve”. Some will be better off waiting, but I think the majority will be better off accepting their current situation, looking to maximise their price in that market, and moving on. Here are a few examples I have come across lately…
Vendors who would like to achieve a sale price of $270000 to $285000, when all the feedback has been around $250000 to $260000. This was an investment property that was yielding around 3.5%. The owners were selling as they had a mortgage on the property, and one of them had lost their job, making it hard for them to keep up repayments and maintain their lifestyle. They asked me “Should we wait until the market gets better and we can get more?” When we looked at the numbers, the answer was no! We were needing an increase of 3-5% over the 6-12 months that they really needed to sell within. Considering the state of the market, (which I see as a normal, balanced market) and the fact that the “experts” are saying the Sydney market may increase by 2 or 3 % in the next 12 months, the answer became clear. They should look at maximising the offers they are getting in the current market, and move on! The costs of holding on (both financial and lifestyle – stress, etc) were not worth it considering the potential increase in the short term. ie any potential increase would only be wiped out by the holding costs, not to mention the stress. We adjusted the asking price, recontacted every buyer who had inspected the property to let them know the new price, generated lots of activity (and a sense of urgency) and Hey Presto! Property sold, owners happy that they have their life back!
Here’s another example; I met with some sellers looking to sell their own home to upgrade in both size of home and location. The properties in the area they were looking to move to have been selling in the $700000 to $750000 range. They were thinking their’s is worth around $550000 to $570000, but I advised them based on recent sales they are more likely to be around the $500000 to $520000 mark, which, after looking at recent comparable sales, they agreed with. (They bought for $317000 quite some time ago) Their immediate reaction was that they would wait until they could get “their price”. When we had a look though, it made sense for them to sell and upgrade now… if the market rose by the 10% they would need it to in order to achieve their price, it was likely that the market they were looking at buying in to would rise by at least the same percentage, considering it was in a more desirable area. If that was the case, their $55000 increase would be more than wiped out by the extra $70000 to $75000 they would have to pay. So, even if they get more for theirs down the track, they will be worse off.
There are times that you may be better off waiting – for example, you may be better off taking your property off the market and undertaking some renovations that are cost effective. Quite often, however, you need a crystal ball to see what the future holds as far as selling prices and market conditions are concerned. Either way, make sure you look at your current situation realistically, and do the numbers. As I always say, you are best to underestimate what is likely to come in (your selling price), and overestimate what is likely to go out (your buying price, and or holding costs).
If you would like to discuss your own position, call me on 0412 247818, Freecall on 1800 302027, or email me on firstname.lastname@example.org
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