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Get It Sold!
How can you get a ‘Sold’ sticker slapped on your For Sale sign faster than any other sellers in your neighborhood? If you’re going to sell a property in today’s market you can expect to have some competition on your hands. We are, after all, in a buyers’ market. It’s not as bad as you might think though, with data from Australian Property Monitors showing that the average days on the market has fallen in most major cities from a year ago. So how should sellers in a buyers’ market adjust their strategy to make sure their property doesn’t become a sad statistic?
- PRICE TO SELL – Gone are the days when you could mark up your property to leave wiggle room for negotiation. In a market where buyers are spoilt for choice, this can be enough to stop prospective buyers from even taking a look. Conversely, don’t price your property too low as it may sell before it has time to reach the perfect buyer who might have happily paid more. Don’t despair; there are a few things you can do to reach a good middle ground. *If you haven’t hammered the For Sale sign into the ground just yet, ask multiple real estate agents, not just one or two, to provide you with an appraisal. *Research and compile a list of comparative sales in your area using the internet and the Newspapers. *If you’re still uncertain, pay for a professional valuation to be done. This will give you an unbiased assessment of your property’s worth and can be used as a reference for potential buyers. Mark Armstrong of Property Planning Australia advises sellers to advertise a price range that truly reflects their property’s current market value. “Remember, a property is only worth what the market is willing to pay for it. The last thing you want is to have your listing grow stale because you weren’t realistic or flexible on the price.” According to property commentator and consumer advocate Neil Jenman, sellers can still achieve fast results in a tough market. “There’s no such thing as a property that ‘can’t’ be sold,” he says. “There are never ‘no buyers’. It’s always possible to sell a property. There is always a buyer. It all depends on the price. If your property was half its current price, there’d be a buyer for it. So don’t say ‘no buyers’. And no, I’m not suggesting you sell your property for half its value. What I am suggesting, very strongly, is that you realise a tough truth – if your property isn’t selling, then somewhere between the price you’re asking for it and half the price you’re asking for it is the price it could sell for today. It’s not ‘no buyers’ at the price your asked by the sellers. So if you really want a buyer just lower the asking price. Still no buyer? Lower it again. Repeat the process until a buyer says ‘yes’.” John Edwards of Residex offers a different view. He says sellers shouldn’t adjust the price once a property hits the market. “That’s why it’s important to get the right price in the right place,” he told The Sunday Telegraph recently. “If you set it at the right price you will sell it in a month.”
- WORK YOUR AGENT – Make sure the real estate agent you appoint is actively seeking buyers rather than waiting for them to come to you. The agent should be making the follow-up calls to people who have enquired about your property, attend any of your inspections or shown interest in properties similar to yours in the area. Also, negotiation skills are critical in a competitive market so make sure you choose an agent with proven negotiation ability. Remember, this is the person you’ll be paying commission to on the sale of your property so make sure they’re doing everything that you don’t have the time or expertise to be doing yourself.
- BE FLEXIBLE WITH INSPECTIONS – As well as holding open inspections. Make your property available for private appointments so that prospective buyers can come through at a time that fits in with their schedule (for example, after work or during a lunch break). Also, make sure your open inspections are held at the right time of day. For example, if your property is waterfront insist that your inspections coincide with high tide to show off its best, or if you live near a main road, don’t hold your open house at the time of peak-hour traffic.
- MARKETING MATTERS – when there are fewer buyers in the market you need to make your property stand out from the crowd. Use print and online advertising resources to promote your property and make sure you present your home in the best condition possible. Your For Sale sign should highlight your property’s best features to catch the interest of passers-by. Fix all obvious repairs and consider having your own building and pest inspection done. This is likely to prevent potential buyers from discovering a problem when they get their own inspection done and then hitting you up for a heavy discount.
- USE TECHNOLOGY TO YOUR BENEFIT – As Neil Jenman points out, buyers have become smarter in this age of technology. “They can find out the selling prices, which are vastly different from the ‘asking prices’, of every property in your area,” he says. “With one click, they can find out how many online visits there have been to your property” – just another reason, he says why you need to get the price right. Given that buyers are likely to use computers in their search for a property, another point to consider is the sale price. For example, if you want to sell your house for around the $400,000 mark then think about listing it at $399,000, rather than, say, $400,500. That way, an online search of properties priced between $350,000 and $400,000 will include your listing. Remember, too, that some buyers may go to the trouble of finding out when you bought the property and how much you paid for it, and they may use this information in their negotiations.
- IS AN AUCTION FOR YOU? – The types of property, its location and a seller’s motivation to sell are critical factors when it comes to an auction, but so too are market conditions. “Auctions work well when there are lots of buyers active in the market,” Mark Armstrong says, “because the lead-up marketing campaign only takes a few weeks and intense competition between bidders drives up the sale price. When buyers are thinner on the ground, though, it can take longer to attract them so it might be better to use the private treaty method of sale.”
- KEEP IT REAL – It’s easier said than done, but you need to leave your emotions at the front door and see your property through the buyer’s eyes. “Naturally you want to sell your property for the highest price possible, but in a buyers’ market purchasers aren’t likely to be feeling desperate about securing your property so their offers may not reach the giddy heights you were hoping for,” says Armstrong. “Think about why you’re selling. Will the offer you’ve been made give you the funds to do what you want to do? If the answer is yes, then it’s worthy of serious consideration.”
- FIRST IMPRESSIONS ARE LASTING – Finally, create an inviting atmosphere for your open inspections so your visitors feel instantly at home when they step through the door. Ensure your property is looking its best – mow the lawn, replace worn carpet, have the kitchen and bathrooms sparkling clean and remove pet odours or cigarette smells. Soft music or a pleasant aroma can sometimes be a nice touch.
The above article is from the Australian Property Investor September 2008.
