In this current Real Estate market it is probably not popular thinking for a purchaser or vendor to want to take advice from an agent. Typically, in a bust market when days on market are a larger number than sale price, the Real Estate agent is godly in proportion to their reputation in a boom market.
However, I am going to offer some advice anyway. Why? Because, judging by the control the media seems to have over the climate of the property market, we may be heading that way and I’d like to start a trend, where expertise, knowledge and advice are seen as a positive thing, not a negotiating tool.
Days on market are becoming longer, Auction clearance rates are dipping slightly and buyer numbers seem to be dwindling in most parts of the Sydney market and there is more explanations for this than there is reality. Rather than focus on the contributors, which we have no control over, let’s focus on how we can combat the depressing slope.
Pricing:
Be aware that pricing property has been quite uncommon in the major 3 quarters of this 18 (or so) month boom as most properties are listed for ‘Auction’. At the beginning, before vendor expectations were inflated by positive news coverage, Auction reserves were realistic and comparable properties weren’t sky high, so the odds of achieving a large disproportionate percentage higher than competition was likely. The issue that has begun to hurt the industry is the original percentages above comparable properties are viewed by vendors as ‘normal’ and expected, however, as the comparable’s climb, the divide needs to readjust.
Do:
Look to compare your property with similar properties, not your ‘dream price’. If your home has 4 bedrooms and 1 bathroom, don’t compare it with a 5 bedroom home with 2 bathrooms. However, On the odd occasion, the 4 bedroom 1 bathroom home may have 2,000sqm of land and a pool and may be worth more, but be realistic.
As we see the market wobble, it is important to pitch property realistically, backed by comparable’s and supported by a good strong argument from a talented Real Estate agent.
Don’t:
Go with the agent that promises you more money with no justification, no strategy and no comparable’s.
Compare your current home to the home you wish it was.
Preparation:
It is also important to consider your reasons behind selling, I have had a couple of conversations lately with prospective vendors looking to sell their homes for varying reasons with vast justifications. The biggest mistake is in the preparation for sale. Our preparedness is just as important as our commitment, for a committed seller will have better dialogue with an agent and a better relationship, ultimately making the whole process smoother. Bad dialogue can result in miscommunication and ultimately an unhappy process.
Do:
Speak with your agent about the things you need to do to prepare your home, which may or may not need to be styled, repaired, renovated or cleaned.
Some properties lend themselves to different types of investors with different levels of expectations, if a property needs a small amount of work but could potentially net an investor a large sum of money through either resale or rental income, then allow the investor the opportunity.
Properties that have been tarted up for sale can sometimes impact upon the purchasers perception of the vendors expectations – which is fully warranted.
Let me explain, often when we spend money before a sale we expect to be competing with clean, renovated and well-prepared homes that have sold recently with a percentage of return comparable to our input. Buyers will see the property in the same way except they know the vendor now wants more for it and will instantly turn sour on the property with fear of losing out.
So. … Repair a pipe, mow the lawn, paint the walls but don’t expect to get an extra $100,000 because you spent $30,000 on french doors and a ‘Bunnings kitchen’, the market has changed.
Don’t:
Spend precious time and money doing to the home what you have wanted to do for the last 3 years but never got around to doing. If the market is about to shift in the wrong direction and buyers become bargain savvy you will regret the time you wasted and ultimately the money too.
Market:
Read about the market, not just on the property websites or newspaper articles but on Real Estate agents websites.
Speak about the market, don’t just watch the news and read the Auction clearance rates and feel as though you have a broad outlook on the general climate of Property in Sydney, Speak with Real Estate agents at open homes. …
In fact, if you are at all interested in the property market, go to open homes, listen to buyers look at the market don’t just read about it, ask questions get involved in the market.
Knowledge is power and the only way to gain that knowledge is expanding your base.
Also, remember, a good agent will be able to convincingly negotiate the top price in the market, a bad agent won’t find it but don’t be convinced that you can rely on the market, I have seen a lot of bargains even in the boom market.
When we rely on the market, we are bound by it.
Thomas Merriman.
Thomas Merriman 