Throughout Covid, the demand for property caught many people off guard as optimistic buyers flooded into a market suffering from a lack of available properties.
In addition to the real estate supply and demand equation, there are record-low interest rates, tax discounts, and government grants of up to $25,000 and more for first home buyers.
Covid-related concerns that the slowdown in immigration and international students would damage property values have not played out.
Instead, we are experiencing more interest than ever before.
We are seeing many buyers suffering from FOMO (fear of missing out), so if you do decide to sell, you need to be ready to make quick decisions regarding your sales strategy and price and be prepared for a flood of interest.
Below is an outline of some typical seller experiences to give you an idea of what you’ll experience in the current market. Our aim is to prepare you for the fast pace of negotiation that, if handled properly, will maximise the value of your home.
- Local scene: If stock is tight – and in most areas, it is – expect to attract substantial interest. Buyers have more choices in suburbs with plenty of homes for sale. Your experience as a seller will be dictated by local factors rather than national headlines.
- Strong demand: Be prepared. Some properties are selling within just a few days. Finding a buyer in a 10-day window is not unusual in the current market.
- Eager audience: You still need to advertise unless you specifically want to sell off-market. Once you’ve listed on a property site, expect thousands of views, at least 30-50 direct enquiries, and plenty of foot traffic for your “Open” – if we haven’t sold before then.
- Fast-track: It’s common for offers to start coming in over the phone and email, even if your property is scheduled for an auction. You may wish to sell prior, or insist on waiting for the auction, believing it will deliver the highest possible price. (That’s a legitimate play).
- Price goal: You’ll have a target price. So if a buyer matches or surpasses your expectation before auction, what’s your response? There’s no guarantee the auction will produce bigger offers and sometimes the deal in front of you is very much worth taking.
- Last word: The recent announcement by APRA that they will be changing mortgage eligibility rules signals there are likely to be changes on the finance front. While we can get excited about the market right now, we also need to ground ourselves a little and keep price expectations realistic rather than stratospheric. The deal’s not done until contracts are exchanged.