Many of our major property markets have been improving recently courtesy of a confluence of positive factors.
Over the course of a few short months, we’ve had the uncertainty of a Federal Election over and done with, a move back to a more reasonable lending environment as well as two cash rate cuts in as many months.
These factors have helped to motivate people to buy and sell property after a period of waiting cautiously on the sidelines.
While we are a long way off markets booming in our biggest capital cities, sellers now have more confidence that they will achieve a solid price for their properties.
As well as that, the most switched-on sellers are also doing their bit to secure the best price.
So, here are five tips to help strengthen your sales price.
Anyone who has ever lived in a property for a long time knows how cluttered it can become with myriad mementoes and furnishings acquired over the years.
While we all like to live in homes that are a reflection of us, not everyone has the same tastes as we do.
Just consider how the interior of your home differs from even your best friend for example!
That’s why it is so important to declutter when selling because you never want to put off people because they don’t like your personal style.
Also, buyers want to be able to imagine living in your home, which creates an emotional connection that often turns into a higher price.
2. Cosmetic renos
There a number of cosmetic renovations that can supercharge your sales price and they don’t have to cost the earth either.
One of the best is paint with a fresh coat applied internally helping to modernise your home.
Using neutral colours will always freshen up your home as well as potentially make small spaces seem bigger.
Another simple reno to consider is pulling up old tired carpets and polishing the floorboards underneath or replacing with new timber-looking flooring.
3. Select the right sales agent
One of the biggest differences between securing the best price and not comes down to selecting the right sales agent.
That’s because if they are not familiar with the local area, they may struggle to advise you on the most likely selling price.
This can have a flow-on effect of seeing your property priced too high at the start of the marketing campaign, which will burn potential buyers and potentially leave you with a stagnant listing.
Conversely, your property might be priced too low and you unwittingly sell it for far less than you could have achieved.
The best agent for you is the one who you feel you can work collaboratively with, but who also has plenty of knowledge and experience in the local market.
4. Know your target market
Part of that local market knowledge will be intimately understanding the potential target market for your property.
Your agent should be able to determine whether the marketing should be targeted to first homebuyers, upgraders or downsizers for example.
They can do this because they have local sales runs on the board and understand where your property fits into the area’s specific buyer matrix.
That way, your property will be marketed to the most likely buyer type, including its presentation, which ultimately can drive up your sale price.
5. Price your home correctly
Today more than ever, as our property markets are starting to pick up you need to list your home for sale at a price that is likely to target the right buyers.
Buyers are well informed and very selective.
Price your property too high and you’ll narrow your potential buyer pool.
Price it too low and you’’ll miss out on those extra dollars.
So how do you know what price to ask? This is where you must trust your selling agent.
But beware…some agents will “over-quote” what they think you can get for your home to get your business.
Then when you don’t get offers at that price they’re likely to blame “the market” rather than their unrealistic price expectations.
It’s always best to do your own research and analyse what other similar properties sold for recently.
The bottom line:
As you can see, market conditions are but one factor that can influence a property’s ultimate selling price.
That’s why vendors should never be bystanders in the sale of their home.
Rather, they should work in conjunction with their agent, and do their part to realise a successful outcome.
Subscribe & don’t miss a single episode of Michael Yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to Michael Yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.