The market has moved on to the next phase of the property cycle.
This means both buyers and sellers both need to adjust their strategies to be successful.
So here are some tips to help no matter which side of a property transaction you find yourself on:
1. Be prepared
Even though our property markets have slowed down, and there's no need for FOMO (fear of missing out) like there was last year, there is still a shortage of A-grade homes on the market.
This means some properties - the right properties - are still being snapped up quickly.
So when you find the right property you will need to be prepared.
Have your finance pre-approved, and have your team prepared.
By this I mean have a conveyancing solicitor who can check the contract of sale quickly for you and details of a building and pest inspector who can check for any hidden faults.
2. Do your homework
Now, more than ever, careful due diligence is critical otherwise you won't accurately gauge what a ‘good price’ is.
With our property markets adjusting, property values are hard to gauge so only use recent comparable sales to help you estimate the price of the property you're interested in.
Do your macro suburb-based research and understand the different precincts with unique suburbs and why some are more desirable and more valuable than others.
Go to as many auctions as you can to gauge the mood of the market and see what properties are selling for.
Selling prices are a more important part of your research than advertised asking prices. They inform you what's really happening on the ground.
If you haven't got the time to inspect hundreds of properties and research the market, why not use the services of the team at Metropole - we're in the market 7 days a week and have on-the-ground teams of local area experts in Sydney, Melbourne, and Brisbane.
Whether you are a home buyer, a beginner, or a seasoned property investor, we would love to help you formulate an investment strategy or do a review of your existing portfolio, and then help you acquire your investment property.
3. Don’t be scared of auctions
Many of the best properties on the market are still being sold by auction.
But remember, actions are an unconditional sale and therefore you need to go along prepared.
- Have your solicitor that the contract of sale
- Make sure you have a professional building and pest inspection
- In some states, you will have to register with the selling agent to be able to bid prior to the auction
- Go to the auction with a bidding limit and stick to it.
However, most buyers have three prices in mind.
The bargain price that they would like to buy the property for (unrealistic in today's environment); what they think the real market price of the property is, and the "stretched" price they are willing to pay for the property.
Attend lots of other auctions to make sure you’re comfortable with how it works or if you're nervous have someone with more experience bid for you.
As part of your research attend a number of actions by the particular auctioneer who will be selling the property you're interested in – I don't mean by the same Real Estate agency, as many firms have a number of auctioneers working for them.
On the other hand, seeing how a particular auctioneer runs the auctions will give you valuable insight.
NOW READ: 13 tips for buying at auction
4. Don’t wait for everything to be perfect
Too many buyers want to wait for everything to be perfect before they move on.
Fact is...you'll never find the perfect property and you'll miss out on genuinely good buying opportunities simply because you're too hesitant to act.
Just to make things clear… I'm not saying compromise your standards.
When you buy a property there are usually three things that you have to consider
- Also read:What makes an A-grade property?
- Also read:Auction clearance results December 9th – Clearance Rates Generally Ease as Auction Year Fades
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- Also read:The Rental Squeeze: Exploring Australia’s Strained Housing Markets | Property Insiders [Video]
- Also read:Latest Asking Prices State by State | Listings and asking prices steady in lead up to market hiatus
- Your budget- this is usually determined by the banks
- Location - Don't compromise on this
- The property - maybe this is where you can compromise and buy a property that isn't in perfect condition and something you can do up down the track
5. Don’t look back
Many buyers waste time, emotion, and energy lamenting the properties they missed out on.
Instead focus on what’s on the market today, not on what was there yesterday or what may or may not be there tomorrow.
1. Use a Vendor's Advocate
Why not use Metropole's no extra cost Vendor's Advocacy service to help you achieve the best price for your home?
Metropole Vendor’s Advocacy Service is a special no extra cost service to property sellers shielding you from many of the “hassles” of your sale.
- We are independent and work for you.
- We tell you the truth.
- Are you ready to find the best price for your property?
When selling your property you want to achieve the best price with the least hassle.
Yet our experience as Australia’s leading property buyers agency shows many vendors don’t achieve an optimum sale price due to poor advice or pressure from their selling agent.
Now you can have an independent agent from Metropole on your side when you sell your property.
We'll help you choose the best agent
We'll make sure you engage an agent who’s active in your local market, who's a great negotiator and one whose advice you can trust.
Don't choose the one with the lowest commission.
The cheapest agent is the one who gets you the best price for your property.
2. Price your property correctlySure in last year's hot market most properties sold quickly, but buyers are very well informed today and are in no mood to entertain overly ambitious sellers.
They’ll simply walk away and look elsewhere.
3. Let your property run to the auction
Actions can be a nerve-wracking time for sellers as well as for buyers, but with 5 to 6 out of 10 properties being put to the auction are still selling on the day either at auction or just after the auction.
And even if you get a solid offer prior to the auction, in general, it makes sense to run the complete auction campaign and see buyers pay a little more under the emotional pressure cooker of an auction
4. Get your best offer in the first week or two of the campaign
Remember your property may be new on the market, but most buyers have been looking for a while and will act quickly in today's market when they find the right property.
5. Make sure you have a very good auctioneer
If you choose to sell your property at auction, and that's a great way to sell many properties today, just as important as having the right selling agent is to have the best auctioneer.
A great auctioneer you can whip up a crowd, create FOMO, and often get you 5 to 10% more than an average auctioneer
6. A bonus seller's tip
Let Metropole help you with their no-extra cost Vendors’ Advocacy Service
Our experience as Australia's leading property buyers agency shows many vendors don't achieve an optimum sale price due to poor advice or pressure from their selling agent.
Bu the good news is that now you can have an independent agent from Metropole on your side when you sell your property.
To achieve the highest selling price for your property, you need help finding the right agent to sell your property, as well impartial and strategic advice on the correct timing, the most appropriate method of sale, the most cost-effective advertising campaign, and the negotiation process.
Metropole’s 6-step process to get you the best price
- Sit down with you and determine your needs.
- Recommend the best agent (not an agency) for you. We know the best agents and the worst agents as we have been buying from them on behalf of our clients for many years.
- Check the agent's fees and advertising recommendations to save you unnecessary expenses. Should you sell by auction or private sale? How much should you spend on advertising without wasting your money? We'll tell you!
- Monitor the selling agent's performance.
- Consider any offers made and give our recommendations to you. Then we'll help negotiate on your behalf, giving you our input all the way.
- Follow the sale through until settlement.
We charge the Selling Agent a percentage fee based on the sale price of your property which comes out of their commission when the sale is made.
This means that you get our service at no extra charge, but that it is in all our interests that you get the best possible price.