Similar to a marathon, the ultimate goal in selling a property is to reach the finish line. More often than not, vendors dream of achieving it with flying colours–great results at a good price. Whilst you can be motivated and determined to reach your desired outcome, it’s in the nature of a marathon to have competitors around who pursue the same goal as yours.
The question is: how will you successfully ace the game?
With a stable market–at least, currently, you might have noticed how more sign boards are popping up in the streets lately. This means that more properties are available in the market which also conveys the idea of declining demand; hence a stronger competition on the vendors’ end.
In an upcoming episode of The Property Pod, real estate agent John McGregor talked about how the fear of missing out is gone in the current market. “People aren’t buying for the sake of buying or because they feel the need to buy. Now, people are buying because their life compels them to do so–whether they have a new baby or downsizing,” John explained. “We are just seeing the natural event flowing in the market rather than the surge of surprising demand,” he continued.
As a real estate team who has been out in the industry for the longest time, we’ve experienced selling properties during any season of the year. Rain, hail, or shine, name it and we’ve got a fair share of interesting stories to tell. And since we like to help our fellow Tasmanians, we’ve come up with some insightful points to take note of before, during, and after the selling period (or the contract stage)–considering the current market conditions.
Before
Others might think that all efforts should be exerted during the selling process alone, but the pre-listing phase is just as important. This is where you prepare your property, with efforts to put it in its best possible light. The idea here is to ensure that the property is in a positive condition before it officially hits the market. Hence, proactive strategies such as building inspections should be administered in this process to identify any potential problems or repairs that need to be made beforehand (no buyer would want to secure a property with problems entailed).
Another essential detail (and probably the most significant) in selling a property is also included in this step. You need to conduct thorough research with similar properties, especially in the same location and smartly position the price correctly in the market. Remember that your property is just one among other properties on sale, so take note of your property’s worth and what the market is willing to pay. Make sure you get the possible maximum value but at a reasonable price for a win-win situation with the purchaser. You need to justify the property price effortlessly with the amenities and features your property can offer.
In a similar podcast episode mentioned above, 4one4 Property Co. Director Patrick Berry shared the graph presented by one of the superstar agents of 4one4, Aaron Murray, explaining this concept. “There’s a three-stage graph, where if you price your property 10% above what the market thinks it is worth, it’s probably gonna result in no enquiries, no showings, no office. If you’re 5-10% above, it will probably result in showings and enquiries, but no office. So, in this market, you gotta get the price correctly so you can get the showings, the office, the enquiries, and the one that’s acceptable to the actual property,” Patrick highlighted.
Now that you’ve started the process with a bang, it’s time to create an exciting buzz! Since a lot of buyers are counting on social media platforms as their initial search tool to start their property journey, why not maximise these online applications? You may create some “coming soon” advertisements and teasers that could trigger the curiosity of active buyers. Publish something that they could look forward to. An interesting point here is that you could target and easily segment your intended audience using these platforms, so identifying them initially is a valuable process, too.
Furthermore, John stressed how commitment is essential in the pre-listing phase. “The conversation we have at the moment with our clients is to talk about commitment. This is not the market to sit there and test the price. If you go against the trends and the numbers and you still just wanna have a cracking expectation of getting a phenomenal result, the percentage chance of that is very, very small.”
“In this market, if you need to adjust your expectations and if you doubled your property value, rather than getting a 100% now, you’re getting a 90% or 80%–it’s still a win.”
During
If the pre-listing stage is the warm-up phase, we’re now on the workout proper. And what better way to get good results than have a trainer that could guide you along the process?
Work with the right agent that will tell you what you need to hear and not what you want to hear. After all, property selling is still a business, so you need transparent and truthful feedback so you know which direction you should take and which option you should choose. With an experienced and competitive agent by your side, you can put your mind at ease with the thought that best efforts are put into your property selling process.
Another factor, according to Patrick, that you should look out for an effective agent is their willingness to adapt and adjust. “We have a lot of buyers that say “I wanna live in Glenorchy” but ended up buying in Old Beach. So, it’s about understanding when their expectations are shifting and being ready to move with opportunities for them in those areas is how we make things happen,” he shared.
“It is finding solutions to people’s problems how we get properties to move in this market.”
Yes, agents have solid connections and databases but you still should adhere to a mindset of continuously looking out for opportunities. More opportunities, more possible buyers; more possible buyers, more chances of selling your property at a good price. Hence, you should exert extra effort with your marketing.
Usually, an agent comes from a real estate agency that offers marketing services. You could explore different digital marketing strategies ranging from regular photos, 360 photos, walk-in tours, property videos, as well as other conventional tactics. You may also want to consider home staging and putting digital furniture in your interior instead of doing it personally to save time and money. After all, you can still achieve your goal of making your potential buyers picture themselves living in the property.
After (Contract Stage)
The selling stage doesn’t end when you find a purchaser–but at least, you’re one step closer towards the finish line. When your agent brings you an offer, you should review the details thoroughly and keep an eye on those buyers with strong deposits and a Loan-to-Value Ratio (LVR) below 80%.
Patrick also shared an insight about how weak deposits can at times be a red flag at this stage.
“If I were the vendor, if it’s subject to finance, I’d be looking at how much are they borrowing. I know the interest rates are getting harder. I know that borrowing capacities are getting tougher. I’d wanna know that they’ve got a bit of money behind them to be able to secure it. If they’re looking to borrow 95% of the purchase price, then I’d start worrying, is the value gonna agree with what we sold it for?”
Contract-wise, as the vendor, you need to prepare a comprehensive contract that includes the following: (1) basic information of both the vendor and purchaser (names and addresses), (2) the address of the property, (3) the deposit amount and due date, (4) the sale price, (5) the property settlement date, (6) finance or inspection conditions, (7) availability as ‘vacant possession’ or ‘subject to a lease’, and (8) inclusions and exclusions such as fixtures and fittings, carpets, curtains, etc. This, of course, would be completed by your agent leaving you with less to worry about.
Make sure that the purchaser understands every clause and ensure that negotiations are carried out accordingly. Real estate, per se, is a complicated business and dealing with and preparing a contract can be as crucial as finding the right buyer. Hence, hiring a professional agent that can help you from the start until the end is a smart decision.
So, there you have it! Those are some of the most important points to remember when selling a property in the current market. Whilst there are so many details and wrinkles to smooth out along the process, the sweetness of the fruits of your labour will certainly be incomparable. Our awesome hosts of The Property Pod talked more about this in its upcoming episode (and surely dug deeper to help you furthermore). So, stay tuned!!!
Meanwhile, John and Patrick left an insightful piece of advice that vendors should bear in mind when selling a property.
John talked about how experience is an important factor when it comes to choosing the right agent. “I think in the end, it’s really about working with people who know what they’re doing, quite simply. Because this is the mark we cut teeth on 10 years ago. And working with people of experience matters in this market,” he ended.
Patrick, on the contrary, explained the other side of the coin should vendors decide to work with a ‘newbie’ in the industry. “If you’re working with someone new to the industry, you have to find out who’s supporting them on a weekly basis. Don’t automatically disregard someone who’s brand new in the industry because they have a lot of hunger and drive especially in this market place. Make sure they have the agency’s support behind them to help them through those tougher conversations,” he concluded.
Inversely proportional to each other, the rule of economics dictates that when the supply is rising, the demand could possibly fall. But, with the right strategy, knowledge, and help from a real estate expert or even a ‘newbie’, you can find the right purchaser that would eventually fall in love with your property, regardless of the state of the property market.
But if things go south, whether you’re a vendor or a purchaser, our fun and friendly 4one4 Property Co. agents are always willing to lend a helping hand. You may come by the office and say “hello” or you may also reach us here.
