The first quarter of 2022 has been an interesting time for the Sydney property market. We experienced an earlier start than usual with some strong results achieved in January and February. March saw an increase in the number of properties listed for sale which has gradually resulted in less competition among buyers as the fear of missing out begins to disappear.
Talk of interest rate rises has also meant people are now borrowing less and more cautious about paying too much for a property. That being said, there are still some great prices being achieved and this is mostly driven by what we call ‘buyer fatigue’ where people are simply tired of missing out week after week and willing to overextend themselves to secure a property, however not to the same level we saw last year.
If you are planning to upsize or downsize, don’t be put off by a changing property market. Many people try to time the market perfectly – some have been lucky enough to achieve this thanks to the pandemic. However many have not been so lucky. If you’re currently unsure as to when is the best time, we’re going to take a quick look at where we would currently be should the pandemic have never hit our shores..…
According to CoreLogic data, Sydney’s average annual capital growth over the 10-year period to Jan 2020 (pre-pandemic) was just 5.5 per cent. Please note the word ‘average’, and that Sydney is made up of many micro markets that move independently of each other. Let’s pretend for a moment the pandemic never occurred and the market continued on that rate of growth, then as of today your home would have increased by around 11% to perhaps 15%. Instead, thanks mainly to the Covid 19 pandemic, properties have increased by 25% to 30% which is double the average rate of growth since Jan 2020. Even if property prices were to drop by 8% to 10% as various experts have predicted, we would still be a full year ahead in growth, and above where we would have been should the pandemic never have occurred.
So with this in mind, you can see the property market is still incredibly strong and sellers are far better off selling sooner and before conditions return to the ‘normal’ rate of growth. That being said, we would like to now share with you our top 3 tips to sell your home for the highest price in a changing market.
1. Property Presentation:
In a marketplace that is becoming increasingly crowded, it is wise to take some time preparing your home to ensure it presents at its absolute best. A good thorough clean is a great place to start and a coat of white paint will always improve the brightness and overall appeal of your home.
For the added ‘wow’ factor and if your situation and budget allows, you can take that extra step of hiring some furniture. Not only will it help buyers become emotionally invested and able to imagine themselves living in the home, it will also attract more buyers through the door as the photos will allow your property to stand out online from your competition.
When buyers come to inspect your home, why not create a memorable experience for them by doing something a little bit different. Whether it be scented candles or recently baked bread to appeal to the sense of smell, soft classical, jazz or lounge music to set the mood and provide an unforgettable auditory experience, or setting the dining table as if they were guests of a lavish dinner party to appeal to the visual and emotional senses. Buyers will surely remember your home even if you try just one of these ideas!
2. Agent Selection:
Choosing the right agent is a key factor in securing the best price for your home. Above all else, you need an agent that is going to be honest with you from the start. That means someone who will let you know straight up if they think your expectations are too high.
A good agent is not afraid to lose the business if they do not believe they (or anyone else) can meet your expectation. An average agent will happily take on the business but spend the next 3-4 weeks telling you your home is actually worth less than what they originally thought. They may end up making the sale but your opinion of them will suffer greatly and you will have the disappointment of selling for much less than you had originally planned.
It’s always a good idea to interview at least 3 agents and have an identical list of questions for each to help you make the best comparison. As a Vendor Advocate, interviewing and recommending agents is something we do every day. If you would like a copy of our very own Agent Comparison Review Table, feel free to email us at email@example.com.
3. Know the Market:
Rather than relying solely on what your real estate agent tells you regarding current market conditions including the current market value of your home, it pays to do your own research. Inspect properties in your neighbourhood that are up for sale. Make a note of how much the agent is quoting versus the eventual sale price and you will have a good idea of which way the market is heading.
If the agent needs to adjust the price guide downwards mid way through the campaign you know that prices are starting to adjust, or the agent may have mislead the vendor (or vice versa) into thinking they could achieve more than what someone is willing to pay.
Attend a few Auctions so you get a good feel for how many bidders you can expect and which types of properties are attracting more interest than others. Many buyers and sellers are nervous about Auctions so it’s a good idea to get used to the atmosphere and pace so you know what to expect when it’s your turn.
There is much to consider when selling your home. This is why we strongly recommend speaking to our experienced Vendor Advocates (a free service) about how we can take the bulk of the stress off you and help you achieve top price for your home even in a changing market. We help you with all of the above and it doesn’t cost you a cent. Sounds too good to be true? Take a look at what some of our previous clients have had to say about working with us by clicking here.
Should you have any questions, feel free to email us at firstname.lastname@example.org or book in a call for a no obligation discussion. You can also find out more about our Vendor Advocate service by clicking here.