However, the last 12 months haven’t been quite the same. In the 12 months to January 2023, the citywide median value slipped by 12.1%, according to CoreLogic.
While there are signs the market may have turned – prices actually rose in February 2023 for the first time since January 2022 – these still remain very different market conditions from the boom, with buyers generally retaining the upper hand.
We look at what you need to do to maximise your price in today’s market.
Keep some perspective
First of all, it pays to keep some perspective. While prices may have dipped over the past year, they’re still well up on where they were before COVID-19 hit. In fact, prices in our area are well above where they stood back then.
For instance, the median house value in Coogee was 36.3% higher in March 2023 than it was in March 2020, according to realestate.com.au. The median house value in Maroubra was 37.9% higher, and the median house value in Bronte was 47.9% higher. These are incredible gains.
Another factor worth remembering is that when you sell, you also usually need to buy – and it’s actually in markets like this one that many of the most astute property owners make their move.
That’s because you’ll face less competition and have more time to make a decision. And if you’re upsizing you’re also likely to find that the gap between the home you’re selling and the one you want to buy has fallen too.
For example, if your current home is worth $2 million and the one you want to buy is $4 million, that’s a $2 million difference. If the price of both falls by 15%, your home is now worth $1.7 million, but the one you want to buy is worth $3.4 million – a gap of $1.7 million. That’s $300,000 you’d get to save.
Invest in presentation
Presentation always matters if you want to maximise your sales price. However, in a slower market, it becomes even more vital.
When the power is with the buyers, sellers need to make sure their property really grabs both their attention and their hearts. Your goal when presenting the home is to make sure people who inspect it can’t imagine living anywhere else.
In times like these, buyers often also become more conservative. That means many will want the finished product rather than a renovation project (particularly with construction costs rising and trades booked out). So decluttering, fixing up cosmetic problems and paying for the property to be properly styled become more important too.
Invest in marketing
When the market is flat, it becomes more of an effort to get potential buyers to inspect your property in the first place. People become pickier and often end up dismissing homes for small reasons before visiting them – sometimes even homes that would otherwise be perfect for them. That’s why it pays to invest in proper marketing.
Gone are the days of simply putting a property ad on a listings portal and in the local paper. These days, good real estate agents will use technology such as video, online and social media to pinpoint the right buyers and put your property in front of them. They’ll also tap into their networks and mine their database, leaving no stone unturned when it comes to attracting buyers.
When conditions are softer, properties don’t always sell as quickly as they do in a rising market. But that doesn’t usually mean they won’t sell at all. Often it takes a little longer to reach an agreement, and there’s more negotiation involved. Buyers have more time on their side, and many intend to use it.
That’s true even when a property goes to auction. We often find that buyers who really want the home won’t even bid. They’ll let the property pass in and then negotiate afterwards in a less public forum, sealing the deal in the next week or so.
For example, right now in Randwick realestate.com.au has the average days on market for houses at 52, while units are taking an average of 47 days to sell. These are both over the standard four-week auction campaign of 28 days.
If this happens to you, don’t panic. Your property is likely to still sell – you just need to be patient.
Use an experienced real estate agent
In a rising market, selling a home isn’t necessarily difficult, and the challenge for a real estate agent becomes maximising the sale price. But in a slower real estate market, even getting a serious offer on a home can sometimes be a difficult task.
It’s in these kinds of conditions that using an experienced real estate agent makes all the difference. They’ll know the local area and the buyers within it. More importantly, they’ll have achieved results and negotiated similar conditions in the past and have real-world experience in what works and what doesn’t.
Looking for your own home in Sydney’s Eastern Suburbs? Contact my Park Coast East team today.
Source: Director Auctioneer, Adrian Bo