While most of us understand the challenges of buying a property in a booming market, it’s often assumed that it’s all smooth sailing when selling in the same market. However, this isn’t always the case. So, how do you ensure you get the best price for your property in times like these?
1. Understanding the dynamics with your agent
Teaming up with a knowledgeable agent is your first line of defence and attack. They’ll help you understand current market prices and navigate this fast-paced environment. If you’re aware of where the market stands and heed your agent’s advice, there’s a good chance you’ll secure a lucrative deal quickly.
2. Pricing Strategy: To list low or high?
A common sentiment among sellers is that with the market on an upward trend, listing high will eventually match market growth. However, our property market, being a free market, works on the balance of supply and demand. Price plays a pivotal role in driving demand. Remember the golden phrase: ‘list low sell high.’ Listing your property slightly below the market price will help drive a higher level of enquiry for your property. A surge in inquiries often translates to a higher number of home open attendees, creating competition and further driving up your property’s price.
So, although the market is currently ‘hot’, buyers are also more informed than ever. Overpriced listings can deter potential buyers, making it crucial to properly strategise your listing price.
3. Avoiding the ‘Stale Property’ pitfall
Buyers in the current market are all too used to seeing their desired property sell almost instantly, with most well-presented homes selling after a week or two on market. Should your property remain on the market for an extended period, it may raise questions with buyers as to why. Of course, your agent should be able to talk this through with a buyer, but they may not get the opportunity if the enquiry is not there in the first place. A property perceived as ‘stale’ becomes harder to negotiate, regardless of the type of market. This brings us back to the previous point of pricing strategy and the importance of getting this right from the get-go.
4. Your first offer might be your best
It’s not uncommon for the highest offer to also be the first offer. Obviously, this isn’t the case every single time but it’s often a true representation of how things go. During the initial weeks, interest is at its peak, meaning early offers are given under competition (or at least perceived competition). Waiting out for weeks might not necessarily fetch a better offer. It’s essential to work with agent who should take the time to evaluate offers carefully and recognise a good deal when it lands.
5. Should you sell off-market?
Admittedly there are advantages to selling off-market, such as saving you money on marketing costs. But will this method earn you the greatest return? We have case studies that prove selling your home on market and investing in marketing will generate the competition needed to drive up the price of your property. While current market conditions make off-market sales a little easier, when weighing the pros and cons of selling off-market vs on-market, you might find the biggest con is potentially missing out on the thousands (if not the hundreds of thousands), that a full marketing campaign might get you.
6. Presentation still matters
With the volume of buyers in the market and the competition between them to secure their new home, you may think its not worth investing in things like home improvements or property staging. But, if you want to sell for the maximum return, there is more to consider. With the strain on trades and supply chains, the idea of buying into anything that needs work is not the desirable option for most buyers right now. Buyers want to be able to move right in and start their new life immediately. Appealing to the widest buyer pool is key to maximising competition and, in turn, maximising your return. The key is knowing where, and how much, to spend on your improvements so that you are not wasting any of your investment. To start, take a look at our guide here. Furthermore, buyers in today’s market want to be “wowed” when they enter a home, and we see this across almost all price points. Staging, or having your property styled to sell, is the best way to garner this reaction from buyers. Being able to secure an emotional buyer is the sure-fire way to achieving that amazing price, and there’s no better way than presenting a showroom-like house to them.
In summary, while a surging market offers numerous advantages for sellers, a strategic approach is still vitally important when it comes to maximising your sale and return. By understanding market dynamics, pricing strategically, and remembering the basics of property presentation, sellers can navigate this booming market successfully.