When home sale prices are on a downward slide, it’s generally a buyer’s market. But for those who are buying a more expensive home at this time, they will find that the price difference between their current and their next home has likely gotten smaller.
While homeowners are likely to save thousands of dollars by upgrading in a slump, sellers can also gain an upper hand by using easy techniques to maximise their sale price.
- Create a good presentation
Because buyers tend to go for safe investments when home prices begin to retract, well-presented properties are protected from price slumps. With tightened lending conditions, buyers are rejecting renovation projects and bargaining hard on homes that need even the simplest repairs.
When a property is not well-presented, buyers will chip away at it until the sale price is down to almost a bargain. In a seller’s market, buyers will ignore simple flaws because they just want to get into the market.
Sellers who want to attract the best buyers should invest in their property if it is not up to standard. Even the most minor improvements can result in a stronger sale price.
- Private sale, or auction?
Though auction clearance rates are currently just less than 50% now, sellers in traditional auction markets will still realise the highest possible price through auctions. Auction cuts the days on the market, which produces better results for owners.
A home doesn’t need to undergo an actual auction to reap success. Buyers can make an offer anytime throughout the process and buy the property prior to auction.
In a lower clearance rate environment, an agent’s negotiating skill is important. So, choose an agent with the skill to seal the deal quickly.
Aside from public auction, private sale by deadline date is another way to create urgency among buyers. This is often known as a Tender.
In a deadline sale, buyers have a date to focus on without disclosing how strong or weak the demand is from other buyers, which is different in auctions. It offers a lot of the benefits from an auction without the risk.
- Reduce pressure
It was once possible for sellers to buy before selling, but that is now loaded with risks. In the present market conditions, selling is not as easy as it was 12 months ago, thus most buyers are easing their worry by selling before buying.
By selling first, sellers get an idea of their budget. Your property’s value is unclear, so it is important to have financing prior to buying.
Buying first puts you in a much tougher negotiating position because time is not on your side. If you are a seller, don’t put yourself under this pressure. The best strategy is to sell your house first, even if you have to rent in the meantime.
Both buyer and seller can also benefit from longer settlement periods. If buyers want it, it could be beneficial for the seller as it allows them more time to find the right home.