Real estate Australia: Home selling hacks you need to know

It can be daunting to sell your home in a market where property prices are falling, but there are steps you can take to ensure your property sale has the best chance of success. While property prices have been falling across the country, Real Estate Institute of Australia president Hayden Groves said selling in the current market isn’t as challenging as you may think.

This is because there isn’t a huge amount of properties for buyers to choose from in most areas.

“The stock levels through Australia are actually still very low,” he said.

“In an environment of supply constraint, prices have held up reasonably well.”

While the demand for property is still there, buyers are more cautious because of rising interest rates, the higher cost of living and falling home prices. Mr Groves said sellers who are mindful of this will have a better chance of success.

Understand buyer psychology

Ever wondered why properties that don’t sell within a couple of months of being listed turn “stale?”

Mr Groves said this is down to buyer psychology – that is, buyers think there is something wrong with a property if no-one else has bought it yet.

On the other hand, buyers tend to battle hard for those properties receiving strong offers – which is how bidding wars get started.

In order to get buyers fighting over your home, it is important to get the foundations right first.

Set a realistic price

It’s crucial you set a realistic price guide from day one, Advantage Property Consulting director Frank Valentic said.

If you go to market with a guide that is above what buyers are prepared to pay, it may turn them off the property completely – meaning you will lose the opportunity to create healthy competition in the early days of the campaign.

He recommended “pounding the pavement” and visiting other homes for sale in your local area to get an idea of how they compare.

He also suggested getting proposals from three or four agents that included comparable sales.

Choose local

When it comes to choosing a real estate agent, it’s important to select one with strong local knowledge, said Brad Cooper from Ray White Balwyn.

“People can make a mistake by going with an agent that is not local,” he said, adding that he has seen properties go for 5-10 per cent cheaper than market value due to an agent’s lack of local market knowledge.

Every market has nuances that may not be apparent in comparable sales research alone and a good local agent will know them.

Sell when it’s empty

Belle Property Surry Hills real estate agent Nuri Shik said it’s easier to sell a property when there is noone living in it. Having a tenant in place could affect the presentation of the home and make it difficult to organise inspections.

If you have a fixed term lease in place, homebuyers may avoid your property altogether in favour of those they can move straight into after settlement.

According to Mr Valentic, only 510 per cent of prospective buyers in a falling market tend to be investors – which means you could be cutting out as much as 95 per cent of buyers if you have a lease in place.

Cosmetic upgrades

The way you present your home can make all the difference.

Mr Shik said it’s important to have the property cleaned and cosmetically enhanced before getting it professionally styled. The artful use of furniture and lighting can make a property feel more inviting and desirable as a home.

“Presentation is everything,” he said.

Mr Valentic said it’s a good idea to focus on street appeal. “First impressions are crucial so ensure the front garden is inviting and front fences and facades are painted and clean,” he said.

Cheap cosmetic changes like a fresh coat of paint in a neutral colour and a clean and tidy backyard can also make a huge difference.

Kitchen and bathroom upgrades tend to have the biggest impact on sales as these are the rooms that many home seekers notice first.

Other small and cheap cosmetic touches that can make a big difference include painting the front door a vibrant colour, along with adding a new mailbox and house number signs. Driveways, gyprock and other brickwork should be sprayed to clear debris and dirt.

Once a home is listed, agents warned sellers to keep the marketing campaign short. Owners who kept their properties listed for an extended period while they waited for a remarkable price tended to struggle to attract interested buyers.