How to get the best price

Money Magazine Australia - - IN BRIEF - Jar­rod McCabe, di­rec­tor, Wake­lin Prop­erty Ad­vi­sory

There’s no deny­ing that it’s a tougher mar­ket for ven­dors. House prices have fallen around 2%-6% across Aus­tralia’s cap­i­tal cities over the past 12 months and auc­tion clear­ance rates show that buy­ers have the up­per hand.

In times like this, our ad­vice is that if you don’t have to sell, don’t. The mar­ket is go­ing through a cor­rec­tion but the de­mand driv­ers for prop­erty in Aus­tralia re­main and we ex­pect growth to re­turn within a few years.

How­ever, some prop­erty own­ers will be in a sit­u­a­tion where they sim­ply must sell. So here are some tips to en­sure you do it well:

Aim for per­fec­tion. Fewer properties are be­ing listed than was the case 12 months ago, which means ven­dors face less com­pe­ti­tion. But in to­day’s mar­ket, buy­ers know they can be choosy and are less will­ing to com­pro­mise. Un­der­stand where de­mand for your prop­erty will come from and what buy­ers want, and try to tick all of their boxes.

Be re­al­is­tic about price. De­mand for prop­erty has not evap­o­rated, and you can ex­pect to ob­tain a rea­son­able sale price in most cir­cum­stances. But it’s not rea­son­able to ex­pect the re­turns ven­dors were see­ing in 2017. Don’t dis­re­gard a great of­fer while hold­ing out for an unattain­able re­sult – your prop­erty could lan­guish on the mar­ket as buy­ers seek bet­ter deals else­where.

Pre­pare to ne­go­ti­ate. Most properties up for auc­tion are still sell­ing, even if they aren’t sold un­der the ham­mer. In­vari­ably they are sold within hours or days of the auc­tion. This is where ne­go­ti­a­tion skills are cru­cial. In these sit­u­a­tions, knowl­edge is power – if you do your home­work on the pre­vail­ing mar­ket for your prop­erty, you can ne­go­ti­ate with con­fi­dence.

Get help from the best. In a fall­ing mar­ket, it’s not just about find­ing a good agent; you’ll need an ex­pe­ri­enced agent who has sur­vived a few mar­ket ups and downs. The right agent will use their sub­stan­tial skills and tech­niques to seek out prospec­tive buy­ers, cre­ate com­pe­ti­tion for your prop­erty and ne­go­ti­ate a good re­sult, what­ever the mar­ket con­di­tions.

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