Tactics in tough market
And his wife Alice, winners of The Block NZ season 2, know how to make a home stand out. He offers some advice.
Selling your house is a massive step and one that involves many big decisions that can have a major impact on your finances and lifestyle.
To add to this, selling in a ‘‘buyer’s market’’ means you need to provide extra care and attention to present and market your house in the best light possible. You also have to be realistic with the conditions of the market and how that may affect your sale price.
Here is some advice for selling your property in a buyer’s market.
Understand themarket
It’s easy to rely on a real estate agent, but ultimately it will be your decision to sell or not sell, and at what price.
Be informed. Take time to do your research on the property market: What is the average time to sell and the current trend in prices? Have listings changed? How is my local suburb performing? With some big decisions coming up, it pays to start the process with a sound understanding of the market.
Why am I selling?
There are many reasons to sell. There may be another house you have your eye on, or perhaps you want to move school zones, retire, test the market, and so on.
Having clarity about your reason to sell will allow you to make intentional decisions during the process to help you achieve your objective. If there is urgency or a deadline to sell by, then factor it into your pricing strategy to achieve this.
What is my property worth today?
When selling in a buyer’s market, the likelihood is that your property has been worth more than what it is worth today. So it’s important to do an honest assessment of your property’s value at the outset.
Use recent sales as comparisons. When property prices are declining, you need current sales to provide a realistic picture. Local real estate agents are a wealth of knowledge, typically knowing the most about sales in your area.
Do your own online research and arrange a valuation for independent certainty. Don’t value your property at what you ‘‘could have’’ sold it for – you need to operate in the current market.
Pick the right agent
In a rising market, selling a property is easier and much less skill and experience is required.
However, in a buyer’s market, a good agent will really stand out. There is a lot more hard work and time needed to sell.
To find the right agent, try to: ■ Get referrals and recommendations on agents, ideally from someone you know.
■ Find someone who is active and experienced in your local market. Check their sales record. ■ Find an agent who is prepared to work with other agents and agencies.
■ Find someone trustworthy and realistic. You want to feel comfortable that they are open with their communication and updates andwill work hard for you. Someone who will be honest and realistic but won’t try to force you to accept an offer you’re not happy with.
Create your strategy and price competitively
Work with your agent to pick the right sales strategy for you and your property.
Auctions have been the preferred salesmethod during recent years in a seller’s market when demand for housing was high and competition for one property was the norm.
Buyers are now wanting to have an indication upfront on pricing, and many will only place conditional offers, with asking prices becoming the preferred sales approach.
Your pricing strategy can play a decisive role in whether a buyer will even come to view your house.
Consider a plan B if your house is not sold within a certain time frame. Would you lower your price? Take a break and relist at a later point?
Houses take longer to sell in a buyer’s market, so factor inwhat you might do differently if you aren’t receiving any offers.
Market like a professional
You need to do all you can to make your property appealing. These days, the first impression takes place online, so your marketing needs to draw people in and get them to view your property in person.
Have professional photographs taken and then create an attention-grabbing listing with attractive key photos to draw people in.
Digital marketing and premium listings on sites such as Trademe will get more exposure and eyeballs on your listing. Consider who your likely buyer markets are and tailor your marketing to appeal to them.
Remove the negatives
When buyers have the power, they become more picky in their house hunting. Before you market, view your home from a buyer’s perspective.
Think aboutwhat might put a buyer off and what can you do about it beforehand. Address maintenance issues before listing.
You might receive offers that are conditional on a builder’s report, so dealingwith items that could be flagged means less reason for a buyer to say no.
Make them fall in love
One characteristic typical of a buyer’smarket is the increase in listings – which means more competition.
That means you need tomake sure your propertywill stand out from the rest. Here’s how to do it: ■ Do a deep and thorough clean of your property – inside and out. Water-blast your exterior, sweep your drive, clean your windows, wash marks off interior walls, dry-clean your drapes, have your carpets shampooed, shine your stainless steel, mow the lawns and get rid of theweeds.
■ Remove excess ‘‘stuff’’ to make your house feel clean and spacious. Get rid of personal items to help buyers visualise the house as theirs, rather than feeling like intruders in your home.
■ Consider the best placement and layout of furniture, and present it in a style to showcase your house and appeal to buyers. If you have some extra in your budget, consider partial or full professional staging.
■ Before open homes, ensure your house has awelcoming environment. Make sure the house is warm (if
Clean: Declutter: Staging: Finishing touches:
it’s winter), turn lights on, open doors to showcase open-plan living, playmusic, and light a scented candle.
Don’t rule out any offers
In a buyer’s market, it is expected that the level of interest will be lower. Offers are more likely to be under your asking price and conditional, but don’t rule them out.
With fewer serious buyers, getting awritten offer may be a win from your agent, so be prepared to consider it and negotiate with a buyer who has put an offer on paper.
There is a high chance you will receive conditional offers, which from a seller’s perspective often means uncertainty and longer time frames. Be prepared to work with your buyer to help them achieve what they need to purchase your house.
Close the sale
When negotiatingwith buyers, whether a sale is achieved or not can often come down to small margins. It can take extra effort to make the final step to close your sale. As with any negotiations, it’s often unclear what the other party’s limit is, and it’s a fine balance between testing their levels through counter-offerswithout risking them walking away.
When you initially price your property, consider allowing room for negotiation, to make buyers feel like they get awin.
Or offer sweeteners, such as leaving appliances or additional chattels, or agreeing to complete maintenance concerns prior to settlement.
Further, be aware that you can still negotiate with your agent right up until a contract is signed. Some agents may reduce their commission if it means getting a sale secured.
Husband and wife team Caleb and Alice Pearson won The Block NZ in 2013 and are the founders of Pearson + Projects, a home for projects, ideas and inspiration for DIY enthusiasts, homemakers and renovators.