Selling a home in a quiet market
The housing market is now a buyers’ market, but there are ways for sellers to increase the chance of a good sale, writes
Homeowners selling now need to accept the market is no longer tilted in their favour, but agents say canny sellers can still get a good sale.
With prices still falling, an increase in the number of listings nationwide, and properties taking longer to sell, some potential sellers are hesitant to put their home on the market.
But, regardless of market conditions, there are always homeowners who need, or want, to make a move and sell, due to personal reasons, such as a job in a different area or the desire to upsize or downsize.
The market is now a buyers’ market, rather than the sellers’ market it was at the height of the 2020 to 2021 boom, and that means sellers have to take a different approach.
Here’s what agents recommend sellers should do to increase the odds of success.
Looking good is more critical than ever
Real estate business consultant Lauren Mirabito says presentation has always been important, but the changed market means it is now critical for a property to look good and stand out.
Any small maintenance problems that might put buyers off because they represent further costs in future should be repaired, she says.
‘‘A property must be extremely well presented, down to the last detail. Sellers should put in a solid two weeks worth of deep cleaning, and that should include a massive garden tidyup.
‘‘Properties that are fresh and attractive will attract viewers, and do better than tired, battered, old-looking properties. That is because buyers want homes that are problem-free, and look shiny and new.’’
The exception to that rule is properties that are being marketed as do-ups with potential for adding value, she says. ‘‘But there are very few buyers in that space at the moment.’’
Staging a property is also worth considering, and, given recent weather conditions, sellers should be alert to smells caused by damp, and make sure they get rid of them.
Ray White Mairangi Bay agent Drew Miller recommends
that sellers should also ensure all upgrades, renovations and additions are appropriately signed off with the council for relevant consents.
Get an understanding of your market
The increase in listings makes for more options for buyers, so it is important for sellers to understand the market they are operating in, and the value of their property within it.
Hamilton’s Lodge Real Estate managing director Jeremy O’Rourke says sellers should grill their agent on the current market appraisal (CMA) of their property.
A CMA is an agent’s best estimate of the price they expect a property could sell for, based on sales of similar properties in the area.
‘‘A seller needs to know about every comparative sale in their area, as well as the price changes in the market, so they have an accurate idea about their situation, can price accordingly, and get the property tight to market.’’
Having an understanding of the market also helps decisionmaking around the promotion and marketing spend, and the buyer range to target, he says.
‘‘It helps you identify where interest might be, and a property can be priced in a ballpark which is attractive to those buyers, and generates competition.
‘‘We’ve had some good results doing this recently where buyers saw the value in the property, and there were offers in excess of the listing price.’’
Don’t underestimate an experienced agent
People often think they have sold better if they cut the transaction costs by paying less commission on the sale, or for the marketing involved in the process.
But Christchurch-based agent Vanessa Golightly, from Ray White Morris and Co, says sellers should not underestimate the value an experienced agent brings to the sale process and the end result.
‘‘A good, experienced agent knows the right buyer pool to market to, will follow up open home attendees, and pursue potential buyers, and will work with people to find solutions to enable them to buy.
‘‘They work and strategise with a seller for a sale, and employ a wide range of marketing tools, including digital, as opposed to just chucking a property up on a couple of websites, and in the local paper, and hoping for a sale.’’
It is important to listen to their recommendations around the type of campaign they think will be most successful for a particular property, she says.
‘‘The market is currently shifting around a bit, so just putting a price on a property and waiting to see what happens could result in underselling it, or overpricing it and not selling as a result.
‘‘So whether the agent advises a tender, deadline or auction process, go with it. You have nothing to lose, and everything to gain.’’
Be open-minded and flexible
‘‘In this market any interest is good, and should be followed up.’’
Lauren Mirabito
Real estate business consultant
‘‘A seller needs to know about every comparative sale in their area.’’
Jeremy O’Rourke
Lodge Real Estate managing director
A final point is that while sellers may have adjusted their price expectations to meet the new market reality, they also need to rethink what is necessary to secure a sale, Mirabito says.
They should not disregard any conversation with, or interest from, a potential buyer, and they should ensure there are no barriers to discussions, or genuine offers, she says.
‘‘Because in this market any interest is good, and should be followed up. Two years ago, sellers could say ‘the buyer has to meet my expectations and conditions, or I won’t consider the offer’, but that is not the case now.’’
Having high-quality conversations, being openminded about offers, and being creative and flexible around getting together a deal that works for both parties are key to sales in the current market, she says.