Selling in a buyers market
Category Property Tips
It's a good time to buy! This is supported by the favourable mortgage lending landscape and high probability of an interest rate cut in July. For sellers, the challenge is how to capitalise on the current market conditions and sell in a climate of too many properties and not enough buyers. Sales are still taking place on a daily basis, but there are some important steps that apply to selling in a buyer's market. These include:
Pricing your property appropriately and accurately - probably the most important aspect is to take emotion out of pricing your property and heed the advice of your agent who has only one goal in mind - and that is to sell your property quickly for the highest possible price. Your agent knows the market and what will sell if priced correctly under the current conditions.
Knowing your local competition - with more stock than buyers, any overpriced properties will stand out. Your agent will provide information on other properties on the market and how your property compares in terms of features, condition and price. It stands to reason that unless you fall within the desired price parameters, you are unlikely to get buyers interested, let alone attract offers.
Being flexible and negotiable - don't turn an offer down simply because it is not quite at the right price level. Be open to negotiation. Buyers are knowledgeable about the market and unless it is a really unacceptable offer, keep the conversation open. A serious buyer will look to negotiate if the seller is willing. Generally, the first offer tends to be the best and it's quite normal for buyers to offer 5-10% below the asking price, especially in a buyer's market. Your agent will guide you when presenting the offer, but whether to accept will depend on your circumstances. If you have time, you can wait for a better offer, but there is never a guarantee.
The advantage of selling during a down-market is that you can also take advantage of the good buying conditions and may find your dream house at a lower price compared to what it might be priced at in a seller's market. Consider the time-value of money; waiting longer for the ideal price, might just cost you in the long run.
While selecting the right agent is always important, it is more so when the market is challenging as the case is right now. An experienced agent who has been through the ups and downs of the market can help sellers navigate the challenges and give the right advice.
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Author: Gina Meintjes
