The implications of a buyer's market for sellers
Category Market Update
The interest rate is down, and the banks are still keen to lend, but while it is a good time buy, the market remains slow. You are probably well aware that the weak economic climate has contributed to slow demand for property, rising stock levels and flat price growth; generally conditions which favour buyers rather than sellers.
An important precursor to this, is to know that it does not mean that there is no business to be done in this market, far from it. Excellent deals are concluded daily. What it means though, is that there are key elements that sellers need to be aware of - we highlight five important implications:
Choosing the right agent - at a time when the market is a challenge, it becomes especially important to partner with a local area expert who will give you the right advice, rather than waste your time with high price promises.
Sole mandate - it has been proven time and again that awarding a mandate to multiple agencies does not bring more buyers or better offers. Rather, awarding a sole mandate to the right agent has shown that it results in faster sales and higher offers.
Presentation matters - ensure your property is in the best possible condition and leave nothing to chance. In a market where buyers have access to a choice of properties, often within the same price range, it is vital to ensure that it is perceived to be good value for the price.
Pricing - increased stock levels means more competition for sellers which makes accurate pricing vital. Buyers use the property portals to compare properties of similar pricing and if your property is priced above similar properties, you risk being overlooked by serious buyers.
Considering offers - at a time when there are fewer buyers and more properties to compete with, it becomes important not to let a serious buyer slip through the cracks. Consider all offers and open the door to negotiation. A serious buyer will generally come back with a counteroffer.
Although we now look forward to the onset of the summer and hope it brings more buyer interest, challenges in the property market are likely to persist this year. While the above is generally good advice regardless of the market conditions, it is especially applicable when the market is challenging.
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Author: Gina Meintjes
