Selling in a cooling property market? What you need to know

It’s official: property prices are either already dropping or could soon be.

So what does that mean for sellers? And is there anything prospective purchasers should be doing to help make the most of the current market?

We chatted to Ray White national director of special programs, Bianca Denham, and founder of Michelle May Buyers Agents, Michelle May, to find out what buyers and sellers should be doing right now.

I want to sell my property, have I missed the boat?

“Whether you’ve missed the best time to sell largely depends on your postcode,” Ms Denham said.

“This is always such a tricky question to ask because there is always so much nuance around regions and property styles.

“I would say we are in a more diverse market currently than what we have just come out of.

“If signs were emerging that your local market was entering a downturn it could be a good idea to sell sooner rather than later.

“But if you’re really bothered about having missed your chance to sell at the peak of the market, it pays to remember why you’re selling.

“Most people sell for many reasons aside from attracting a certain price, especially if you are trading in the same marketplace, it’s all relative and any loss in price will be made up on a similar market purchase price.”

Is setting a realistic price guide important in the current market?

Ms Denham said that one of the biggest mistakes some sellers make is missing the market when they price their property for sale.

“This mattered even more in a market where the sellers are competing for buyers’ attention.

“As the saying goes, you only get one chance to make a first impression,” she said.

“We know if a purchaser doesn’t perceive value at the advertised price, they usually don’t engage with that property.

“A good agent should be providing current market evidence to help establish a reasonable asking price from the outset.”

And how long should a seller wait before revising down a price guide?

“Without wanting to oversimplify, there really is no minimum time that a seller should wait to reduce their price if the evidence is showing the buyers aren’t seeing value at the advertised price,” Ms Denham said.

“The best agents will review the price and marketing strategy with their sellers at least once per week.”

Should sellers be opting for an auction or private treaty?

Auction clearance rates may be dropping, but Ms Denham said the sales method still makes sense for many sellers.

“Ray White is an auction company, the reason for that is our data tells us a seller has a higher chance of selling at a higher price in a shorter amount of time,” she said.

“An auction creates urgency and forces bidders to make decisions more than the traditional for sale method.

“The contract type is unconditional and binding on all parties involved equally meaning there is a greatly reduced risk of the contract failing through.

“With uncertainty around interest rates, I would recommend auction is a safer option for sellers,” she adds.

What are some of the marketing methods sellers should be using in a cooling market?

Ms Denham said that fewer buyers means that sellers should be pitching their property to as wide an audience as possible, using modern tools like social media as well as old school methods like print media and flyers.

– WITH REALESTATEVIEW.COM.AU