Preparing for a Sale in a hot market
In recent weeks, record auction clearance rates have been seen across Sydney and many suburbs across the city have been in boom real estate conditions, with properties selling for top prices.
Well… based on how Sydney real estate has been performing so far it’s likely that will see double-digit capital growth for the property market in the Harbour City, with most segments exhibiting strong price appreciation other than the inner city and high-rise apartment market.
Of course, the Sydney property market has been one of the strongest and most consistent performers over the last four decades.
And moving forward, extremely strong demand for houses in Sydney, particularly in the inner and middle ring suburbs, is likely to lead to double digit price growth over the next 12 months, however the demand for apartments is likely to remain softer.
While well located, family friendly apartments in Sydney’s inner suburbs are likely to perform strongly due to increasing demand from owner occupiers and investors, apartments in high-rise towers are likely to continue to languish.
The bottom line is – it’s a hot market at the moment.
But selling in a hot market comes with a unique set of considerations. And you still need to be prepared when you sell.
Are you selling in a hot market?
Determine whether your area is a hot market by asking:
- Are clearance rates substantially above the long term average for your area?
- Are homes consistently selling for record prices or over reserve at auction?
- Are days on market and vendor discounting reducing?
- Are median prices and sales numbers trending upwards?
If you are in a hot market, consider the following to make the most of the opportunity:
Play hard ball
Sellers automatically have the benefit in a hot market, so you can afford to play harder with buyers. This doesn’t mean asking unreasonable prices: you still need to meet the market. So while a strong initial bid may be worth considering, speak to your agent about whether you may get something better. You can also negotiate on other terms like longer or shorter settlements.
Consider an auction
Auctions are more common in hot property markets as they can really draw out competition between buyers. So in a hot real estate market, it is essential to talk to your agent about whether they recommend an auction for your property.
With auction clearance rates sitting at 91% versus 66% this time last year, an auction could be a very valuable part of your sales strategy.
Evaluate the auction clearance rate in your local area by visiting the real-time auction clearance report by Domain.
Go big or go home
Even in a hot market properties don’t sell themselves. A hot market can mean more competition for buyers, and increased anticipation for sellers when excepting offers. So hit the market with a splash. Be prepared with strong advertisements and aim for maximum exposure to entice credible buyers on the market. Give yourself the best opportunity by getting to the top of the listings pile.
Be an active player and take steps to discuss and question your marketing strategy with your Sales Agent prior to listing to formulate the best approach to marketing your listing.
Be ready to sell – fast
While some vendors list with a “wait and see” approach to the transaction, in a hot market offers can come thick and fast. Be mentally prepared and ready to sell so you can take advantage of the opportunities that may come. Think through the scenarios in advance, know what price you are happy to sell at and allow your agent to use their knowledge and experience to guide you.
Know the value of your home
If you’ve been thinking about selling and are planning to take advantage of the hot market conditions, the first step is always to understand the value of your home. An experienced local real estate agent will know what buyers in your area are looking for in a property, and will know what trends are selling. So, getting a property appraisal by a real estate agent can be a huge benefit if you’re looking for a realistic price mark on your home to be sold.
At Bricks & Mortar, our skilled sales agents are local area specialists and offer free property appraisal for all interested buyers.
Book your Free Property Appraisal with Bricks & Mortar by entering your details here.