Despite the challenging outlook for the housing market for the rest of the year, property sellers still have many opportunities to maximise their strategies and score a win.
The dampening consumer sentiment, rising rates, and tightening lending rules are making it challenging for sellers to navigate the slowdown in the housing market, with some vendors at risk of losing thousands of dollars due to mistakes that could have been avoided.
Aside from knowing the ways of adding extra value to sales listings, it is also important for sellers to know some of the best strategies they can adopt to prevent mistakes and make the most out of the market despite the current slowdown.
Your Investment Property reached out to Home AU Real Estate agent Sheree Hay (pictured) who shares her top tips for sellers this year.
Prepare by getting an agent
Ms Hay said it is crucial for property sellers to be prepared by engaging an agent that has a well thought out roadmap on how to get the property sold for the best price.
“When selecting an agent ensure that your agent has a good understanding of your buyers’ needs and can direct and assist you with styling your property to showcase its best assets in order to tug on the heart strings of your buyers, so they easily fall in love with your property,” she said.
It is crucial to understand that the whole process of selling a property involves partnership with the agent.
“This means that choosing an agent with experience, energy, and a strategic approach who will put in the required amount of work to comprehensively market your property to attract the right buyers and negotiate the best price for you.”
Know the risks of over- and undervaluing the property
When sellers list their properties in the market, it is critical that they get the invitation range right.
“I like to describe it like a game of chess — we set up all the pieces to determine the play.
In the process, Ms Hay said sellers and their agents are determining what the market is prepared to pay for your property.
“Not too high not too low, this is the ideal formula. Agents must get this right which again is why it is so important to select the best agent for your property,” Ms Hay said.
Good agents are also good negotiators, and they have the skills to extract every last cent for the sellers.
“The vendor still holds all the cards and it’s your agent’s job to educate your buyers on the market based on recent sales and highlighting the property’s best features to ensure a good result,” Ms Hay said.
Consider renovating and conducting repairs
Ms Hay said there are times that an update or renovation can be beneficial to give the property a more contemporary feel.
“My advice to vendors is I won’t let them spend a dollar if I can’t see it coming back. Return on investment is essential,” she said.
Another merit of considering renovations is the changing preferences of buyers, especially now that with the delays on materials and trades, renovators delight has already lost a bit of its appeal.
“The needs of buyers have changed a little from buyers wanting to purchase and add value – to buyers now simply wanting to be able to just move in and enjoy a property,” she said.
Present the property well
When the time comes to sell and present their properties, sellers must ensure that the property is as neutral as possible.
“The art of house selling is about showcasing a product that gives buyers the ability to understand how they can create their dream home,” Ms Hay said.
“It can be hard for buyers to visualise this if there are family photos of someone else’s kids and relatives all over the walls.”
Ms Hay said sellers must remove personal objects where possible and replace them with generic items.
“Ideally, empty the property as much as possible and allow a specialist to dress the property for sale in a way which emphasises its hero elements and minimises other aspects.”
Removing art could also help, as Ms Hay believes that people have different tastes and preferences when it comes to art pieces like statues, wall art, quirky furniture, and even items like taxidermied animals.
The home must also be free of unusual items that potential buyers might see as unlucky and suspicious, like broken clock, cacti, scenes of destruction in artwork, mannequins, urns, and an old broom.
“Open homes should be about leaving a positive impression on a potential buyer,” she said.