How to sell in an active spring market – John McGrath

In a strong seller’s market, like the one we’re currently experiencing, vendors can sometimes become complacent. With properties in many locations selling within days and enjoying excellent capital growth, often sellers don’t feel the need to attract buyers with a great marketing campaign or stylists.

This Spring, there’s certainly more confidence from a seller’s perspective. Westpac’s newest quarterly Housing Pulse report this month stated: “Buyers are perking up, price growth has lifted, auction clearance rates are rising and supply is tightening.”

Cotality’s September Housing Chart Pack backed up this statement. While the number of national sales listings was down -10.3% in August, compared to a year ago, listing activity rose 9.4% in this month. “Easing interest rates, rising sentiment and stronger capital gain conditions (are) setting the stage for a cracking spring selling season,” the report noted. 

There’s also been three cash rate cuts this year – with possibly more in the future – which has given buyers improved borrowing capacity, while the federal government’s expanded Home Guarantee Scheme will begin on October 1.

But none of this means vendors should sit back and relax this Spring. You still need to be smart when selling, just as you would in any kind of market. You definitely shouldn’t rely solely on our very active seller’s market to enjoy a swift, high sale.

So, here are my top tips for experienced and first-time sellers this Spring:

1.      Enjoy growth but retain prudence

In the last year alone, property values in increasingly popular, outer-ring locations have increased in every capital city. For example, house prices in Liverpool in Sydney and Bundamba in Brisbane are up by 6.5% and 12.9% respectively, according to Cotality’s September Mapping the Market report. While this is an excellent statistic for vendors, you still need to be prudent and circumspect in the long run.

First and foremost, remember if you’re selling, you most likely will be on the cusp of being a buyer again. Your property is not the only one experiencing healthy price rises either, so your excellent capital growth can easily be eroded if you wait too long to buy back in. And for second time buyers, stamp duty can be a nasty shock if government schemes gave you a full stamp duty concession on your first purchase.

2.      Buyers are more informed than ever

Again, it’s not just you keeping a close eye on property data and statistics, especially Reserve Bank of Australia cash rate announcements. Buyers are keen to purchase but they know – or can very easily, soon find out about – comparable sale prices, locations, and other significant property details.

Don’t be fooled into thinking young people have no idea about real estate either. This group is well researched as they are rapidly learning the importance of property ownership, particularly as rents rise across the country, and they can increasingly rely on the Bank of Mum and Dad for help when purchasing.

3.      Consider buying before you sell

In a seller’s market, vendors should aim to buy before they sell, as buying is generally more time consuming than selling. You’ll also have a much better idea of your current property’s ideal sale price, as in a perfect world, these funds should cover the cost of your new purchase. As a result, you won’t be left out of pocket after the two transactions.

4.      Always aim to impress buyers

Buyers still want to be wowed when they enter a property. So, have a smart sales strategy in place, including hiring a good sales agent, who will assist you with organising a strong marketing campaign specifically for your property. Renovate or style your home and gardens, or at the very least, ensure it impresses buyers from the moment they arrive.

While organising these details may seem unnecessary in a seller’s market, nothing could be further than the truth as it could get you a premium price. Excellent growth statistics and large buyer crowds can be exciting to consider, but due diligence and practical common sense can make all the difference to your sale in the long run – and that of buying your new home as well.