“I’m not in a hurry to sell, we can wait for the right buyer”
This is one of the most common comments made by home owners when they are selling their property. Ironically, the polar opposite is the question asked by most buyers “How long has this house been on the market?”.
Understanding how real estate works can give insight and subsequently comfort to people when they are in real estate mode.
Experience has taught me that real estate is a now business.
A property is worth what you can sell it for now. You can wait and you might get more money or you could wait and you might get less money.
Unlike other investments, real estate, has to be lived in. So equations like square metre rates, comparable sales and returns are appropriate considerations but if the liveability of a property isn’t appealing or a market condition has changed then there is no guarantee of that price. Your confidence in the price offered should be born from your exposure to the market (eg. the number of inspections) and your belief in your agent’s ability to negotiate and market your property effectively.
In 2007 I could never have imagined that more than ten years later we would still be struggling to achieve the same price today.
This is the case in some market segments in the southeast corner. Similarly I doubt five years ago that Sydney agents would have believed that their inner city market would enjoy a 20 per cent year on year compounding capital growth for five years.
Timing and time on are the two most important considerations when selling your home. If real estate is a now business then ask yourself the question, “is now the best time to sell?’’.
Also, time on the market matters.
Buyers associate the length a time a property has been on the market with its value.
If it’s more than sixty days then they tend to consider there something is wrong with the property or the price.
The optimum selling period is 21-30 days. This gives you enough time to welcome the market through your property, to use the main marketing avenues of print, internet and agent data base, and to negotiate effectively with those buyers. Whether that be through auction or private treaty.
To read the entire article, please follow the link below