The demand for property during Covid caught many people by surprise as buyers optimistic for the future poured into a market suffering from a lack of homes for sale.
The supply and demand equation is only part of the real estate picture. We have record-low interest rates supplemented with federal and state government saving schemes, tax discounts and grants of $25,000 and more for first-time buyers.
Fears the Covid-related slowdown in immigration and exodus of students from the rental market would damage values have not played out.
After so many months in lockdown, if you’re thinking of selling now, prepare for a tsunami of interest.
You need to be ready to make quick decisions on your sales strategy and price because many buyers are suffering a bad case of FOMO (Fear of missing out!).
Below is an outline of some typical seller experiences to give you an idea of what you’ll experience in the current market. Our aim is to prepare you for the fast pace of negotiation that, if handled properly, will maximise the value of your home.
- Local scene: If stock is tight – and in most areas it is – expect to attract substantial interest. Buyers have more choice in suburbs with plenty of homes for sale. Your experience as a seller will be dictated by local factors rather than national headlines.
- Strong demand: Be prepared. Some properties are selling within just a few days. Finding a buyer in a 10-day window is not unusual in the current market.
- Eager audience: You still need to advertise unless you specifically want to sell off-market. Once you’ve listed on a property site, expect thousands of views, at least 30-50 direct inquiries and plenty of foot traffic for your “Open” – if we haven’t sold before then.
- Fast-track: It’s common for offers to start coming in over the phone and email, even if your property is scheduled for an auction. You may wish to sell prior, or insist on waiting for the auction, believing it will deliver the highest possible price. (That’s a legitimate play).
- Price goal: You’ll have a target price. So if a buyer matches or surpasses your expectation before auction, what’s your response? There’s no guarantee the auction will produce bigger offers and sometimes the deal in front of you is very much worth taking.
- Last word: The recent announcement by APRA that they will be changing mortgage eligibility rules signals there are likely to be changes on the finance front. While we can get excited about the market right now, we also need to ground ourselves a little and keep price expectations realistic rather than stratospheric. The deal’s not done until contracts are exchanged.