Selling in a seller’s market
A seller’s market describes a market where demand exceeds supply, or in simple terms where there are more buyers than sellers. Signs of a real estate seller's market include high prices, high auction clearance rates and low days on market.
As a seller you may view this circumstance as an opportunity in which you cannot lose, but it is essential to put your best foot forward to truly capitalise on the market.
In this blog, our agents outline five actions items to consider when selling in a seller’s market.
Time it right
Pay close attention to what's happening in your neighbourhood. A significant supply of similar properties will make it more challenging to sell your property for your desired price. If circumstances permit, it might be in your best interest to wait until supply reduces.
Choose the right sale type
Sale type is one of the most important aspects of a successful property transfer. Options vary, but the goal remains the same: to get the right price at the right time.
- Auctions are an advantageous sale method for sellers. As there is no ceiling price, competition is encouraged, which often increases the price outcome
- Private treaty sales encourage serious buyers with appropriate finance to inspect the property and submit offers. This process allows the seller to review each offer (its price and conditions) and choose the most appealing proposition.
- Off-market sales invite qualified and highly motivated buyers to inspect a property before it is advertised to the public. Offers can be submitted, reviewed, negotiated, and accepted before investing in external marketing options.
- Expression of interest (EOI) is a method commonly used for unique properties that are hard to compare or place in a local market. These properties are advertised with calls for EOI without disclosing the selling price, which can create extraordinary buzz and competition.
Stage to standout
While you cannot change things like location, size or views, minor cosmetic updates can dramatically affect buyer interest. Declutter, depersonalise, fix, repaint, clean, deodorise, and style.
Consider a professional home stager if you need a little extra help or want to give your house an extra lift. Stagers know the market and what sells. They will be able to leverage industry knowledge to help you create a setting that will raise eyebrows for all the right reasons, accentuating the property’s best features while downplaying its imperfections. For more information view our blog on preparing your property to sell.
Price to sell
It might be a seller's market, but it's important not to overprice. Buyers who view an overpriced property will often disregard it even if you drop the price later. Conversely, properties will generate more interest if priced below or at actual market value. Many sellers have concerns about pricing their homes too low; however, this strategy tends to result in multiple showings within the first several days, which often results in a multiple-offer scenario. And once the offers roll in, so does buyer emotion, which could end up creating a bidding war that drives the price up.
Market, market, market
The more eyes you can get on your property, the better. Reach is incredibly important in ensuring your property has complete exposure to in-area and out-of-area passive and active buyers. Signboards, online real estate portals, social media, open homes, agents’ databases, letterbox drops, print – a carefully considered and tailored marketing campaign is an effective path to reach as many buyers as possible. Do it right, and you'll receive outstanding interest and offers.
Create a sense of urgency
The average buyer is fearful about missing out on a dream home. Creating consistent, overlapping foot traffic at an open home can give the appearance of strong buyer interest and competition, which can prompt a serious buyer to make or increase an offer. Offer deadlines are also a good way to motivate buyers to make offers. Competition and deadlines create a sense of urgency, which can result in the coveted multi-offer scenario.
It pays to prepare and have a strategy in place to capitalise on the market when selling. The best form of preparation is a qualified real estate agent, who can guide you through the steps above, as well as advise you on the market and stand-in for you during the selling process – including the intimidating parts like negotiation and settlement.
Find a Hockingstuart agent near you now.