During this period it wasn’t unusual to see half a dozen genuine buyers bidding at auction, and 80 per cent to 90 per cent of properties selling under the hammer.

But in the residential property market, like anything else, the good times can’t last forever. The property market is cyclical; that’s what keeps it sustainable.

For every period when demand outweighs supply and buyers are practically knocking your door down, there comes another when buyers are less active and supply equals or outweighs demand.

For the past few years it has been a vendors’ market. Now it is a buyers’ market, with auction clearance rates falling to about 50 per cent to 60 per cent.

First, you should ensure that the advertised price range truly reflects your property’s current market value. If you pitch it too high in a buyers’ market, it won’t attract enough interest.

Remember: a property is only worth what the market is prepared to pay for it. The last thing you want is to have your property languishing on the market for weeks or months just because you weren’t realistic in your price expectations.

When you’re negotiating the final sale price, be rational. As a vendor it’s natural to want as high a price as possible for your property.

But when the market cycle is turning in favour of buyers, they won’t be feeling as ‘‘desperate’’ to secure your property, so their spending may not reach the giddy heights you’re hoping for.

It’s also worth being more flexible regarding inspection times. Hold open-for-inspections, but also make your property available for private appointments, so that individual buyers can visit at times that suit them.

Many buyers are motivated by lifestyle considerations and emotional attachment as well as financial concerns. In a buyers’ market, they have the luxury of being fussier than they otherwise would, and more inclined to reject a property on minor grounds.

For this reason, it’s essential to make sure your property is presented in the best possible light.

Finally, think about the reason you’re selling. Will the best offer on the table allow you to get on with the next phase of your life? Will it give you enough money to buy another home or investment property, retire or achieve another key goal?

If it will, it’s worthy of serious consideration. If it won’t, maybe now is not the right time to sell.


by Mark Armstrong

June 19, 2011

Mark Armstrong is an independent property analyst and adviser, mark@ipropertyplan.com.au.


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