What is a buyers market & how do you sell in one?
A buyers market does not always mean there are lots of buyers, but it does always favour buyers.
Currently Devonport is experiencing a buyers market. Generally speaking a buyers market happens when there is a large supply of property for sale and a lower demand for those properties. A lower demand doesn’t always mean less buyers, it can mean the same number of buyers with less money to spend.
The main point to remember here is that sellers aren’t necessarily asking any more for their homes, it’s just that the gap between what sellers want and what buyers are prepared to pay increases a little. If you can recognize this as a seller in this type of market you will stand more chance of selling and selling is what you want to achieve.
For those looking to sell in a buyers market it is very important to get the pricing right on the very first day. If the price is too high buyers will ignore the property and you will actually end up driving buyers toward everybody else’s homes for sale. You definitely don’t want that because you WILL end up staying on the market for far too long.
Here is a list of tips to consider when selling in a buyers market:
- Study the real estate guide and watch how often prices drop on properties before they sell.
- Try to find out sale prices and then compare them to what the original asking price was.
- Listen to agent’s who give you a snap-shot of the market. They deal with the market daily.
- Don't listen to agents who don't give any market analysis.
- Remember, if an agent gives you a price that sounds too good to be true, it probably is.
- Listen to the market. Often all the answers you need come from feedback sourced at open homes, inspections & from buyer opinion. A good agent should be keeping you up to date.
- Avoid allowing emotion to influence your price expectations. Sometimes it’s hard but you need to be honest with yourself.
- Remember that the first 3 weeks of marketing your home are the most important. That is when the most buyers will look at your home so it’s important to be realistically priced from the start.
- Understand that buyers on average look at 14 homes before buying. If you’re over priced they have 13 other homes they can buy instead of yours.
- Don’t over price. This only helps everyone else selling in your market sell their property.
Some of this advice may seem confronting, but I can assure you that as a real estate agent it is my duty to make you aware of the importance of pricing correctly in a buyers market. It truly is a painful process when sellers realize that they have priced too high 6-8 weeks into their marketing campaign. Imagine an agent trying to explain my points at that stage! I can guarantee you it’s best to let sellers know what market conditions they’re dealing with on day one rather than on day 51.
For any advice about selling or buying - Halliwell First National Real estate
(03) 6424 1496
Alan Halliwell
Director – Halliwell First National
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