Perth real estate prices have dropped and are forecast to drop even further. In fact, according to Satterley Property Group chief executive Nigel Satterley property prices are the lowest they’ve been in five years and are the lowest that they will be for a very long time. This makes a perfect buyer’s market. But what does this mean for sellers? The downward trend of housing prices isn’t all that bad for Perth sellers. While prices have dropped and you can expect less for your property, that doesn’t mean you can’t pocket a fair sum and save money in the process. Here’s how to make the most out of a buyer’s market.
If you need to sell promptly, and the market is not in your favour, step one is to look for ways to save money while selling. Your options include selling privately and low commission real estate. Selling privately is only advised for those in-the-know and who have the luxury of time to sell their property, as you don’t have the skills and knowledge to get the right price. The alternative is low commission real estate through a platforms like Nesters. At only 1.5%, you get the same essential services of a real estate agent for a much better price, all made possible through technology that streamlines the sales process.
Add value to your property
Most people think that renovating for sale involves ripping out the kitchen and bathroom to install new ones. However, experts advise that this method is rather expensive and doesn’t add as much value to your property as you may think. You’re better off improving the front facade of the property by freshening up the paint job or doing landscaping which can add up to 20% of your property’s value.
Focus on negotiations and hot leads
A critical mistake that both private sellers and real estate agents sometimes make is focusing energy on the wrong stages of the sales process. A longer inspection period or more home opens won’t necessarily sell the house for a better price. Similarly, the more time the real estate agents spends fielding questions and answers between buyer and sellers is actually more time wasted. The most important things that contribute to getting the best price on your home is jumping on leads while they’re hot and cleverly negotiating the best price.
Although prices in Perth have dropped overall, there are still key areas in which it is a good time to sell. Not all suburbs will be in the same stage of growth, with some areas going up in price and others coming down. Be sure to check the relevant facts and figures in your suburb to determine if it’s a good time to buy or sell.
What comes down, must go up
If you have the time on your hands, you could wait through the buyer’s market until the demand for housing, and the price of housing, goes up. This will happen after Perth real estate prices hit rock bottom, predicted to be in roughly six months from now. Remember the rules of the property clock. You want to sell counter to the popular psychology. While everyone is buying property, you want to sell, and vice versa. You’ll also want to keep an eye on interest rates, as buyers are afraid to buy when interest rates go up, pushing down the price of property even further.