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Selling Apartments in Weaker Market Condition | Metro Realty

Sydney winter has been snappy, and so has the apartment market! But there is an old sage saying, “There is no such thing as bad weather, only bad clothing.” Similar to that, there is no such thing as a bad market, only a bad sales strategy.

There’s no denying the Sydney property market is taking a breather with days-on-market for properties higher and capital growth slowing. The number of properties newly listed for sale in Sydney is slowing; buyers are currently taking their time and contemplating their decisions. This is similar to what we experienced back in May 2018, when banks increased their loan criteria due to the Royal Commission audit.  Buyers were not able to make a move on properties they wanted due to loan approvals. 

According to propertyupdate.com, well-located, family-friendly apartments in Sydney’s inner suburbs are likely to continue to perform strongly due to increasing demand from owner-occupiers and investors; however, apartments in high-rise towers will continue to lag in comparison. 

Apartments in high-rise towers – in fact, these properties are likely to be out of favor for quite some time, according to propertyupdate.com.au. 

However, that does not mean you cannot get market prices for your apartment. 

So, how do you adjust the marketing to help buyers through this and pay you the highest possible price?

Hire the best agent

Now more than ever, you need a seasoned agent, especially one who has seen and worked through challenging markets. This means they will have 10 -15 years of experience, be well equipped to advise you, work hard and be able to dig deep into their kit bag of experience to negotiate a sale at a market price. 

Method of Sale

In a down market, the private treaty is usually the go-to marketing method; a private sale allows negotiations on a subject-to-finance basis, giving buyers more confidence in offering a higher price, knowing it is subject to their finance being approved. Some properties still suit Auction but not as many as in a booming market.

Days on market

The standard 4-6 weeks of marketing is usually not long enough. 

Especially if one or two buyers are knocked back on their finance application, your agent needs to go back and agree to another sale. This could mean the sale process takes eight or even ten weeks.

Be ready from day 1

Furniture hire costs last 4-6 weeks, and because the negotiations may take a bit longer than usual, you need to make your marketing count daily. From the day your property hits the market, make sure you have contracts of sale available, presentation perfect, all maintenance items completed, inspections arranged, brochures printed, signboard in place, the letterbox drop is done, etc.

This is also not the time to pick cheaper marketing packages with your agent. Usually, each agency offers at least two types of marketing packages. The cheaper one usually involves a standard ad –  in a market where stock is flooded your property needs to stand out from the crowd. Statistics (according to realestate.com.au) suggest that 70% of buyers do not go past the first page of the website.

Asking price 

It is time to be realistic about the price. 

Bear markets are not a time where you can start a campaign high – not too high, at least. 

Setting a high price and trying to negotiate from there will burn up valuable marketing time and lose qualified buyers. At the same time, you want to ensure you are not leaving any money on the table. This is where your agent kicks in, and you can work out what is the correct price point to go to market. 

Comparable sales over nine months old can’t be used to set your reserve as the market has changed, and you must adjust your expectations.

Presentation

Presentation is always important, but it is now more critical than ever. Buyers can afford to be fussy, so your property needs to stand out. If you sell your property subject to finance, the valuer who inspects your property for the potential purchaser will also need to be impressed.

If the apartment is tenanted, we recommend moving the tenant elsewhere unless they can keep the house clean and tidy. We would recommend holding a private treaty for at least four weeks before looking at tenanting the property again. 

Remove all other areas of objection.

Please do everything you can to remove any buyer objection that may give them cause to pause. Ensure all maintenance items are completed, finishes are good, and even consider getting a strata report done, allowing a buyer to negotiate a higher price with morale.

Contact Metro Realty to see how we assist and present your home it’s best whether it be to sell or rent.

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