Even a global pandemic-induced recession won’t stop Australia’s property market from flourishing, with house values rising at their quickest rate in 17 years. In this market, the odds are very much in your favour if you’re selling.
Buyer demand is at an all-time high, and with no signs of property prices going down anytime soon, there is no better time to sell (at the risk of sounding like a real estate salesperson).
Here are some things to keep in mind while selling during a real estate boom:
1. To get the best price for your property, make sure it’s well-presented for sale
Even amid a property market boom, most standard selling advice is true, such as ensuring that your home is attractively decorated and presented for sale in order to get the greatest possible price. You might want to explore repainting, gardening, and landscaping to improve the kerb appeal and exterior of your home, as these are all shown to boost value.
Style your home for sale from the inside out by decluttering, rearranging furniture, or even hiring a professional stylist to come in and make your home appear like it belongs in a magazine. Remember to employ a professional real estate photographer to showcase your home in the best light possible.
2. Request an appraisal so you’ll know how much money you’ll need to spend on your next home
You’ll need to know how much money you’ll have to play with on your next property if you’re selling and buying in the same market. Due to growing property costs, you may need more money than you anticipated to secure your new home. This is why getting an appraisal from your real estate agent is an excellent idea.
An appraisal is a calculation or assessment of how much your property is worth based on the current state of the market.
3. Rather than a private treaty, go to an auction
In today’s rising market, selling your home under private treaty makes little sense. If you take your property to auction, where many groups of buyers compete and drive up the price, you’ll be far more likely to earn a greater price.
Some houses have been selling for hundreds of thousands of dollars more than the reserve price at auction in this market.
4. Consider extending the settlement period
Many sellers are currently caught in a catch-22 situation, unable to decide whether to sell first due to rising property prices or to buy first due to the scarcity of inventory on the market.
The catch-22 scenario of whether to buy or sell first isn’t new, but in this growing market, many sellers are hesitant to sell first for fear of not being able to buy back in because property prices are skyrocketing so quickly and buyer demand is swiftly increasing.
It’s a good idea to ask for a longer settlement time to prevent being taken off guard and having to rent until you can afford to buy a new property. In the current market, many sellers are pressing for settlement periods of up to four months to give them more time to find a new place to reside.
5. Pre-approval for your next house will help you stay organised.
If you’re planning to sell and then buy, make sure you acquire pre-approval from your lender before making an offer. Because houses are being snapped up so rapidly, vendors will be more receptive to proposals from buyers who have already secured financing.
Pre-approval is the best indicator that your lender considers your financial condition acceptable, and it’s a crucial step to do before going house hunting or making an offer on a home.
We advocate receiving a “full assessment” pre-approval over a system generated pre-approval since it will offer you a much better response to the question “do I qualify for a house loan?” A “full assessment” pre-approval is one in which the lender’s credit experts conduct a thorough review of your paperwork and obtain a credit report from a third-party credit bureau. The lender will speak with you and ask you questions about anything they want to clarify, as well as maybe request further financial information.
This form of pre-approval can take a short while to process, but it can save you a significant amount of time when it comes time to seek final loan approval. It signifies your lender has put in a lot of time and effort into evaluating your financial situation and is still willing to take the next step.
Disclaimer: This article is not intended as legal, financial or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature you should seek advice from a qualified and registered Australian legal practitioner or financial or investment advisor.