How to get the best price in a property slump

Are you about to sell?

LAST week it was reported that more than 50 per cent of homes across Australia dropped in value - the worst housing slump in nearly 80 years, according to Residex. In Sydney alone, prices fell by more than 1 per cent during June to a median of $573,000.

Coupled with rising petrol prices, mounting concern over interest rates and low consumer confidence, homeowners face uncertain times ahead.

But what happens if you have to sell?

Real Estate Institute of NSW president Steve Martin says selling your home in this market should be your last resort. He advises homeowners to ask for leniency from their lending institutions to help them ride out the tough times.

"Ideally, try to hold onto your property," Mr Martin says. "If you can bear the pain, the ultimate result is your property will increase in value.

"If the situation is critical where you are physically unable to meet your mortgage repayments, there are a number of things you can do to ensure you walk away with the best possible price for your home."

Don't overvalue your home

THE surest way to ensure your home sits on the market indefinitely is to attach an unrealistic price to it, Laing & Simmons general manager Leanne Pilkington says.

"You need to try to be logical about the price you want to achieve. Likewise, don't go with the agent who offers the highest valuation on your property and the lowest commission; this is not the perfect equation some may think.

"If an agent is promising a price above the market, chances are it won't sell - it's as simple as that."

Mr Martin adds that a home that stays on the market indefinitely will cost you more in the long run.

"If you think your home is worth $300,000 and you get an offer for $290,000, this price could be better than $310,000 six months down the track. Interest and bank fees accrue and expenses to keep marketing your home add up," he warns. "Do your homework and base the price on what your home is actually worth, not how much you owe."

Don't skimp on advertising

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How to get the best price in a property slump | Property | News.com.au

 

Agree with Steve about maximising your advertising- after all, you want to be catering to the widest audience possible. I'd also agree about using great photos to market your property- they can make a big impact, as long as they're accurate and not designed to mislead the buyer (eg zoom lens views, wide angle distorted shots).

As far as his recommendations for not selling in this market goes, however, does it really matter as a home owner if you're buying in the same market? It's pretty relative for owner occupiers- perhaps he was only referring to investors or those owners forced to sell and then rent.

 

it really shouldn't matter if there is a market slump as you will also be buying something to replace your existing dwelling... which to will be cheaper.. in the same market

 

And in some ways it's preferable: you might get a lower price for your house but you pay a lower commission, and then have less stamp duty & other fees when you buy on the other end too.

So the pain you feel at having to accept less than you'd like can be offset by buying for less than you thought you'd have to, and saving money in fees along the way.