With a high number of houses listed for sale at the end of 2022 according to data released by REINZ*, the New Zealand property market currently favours buyers in certain regions, with properties taking longer to sell and house prices trending downwards. A buyers’ market gives buyers more time to negotiate and to complete their due diligence, and for sellers, to carefully plan a realistic sales strategy and to align expectations on price. If you’re selling property in a buyer’s market, here are some things to consider.
What can you expect in a buyers’ market?
Contrary to popular belief, a buyers’ market doesn’t guarantee low sales prices or heavily discounted properties. It’s merely a set of circumstances that places more bargaining power in the hands of the buyer because of certain market conditions. Of course, for any property sale to occur, both buyer and seller need to find common ground. While this may mean the seller will need to price the property in line with market expectations, buyers too will need to be realistic about any offers they make.
How does your property stack up?
Before deciding on a sales price and listing your property for sale, educate yourself on what’s recently sold in your area. Compare your home to similar properties with the same number of bedrooms and bathrooms. Check for recent renovations or additional features that could impact the price. Find out how long the property was listed for sale and what the final sales price was. It’s important to use the most up to date data to determine if properties like yours are in demand and what buyers are prepared to pay.
Which agent will you work with?
Unlike in a heated property market where buyers are competing on price and properties tend to sell far quicker, in a buyers’ market there’s more choice and less competition, which can slow down the sales process. An experienced real estate agent will help ensure your property stands out from the rest. Find an agent who is experienced at reaching every potential buyer, someone who is organized, strong in your area, and honest with their appraisal. They’ll also need to be a skilled marketer and a strong negotiator to successfully sell in these market conditions.
How will you market your property?
Regardless of market conditions, marketing is an important part of selling property but never more so than when the market is cooling as in a buyers’ market. When there are more listings for buyers to consider, investing in marketing and going strong from the start could help attract early interest. Once a property has been on the market for too long, a sale can lose momentum as buyers assume there’s something wrong with the property or that it’s priced too high.
How will you price your property?
With access to real estate search websites like Trade Me or realestate.co.nz, it’s easy for sellers to compare property listings and to get insight into property sales trends. Looking at council rating valuations for a property value estimate may also help determine a sales price but beware of pricing based on CV alone as these don’t always reflect the property’s true market value. Most sellers rely on the expertise and guidance of their real estate agent who has a finger on the pulse of the market and can determine a realistic expected sales price.
How will you finance your next property?
A final important consideration for sellers is ensuring that finance is set up and in place ready for you to buy your next home. If you’re considering selling and buying a new property, talk to an experienced mortgage adviser about your refinancing requirements. Mortgage Express branded mortgage advisers may be able to assist with bridging finance, vital when you’re buying and selling at the same time. Find a Mortgage Express branded mortgage adviser to work with today.