When real estate prices fall and more than six months of inventory remains on the market, you could call the market is slumping, depressed, softening, falling or slowing down.
Whichever term you choose, what matters is the fact that people still buy and sell.
The market has not come to a standstill and one has to simply adjust to the market.
There has been an interesting shift in the market with a marginal increase in price in June. Unsold housing inventory levels fell slightly and new listings were added, suggesting that a number of properties were withdrawn unsold.
“The truncated mean asking price for June at $NZ 410,058 (up from $NZ407,349 in May) would seem to indicate a staunch position taken by sellers as the revised level they judge to be the “market”, not requiring further adjustments down in price at this time,” realestate.co.nz CEO Alistair Helm said.
There were 51,916 unsold houses at the end of June, almost the same as the previous month. This represented the equivalent of 45.3 week’s inventory, on seasonally adjusted basis. The inventory levels are beginning to fall, having risen to their peak in April at 51.6 weeks of equivalent sales.
Winning against odds
As a seller in a slow market, you should have best possible product at a price acceptable. Be realistic to the market trends, and do not wish for the price that your friend or neighbour sold two years ago.
Appearances mean a lot and sellers often overlook its importance.
This includes internal and external and aspects of the property. You should ensure that the exterior is clean and tidy, and that the bushes and lawn are well trimmed.
It is imperative to remove all clutter from the home before showing it to potential buyers. This might include removing some furniture to make rooms look bigger, and putting away family photographs and personal items.
It would be wise to have the home in ‘ready-to-occupy’ state. Even though buyers may be looking for bargains, your home should not look like a warehouse sale.
My recent experience will illustrate the point. Last month, I showed a client two short-listed properties in New Lynn in West Auckland. Both properties were good and comparable from the point of view of location, amenities and price.
The prospective buyer, having done their homework, offered a reasonable price for one of the properties, but its owner refused to even consider the offer.
The buyer then decided to purchase the other house, as the seller was flexible.
The Bottom Line
Selling a home in a down market requires extra work.
Do everything you can to get the home in excellent shape and be prepared to make some small concessions at closing. These tips, coupled with an attractive price, will increase the odds of getting your home sold. Remember that more than the price, it is the complete package that would attract the buyer.
If a seller wants to sell their home and say ‘Good Bye, the buyer should perceive it as a ‘Good Buy.’
Mohit Seth is a licensed Salesperson under the Real Estate Agents Act 2008, a member of Real Estate Institute of New Zealand and works at Harveys Austar Relaty Ltd, Blockhouse Bay in Auckland. Phone (09) 626 6119 Mobile 021-124 1155. Email: firstname.lastname@example.org
The above article should be considered only as general guideline and not as specific advice. Mohit Seth and the management and staff of Haveys and Indian Newslink absolve themselves of any liability that may arise from the above article.
A clean and classy exterior creates the vital first impression