How to decode the headlines when selling your Geelong property this year
If you are on the market, or about to be, let’s decode some of the terminology you may hear in the media during your campaign — and break down what you can and can’t control in what is being described as a “buyers market”.
First, understand your micro market.
Across Geelong, we have seen what we call micro markets for some time.
A micro market is a particular area — often a smaller part of a larger suburb — that has its own characteristics influencing how well, or how poorly, that particular area is performing.
Take Highton as an example. Within the one suburb you have Old Highton, Deakin/Epworth Highton, Barrabool Hills Highton and Queens Park Highton. Each of these areas can behave differently, and we refer to these as micro markets.
The challenge is that detailed data on these micro markets is not readily available in the public domain. Highton sales results and average days on market are relatively easy to find, but it takes more digging — and knowing what to look for — to get an accurate picture of what is actually happening within a specific micro market.
If you are selling in Highton, Belmont, Newtown, Grovedale, Newcomb or Geelong West, it is worth exploring the sales history of your particular micro market and taking this into account when working with your agent to develop the most effective strategy for your property.
An experienced and competent agent should be able to help you do this.
Sale strategies may need to differ between micro markets depending on supply, demand and the timeframe in which the seller needs to sell.
So, what exactly is a “buyers market”?
At the moment, we are hearing the media use terms such as “buyers market” and “depressed market”.
There are generally three ways to describe the relationship between supply and demand:
- Sellers market
- Balanced market
- Buyers market
The definition of each is essentially based on supply and demand.
A sellers market occurs when there are fewer properties available for sale and more buyers competing for them. Competition between buyers can push property prices higher.
A balanced market occurs when the number of properties available and the number of buyers are relatively similar. It is generally a softer market than a sellers market.
A buyers market occurs when there are more properties available for sale than there are buyers. With greater supply and less buyer competition, sellers generally have less negotiating power and property values can come under downward pressure.
So, when you hear the media describe the market as “depressed”, it is important to understand what is actually happening underneath that headline.
What does this mean if you need to move in Geelong?
As we move through Spring and towards Summer, many areas of Geelong are operating in either a balanced or buyers market.
However, that doesn’t mean every property is experiencing the same conditions.
Differences can exist between micro markets, but they can also occur between higher-value properties and lower-to-mid-range properties.
There are many things outside a property seller’s control.
Interest rates, government policy, legislative changes affecting property sales, reduced investor activity, increasing development costs and media reporting can all influence buyer sentiment.
But there are also several things that are very much within a seller’s control.
We see four main pieces of the puzzle:
- Property presentation
- Marketing and buyer engagement
- Selecting the right agent
- The price of your property
When all four are considered together and a smart sale strategy is developed, sellers can achieve a much stronger result than the broader market headlines might suggest.
Importantly, that strategy should be based on accurate, relevant data, not assumptions.
Presentation matters
Pre-market preparation can make a significant difference.
A clean, clear and well-presented property photographs better and makes a stronger first impression when buyers walk through.
Buyers can be picky. The less you give them to focus on, the better.
Once the property is on the market, maintaining that presentation throughout the campaign is just as important. Every inspection is another opportunity to make a positive impression.
Look at the marketing engagement
In this age of technology, marketing and buyer engagement statistics are readily available.
Your agent should be sharing this information with you and, importantly, providing commentary around what it means.
Is your property receiving above-average, average or below-average engagement compared with other properties competing for the same buyers?
The numbers themselves are useful, but understanding what they are telling you is even more important. Adjust if required.
Choosing the right agent
There can be a lot to consider when selecting the right agent. A personal referral from another seller who has used the agent speaks volumes. Google reviews can be helpful too.
One of the most important things is that you feel comfortable with the person you are going to work with. You should expect to communicate with your agent regularly throughout the campaign. Secondly a clear and sound strategy that is adjusted to the current market is important.
There are also some very practical questions worth asking when interviewing agents.
Two of our favourites are:
“What is your negotiation strategy?”
and
“How much do I have to pay if the property doesn’t sell?”
Once your property is on the market, your agent should be communicating with you regularly, so you are fully informed about what is happening and what is being done to sell your property week by week.
Price needs to reflect the market — and your timeframe
Once the above elements have been considered, sellers need to think carefully about pricing strategy.
Before going to market, this should be based on relevant comparable sales data.
Once you are on the market, the strategy needs to evolve at this time direct buyer feedback becomes an important part of understanding where the market is placing your property.
Price should also take into consideration the timeframe in which you need to achieve the sale.
In a buyers or balanced market, pricing decisions can easily become clouded by strategies that may have worked successfully in a sellers market.
We are not in a sellers market.
That makes it even more important to engage an educated and experienced agent who can guide you through pricing your property based on your goals, your timeframe and the current market conditions.
You can’t control the market. You can control the strategy.
If you have decided it is time to move, our advice is simple: collect as much information as possible about the strategy that will be used to sell your property before you choose your agent.
You can’t control interest rates.
You can’t control government policy.
You can’t control buyer sentiment.
You can’t control the headlines.
But you can control the strategy.
The Smartre Sale provides sellers with a structured strategy designed to extract the highest possible price in any market.
It is risk-free to sellers, with no sale, no charge — and includes a competitive negotiation strategy designed to create competition when there are multiple buyers, while also providing a structured approach when there is only one buyer.
Because the strategy needs to change depending on the market you are actually selling in and the goals of the seller.
Kardinia Property — A Smartre Agency.