This is the dilemma that faces all property owners, is the market up or down?
Property owners ask themselves, can we afford to upsize, upgrade, get into a better area, get a property with a swimming pool, tennis court or other feature that we have dreamed about for so long? It can be a confusing challenge.
The media complicate these decisions even more as every time you pick up a newspaper there is always someone spruiking the property market either up or down. One day you read that there is an oversupply of housing and the next day you read that there is a serious undersupply, how can a property owner sort truth from fiction with all these mixed messages?
When considering selling firstly look carefully at your own situation and plan from there, consider pertinent questions and the available facts, disregard cheap talk in the media which is usually fueled by self-interest parties such as Real Estate groups, Builders, Developers and Mortgage Brokers.
Do you “want” to move for reasons such as wanting to live in a better area, wanting a bigger/smaller property, a newer property, more features etc. or do you “need” to move for reasons such as health, downsizing, work, cashing up or other personal contributing factors.
Your decision to sell will be greatly influenced by these factors and more importantly the price you ask for or can feasibly achieve will depend greatly on your motivation to sell. Many people decide on a price for their property based on what they want to buy, you will often hear someone say “we have to get $X dollars” for our property as the one we want to buy is “$Y dollars” this is a flawed concept as a property’s price is determined only by market and economic factors not by the sellers dream list or unfounded wishes!
Increasingly vendors are starting to wise up to the inducements being offered by some agents to list their property, wild claims of getting prices well above market no longer work as it has become clear that buyers are much more informed, as they can get reliable and accurate recent sales data from various sources. Buyers know what the price range really is for the type of property and the area.
So, what should someone wishing to sell their property do to arrive at a final decision to sell? The first thing that you should do is find out what your current property is really worth, this can be very different from what agents or friends may tell you, as agents will try to convince you that they can get a price well above market or more than one of their competitors. Friends may provide opinions and anecdotal stories that do not bear any resemblance to reality or your properties real value.
You can start by obtaining a Valuation from a Licensed Valuer, preferably one who is on a Bank Panel list as they are well equipped to provide accurate and up to date valuations based on real data. Once you get this valuation view it in the context of a conservative one that a financial institution would accept as the lowest amount that could be achieved at a quick sale, then factor in what is known as “market premium”. This is the margin that you can achieve considering, position, schools, transport, sports areas, pubs, restaurants and other enhancing factors such as your properties special features, gardens, amenities, garaging, fixtures & fittings views of the water or other local feature etc.
The market premium is the amount that you can achieve by selling to someone who recognizes the special features and uniqueness of your property and wants to make it their own. You can then obtain up to date recent sales and on market data through various publicly available websites and other sources and then compare this data to your own property.
If a property just around the corner from yours sold for $755k and it is very similar to your property but doesn’t have a swimming pool (which yours has) you can reliably expect that your property is worth more than $755k. Using the valuation, the available data and a balanced and pragmatic view you can easily arrive at an accurate market price for your property.
Once you have reliable recent sales and on-market data and a Valuation by a Licensed valuer you are You will know if the financial outcome will allow you to move forward with your own plans and if you will have enough money to fulfill your next dream?