I don’t believe we will be moving away from auction clearance rates in the 70’s for quite some time. The stock levels are low and there are still plenty of buyers ready to put their hands up at auctions. REIV clearance rate was 73% albeit on sub 900 auction numbers. With a distinct lack of good available stock, record low interest rates and a growing population, I don’t see property prices going anywhere but up.
Whilst I always say to people only sell when you have good reason, everyone usually has to sell sometime and I thought it timely to talk about do’s and don’ts in the sellers realm. There are a number of things to remember when selling one of your largest assets and we can break it up into when to sell, who to sell with and how to sell. Every agent you speak with will tell you he or she is the best agent to sell your property in the area. They will often want to know what you want for your property and then they will proceed to tell you their method of sale is the best regardless of your circumstances.
When to Sell: Are you buying another home, should you buy first and then sell, or sell first and then buy? This question is easy to answer if you sit down and look at your own individual circumstances. But unfortunately the agent may not care about your circumstances and tell you simply to sell and then worry about buying later. Choosing which way to go usually comes down to what your financial position is and whether you have any back up plans. I usually spend quite some time talking this through with my clients before we decide on a direction to go.
Which Agent: There are some good agencies and some good agents out there but they are not experts at every type and style of property. When I am choosing an agent for one of my clients, I will look at who is selling in the area (and who is selling well!), who is selling the type of property I am selling and what the agents background is. Are they a licensed agent, are they members of the REIV, are they the principal of the agency. When interviewing agents I want to know if the person I am interviewing is the one standing on the property. I want to know who the auctioneer will be and how long will they be there on the day of auction.
Method of Sale: All properties in Melbourne go to auction don’t they? NO THEY DON’T!
The auction method of sale can be very good and I have used it many times both personally and for my clients. But I don’t always sell under the hammer, in fact I rarely do. If I get the right offer prior to auction or I don’t get good enough bidding on the day I am happy to be in a one on one negotiation. If you are on your own, this will be a daunting prospect and your own agent may heap more pressure on you, however, handled well, this is the time you will get the maximum price for your property.
If you are considering selling any property in Melbourne any time this year, feel free to give us a call for a no obligation chat. After 15 years of helping people buy property we are uniquely qualified to assist you with the sale of your property and are now offering our Vendor Advisory/Advocacy service to the public. It will cost you nothing more than it would to go direct to a selling agent, but we will maximise your price by managing the sales process for you.
Ian James
Director
JPP Buyer Advocates
