Trying to sell a house right now? Stay alert, because with the number of houses on the market up, prices down and sales slow, your buyer is holding a great hand of cards right now. Frances Cook has some tips.
Figures from realestate.co.nz show that while the number of properties on the market has rapidly increased, they’re still taking a long time to sell, and prices are down.
Spokesperson Vanessa Williams says the numbers are substantial. “We’ve got about 30% more properties on the market than we did this time last year. Buyers have more to choose from, so they’re not rushing in,” she says.
“Houses are sitting for longer – right now, the average time to sell is 50 days. Last year, it was closer to 35.”
Not surprising, then, that median prices are also down by 7%. When buyers hold the power, sellers have to work a little harder.
If you’re not careful, you might find yourself sitting on an unsold property, wondering why nobody appreciates your home’s “unique charm” (read: the questionable DIY renovations from 2004).
Still, that doesn’t mean it’s time to panic. With the right approach, you can still get a solid price for your place.
Here’s what you need to know to sell smart.
Financial journalist Frances Cook says sellers must be realistic about the market in their area right now and adjust accordingly. (Source: Breakfast)
Step 1: Know your market, and be brutally honest about it
Before you list your home, do some homework.
Head online and check what similar properties in your area are actually selling for (not just what they’re listed for – big difference). Good resources are Trade Me’s ‘Sold’ tab. The One Roof site and several of the major real estate sites offer similar intel.
Then go along to some open homes. See what’s out there and how your place stacks up.
If every other house has a brand new kitchen and yours still has aubergine laminate benchtops from the ’90s, that’s something to factor into your pricing expectations.
Step 2: Get ready to grill an agent
When selling your home, your real estate agent is your secret weapon, or your biggest liability. Pick wisely.
Interview at least two or three agents.
You wouldn’t hire someone for a job without a proper interview, so don’t just sign up with the first person who tells you what you want to hear.
Ask what similar properties they’ve sold recently, and for how much. What tactics did they use to sell it? What contacts do they have? What marketing is working, what isn’t? What sales method do they recommend and why?
Be wary of anyone promising you the moon. Some agents will do what’s known as “buying the listing”, where they promise you a high price, then hope to wear you down during the listing process.
If you’ve done your research on what’s happening in your area, you should be able to sniff out someone who’s making unrealistic promises.
Step 3: Price it right, and let go of the 2021 dream
I know, I know. In 2021, your neighbour sold their place for a ridiculous amount, and you’d love to do the same.
But markets change, and buyers aren’t willing to overpay like they used to be.
If you price too high, your home will sit on the market like that last sad sandwich at the end of a work lunch.
If you price too low, you might attract a bidding war – or you might just sell for too little.
The sweet spot is somewhere in between, based on recent sales, current market conditions, and a healthy dose of realism.
Again, if you’ve locked in step 2, a good agent can help guide you on this. But don’t rely on them entirely.
Step 4: Pick the right sales method
Not all sales methods are created equal. Here’s a quick rundown:
Auction: Great if you have a property that’s in high demand. It’s terrifyingly public, but an auction will almost certainly push up the price if multiple buyers are interested. It’s not so ideal if the market’s slow, though, because an empty auction room is awkward for everyone.
Negotiation: Gives you and buyers some flexibility. Good if you want to attract first-home buyers who might need time to sort finance.
Fixed price: Clear and straightforward. Works well in a cautious market where buyers don’t want to play guessing games.
Step 5: Market like you mean it
You can’t sell a secret. If your marketing plan consists of “chuck it online and hope for the best” you’re in trouble.
Professional photos are non-negotiable. They’re the best way to get people in the door to actually fall in love with the house.
No one wants to see blurry shots taken on an iPhone 6.
Whether or not you engage a homestager, it’s worth looking at other open homes to gauge what the professionals are doing with interiors. In general, have a massive declutter before you open your home to potential buyers. A spacious, light, airy look is appealing, while an overflowing shoe rack inside the front door just draws attention to your lack of decent storage.
Open home attendees will sometimes open and peek into your storage cupboards and wardrobes, so make sure they’re not bursting at the seams as well. And as for those adorable knick-knacks and 67 framed photos on the piano, tuck them away – otherwise buyers feel that it’s your home not, potentially, theirs.
What’s a waste of money? Paying for marketing and then pricing too high. If your property sits unsold for months, you’ll have to re-list, and all that ad spend is down the drain.
Make sure you’re either in, or you’re out. Decide on what looks reasonable based on what’s selling around you, then market it like you mean it.
Step 6: Be ready to negotiate
Buyers know they have options, so they might try to push for extras – a lower price, a longer settlement, or throwing in appliances.
You don’t have to agree to everything, but a little flexibility can go a long way.
Sometimes, the best offer isn’t the highest one. A slightly lower price with no conditions might be better than a higher offer that’s subject to finance, a building report, or a blood moon aligning with Saturn.
Step 7: Remember selling is a sprint, not a marathon
Selling can feel like a second job, but it’s temporary.
Your house is one of your biggest financial commitments, so it’s worth getting this right.
Think about how much time you’d put into applying for a job. The same amount of work here could mean a difference of tens of thousands of dollars, so it’s worth putting in the time.
If you do it right – set a good price, market properly, and negotiate smartly – you should see strong interest in the first few weeks.
If you don’t, it’s time to reassess.
The information in this article is general and should not be read as personalised financial advice.