KEY POINTS:
When the market dies, it gets hard to sell property.
So, if you have to sell, how do you go about doing this in a buyers' market?
The first question is do you really have to sell?
My investment mantra is "buy in gloom, sell in boom" - and this is a gloomy enough time to suggest you should not be selling if you don't have to.
But there will always be people who do have to sell - marriage break-ups, moving town, and those with negative equity struggling to meet their mortgage payments.
It is possible (even probable) there will be little improvement in property values for some years - in my view, the risk is still on the downside.
If you are going to sell in the next few years, then you should be eliminating that risk by selling now.
Assuming you are a serious seller, here are some tips:
Hire an agent. They are expensive but a good one will add value to your sale process. Choose an agent and agency which are prominent in your area. There are agents who dominate their suburbs - these are most active and deal with buyers all the time.
Price your property well. Get an independent valuer to appraise the price. Valuation is not an exact science but for about $500 you can get an expert's view. There is no point in listing a house at a price well above what it is worth - people seldom pay over the odds, especially in a buyers' market.
If you are serious seller you will have to meet the market - everything has a price and if you price realistically, your house will sell.
Present well. Everyone says you should do this but many people still don't do it. A good idea is to get someone with fresh eyes to look over your house and point out the things that jar on first inspection. Fix those things that need fixing before putting the property on the market.
Promote carefully. A lot of advertising does more to promote the real estate agency than it does the house. Serious buyers tend to look online or in the windows of local real estate offices - both of these are usually free to the seller. Paid advertising should be used sparingly.
Be patient. There will be a good number of buyers but if your house does not sell quickly, console yourself with the knowledge there are always new buyers coming into the market. Eventually your buyer will come along - providing you have properly priced and presented the property.
In this sort of market, be wary of going to auction. It's expensive and while some properties may benefit, most should simply be presented with a realistic price.
I expect prices to be poor for some time but it is possible volumes may pick up soon as the price gap between buyers and sellers closes.
Sellers have a lot of competition and buyers a lot of choice. If you have to sell, ensure that your house is top of the list.
Each week best-selling financial author Martin Hawes will share his strategies to help you grow your wealth. You can email your finance questions to info@wealthcoaches.net or andrea.milner@heraldonsunday.co.nz On the web: www.wealthcoaches.net
