How to sell in a buyer's market? 

COVID created the perfect storm for a seller’s market. Last year, many cities and regional areas in the property market saw unprecedented growth and prices. However, the market is now beginning to correct itself. High inflation, the recent increases in interest rates and uncertainty have cooled it, triggering a drop in auction clearance rates that has led to our current buyer's market and for vendors to rethink how they sell.  

While this news means many buyers are rubbing their hands with glee, the slower market is not all bad news for sellers, especially those who intend to remain in the market. And even if, ultimately, they sell lower than the crazy prices we saw last year, they will generally buy lower with their next purchase.

What is a buyer’s market?

According to Bungalow, “In real estate, a buyer’s market occurs when there are more houses on the market than there are interested home buyers. In other words, the supply of homes exceeds the demand.” And the repercussions are fairly predictable: properties tend to sit on the market for longer, and sellers have to work harder to sell, possibly even negotiate their prices.

Is there anything sellers can do to reduce their risk?

Absolutely!

Fortunately, there are many ways sellers can reduce their exposure to the downside of a buyer’s market and we’ve listed several of them below:

• Save on costs to offset any price drop. Selling property is a costly business. Generally, there are advertising costs, styling costs and agent’s fees to consider. Saving money is one of the main attractions of selling off-market, although there are many reasons why sellers choose to use our service. 
• Stay calm. It sounds like common sense, but when you panic about dropping prices or selling in a particular timeframe, you are more likely to make rash and costly decisions. The market fluctuates, but there will also always be buyers prepared to pay a little more for their dream home and if you keep your head, you still stand a good chance of achieving a good outcome.
• Be flexible during negotiations to keep them open. If you are not using the services of an agent, make sure you listen to your buyers' requests, think through the pros and cons properly, and if necessary, be prepared to compromise.
• Work with an agent if you are time-poor, don’t fully understand the selling process or if your negotiating expertise is limited because this will be more important in a buyer’s market. The expertise of an agent will likely save you money in the long run, despite their commission. Our Seller Assist service connects you with the right agent for your property and location.
• Think carefully about your agent's commission structure. A tiered structure may be a more sensible approach. It incentivises them to achieve the best price rather than simply making a sale.
• Try not to be greedy. Pricing is key to success in this type of market. Many of your competitors will be desperate and under-price their property accordingly, so do your research. Know where your property sits in the market. Buyers will question why a property has sat for too long.
• Keep the time of year in mind. Sales are slower during the winter months and the Christmas break in Australia, so unless you must sell, plan your sale for Spring or Autumn when more buyers are around and your property looks at its best.
• Create a lifestyle your buyers want to buy into with your presentation and styling. First impressions are particularly important when the market is flooded with property. “If potential buyers feel like your property is somewhere they can call home, you significantly improve your chances of selling,” advises House Buyer Bureau.
• “Find your edge,” advises Mashvisor. Think about which type of buyer your property suits best and use that knowledge in your presentation. E.g., If your buyer is more likely to be a first home buyer, that old furniture you inherited from your grandma is probably not the best option for styling. Put yourself in your buyer’s head.
• Make sure you are ready to proceed, both contractually and according to your personal timeline so there are no last-minute hitches once you find a buyer.

Pricing is key to success in a buyer's market

The take-out from these recommendations is not to feel too disheartened by the sensationalist media coverage about the current market because everyone's situation is different – in Hobart, for example, the market is still booming; get your pricing right; try to keep your head and not make any rash decisions: and finally, remember to use the services of experts like our team at Listing Loop to guide you through the process.

Let Listing Loop help you sell your property for the best price with the least stress 

With Listing Loop, we match your property to the right-fit buyers for free. We cut out the time wasters and get your property directly into the hands of buyers who have told us they're looking for a property in your suburb and for your price point. 

Your real estate agent can get your property live in 30 seconds. Immediately, Listing Loop can tell you how many matching buyers there are for your property. 

Furthermore, Listing Loop is a 'closed' marketplace, ie, all property listings are secured behind a login. If you need to make a change to your property sale price, it won't show up in Google, leaving it open for opportunistic buyer negotiation. 

Or, if you need some extra help, our Seller Assist service, also free, helps you find the most trusted and highest performing local real estate agent to sell your property. Not all properties are the same, nor are all real estate agents. 

For more information about our innovative, time and cost-saving ways to sell your property, visit ListingLoop.com.au, give our team a call at 1300 695 667 or ask your agent to get you in the Loop!