Australia’s housing market rebound is sure to bring smiles to the faces of the thousands of strata owners looking to offload property during 2020.
After suffering through the largest downturn in 40 years, the property market has now turned the corner with the value of apartments nationally expected to rise significantly this year – music to the ears of those whose apartment or townhouse is already on the market or about to be listed.
And there’s good reason to consider selling your property this year with Moody Analytics are just one of the many financial analytics groups to have predicted a significant uptick across the east coast capital city residential markets in 2020. In their third quarter 2019 forecast, Moody analysts forecast that apartment values would leap ahead this year, rising by an average of 5.1% nationally, with Sydney expected to be the top performer at 7.9% followed by Brisbane at 5.4%.
Better still, the combination of lower interest rates, easing lending serviceability buffers and increased consumer sentiment is expected to bring more buyers back into the market.
However, selling your apartment or investment property is likely to be one of the biggest financial decisions you’ll ever make, so before listing your property it pays to understand how the real estate game works.
As the seller (or vendor) it is a real estate agent’s job to represent you in:
- Marketing the property for sale (photos, advertising, property staging)
- Conducting a market appraisal based on recent area sales
- Creating interest amongst buyers by conducting open for inspections and building interest among buyers to negotiate a sale
- Negotiating the highest price via auction or private treaty
- Paid a commission by the seller / vendor.
The real estate agent should have the best practice to guiding their clients though a complex selling process.
Property developer and stylist, Naomi Findlay, says it pays to begin by researching potential agents, just as you would when hunting for a property.
The agent you choose is going to represent you and your property so it’s important they have sound knowledge of the area in which your strata residence is located and are familiar with competing properties.
“The agent should be able to give you a thorough snapshot of the market in your area and surrounding areas. They should know about schools, transport, demographics and the sorts of buyers looking for homes in the area,” she says.
In a piece for property portal realestate.com.au, Findlay suggested that the best way to research your shortlisted agents is at open house inspections so it may be worth popping in on one to see the candidates in action.
Take particular note of how the agent communicates and interacts with people, she says. You should also watch how proactive they are during the open home, note whether they complete any follow up post-attendance and commit to memory the efforts they have gone to in terms of their marketing of the property.
A good agent will also provide advice to help increase the outcome of your sale such as minor renovations, garden maintenance and staging.
Depending on where your strata residence is located, they will advise you on whether it is preferable to put a price on the property, put it up for auction or call for expressions of interest, plus the advantages and disadvantages of each.
As most sellers ultimately become buyers again, it is also worth recognising the role of the buyer’s agent or buyer’s advocate in the purchasing process.
Typically a source of qualified and ready buyers for selling agents, it is the role of the buyer’s agent or advocate to make the process of finding a new home easier and less stressful.
Common in the US and gaining popularity in Australia, this type of agent works on behalf of the buyer to search for properties, evaluate them and then negotiate with the seller (or their agent) to seal the deal at the best possible price.
The beauty of a buyer’s agent is that once you’re set on a location and the type of property you wish to purchase, the buyer’s agent will likely already have some properties on a short list for you.
No matter the person or method you choose to sell your property or purchase a new one, it’s important to remember that the selling journey doesn’t end when you accept an offer.
Try to make it a priority to speak to your chosen representative to find about the exchange process, to learn what your rights are during cooling-off periods and settlement, and how to buy and sell at the same time.