What are the defining characteristics of a seller’s market?
A seller's market is one where property owners are in a strong position to sell their home and receive maximum reward, this can include:
- Demand is outstripping supply. Demand is one of the most important factors driving home prices, this can either be a low level of inventory available on the market or a large number of buyers ready to make their bid. This normally results in more competitive offers and faster home sales.
- Cost of credit is low. The vast majority of people who buy a home will take out a mortgage to do so, which means that interest rates matter when people are considering making their purchase. Low interest rates drive demand and allow people to finance homes they normally wouldn’t have access to.
- Homes are selling for over asking price. The most noticeable aspect of a sellers market for home owners is that properties are beginning to be sold for over asking price, with bidding wars taking place to help drive the market demand.
How can vendors take advantage of a seller’s market?
- Don’t set your price too high. While a seller’s market does put vendors in a position of strength, people still want to feel like they are getting a good deal. Setting your price too high can scare away potential buyers, reduce interest and cause your house to be on the market for longer than expected. It can even result in you having to reduce the price over time.
- Choose to sell your home at auction. Auction is of the best method to sell a property in a seller’s market. When there is low inventory, buyers are more likely to bid aggressively to compete with other buyers and secure their dream property. During the marketing campaign, your real estate agent will attract interested buyers and make sure they are present at auction day. Assisted by an experienced auctioneer, they will then leverage the competitive environment to drives more aggressive bids and deliver a better outcome for the vendor.
- Invest in your home. This doesn’t mean renovating the whole house and sinking tens of thousands of dollars into making it perfect. It means making small, strategic renovations like painting the walls or fixing your kitchen cabinets, to make the space feel fresh and high quality, raising the price of the home significantly without breaking the bank.
- Stage your property. Property staging is a proven way to increase your house price and increasing the probability that your property sells faster. Clean modern furnishings with small touches can really transform your space and make buyers take notice.
- Come up with a proper go to market strategy. While it might be tempting just to post your home up and see what happens, a proper go to market strategy can make a significant difference to buyer interest and your bottom line. Take high quality images, film a clean video and consider a virtual tour to really allow people to fall in love with the home before they even inspect it. Once you have your creative assets you should follow a marketing strategy, posting on the right real estate sites and going live on the right days of the week for buyers to take interest.