In a changing market, buyers and sellers both need to adjust their strategies in order to be successful. The following are our Top 5 Tips for buying and selling in the current market. While this advice is relevant at any time, it is especially pertinent right now.
5 Top Tips for Buyers
- Do your homework. Unless you have physically inspected 50-100 properties, you will not be able to accurately gauge what is a ‘good price’.
- Don’t be scared of Auctions. Go and be prepared to bid – but make sure you have a sound bidding strategy before you do so. Attend lots of other Auctions to make sure you are comfortable with how it works.
- If you encounter a vendor who may be un-realistic or un-motivated to sell, don’t waste your time or get your hopes up that the vendor will reduce the price. Tell the agent to call you if/when the vendor is ready to sell, then move on.
- Don’t be a sheep. Too many buyers want to ‘wait and see’ what others are doing before they act. This leads to a delayed reaction in a dynamic market that may see them missing out on genuinely good buying opportunities simply because they are too hesitant or not feeling confident enough to act.
- Don’t look back. Many buyers regret missing out on other properties and spend too much energy going over “what if’s” and “if only’s”. There is absolutely no point in beating yourself up over a lost opportunity. Focus instead on what is in front of you today. Not on what was there yesterday or what may or may not be there tomorrow.
5 Top Tips for Sellers
- Make sure you engage an agent who is up-to-date with the market. Look for an agent who is experienced, sharp at interpreting the market sentiment, flexible and able to adapt the marketing and sales tactic as necessary. Bottom line: hire an agent whose advice you can trust.
- Price correctly or watch your property languish on the market. Buyers are in no mood to entertain overly ambitious sellers. They will simply walk away and look elsewhere.
- If you get a solid offer prior to Auction, get your agent to work the offer hard and sell prior unless you are confident that you will get a higher price on Auction day.
- Work with your buyers and try to help them when you can. For example, be flexible with settlement period, inclusions, etc.
- If you do proceed to an Auction, make sure you have a very good Auctioneer. In a market where buyers are reticent to bid, you will need a highly skilled Auctioneer to work the crowd. Where possible, you should first watch the Auctioneer in action to make sure you are happy with his/her performance.
If you know of anyone looking to buy or sell in the current market, do them a favour and forward them the link to this article.
About Oliver Stier
Oliver J. Stier is the Director of OH Property Group, a leading Sydney buyers agency. He studied Quantitative Economics and Finance at Cambridge University (UK), University of Toronto (Canada) and Princeton University (USA). In addition to being a licensed real estate agent, Oliver also holds the Chartered Financial Analyst (CFA) designation.