Deciding to sell a property is often daunting. Not only does this transaction affect the place where you spend most of your time, but it is also likely to be one of the most significant financial transactions a person will ever undertake in his or her lifetime.
In the past, prospective home sellers would take a quick gander at how the property market seemed to be performing at a given time, and base their decision to sell on whether comparable properties in their city or suburb were actually gaining traction from the market.
However, many people who had been planning to sell their home might be discouraged to sell due to the current trying economic and global circumstances due to the outbreak of the novel coronavirus last year.
While COVID-19 has wreaked havoc on lives and livelihoods across the world, sellers may be surprised to find out that the pandemic has by no means collapsed the property market – on the contrary.
If you are thinking of selling your property in 2021, these are the things you need to know in order make the right preparations, and to get the best possible price for your home when it does ultimately sell.
The Market Forecast for 2021
Data from CoreLogic’s Home Value Index reveals that 2020 ended with continued growth, despite the many challenges the property market faced due to the coronavirus last year. This has already laid the path for 2021 to be a good year for the local property market, as December saw every single capital city recording gains.
It’s worth mentioning that the fiscal and stimulus measures implemented by the Australian government had a big influence on the resilience of the property market, and that this, along with the rollout of a vaccine to protect the Australian population against COVID-19 will probably lead to a continued rise in property prices in the country.
Of course, a rise in the prices that homes are selling for is great news for people who are planning to put their property on the market, and the continued growth trend should already be heartening, especially to those prospective sellers who might have doubted whether 2021 would be a good year to sell at all.
When it comes to selling a property, most sellers would agree that getting a price which guarantees a good profit on the sale is the most important goal of the process. As the current economic circumstances seem to be favouring sellers in this regard, selling in 2021 may well be a very good decision – but there are other factors that home sellers also have to consider.
Be Aware of Your Local Market
Any real estate agent worth their salt will tell you that the local property market, centred on the homes in the city or suburb where your property is located, has a huge influence on the price your home will ultimately fetch.
Comparable properties, or comps, will give you a good idea of how homes like yours generally perform on the real estate market, and can also give you an indication of what your own property will probably sell for. Comparable properties are similar to yours not only in terms of their location, but also insofar as they are similar in size, features and property type.
When ascertaining what the highest, but most realistic selling price is, real estate agents will often conduct what is referred to as a comparative market analysis, taking into account the type of property you’re selling, it’s size and features, the suburbs and local area, as well as the homes surrounding it. The school district within which your home resides may also have an influence on the comparative market analysis. In terms of your property, a comparative market analysis looks at the interior features, exterior features, mechanics, yard features and location, and the style of the residence.
When your real estate agent conducts a comparative market analysis, they will be able to make an estimation of the value of your home with all factors taken into account, and advise on an asking price that is both fair and attainable, with the possibility of making the profit you’d like to make on the sale of your home.
Choose the Best Real Estate Agent
It goes without saying that a trustworthy, qualified and experienced real estate agent is indispensable if you are looking to sell at the best possible price. While enlisting the services of a real estate agent will require that you pay commission on the sale of your home when it is eventually sold, this is literally a tiny price to pay when you take into consideration what you’ll be getting when a real estate agent helps you sell.
Real estate agents who are expert sellers have completed the training that is necessary to gain their qualifications, but don’t only come with theoretical knowledge of the real estate market in your city or suburb. When searching for an agent to help you sell your home quickly and at the best possible price, take care to look for agents who have been doing business in the suburb or city you’re selling in for a good few years. This experience is an invaluable asset, as it means that your real estate agent will have seen the local property market in every conceivable state. While the way real estate will perform at any given moment is notoriously hard to predict, agents who have seen things play out a certain way before are more likely to give accurate advice to the buyers and sellers they’re assisting.
Your real estate agent will help you along this journey in a myriad of ways, including helping to establish a fair and attainable price for the property, helping to complete the often tedious administration and paperwork that come with selling a home. As objective partners with a vested interest in getting the highest price (because it will also have an influence on the amount of commission they earn) real estate agents will handle negotiations with potential buyers on your behalf, in addition to making recommendations regarding the overall state of the home that may add value to it.
Ask Your Real Estate Agent What They Would Change About Your Home
In the world of real estate, personal taste will always play second fiddle to what appeals to the broadest possible group of potential buyers. Real estate agents who have been in the property game for a long time will have gotten used to what speaks to prospective buyers, and will be able to make good recommendations regarding repairs and renovations that will pay off when the home is sold.
You may have heard that certain rooms have a particular influence on the way prospective buyers perceive a home. While ensuring that the kitchen and bathroom are well maintained and in proper working order, a home that is in general disrepair will spend far longer than you want on the market, even if these two rooms are positively sparkling.
When conducting the comparative market analysis, real estate agents will take the overall condition of the home into account, and will make recommendations accordingly. Many sellers may feel hesitant to spend money on an asset that they are planning to sell, but if a good selling price is the goal, it is foolish to not heed the advice given by a real estate agent.
Larger repairs, like work on the roof or the plumbing, can prove to be expensive, but are a sure-fire way to avoid putting off potential buyers – because you can be sure they’ll be keeping an eye out for these and other structural issues, and will avoid buying a home that will require significant repairs at all costs. On the other hand, smaller improvements like a fresh coat of paint or some work in the garden also create a good impression with buyers without breaking the bank.
How to Price Your Home
Deciding what to sell a home for isn’t as simple as just spit-balling about a price that sounds right to you. As mentioned earlier in this article, your real estate agent will make a price estimation and recommendation based on the comparative market analysis. When initially deciding to sell, many homeowners use online home value estimators like Value Our House and Lendi to get a rough idea of what they might be able to get, although a home appraiser will probably be more accurate in their estimation. What a home does ultimately sell for, though, is greatly determined by the general state of the local property market and on what comparable properties are selling for. In this regard, trust your real estate agent’s instincts – theirs is likely to be the estimation that is closest to reality, give or take a few dollars.
Perhaps more than ever, real estate agents are paramount to property selling success. Whatever the global and local economic climate, selling without a real estate agent with all the know-how is setting sellers up for a far more arduous journey than they need. Have you still not found someone that understands your exact property needs? Let Perfect Agent recommend a number of agents for you to interview.