Timing the Property Market: How To Know When To Sell

The market of Inner West Sydney fluctuates a lot and you, at the other hand, want to sell your property. The question arises, is this the right time?

It’s very important to analyze the situation of the market and see if it has reached its peak potential or not as this can directly influence how successfully you can sell your property and how much you are going to gain from it.

In this article, we will be looking at the observations that we have obtained by analyzing the recent changes in the market.

When the demand opposes the supply

What will happen if the demand of a certain property is high but its supply is low? This can actually play in favor of you as this is one of the most efficient ways of finding out the probability of an increase or decrease in a property’s price. According to our observations, the year of 2016 witnessed a depreciated value of supply in Sydney’s Inner West. The 2017, on the other hand, is looking to be in a good shape as sellers have started to take an action and the overall supply has increased throughout Sydney.

Moreover, it is also important to keep a regular eye on the auction clearance rates to determine the possible fluctuations in supply and demand. The higher the auction clearance rate, the more the competition as buyers will be looking forward to take hold of their favorite properties.

The role of interest rate in affecting the market

The recent announcement shows that the interest rate has risen to 3.5 per cent cash rate. With this friendly figure, the supply is very likely to be boosted just like we witnessed a similar market change during the GFC in 2008. For properties that exceed the benchmark of three million dollars, some observations like lower clearance rate, prices having a downward pressure and more days in the market might be witnessed.

The expected projection of clearance rates in summer

The pattern in the last two decades of Sydney’s properties shows that even if the interest rates are not considered in mind, the clearance rates of the auctions are still decreasing during summer in comparison with its peak potential in spring. The people who are wishing to sell their property during these times should come up with a strategy in terms of right pricing, timing and advertisement.

Even if you are hoping to sell in the off-seasons, you do not need to become over-worried because the Inner West side of Sydney is the most sought-after side in terms of ideal properties. So, what matters mostly is how you strategize your plan in accordance with the trends in the market. For example, it will be unwise to sell your property when other owners are also selling a similar property as it will give them a bargaining advantage over you.

All markets have fixed price ranges? Think twice!

The Inner West side of Sydney is popular for containing literally heterogeneous markets. That is, that almost every market has its own price range. If we look back at the 2017, we will find out that the properties that crossed the benchmark of $3 million were not dependent on interest rate for market changes but rather on wealthy buyers from overseas and those people who are independent from mortgages.

Similarly, the properties which were priced below $2.5 million were more vulnerable to interest rate to affect them. For example, a higher interest rate may attract buyers from this category to put a downward pressure on the overall prices of the properties.

Selling By Auction: What You Need To Know

Selling and buying a property in an auction can be stressful for both, the buyer and the seller. However, auctions still have a lot of promises to offer which make them intriguing and fascinating for both the parties. The chance of earning a profit way above the sale price can encourage the sellers to participate in the auctions at the cost of sacrificing their property as it may no longer be theirs. The opportunity to get their dream property may motivate the buyers to go at extreme lengths in the bidding wars to obtain what they desire.

So let’s look at what has made auctions a regular “culture” amongst the people in the Inner West side of Sydney and how auctions may be advantageous for you.

The ideal markets for auction sales

Choosing the best market can be tricky if you do not have enough knowledge of the market trends and what’s in demand. Generally, auction sales are good for those markets that have a good buyer activity (determined by auction attendance and inspection numbers), low supply of property (the more competitive it becomes, the more motivated the buyers will become to keep bidding) and a desirable location (make sure the property is located at a good spot, near the required area and at the right address).

Can a ‘for sale’ sign discourage the buyers?

For some, a ‘for sale’ sign in the Inner West of Sydney may just be another sign for a failed auction. How so? Well, this part of Sydney contains all the required ideal markets. So, buyers usually misinterpret private sales when they see a ‘for sale’ sign. This further leads to the creation of offers which are way below the asking price and may devalue the property even if it is exceptionally good. However, we used the word “usually” above because this does not happen every time. Some private sales are excessively successful and quicker to bring results so, this is just a factor worth keeping in mind before deciding whether going to an auction would be the right choice or not.

Is an auction better or a private sale?

An auction or a private sale, both of these come with their own advantages and it is up to the seller to select the right choice according to his/her preferences. The best part about an auction is undoubtedly the transparency of everything. Unlike a private sale, the real estate agent will not be making any kind of negotiations behind the curtains but instead everything will be heard by everyone; the bids, the negotiations, the terms of the sale etc. In addition, the auction also provides the seller a greater control over the overall process because not only do they have the ability to negotiate with the buyer before the bidding starts but they can also make negotiations regarding pre-auction sales.

Inner West Suburbs Property: Where Are The Buyers Coming From?

Wouldn’t it be interesting to go behind the curtains and see what exactly the buyers are doing in the Inner West Sydney and what are they aiming to buy? Buckle up because that is what we are going to do for you by analyzing the data which we have collected.

Inner West Suburb Buyers are Local

In accordance with our research that we recently concluded, the experience says that most of the buyers who are looking to buy a property in the Inner West Sydney are none other than those who are already living there. This means that most of the buyers making a move in this side of Sydney are around 80% local rather than being elsewhere from Sydney.

In addition, we have also noted that entry-level homes act like a magnet towards first or second-time buyers. This is probably because they like the area too much or are happy with the familiarization of their surroundings.

When some properties become a magnet as well

Any property can become a magnet for both, the locals and the non-locals. However, what makes a property so special? One of the obvious reasons would be an exceptional beauty but mellow and snuggly places with a large space allowing the individual or a family to have a lot of freedom inside the house is also something to be considered.

In addition, buyers who are interested in houses near commercial areas, or educational facilities will also be more willing to make a strong move from anywhere around the city to the Inner West.

It’s all about the individual preferences.

Where do the non-locals come from?

To be super honest, there is no definite rule that a buyer will come from the outside of Inner West or even outside of Australia.

A property may meet the requirements of someone living in the North Shore while it may be a complete deal breaker for someone living in Newtown or Ashfield (some neighbors of the Inner West Sydney). In addition, someone, for example an international student might be willing to cross every border all the way from the United Kingdom to move to the Inner West of Sydney.

Anyone who is willing enough to completely settle down in this area will also be willing to leave behind everything where they are currently residing, whether it’s Melbourne, Sydney or any other place.

Hence, it’s not about where the buyers are coming from but rather whether their requirements are being met and once they are met, any obstacle can be overcome.

What about the local ones?

Each of the suburbs in the Inner West has its own advantages and disadvantages. People from the Strathfield South are more likely to move to another suburb such as the Balmain East because of its uncongested roads, easily-accessible transport (bus stops everywhere) and spectacular views. However, the Balmain East is not a much commercialized area when compared with the Birchgrove or Glebe.

So what does this prove? It simply reiterates the fact that it all depends on the personal preferences of the buyers. According to some popular real estate websites like domain.com.au, Birchgrove and Glebe are the top most favorite and livable suburbs of the Inner West whereas others like Strathfield South, Wareemba and Wentworth Point are not the best preferences for someone who is looking to live in a peaceful area as these mentioned suburbs, especially Strathfield South is very noisy because of 24/7 congested roads.

So, what’s in it for you?

The point is, different properties tend to attract people from different geographical areas. It is a wise choice to get the help of a real estate agent as they will be able to tell you what and who your property is most likely to attract.

6 Mistakes People Make When Selling In Sydney’s Inner West Suburbs

Within all the excitement and intrigue to sell their property, people often make six deal-breaking mistakes while selling their property in Sydney’s Inner West.

Giving less importance to the buyer

This is one of the most common mistakes, sellers forget the buyers. However, it’s not just about giving importance to the buyer; it’s also about how willing you really are to sell your property. Have you been doing everything you can to highlight the features of your home? What about the presentation? How well have you presented your property in the advertising campaign?

If you want to successfully sell a property in the Inner West, you must think from the buyer’s perspective and give importance to their view point. Think about what a buyer would be looking at first when he/she enters your home. Nobody likes to see a property which is full of unnecessary items so, de-cluttering your home is crucial to allow your buyer to check each and everything in your house.

Furthermore, find out different ways you can reach your ideal buyer. Why not consider making a Facebook campaign if you are looking for professional buyers? Try to do something different, people are tired of the usual approaches.

Imbalanced expenditures on renovation

Sometimes sellers extravagantly renovate their property and then expect for a higher sale price. It just won’t happen because all you have done is renovated optional things which don’t even matter!

On the other hand, some sellers completely ignore renovation as they think it’s not even important or they are scared of spending more money than they are expected to gain. The point is, as long as you are renovating the right parts of the house, it’s going to play a huge role in maximization of profit. People simply love when a property consists of all the latest facilities, qualitatively charming design and attractive fittings.

Spend wisely and it may turn the tables upside down, spend unwisely and you may be making it harder for yourself.

Having too much confidence

Some sellers become overconfident about the worth of their property and expect to receive a huge profit out of it. That is not possible. Your property will be worth what it deserves to be paid for. If you have a decades old property in top condition, it won’t matter. Time has changed. People are looking to adjust according to the new fashions and new facilities, your 1980’s renovations won’t do you any good.

So what to do? Get a trustworthy agent and ask him questions about your property. Make full use of him/her and find out what your house is worth and how can you further improve its worth, if it’s possible

Ignoring what the market says.

The real estate markets, whether it’s in the Inner West or even outside of Australia, are dictated by the laws of supply and demand. This is exactly why a lot of emphasis is placed on market research before stepping inside an auction or putting a ‘for sale’ sign on your property.

If your property has recently failed to sell, listen to what the market is saying. That does not mean that the market was actually speaking and you failed to hear its words but rather it’s a metaphorical way of suggesting that look again at the market trends. Have you overpriced your property? Did you bring it to the market through the wrong means? Are you even advertising at the right market?

All of these factors are dictated by the market trends and until and unless you are aware of what’s going on in the market, you will not be able to find out how to properly display your property when selling it.

Auctions are not everything

Auctions have started to become a literal culture in Australia, especially in the Inner West. People forget to check the market conditions before starting an auction campaign. What if there is already a high level of similar property stock available to the buyers? Do you think they will come to your auction? Absolutely not! It is very important to know that auctions are only effective when the stock is low and the buyer activity is high, not the other way around.

We personally believe that off-market properties tend to have better chances of getting sold than through any other method. However, this is not to discourage you. If you think auction is the right choice for your property, go ahead. But make sure it really is the right choice.

Lack of belief in the real estate agents

If you have already hired a real estate agent, which you should if you haven’t yet, then why not put your trust in him/her? If you are not completely happy about your agent’s choices, then not only are you wasting your hard-earned money but you are also wasting the agent’s time.

Real estate agents, the trustworthy and professional ones, can positively turn the tables upside down when it comes to successfully selling your property. They can help you in getting the best price for your property and the overall desired results. So, if you have hired an agent, trust them!