If you believe the hype, the Australian market is in a serious downturn. However, despite the negative headlines, there are still buyers out there! These include qualified, motivated people who are serious about making a purchase.
The property cycle rises and falls over time, and after years of unbelievable growth in Parramatta and wider Sydney, a slower period was inevitable. The good news is if you purchased your home before 2012, you are likely to be ahead in terms of profit. The not so great news is it can be trickier to sell in the current market.
If you’re considering listing your Parramatta property for sale, here is some information to help you navigate the current conditions:
How did we get here?
As mentioned, the past five years have seen incredible growth for property, particularly in Sydney. House prices have doubled in many areas, thanks to strong demand from local and overseas buyers.
Prices rose quickly and naysayers warned there was a bubble about to burst. While we haven’t seen freefall, the 2018 and 2019 Banking Royal Commission did result in lenders reviewing their practices to limit people’s borrowing capacities. Compared to a few years ago, lenders are more prudent in assessing suitability and approving home loan requests.
To gain home loan approval in the current market, the process is now more stringent. Buyers have to provide extensive evidence of their employment history, income, debt and savings. They are asked to share detailed financial statements and they are expected to have low levels of debt.
For those who are organised, have a good deposit and who have been preparing to apply for a home loan for several months, this isn’t a problem. However, impulse buyers who put offers in before heading to the bank to ask for a loan are all but ruled out of the market in 2019.
Buyers are still out there but there are fewer of them and their budgets are a little tighter.
Along with having less to spend, these buyers are all too aware that the pendulum has now swung in their favour. Instead of being surrounded by competition and being forced into a bidding war, they may now be the only interested party.
Previously, the property ‘frenzy’ meant buyers were putting offers in early, some without even viewing a property. They were motivated to ‘get in’ before prices went up further and would come in with the highest offer possible.
In 2019, buyers are far more discerning. They want to make sure the property they have their eye on ticks every box. Time is on their side and they may request multiple inspections before even beginning to negotiate.
“2019 has delivered a buyers market. House hunters and investors are more discerning but the good news is they are credit-approved and motivated to secure their next purchase.”
And negotiations can be tougher. With limited budgets, buyers want to get as much as they can for their money. Many bring buyers agents into the equation to represent them in the hunt for a good deal.
These buyers aren’t being stingy, they are responding to current market conditions. And while they are after a home or investment, there are understandable nerves about further drops in the market. It is important to make the right choices and they are taking to steps to ensure this is the case.
The impact on sellers
For some homeowners and investors, the slower market means holding off on listing property for sale. However, sometimes you are in a position where you have to sell.
Where campaigns were taking two or three weeks to finalise a sale in 2017, now it can take six or even eight weeks to sell a Parramatta property. This may be because it takes longer for buyers to secure finance or it may be due to drawn out negotiations.
In some cases, buyer feedback can dictate a change in the reserve price or a suspended campaign while repairs or upgrades are made to a property to make it more appealing.
“Be prepared before you list your property and look to impress potential buyers”
What’s most important for sellers right now is to work with an experienced local agent who has detailed knowledge of the current market. This agent will be able to set expectations about the property’s current value, while going the extra mile to unearth a buyer.
Maximise your advantage
If it’s time to sell, it’s true you may get less for your property than you did eighteen months ago but that doesn’t mean you can’t achieve a great result.
When you work with an experienced agent, he or she will help you prepare your home for sale. This will involve some groundwork to get the place sale-ready. It needs to look as modern, clean and liveable as possible so buyers fall in love the moment they walk through the door.
A sales campaign in the current market must include a strong marketing strategy, with beautiful photography, compelling copy and advertising which reaches every possible buyer out there. Your agent may recommend video content to create a point of difference and help your property listing stand out.
To get the maximum price for your property, you need the attention of more than one buyer. Once you have two interested parties, the price will start to go up. With the help of a dedicated and experienced agent who has access to an extensive database, enough foot-traffic will pass through on open day for this to happen. Your agent will also be firmly in your corner during negotiations to ensure you don’t sell your property for a price you’re not happy with.
There’s no denying conditions have moved on from the real estate peak, however your Parramatta property is still valuable. This is an in-demand area which is popular with families and young professionals alike. Selling your home may require a little more groundwork and patience but it is still more than possible to achieve excellent results.