Sellers need to think about the market differently, agents say.
COVID-19 has yet to strike a major blow to property prices but the economic fallout from the pandemic has shifted how sales campaigns should be run, property experts claim.
It comes as housing sales data showed most recent sellers have been scoring prices higher than those recorded last year despite a recent fall in values over the past three months.
Sydney’s median home price, which is based on sales of units, townhouses and houses, inched down 2.1 per cent over the three months to July, according to CoreLogic.
But the $866,000 median was still about 12 per cent higher than over July last year and 15 per cent higher than it was before the federal election in May last year.
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Ayre Real Estate principal and director Adrian Wilson said the pandemic’s impact on the market was unmistakeable but the changes were not always what many expected.
“We’re finding that what many may initially perceive to be a negative is turning into a positive,” Mr Wilson said. “One impact has been the reduction in the numbers of people inspecting properties (but) we’re actually getting more serious buyers rather than the window shoppers.”
Selling to these buyers – many of who were first homebuyers or those upgrading from units – required adapting to some key seller trends, Mr Wilson said.
One was a surge in pre-auction offers or early offers for private sales, he said. “Often the best offers come in within the first week or so, so be prepared to jump on a genuine offer at the right level,” Mr Wilson said.
“Unlike in a booming market, where you might expect more buyer interest or competition in the weeks leading up to auction, that’s not necessarily the case right now.
“Many qualified, ready-to-go buyers are usually inspecting and offering in week one, or even pre-market.”
Sellers also needed to prepare for fewer house hunters at open for inspections. “Don’t panic,” Mr Wilson said. “Even though we are experiencing lower numbers, those coming through are generally more qualified.
Fewer buyers are coming through open for inspections compared to previous years but there was an upside to this, Mr Wilson said.
“This isn’t a bad thing. It means serious buyers have a better opportunity to engage with the agent and inspect the property in detail.”
Off market sales or cheaper marketing campaigns were not a good idea, Mr Wilson added.
“Now is not the time to skimp on the advertising budget. Your agent should be proposing a well-rounded, wide-net approach or you will be missing crucial buyer opportunities.”
Mr Wilson said sellers needed to keep in mind that some properties were selling at price records while others that should have sold well fell flat. “Be open to the element of surprise,” he said. “In this market, anything can happen.”
Selling during the economic uncertainty of COVID-19 also meant making sure your property was well-presented. “If you were planning on changing the curtains and carpet, then do it.
Every hurdle in today’s market means buyers calculate price revisions,” Mr Wilson said. “Have the property presenting its best … if it’s a house, have a pest and building report done so buyers can easily review the property and you can attract higher levels of interest quickly.”
Cooley Auctions director and auctioneer Damien Cooley noted there has been a recent rise in pre-auction sales but advised vendors to always seek the best advice of their agents before accepting one.
“The most important thing is to listen to the advice of your agent,” Mr Cooley said. “They will know from experience what’s best and it’s that experience that you’re paying for.”
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