Insight

14.02.18  Selling Advice

 

6 Mistakes People Make When Selling In Sydney’s Eastern Suburbs

To get the best price for your home, you need to do a few key things right.

Equally as important, you need to also avoid doing a few key things wrong. With that in mind, we thought it was time to look at the most common mistakes we see sellers make in Sydney's eastern suburbs.

1. Not putting the buyer first

Getting the best price for a property means always going into a marketing campaign knowing the type of buyer likely to be interested in your property. It also means doing what you can to highlight the features of your property that are likely to attract them.

This starts with the way your property is presented in any advertising campaign, and the means you use to reach potential buyers. For instance, if your property will attract prestige buyers or downsizers, print is almost always a good idea; if you’re trying to attract young families or young professionals, why not consider a Facebook campaign?

Some personal effects are fine, but putting your buyer first also includes decluttering or staging the property so that your target buyers can imagine themselves living there. Too often, when a property sells for too little, it’s because the seller isn’t thinking of the buyer first.

2. Spending too much - or too little - on a renovation

One great fear of many sellers is spending too much on a renovation and overcapitalizing, so that they never manage to recoup the investment they make. It’s true that we often see properties where the sellers have spent too much money on unimportant aspects of their home which are unlikely to affect their value. However, just as frequently we see instances where people haven’t spent enough. In the eastern suburbs, people will often pay more for excellence. That means the most successful renovations are usually those that emphasize good design, as well as quality fixtures and fittings. Spending money on these aspects of a renovation are likely to reap rewards when it comes to sale time.

3. Being unrealistic

Some sellers go into a sales campaign with overly ambitious ideas of what their home is worth. It’s only natural to be proud of our homes, and keeping a property in good shape is likely to affect its value. But there are other market factors that will impact its price too, and you always need to be realistic about what buyers will pay for.

For instance, a 1970's renovation is unlikely to attract extra money from any potential buyer, even if you have kept it in top working order. A good agent will be able to tell you what your property is worth, based on comparable sales and their own local knowledge.

4. Not listening to the market

The real estate market is based on the laws of supply and demand. If a property fails to sell, it’s sometimes because a seller hasn’t noticed - or refuses to believe - what the market has been telling them. That doesn’t necessarily always mean that the property is overvalued. It could mean that it’s pitched at the wrong market, presented badly or even being sold through the wrong means.

When you sell your home, your agent should be speaking to prospective buyers to find out what they have to say. And, if it’s not what you want to hear, they should be looking at ways to meet the market - whether that’s by remarketing it, repricing it or taking another course of action altogether.

5. Racing to auction

Auction is the most common method of selling property in the eastern suburbs, and for good reason. The competitive tension and pressure of the auction environment can lead people to put their best offer forward. However, an auction isn’t the only way to sell a property, and sometimes it’s not the best way either.

Auctions tend to work well when there is a high level of buyer activity and a low level of stock. They aren’t always as effective when the market slows, or when a property is prestigious, unique or unusual. We find that in these instances, off-market sales often work better - not least because they afford privacy to both the buyer and seller and give a more discerning buyer the breathing space they need to make a strong offer. That doesn’t mean a long campaign either. In our experience, off-market properties tend to sell more quickly than through other methods.

6. Not trusting their real estate agent

Choosing a real estate agent in the first place is down to their professional advice and experience (at least it should be). So, when a seller doesn’t trust their agent and acts against their advice, they’re not really paying for anything at all. That’s why, if you’re selling a home, it’s vital you choose an agent who you trust.

So always interview a few, ask them some incisive questions, and make sure that you’re comfortable with the person selling your home. After all, the relationship between seller and agent is as important in achieving the best price for a property as anything else is.

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