Pricing to conditions crucial
IN a slower real estate market hamstrung by subdued confidence, it is extremely important to competitively price your property if you are a serious seller.
That's the professional advice expressed by one of Toowoomba's successful veteran agents, Ian Knight of RE/MAX Success.
In reality, there is an abundance of properties on the market and a lack of committed buyers.
Confidence levels are low due to poor Government performance, uncertainty about the state of the economy and no clear direction about future interest rates.
The cost of living continues to rise significantly further clouding the enthusiasm of home owners and investors.
Research reveals the number of first-home buyers has tumbled nearly 40 per cent in recent times.
Current market conditions suggest the balance of power has certainly swung in favour of buyers.
Sales are still being achieved, albeit a lower number, but this is where buyers perceive a property as representing the absolute best value in the market.
The best advice a real estate agent can offer is to price your property competitively with the view of achieving a sale in four to six weeks.
Statistics show properties which are on the market for a longer period either don't sell or only attract lower offers.
With the prominence of the internet and the low cost of marketing, there is a tendency to attract an abundance of overpriced stock where sellers live in hope that they will achieve a dream price.
Buyers now have so many tools at their disposal that they are able to research market conditions and establish a fair purchase price.
Most contracts are subject to finance hence in the majority of cases, the bank engages the services of a registered valuer to inspect the property as a prerequisite to finance approval.
Being concerned of uncertain economic conditions, valuers generally value the property lower than the contract price.
A bank will only extend an approval on a loan-to-value ratio (LVR).
This highlights why some contracts fail on finance in tough market conditions.
Mr Knight highlighted that if you really need to sell, want to sell or got to sell, make sure you price your property very competitively so it is deemed by prospective buyers as outstanding value.
If you don't fit this category, take your property off the market or refrain from listing until market conditions improve.
Real estate is cyclic - it's not so much when you get in the market, it's how long you remain in the market.
It's in times like these, you need to engage an experienced professional real estate agent who understands the local market to provide accurate information and advice.