4 Reasons Now is the Best Time to Sell

Market Drivers

The sun is shining, the flowers are blooming, the birds are nesting and the bees are buzzing, which can only mean one thing: Selling season.

In fact, statistics from CoreLogic RP Data show that in just the first week of spring in 2016, the volume of auctions in our capital cities was at its highest level since May. Furthermore, there were over 1,600 more auctions in September 2016 then during August 2016.

Late winter and early spring are two of the most popular times of the year to sell your home, as buyers emerge from hibernation and compete for the influx of homes on the market. The increased supply means greater choice for buyers, while the surge in demand can result in better prices for vendors. Win win!

However, there are signs that this could be one of the best seasons ever for sellers. There are a number of factors all combining to entice investors – both international and domestic – towards bricks and mortar, consequently driving up prices.

Low Cash Rate

The current cash rate of 1.50 per cent has resulted in very favourable conditions for buyers (and therefore sellers). As the Reserve Bank of Australia’s Philip Lowe noted: “The rate of increase in housing prices is also lower than it was a year ago, although prices in some markets have been rising briskly over the past few months”.

With home loan repayments easier to manage, the property market has been made more enticing for buyers, not to mention the omnipresent fact that the advantageous rates won’t last forever!

Weak Aussie Dollar and Share Market

A low Australian dollar is beneficial to those who are selling property, as it makes it more affordable for overseas investors. According to a report from the Commonwealth Bank, since 2011 the dollar has fallen from its peak of A$1.10 to around A$0.76 at the time of writing.

Recent global economic and political events, namely Brexit and Donald Trump being elected US President, has seen volatile movements for Australia’s share market. Not only does this make property more appealing to Australian and international investors, but the added competition between buyers will likely push up your price tag.

What are prices doing?

The latest Open Market report found that real estate markets across the country continue to perform strongly with property values increasing by 2.9% during the September quarter and 8.6% higher over the first nine months of 2019.

9 Interview Questions to Ask Your Real Estate Agent

What have you sold recently?

This will enable you to not only see their success rate, but also the kinds of homes they’re selling. For example, if you’re selling your two bedroom house, you won’t want an agent that has predominantly been selling units.

Do you have any references from previous clients?

A good real estate agent will happily provide you with a list of previous clients that you can speak with. If not, then you know that something might be amiss.

Can you show me your licence and registration?

Sounds like something an American cop would say in a tacky TV show right? Only ask this if you’re unable to find their licence details online with your relevant state authority. All real estate agents must go through a stringent licensing process before they are legally allowed to practice – the penalties for working without one are worse than being caught operating a car without a drivers licence. Sell my house in ASAP

How would you sell my house and why?

There are several ways to sell a home, and all have their strengths and weaknesses depending on the local market. Asking this question is a good way to gauge the agent’s knowledge of the property market, with your area in particular.

For example: “I would sell your home by auction, as figures from last week show that homes in your area sold with an 80 per cent success rate.”

What advertising do you recommend?

Most of the time, the marketing of your home comes out of your pocket, so you want to be clear on what you’re actually paying for. Discuss the different options available, how they would like to advertise your proprety and how much this will cost.

How much do you think my home is worth?

This is probably the question you’re most interested in! Be wary of agents that give you an unrealistic price – if it sounds too good to be true, it probably is. Ask what their opinion of market value is based on, as well as some examples of similar homes that have sold.

How long do you think it will be on the market?

This will give you an idea of the agent’s expectations. You can compare it to the current average market time in your area to gain a better understanding.

What’s your commission?

Find out how much the agent will charge you for their services, and then ask them to justify their fees – especially if they’re more expensive than other agents. Remember that you’re not looking for the cheapest, but the one who will offer you the most for their costs.

What makes you different?

With this question, you leave it to the agents to seal the deal and sell themselves. They’ll be able to tell you why they’re better than their competition, both as an agent and agency.