How to Research the Property Market When Selling Your House or Apartment
If you’re selling your property, spending time researching the market to better understand exactly what’s happening in your local market, where your suburb is in the property cycle, what buyers are looking for and importantly what they are prepared to pay more for, can help pay dividends come sale time.
To help you here, outlined below are some easy ways you can research the market before selling your house or apartment.
Understand the local real estate market
Understanding what’s happening in your local real estate market along with wider market trends, is an important first step when selling your home.
Real estate portals are great free resources for information into local real estate markets, median property prices of your suburb, supply and demand for the area, along with a summary of current listings and recently sold properties.
Understand what stage of the property cycle your suburb is in
There are four key stages of a property cycle; the boom, the downturn, the stagnation and the upturn. Each of these offer benefits to sellers and buyers at different times, so understanding what stage of the cycle your area is in, is a good idea.
Keep in mind that property cycles change and can change quite quickly. There is no exact science when it comes to predicting when a property cycle is going to turn, however there are some factors that can influence a cycle including:
- Willingness of home loan lenders to lend money
- How much money a buyer can borrow and therefore spend
- Broader economic outlook and unemployment rates
- Local infrastructure projects that can impact demand
- The rate of property price growth / decline
- Vacancy rates for investment properties
- Whether there are suitable properties on the market to suit buyer needs
- Interest rates
To work out what stage your area is in it’s a good idea to talk to your local real estate agent. They live and breathe the property market in your area and know exactly what is happening and can discuss this with you.
Understand your property value estimate or how much your property could be worth
Of course, a key feature of your research is finding out how much your property is worth in the current market. The best way to do this is to arrange for your local real estate agent to give you a property appraisal or what is also called a property value estimate. This is an obligation free way to find out how much your property is worth in the current market.
The real estate agent will visit your property for 20 – 30 minutes and assess its key selling features including:
- The property’s size
- Number of bedrooms
- Number of bathrooms
- Condition of the property
- Its fixtures and fittings
- Quality of any renovations
- Proximity to desirable locations such as parks, schools, beaches, transport etc
They will analyse the current market, what similar properties have sold in the last 90 days and for how much.
Following this analysis, the real estate agent will present you with a property price guide, or a price they believe you could sell your property for in the current market.
Understand what local buyers are looking for
Knowing what local buyers are looking for and in particular what they are prepared to pay more for can help you better position your property to appeal to them. The more buyers you attract, the more competition you generate and the better the sales result.
While the real estate agent is appraising your property, ask them what economical changes you could make to your property to enhance its appeal to would be buyers.
For instance, if most buyers are looking for a 3-bedroom property, potentially converting a spare room or an office in your house into a third bedroom may help appeal to a wider market. Or perhaps creating an outdoor living space may also attract buyers. Of course, you need to be careful not to overcapitalise and your real estate agent can help advise you here.
Understand what method of sale is best for your property in your area
There are 4 key methods of selling a property:
- Auction
- Private treaty / private sale
- Expression of Interest
- Tender
Different suburbs and properties suit different methods so talking to your real estate agent when they are appraising your property to find out what method they think would generate the best results for your property sale is a good idea.
A Final word
If you’re thinking of selling your property ensuring you are a across what is happening in the local market, what’s happening in the wider property market and specifically what that means for your property is important. Plus, understanding your property price estimate and what buyers will pay more for will help you make smarter property decisions.