It’s every vendor’s dream to sell their property in a sellers’ market.
“But while catch phrases like sellers’ market are easy to bandy around, people don’t always understand what makes a market work in a seller’s favour,” Monika Bonet, Principal of Raine & Horne Glenelg said. “Media headlines heralding surges, explosions and booms can be misleading. Like any other market property is subject to supply and demand and the market that makes life more predictable for a seller is one where there is a greater number of purchasers than properties for sale.”
According to Ms Bonet when there are more buyers than sellers, buyers are forced to compete for what’s available. Conversely, when there are more properties for sale, purchasers can pick and choose and drive a harder bargain.
“The most obvious result of increased competition is that vendors are in a stronger negotiating position and can often hold out for a higher price,” Ms Bonet said. “But there are also many side benefits like getting more inspections over a shorter period of time thereby avoiding the stress of wondering where the purchasers are and whether the property is likely to sell or not. A buyers’ market is very stressful for vendors because the selling process drags out over a longer period of time.”
Ms Bonet said that in a buyers’ market purchasers are more likely to quibble over building reports and be picky about decors when even easily changed qualities like colour schemes don’t live up to their wish list.
“They procrastinate for longer and crucial psychological momentum is often lost ultimately decreasing the chance of a sale occurring,” Ms Bonet said. “Whereas in a sellers’ market purchasers are more likely to be grateful to have found something that meets their bottom line criteria.”
Ms Bonet said that another benefit of selling in a sellers’ market is that fewer sales fall through because purchasers may have already missed out on one or more other properties and are aware of the difficulty of locating then securing the home they want.”
“Here in Adelaide we are currently experiencing a classic buyers’ market with sellers outnumbering purchasers,” Ms Bonet said. “It’s a scenario that proves that the majority is not always right. If you wait to sell your property when everyone else is selling, chances are the cycle will have turned to favour buyers rather than sellers.”
This blog post is brought to you by Raine & Horne Glenelg, your Glenelg Real Estate Agents and Glenelg Property Management Experts.