The sky is falling, the sky is falling!
The story of Chicken-Little has been told over many centuries, and it’s moral is as true today as it was when it was written.
Someone experiences or witnesses an event, then proceeds to tell one and all that the end is nigh.
Sound familiar?
Around February this year (2018) there were plenty of Chicken-Littles saying the end is nigh.
And the property market has its share of Chicken-Littles; and trust me, after sixteens years serving in the front lines of real estate marketing and sales, I know there is never a shortage of them.
Around February this year (2018) there were plenty of Chicken-Littles saying the end is nigh – the market was about to plummet, wiping huge percentages off the value of properties right across the country.
Although the worst did not happen, the chicken chatter was enough to dent the confidence of buyers and as a result, some ‘robust’ property markets (remember; the Australian property market is a patch work quilt) began to see prices soften as buyers looked skyward for falling debris instead of pursuing their next property.
So, what do you do if you are trying to sell your own home and the market shifts from underneath you?
Yes. Prices have fallen slightly to moderately in some areas, most noticeably in the ‘big guns’ of Sydney and Melbourne, which can then have a knock-on effect to regional areas as well.
It didn’t take long for me to notice that people in the process of private house sales were becoming a little anxious that their initial price expectations were not being met by the shift in buyer confidence. And I know, no-one wants to acknowledge that an adjustment in expectation could be warranted.
So, what do you do if you are trying to sell your own home and the market shifts from underneath you?
First, you need to recognise the symptoms:
- Buyer enquiries may diminish or stop, as do physical inspections.
- Those buyers who do enquire/inspect are less than enthusiastic about making offers.
- Those who do make an offer serve up a number that feels like a punch in the gut.
(You) have the leverage to take advantage of buying into a another soft market.
Don’t despair, here is what you do in this type of market.
- Sit it out, wait for the market (buyers) to get over itself and meet your expectations on the bounce back.
- Take your home or property off the market and wait for the sign to shine over your expectations again.
- Meet the market, become competitive and ensure your presentation is bang on, your promotion is well targeted, and your price guide reflects that you are motivated to sell and be prepared to negotiate.
The big advantage to choosing plan C is that if you are planning to buy, the area in which you want to move to could be experiencing the same challenges, and the sooner you cash in your current property, the quicker you can load your bullets to head to the gunfight and have the leverage to take advantage of buying into a another soft market. (Less buyers, more anxious sellers).
To be honest, the property market in general needed a breather; price increases brought on by bullet-proof buyers could not keep going.
All in all, this is a great market to deal in. Those who stay in the game are most likely to come out winners or at worst, will parachute to a very soft landing.
