adminThis is key especially in the current environment characterised by liquidity constraints and general depression of the current property market as illustrated by my article last week, which was reviewing property performance for the first six months of 2012.
A buyer’s market in general is where there are more properties on the market compared to buyers.
This leads to a scenario where buyers have many properties to compare or look at before finally deciding on which property to purchase.
For the seller, this means offering more than what the average house is offering or being extremely patient in anticipation of interest by a prospective buyer.
Flexibility on the part of the seller is a pre-requisite. This could simply be an ability to adapt to the current market trend by offering incentives to the potential buyers.
There are several incentives that one can throw in as part of the property, from generators to pieces of furniture that were made specifically for the property.
The main intention is to woo the buyer into picking the property above all other options offered at that time.
A move in property has many advantages over a property where a lot of renovations and adjustments have to be made before one can settle in.
Where the property needs renovations, the price has to be very attractive or there must be another underlying investment advantage that pits the property above those in the same area.
It is critical to appreciate that some properties are prime in all markets and are in great demand.
This means that they are not usually affected by changes in market pricing, especially in periods where they is a downward spiral. e
This retention of value is normally localised to such areas and does not filter to surrounding areas.
In a buyer’s market if one does not have to sell, then its best not sell. If one has to sell, then either patience or open mindedness is the prerequisite for successful dealings.
Pricing is a strategy as it depends on how motivated one is to sell or how quickly one wants cash in hand.
It is misguided in such a market to demand a price that a neighbour achieved previously under different market trends.
The situation is made worse if one dreams up a price with no point of reference because one thinks that their property has such and such, so it must fetch more.
To overprice a house in the hope of leaving room to negotiate might actually result in pushing buyers away.
An effective pricing strategy is to investigate the prices that similar properties are selling for and not to concentrate at listing price because it is deceptive.
It is easier to use this method to find out whether sellers are actually dropping prices further or the market is essentially rebounding so that when selling your property one will have a picture of an expected outcome.
Once one realises that selling a house in a buyer’s market is like an undeclared competition with unknown competitors, it is imperative that the best possible outlook of the property is showcased.
At this point clutter and unnecessary furnishing that crowd rooms in the house should be removed and stored elsewhere.
Space sells, because it allows the potential buyer to visualise where their property is going to be positioned.
Overbearing blinds or curtains should be removed and allow natural light to shine in the house, this is always a plus with most buyers.
In a buyer’s market, it is advisable to get the assistance of an estate agent, simply because they have more understanding of what needs to be done regarding the sale of the property.
However, it is categorical that one interviews several agents in a bid to find out who will be ideal for selling the particular property. Create a questionnaire that includes questions on what the agent will highlight about your home, what needs to be changed and the strategy intended for selling off your property.
Once completely convinced that no stone will be left unturned when selling your home, then you can select the agent. Lastly, be watchful of market trends, one would not want to miss an opportunity to maximise benefit given circumstances change.
It is common that some companies will give their employees mortgages within your price range and for that season, properties within that particular range will have higher demand. If unaware of such movements one can easily undersell to get their preferred price.
- Vengai Madzima is a property investment consultant and analyst with Wisdom Properties Real Estate. He can be contacted on 0772 468093 email: [email protected]
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