Not a day goes by without multiple reports on the declining state of the housing market, and it’s been widely reported that increasing numbers of property owners are facing “mortgage stress”, forcing many to consider selling their homes or investment properties.
The key question is, how can you help these vendors sell in such an uncertain market?
The biggest decision when selling is choosing the most appropriate method of sale. Auctions are popular in the good times, but with the significant reduction in clearance rates, by 25 per cent in Sydney year-on-year recently, auctions make it a risky, public process with a lasting footprint online if the sale fails.
The alternative is a private treaty sale, either advertised or off-market, which is growing in popularity due to the reduced exposure and expense.
The property may well sell off-market, and if not, the agent will have a clear picture of the positioning of the property in the market — what buyers are looking for in that price range. It also keeps the process away from the unnecessary glare of friends, neighbours and “sticky-beaks”.
By starting a sales campaign off-market, you are potentially saving vendors thousands of dollars in expensive advertising costs.
To prepare for a successful off-market sales campaign, follow these simple steps:
1. Set a realistic price on the property. Do your homework. Present the comparables.
2. Suggest minor touch-ups or other works, and rearrange furniture if required, to present the property at its best.
3. Prepare copy and photography — four or five interior photos are sufficient — for lounge, dining, kitchen, bathroom and master bedroom. If possible, having a floor plan would also be ideal.
4. Call and send out an EDM to suitable buyers off your database. Let them know you are inviting your “VIP list”.
5. Upload property details to your social media pages.
6. Invite buyers individually for a private appointment or arrange a “private open home” if there is more than one buyer showing interest. Having multiple buyers together will create competition and assist with negotiating a higher price.
7. Seek offers from buyers and let them know they are “in the box seat” to own this property before the vendor changes their mind and decides to go on-market.