HOW TO SELL YOUR HOME FOR A GOOD PRICE IN A BAD MARKET

by Neil Jenman

Reading Time: 5.5 mins apx

If you’re selling your home, the first thing you’ll likely hear right now is that “the market is bad”. Or that “prices have dropped”.

And who will give you that sad and bad news?

Probably a real estate agent, that’s who.

Now, before you cave-in and accept a lower price for your home, there are eight important points you should consider – points you are unlikely to be told by most agents.

POINT 1 – HOUSES ARE NOT SHARES

The real estate market is not like the stock market – not even close. And yet, the way statistics are released, you’d think it’s a forgone conclusion – when you hear that property prices are down, that your house must be down too.

Well no, not necessarily.

Unlike the stock market, where shares in the same company are identical and the price is set by whatever price buyers are currently paying for that stock, the real estate market is different. In real estate, most properties – especially family homes – are different from each other.

So, just because the average price of homes in your area have dropped, it does not necessarily mean your price must drop.

Especially if you have a good home in a sought-after area.

POINT 2 – GOOD HOMES ARE ALWAYS IN DEMAND

Good homes are like good life-partners. They are always in demand. Ask any agent – in a forceful manner, if you must – and most will admit that the best homes in the best streets always get the best prices.

In a bad market, good homes are resilient to the price falls of lesser quality homes – especially in the hands of good agents.

POINT 3 – GOOD AGENTS GET GOOD PRICES FOR GOOD HOMES

Just as there are good homes and bad homes, there are good agents and bad agents.

Right now, the first thing that bad agents are doing is telling sellers – all sellers – that prices have dropped. These agents are lazy. They don’t even try to get sellers a good price.

Bad agents have a blanket policy of charging all sellers several thousand dollars for marketing costs – regardless of whether such costs are needed. Bad agents put themselves first, not their sellers.

When a market is supposedly falling – as is happening now – it is more important than ever to steer clear of bad agents when selling your home.

Quite simply, bad agents get bad prices.

Good agents get good prices.

Or, at the very least, a good agent will work hard to get a good price in any market.

So, if you are fortunate enough to own a good home, a good agent is your best chance – indeed your only chance – of getting a good price.

POINT 4 – TAKE THE TIME TO FIND A GOOD AGENT

It’s always been true when selling property that a good agent can make an enormous difference to the final price of a property. So don’t rush when choosing an agent.

It’s far better to spend three or four weeks searching for a good agent than three or four months stuck with a bad agent.

In a bad market you simply can’t afford to hire a bad agent.

POINT 5 – AGENTS GET PAID AT ANY PRICE

Two words dictate almost everything in the real estate world – “commission only”. Unless the agent sells your home, the agent gets no commission. Therefore the main focus of most agents is to sell your home.

The name of the game for agents is sell at any price. Agents get a hefty commission for selling your home at any price. So any price becomes their aim.

So, if you want a great price, you need to resist the pressure from agents to lower your price, to accept low offers.

POINT 6 – PUSH QUALITY NOT PRICE

The biggest mistake made by agents is focusing on the price. It’s as if they have a one-track mind that can only think about price.

But price is rarely the main reason buyers buy a home. Buyers buy a home because they like the home. Indeed, if you own a lovely home and buyers fall in love with your home, they will gladly pay you a good price.

So, make sure that the agent pushes the features and benefits of your home, not the price.

POINT 7 – KEEP CONTROL OF YOUR AGENT

Agents love “controlled listings”. This means the sellers have signed a Listing Agreement (a legally binding contract) with the agent that contains horrendous clauses. Such clauses – known as “nasties” – are rarely discovered until after the sellers have signed up.

You can’t afford to let an agent control you in any market, especially a falling market. You must control the agent.

To keep control, never sign-up with an agent on the spot. Ask them to leave their “paperwork” with you and then read through it. You’ll soon spot the “nasties”. You then inform the agent that, unless those nasty clauses are deleted you will not be using their agency.

Control is vital if you want to sell your home for a good price.

POINT 8 – AVOID LOCKED-IN CONTRACTS

The biggest regret of home sellers, especially in a tough market, is being stuck with a bad agent. It is vital, therefore, that, unless you have an escape clause, you never sign-up with an agent for more than 30 days at a time.

At the end of each 30-day period, if you are happy with the agent, you can extend the agreement for another 30 days. And so on.

Finally, just because other sellers – who may be in different financial positions to you or whose homes are totally different to yours – have reduced their price, it does not automatically mean you should reduce your price.

If you have a good home you should still be able to get a good price. At the very least, have a good try at getting a good result.

Sellers who try hard and stay strong often get the best results.

*********************

If you are selling your home in 2023 and you are serious about getting a good result, please contact Jenman Support on 1800 1800 18 or support@jenman.com.au. We will support you through the entire selling process, from helping you to find a good agent to supporting you during the negotiation stages.

*******************

To comment on this article, please click here.

To contact us, please click here.

To follow Neil on Twitter, please click here.

To visit our Facebook page, please click here.

To read more Articles, please click here.

******************