Selling property in the current market conditions - what you need to know
Category News
Selling your home can be a daunting experience, especially in the current market conditions. Higher interest rates and a higher cost of living driven many potential buyers out of the market, resulting in fewer buyers and placing the market cap squarely within their terms.
However, there are ways to navigate these conditions to make the selling process work for you. In this article, we'll explore some critical factors to remember when selling your property within 2023's unflattering market.
The impact of higher interest rates and cost of living on the market
The fallout of the higher interest rates and cost of living has had a significant impact on the market. While there are always exceptional areas, the reality is that there are now fewer buyers present in the market. This translates to more extended selling periods and pressure on asking prices.
Moreover, with fewer buyers, sellers are pressured to price their properties competitively to attract potential buyers. As a result, sellers often have to adjust their initial asking price to reflect the current market conditions. This can result in a lower selling price than the seller initially hoped for.
Deciding to Sell - Personal Circumstances and Needs of the Seller
The decision to sell your property is a personal one that should take into account your individual circumstances and needs. Some sellers may need to sell immediately, while others might be able to wait for a better market. For example, if you've already found another property you want to purchase, waiting for a better market might result in losing out on that property. Waiting for a higher price might also mean you must purchase at a higher price, negating potential benefits.
Waiting Might Not Always be the Best Option
Waiting for a more favourable market period might not necessarily achieve a higher selling price. Considering the time value of money, the cost of acquiring a new property might also have increased by then, leaving you no better off than selling now. If you need to downsize or relocate for personal reasons, waiting is not always the optimal option. While some sellers may be able to rent out their property until they find the right price, many sellers may need to sell to purchase elsewhere.
Area Amenities and Their Effect on Selling Conditions
The amenities of an area can have a significant impact on selling conditions. If you're in a high-demand area with good schools, amenities, and transport networks, it's still easier to sell, despite the higher interest rates and economic challenges. On the other hand, an outer-lying neighbourhood with no schools might have fewer buyers and take longer to sell.
Accurate Pricing
In a market with declining demand and even fewer buyers, it is essential to ensure that your property is accurately priced in accordance with the prevailing selling prices in the area. Overpricing your property will only drive prospective buyers to other correctly priced properties.
An important consideration in pricing is to assess your local market and the current selling conditions. By taking the time to evaluate these factors, you can make a well-informed decision that is best for your situation and can help you achieve your financial and personal goals.
It is essential to evaluate various factors, including market conditions, financial considerations, and personal circumstances, to make an informed decision. By considering your unique circumstances, you can make a decision that is best for you and your financial and personal goals. With the right approach, you can successfully sell your property and move on to the next chapter of your life.
If you want to buy or sell your home, contact one of our Real Estate Property Practitioners by following the link: https://www.homesofdistinction.co.za/agents/
Homes of Distinction CC holds a Fidelity Fund Certificate issued by the Property Practitioners Regulatory Authority.
Author: Bryce Anderson
