You may have seen record house prices in your neighbourhood just a year or two ago and figured that your property is still worth just as much or more today, however if you live in area where property prices are cooling then this may not be the case.
While the vast majority of homes across Australia (89.8%) resold for a profit during the second quarter of 2018 according to the latest CoreLogic Pain and Gain Report, the proportion of profit making resales was at it lowest level since October 2013.
During the first quarter of this year 90.1% of properties resold for a profit, this was down from the previous year when 91.1% saw a profit.
With the Sydney and Melbourne property markets continuing to show signs of slowing down the number of profit making resales may continue to decline, however there are things that property owners can do to try and avoid this.
If property prices haven’t grown, or have gone backwards, in your neighbourhood since you bought your property then you may find it difficult to get a good price, unless you show that you have added value in some way.
Buyers now have the ability to look at past listing photos online and will use these to see if you have made any changes to the property.
Look at making cosmetic changes that can help show how the property has improved. Painting is a simple and effective option, as is improving the property’s street appeal or doing up the kitchen or bathroom.
Be clever about marketing
First of all you should engage a local real estate expert who can give you an honest opinion about your selling options and what you should do. They will be able to provide you with the right advice and guide you on how to best market your property to get the attention of buyers.
Keep in mind that when there are less buyers in the market you will need to do more to wow them so you may need to think about things such as styling your property, getting professional photographs or utilising social media, but its best to discuss what is right for your property with your agent.
Should you hold out?
The property market is constantly going through cycles and when prices are cooling it can be best to hold onto your property until the market recovers.
However, if you intend to buy again in the same market then reselling at a loss may not be too bad. You may be able to purchase your next home at a discounted price, which will be able to help offset any losses.
Want advice about what is going on with prices in your neighbourhood? Contact Professionals Outer Western Sydney.