There is no doubt that 2019 will go down as one of the more challenging years in the local property market. One always expects a tough year when there’s an election, but the country’s challenges stretch far wider, and the solutions will take time to implement. So, what does that mean for those who are contemplating buying or selling property in 2020?
Irrespective of where you live in the world, in all types of markets there are opportunities. The key is to find them and then move quickly to capitalize on them. Procrastination is to be avoided. Do your research. Have your facts. And then make an informed decision with the swiftness required to ensure you get the outcome you deserve.
If you’re in the position where you need to sell a property, more than ever before, you will need to listen to market feedback. Just because you received a higher offer 3 months ago doesn’t mean your property is worth that today. Things change. Quickly. You will need to find out from buyers who view your property what they really think the value is. As hard as it is, take the emotion out of it. It’s a business transaction and a buyer won’t pay you more than he thinks it’s worth because he feels sorry for you.
You will need specialized marketing to attract the best buyers out there. Average isn’t going to cut it. If an agent suggests you use methods that worked well in a good market you should consider finding an agent that has strategies for this market. You simply must ensure your listing stands out in the crowd. Your best chance of achieving a fair result is to get your marketing strategy and your listing price right from the very beginning.
If you’re selling and buying in the same market, then often what you may “lose” on the selling transaction you can recover when you purchase, at least in part.
Consider this though: perhaps the real value today it the highest value your property will have for at least 2 years. That’s a real possibility. We have no way of knowing what the future will bring – but if that was the reality, how would that influence your decisions today?
If you’re considering purchasing, there probably hasn’t been a better time than now. Not only are property values lower than they have been for several years, but at the same time the banks are keen to provide you with a home loan, and interest rates are the lowest they’ve been in almost 4 years. In one word: “OPPORTUNITY”!
As a buyer, you’ll want to research the market, competing listings, and suburb performance. Once you’ve done your research, you’ll have the confidence to purchase at a price you believe offers fair value. Are you waiting for the bottom of the property cycle? Don’t. The only time you ever realize where it is, is when we’ve moved off the bottom. And then it’s too late.
There is no doubt 2020 will have its’ challenges. But there will be opportunities aplenty. Go get them!
CEO, Harcourts International