Wednesday 18 Nov 2015
It can be easy to jump straight to the numbers when discussing a new listing with a client. Most conversations about listing a property start at the end with the focus primarily on the price. That's not surprising but right now while the market is in such a state of transition it is equally important to discuss the underlying motivations for selling.
Of course a key objective will always be to maximise the financial return of the property but it is usually combined with a need to upsize, a desire to downsize or a decision to relocate for work, family or as a lifestyle choice.
Those very personal motivations won't impact the value of the property but they could and should have some influence on the expectations a vendor sets when taking a property to market.
I am not automatically suggesting compromise is required. I am saying that prioritising is important.
The reality of the current market is that it can no longer be automatically assumed that prices will rise. The auction clearance rate is sitting closer to 60% in comparison to the over 80% we saw earlier this year.
The potential is there to get spooked and decide to 'hold off' until next year when the market 'settles down. I understand the nerves because certainly the current market is more unsteady than it has been for some time. But the opportunity to achieve a good outcome is still very positive today and postponing until next year delivers no guarantee except perhaps several more months of nervous anxiety.
Keep in mind the expression 'can't see the wood for the trees'. Sure the numbers are changing but there remains very good prospects to secure very healthy returns. Savvy vendors are setting realistic expectations. They are balancing price expectations together with key timeframes and they are not losing sight of their end goal.