Before you start the process of selling your property, one of the most important things to figure out is if now is the right time. I often say that any time is a good time to get into the market because you should always actively grow your portfolio, but getting out needs some extra thought. It can seem confusing, but with a bit of insight and a plan, the process can be smooth, and you’ll be able to create a game plan.
PS – I also wrote an article about the best times of the year to sell, broken down into each month. Check it out here.
1. Local Market Trends
One of the most useful things you can do is stay up to date with what’s happening in the local property market. Prices increasing = good. Pricing decreasing = bad. This is an easy indicator of when it might be a good time to sell, and you should use trends to figure out your strategy.
Also keep an eye out for basic supply and demand. Right now there are a lot of units going up, so it might be a good time to buy, but not a good time to sell, because when something isn’t scarce, people don’t want it as much.
2. Interest Rates
You should always keep an eye and an ear on the interest rates, especially those regarding mortgages and home loan repayments. When the interest rates are lower, there are likely more people looking to buy to make the most of the opportunity. If the interest rates are too high, people either can’t afford it, or they want to wait until later before they jump in (when they can save money).
General research is great, but it can only give you so much information. One of the best ways to find out about how your local real estate market is going is by attending auctions. Take a stroll down the road to one that’s happening nearby and take a look at what happens. If there are lots of buyers attending, there might be a pool of people looking for similar properties in the area. Remember there can only be one winner at an auction, and even if there were only a handful of serious buyers that were bidding – they are all potential candidates for your property!
One of the best ways to find out about how your local real estate market is going is by attending auctions.
4. The Aussie Dollar
Properties in Australia are very popular amongst overseas buyers. Whilst a weak Aussie Dollar isn’t can be a pain for some things, it can actually help with selling your property. When it’s low, it attracts more international buyers because they’re getting a good deal. If you can tap into that market, you can use the strength of the AUD to your advantage, and get an idea of the right selling time.
5. Selling Seasons.
Funnily enough, selling seasons are actually a thing and can have an impact on your property. Spring and Autumn are popular in Australia because it’s good timing, and the climate is nice during this time of year.
6. Personal Situations
Your personal situation is just as important as the technical strategy when it comes to selling your home. First of all you need to decide on your strategy to know why your selling, and then you need to make sure that everyone involved (friends, family, partners) are on board. Sometimes selling can sometimes be stressful, so it’s important to have your own matters in order.
7. Personal Finances.
We’re dealing with big money here, so your finances need to be in check. This ties in with your personal situation and knowing your own strategy. Things like: do I buy my new property first? How much tax do I have to pay? Can I offset any of the gains? If you are selling the home you currently live in, make sure you’ve taken care of your own finances first and that you have the funds to afford a new place (or have money for rent), the selling costs, and any tax associated with the sale. This will give you invaluable peace of mind when selling!
With these tips you’ll be able to get a better idea of when you should sell your property. If you’d like more tips on selling, as well as how to maximise your portfolio for your current property and future investments, give me a call today on 0405 000 219. Happy selling!