By Guest Blogger, Leanne Pilkington, CEO,
Laing & Simmons and Immediate Past President REINSW
Many prospective vendors sit out the winter months in favour of a spring listing but their reasons for doing so are not always valid. Especially this year. Laing+Simmons CEO Leanne Pilkington says getting the best result for your property means acting when the conditions are hot, even if the weather is cold.
Everyone in real estate, and this includes consumers, knows about the spring selling season. A time when buyers re-emerge from the cosy indoors to hit open homes around the suburbs, freshly inspired to secure the property of their dreams. They’re met with warm days of gardens in bloom and, or so the vendor theory goes, plenty of other hopeful buyers doing the same thing.
It’s true that extra competition among buyers in spring can deliver better results for vendors. But there’s a flipside. The more vendors who list their property at the same time can elevate competition among properties, and this can shift the balance of power back to buyers.
This winter, stock levels are extremely low. Demand, on the other hand, is strong. Some buyers expecting more competition come spring are actively looking now and vendors are reaping the rewards. Prices have rebounded since the start of the year and this increase has gathered momentum in winter.
And let’s be honest: winter in Sydney is not exactly winter in Antarctica. Or even Melbourne for that matter.
Trying to forecast the future too far out can often make you look foolish. It’s much safer and more sensible to analyse the present. Listing a property for sale in an environment of low stock and strong demand gives vendors the best chance of a strong result. If they are buying back into the same market, they will be subject to the same conditions.
Waiting for spring might mean listing your property along with an influx of other vendors thinking the same thing. Agents are having conversations with their customers along these lines now.
At the micro level, so much depends on market conditions in your suburb. Stock levels, weight of demand, average turnover of homes, price history, and more. Specialist local agents will know best.
Then there’s the macro environment to consider. The general consensus is that rates are either at, or very near, the top of the cycle. Cost of living concerns prevail and more people are preparing for the expiry of their fixed-term loans, with repayments set to increase.
How these and other factors affect prices in the future will be interesting to see. What we do know is that for now, on the whole, the fundamentals for vendors are right.
So, for vendors who recognise the supply-demand imbalance is firmly in their favour, irrespective of the temperature outside, there are a few simple strategies to prepare for a listing. And most ring true when listing at other times of the year.
Make sure everything is clean and clear. Yes, flowers bloom in spring but winter gardens are beautiful features. Make sure you showcase them well. Take care of other simple aesthetics too. Touch up paint, make those easy repairs, do the cosmetic basics.
And consider tapping into the specialist help available. If you think your property might need a little extra preparation, including a renovation on some scale, it’s probably worthwhile to seek an expert’s opinion on the best places to focus your spending. There are many businesses which specialise in this space now.
Step one, as ever, is talk to your agent. And your local buyer's agent can also give you a recommendation to a top local sales agent, as they deal with them on a weekly basis.
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