Getting ready to sell in 2022: what you need to know
Samantha is a Sydney-based real estate and home improvement writer. She is currently Head of Marketing at OpenAgent.
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After a year of unprecedented price growth, all signs point to a strong start to the year in 2022. But for those looking to sell, you need the best possible advice before you list your home.
We’ve pulled together some key information which should help you to navigate the process more easily.
Market forecast
First of all, what’s happening in the market?
Driven by extensive government stimulus and monetary support, 2021 recorded the strongest price growth since the late 1980s housing boom.
While annual growth is sitting at +21.6 per cent, the rate of growth has tapered slightly with national gains recording a +1.5 per cent rise for the third consecutive month in October.
According to a report by Westpac, the strong momentum seen in 2021 is expected to carry into the new year, however the pace of national growth is predicted to slow to 8 per cent. The report states that rising affordability constraints and policy tightening by both the Australian Prudential Regulatory Authority (APRA) and the RBA will be the main factors that will impact price growth.
Know your local market
While property data and forecasts are helpful for understanding the lay of the land, you really need to go granular when looking at property market performance. Because regardless of what’s happening at a national level, locally, markets can behave differently.
So make sure you look out for new listings, look at what’s sold, keep tabs on important data and metrics, attend open inspections and auctions, and get to know the agents who are active in your area.
Some helpful resources below:
Don’t just choose any agent, choose the best gent
Remember that the best agent isn’t always the cheapest - finding the best person to sell can actually make a huge difference to your bottom line.
There’s no doubt about it, it can be very costly in the long run to choose an agent simply because they have the lowest fees. The truth is, if they’re not experienced enough, don’t have the best network or the right negotiating skills, you stand to lose way more than a few thousand dollars in commission fees.
This is why it’s important to interview at least three agents before choosing who to go with. You need to ask each agent the same questions so you can compare them like for like. You’ll want to know about their commission structure, sales history, past experience, knowledge of your local market, how they work with sellers and buyers, if they have a large buyer database, what they charge for marketing fees and more.
You can download an agent interview guide here.
Don’t be deterred by an agent who says they have high fees - you need to remember that the best agent is the one who gets the best price for your home, not the agent who charges the lowest price. Remember that a commission is an incentive for an agent to work harder, and get the best price possible. An agent who works for peanuts isn’t exactly incentivised to work hard for you.
Ask your agent what they would change about your home
Before you put your property on the market, you’re going to want to spruce it up a little so you can get the best possible price. Even if your property is in fairly good condition, there are little things that can make a big difference to the sale of your home.
The agents you speak to will be able to give you an unbiased opinion of what you need to do to get buyers interested in your home, because buyers will often make a split-decision about your property in as little as a glance.
Ask your agent point-blankly, “what needs to be done to my home to attract more buyers?”
And don’t be offended by this - as owners, we have a tendency to look at our properties through rose-coloured glasses, but when your bank balance is at stake, you need to get an objective opinion.
Simple jobs to increase your home’s value
You need to know your point of difference. While refreshing a property before a sale is key, we definitely don’t want you to over capitalise. However, the property needs to look immaculate.
The bare minimum includes:
Boosting the street appeal of your home: fixing fences, tidying your yard, cleaning the exterior and tending to any repairs
Decluttering your home and giving it a deep clean
Keeping the styling minimal and removing any personal objects and photos so buyers are able to imagine themselves living in the property.
Making sure there are no lingering odours in the property for smoke, pets etc.
Make sure that kitchens and bathrooms are bright, tidy and clean - as these areas of the home can make or break a sale. You might want to even consider a small cosmetic renovation to make these spaces more attractive.
A good coat of neutral interior paint to freshen the entire home.
How to price your property
Each agent you interview will give you an appraisal, and if the appraisals are all similar, then you can generally trust the prices the agents gave you. Before you gather appraisals, you should also do your own research, by looking at sold properties on listings portals, or getting an estimate of the value of your home in today’s market.
Many banks and online real estate services will also offer free suburb reports. These can be invaluable for pricing your property. You can find out how many homes are on the market and how much these properties have sold for.
How do I know if it’s the right time to sell?
There’s really no ‘best time’ to sell a property; it all comes down to your own individual circumstances and the movements of your own local market.
While conditions are currently very favourable towards sellers, there have been signs that things may be shifting. Pent-up listings rapidly hitting the market have pushed stock levels up, resulting in less competition between buyers.
It is important to remember that every market is different and it is important to research your local market and seek expert advice.
Speaking to top agents in your areas is the best way to find out what is happening in your area and the options that you have if you are considering selling.
Lastly, avoid listing a home yourself
It’s one of the most common mistakes - trying to sell a property yourself. We’ve seen it time and time again, where a vendor has put their property on the market, only for it to languish for months on end, until they eventually find a local agent to take over the sale. All that time and money wasted.
Sure, it might look simple, but there’s a lot going on under the hood. Selling a home is more complicated than placing an ad on a real estate listings website.
A great agent will price your property correctly for the market, have a database of buyers raring to go, be a master negotiator, and will be able to tell you what your property needs to achieve an amazing sale price.
