Like a good boat master will check the conditions prior to sailing, it is imperative that you have a clear and accurate understanding on the current market conditions prior to launching your property onto the market.

The state of the conditions will affect your marketing strategies utilised.  If you use the wrong strategies at the wrong time your sale price will be negatively affected.

Here are some things to consider when taking the market conditions into consideration:

Which Pricing Strategy?

With some properties it can be quite difficult to accurately establish the market price, the price swing from one buyer to the next can be $20K, $50K, even up to $100K.  In a hot market Auction can be a good strategy for a property like this. However in a slower market where the active buyer pool is smaller, this could prove a costly mistake.

In a slower market, if you under price a home it will naturally prove to have an effect on your end result.  But in a hot market the market will naturally auto-correct if/when the property sells in a multiple offer situation.

Which Buyers to Target

Knowing which buyers are currently active in a market will greatly affect the strategy that you use, particularly in the creation of targeted advertisements.

If the banks are not lending without a 20% deposit then targeting first home buyers will not be very fruitful. Likewise targeting investors for buying at a period in the cycle where investors are selling down will be wasted advertising.

Buyer activity changes very rapidly and can happen for no apparent reason. It is very important that you are taking advice from an agent that is active in the market, particularly your local market as micro markets are effected differently.

Timing Strategies

In different markets you will use different timing strategies for things like: launching the property onto the market; price adjustments; auction and tender time frames; expected sale time frames; etc.

If you are not familiar with where the market is currently, it could cost you greatly.  For example, in ‘normal’ market conditions it might take 4-6 weeks to get an offer.  Under the current conditions (a sellers market) if you don’t have an offer within the first 2 weeks then there is something wrong with your strategy that you are employing and you need to adjust it urgently.

This is just some of the points effected by the market conditions, there are many many more.  Selling a property correctly and for a maximum sale price is a complex issue with many variables.  As an experienced North Shore Real Estate Agent we are constantly switching between strategies to move and stay ahead of the market. Staying flexible is crucial.

If you would like to discuss what the current conditions are in the market feel free to give me a call and have a chat.  You can reach me on 09 481 0648