Is a real estate agent pushing you to sell your property, but you’re not quite sure if you should take their advice? Let’s break down this scenario to better understand when it truly is the right time to sell.
Firstly, it’s important to acknowledge that real estate agents make their money by listing properties for sale and then selling them. Each property presents an opportunity for commission – regardless whether the market is up, or down. So any real estate agent will always have an interest in you selling your property now, regardless of the market conditions and regardless of how such a move affects you and your family personally and financially. Does that mean that you can never trust their advice? No, there are plenty of experienced and honest real estate professionals who will give you great advice. Here’s how you can spot one.
Firstly, rather than taking their advice on face value, don’t be afraid to push them on why they think you should sell and why now. They may say things like:
Prices are going up
It’s no secret that house prices are on the rise again. In fact, CoreLogic’s national Home Value Index recorded a third consecutive monthly rise, and the pace of growth even accelerated sharply to 1.2% in May. It’s always a good idea to do your homework and check out the local property sales trends in your area. Remember, agents are the boots on the ground when it comes to your local market and will therefore often be able to pick up on emerging trends and market shifts first.
But wait, if prices are going up, shouldn’t you hold off so you can sell for a higher price?
If you’re selling only to buy in the same market, the ups and downs of the market will affect both properties, so any gains or losses will be minimal or irrelevant. The catch is, if you’re planning to move to a different area, things can be more unpredictable. For example, areas near the city centre or the ocean are often more sensitive to changes in the market, making the selling and buying process more unpredictable.
There’s a property shortage, but more stock is coming
Fewer properties on the market can often result in hotter competition. So if you’re selling now, you may be able to leverage this for a higher sale price. But, at Prudential, we’re seeing an uptick in listings coming onto the market, which suggests the volume of properties on the market is gradually increasing. This may lead to longer wait times for sellers and a broader range of choices for buyers.
Rising interest rates
A new survey by Finder uncovers a sobering reality: 40% of Australians are grappling with their mortgage repayments, up from 24% a year ago. This escalating financial strain could trigger a flood of properties on the market as Aussies seek relief from these mounting pressures. By deciding to sell your property now, you might just dodge the incoming competition and score a smoother selling journey.
But is it right for you?
While it’s important to be aware of market analysis and real estate trends when you’re making your decision, the most important question to ask yourself is this: is now the right time for you and your family to sell? If the answer is no, then ignore your real estate agent’s advice. The decision to sell should be about what’s going to be best for you and your family, first and foremost.
If you’re still sitting on the fence because the thought of selling seems like such a mammoth task, just remember that agents do this day in and day out. They know how to make things go smoothly and have the contacts who can help you get your house ready for sale if you need them.
If you’re ready to dive in or would like to get advice on your local market, our offices in Campbelltown, Liverpool, Macquarie Fields, and Narellan are here to help you every step of the way.
Information referred to in this article was obtained from publicly accessible sources including Core Logic and Finder. The information provided in this blog post is for general guidance only and should not be taken as personal advice.
Prudential Real Estate Campbelltown | (02) 4628 0033 | campbelltown@prudential.com.au
Prudential Real Estate Liverpool | (02) 9822 5999 | liverpool@prudential.com.au
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macquariefields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
