The property market had being hit by massive amount of negative news through popular media like TV, newspaper, popular property magazines, property websites, etc. As such, many prospective buyers and investors are moving or had moved to the side line playing the waiting game instead of buying and gaining rental yields and property capital gains. With so many new condo projects out/released in the property market and with cautious buyers in the market. Hence, property buyers are current taking advantage of the situation and also sellers especially developers are adding on “carrots” to attract back prospective buyers/investors with attractive property deals.
A Multi-corner fight! Everyone are playing the waiting game
– Buyers are waiting for the property price to drop
– Sellers are waiting for the property cooling measures to relax (And the return of the sellers’ property market/boom)
– Government are waiting for the interest rates to normalize
Therefore in the short term, the property market is not going to rebound. Property owners who need to sell their property now must not be pricing their property too high. Infact, some owners are selling below evaluation price of approximately 10%. Property prices had since normalized and forgone are the days of over priced houses, condo, apartment, HDB flats COV, landed properties, etc. Property agents selling properties need to revert back to their normal sales pipeline evaluation process. Each possible prospect need to be studied and understand so that agent can sell to the buyers’ needs. No more see today, buy tomorrow scenarios.
Property agent selling in a buyer’s property market will not only need to just bring you see the actual property. But he/she will also need to be able to help you plan your financials and also help buyer do detail market analysis in the property which they are interested in. Property agents should also show what are the sale strategy and process which they will help their client to sell their own property as well (For those who need to sell off their property first before buying a new property of their choice). There are many scenarios which the agent need to address in today’s market situation.
How to track if the buyer’s property market is over?
1) Check the average number of days property are on the market before selling. Take a bench mark and tabulate using an excel spreadsheet. If the number of days continue to rise, this is a buyer’s property market
2) Speed of property sale – Number of properties sold divide by the number of properties put up for sale. This equation will tell you if there is an over supply of a particular type of property in the market
3) Check how many properties are listed in a particular district as compare to a few months ago. This will also tell you if there is an over supply of properties for sale. If so, then buyers can negotiate for better property price (Supply and Demand)
Following are ways to sell your property in a buyer’s market
1) Stage or prepare your property for buyer viewing
2) Get an experience property agent to represent your property. You can leverage on the agent’s network and leads. Consider 2 to 3 property agents first before confirming which property agent do you want to engage. You can conduct simple interviews with your shortlisted agents. Questions like how will you sell my property, How fast can you sell my property, What is your commission rate, Please explain to me your property sale strategy and process, etc. These are just some questions which you should be asking your prospective agent who will be selling for you your property.
3) Prepare all your necessary documents before starting to sell your property.
4) If you need to sell your property fast. Consider selling below valuation. You need to sell below your competitor’s selling prices. With a few thousands dollar cheaper, can mean selling first or waiting for another few months for the next prospective buyer.
5) In current’s situation. Always keep communicating with your prospective buyer. Keep your buyer’s interest high and keep negotiation open. Do not reject any offer given by your buyer/viewer, even those low ones. There will always be a chance of rising the selling price when you are ready to negotiate.
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