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Mistakes to avoid when buying or selling in a down market

Mistakes to avoid when buying or selling in a falling market.


Listing a house too high, fixing interest rates for too long and taking advice from the wrong people could prove detrimental.

In the current property market, prices are dropping, houses are taking longer to sell and buyers are increasingly making conditional offers. Doing the wrong thing can end up costing vendors and buyers dearly, so OneRoof asked experts for their top tips for buying and selling in a slowdown.

 

Listen to the experts

 

It’s not unusual for people to want to take advice from friends or family members who often times have no expertise in the area. When making such a large financial decision, it pays to speak with an expert who can guide you towards making an informed choice.

Family and friends can offer great insight into their personal experiences, but keep in mind that everyone has a unique financial situation and different goals. Plus, your family member may have sold their home 15 years ago, and boy, has the market changed since then!

The market moves quickly and it pays to have your ducks in a row from the start as you’ll likely find yourself up against the clock.

Our team have been in the game for quite some time and have built a extensive database of trusted advisors and contractors whom they can refer you too.

 Ensure the contract is water tight

 

In a falling market, it’s more important than ever to ensure that your contract terms are watertight. Often times, in a declining market, people are increasingly likely to attempt to pull out of deals.

As a general rule-of-thumb, people should ensure they received at least a 10% reposit when a deal went unconditional.

 

 

 

 

 

Ensure the contract is water tight

 

In a falling market, it’s more important than ever to ensure that your contract terms are watertight. Often times, in a declining market, people are increasingly likely to attempt to pull out of deals.

As a general rule-of-thumb, people should ensure they received at least a 10% reposit when a deal went unconditional.

 

Choose the method of sale carefully

 

In a softening market, meeting the market is important. As prices continue to shift, your ability to get your property sold quickly is a vital decision to make. We continue to urge our clients to consider selling by auction. In February 2023, our auctions are selling in an average of 29 days, compared to private treaty delivering 60 days.

For vendors looking to capture the current window of opportunity in the market, the key questions to ask your agent are:

– What method of sale has the highest success rate?

– What method will see my property sell fastest?

For our Ray White Manukau, Manurewa, Mangere and Mangere Bridge offices, the answer is definite. Auction.

 




Choose the method of sale carefully

 

In a softening market, meeting the market is important. As prices continue to shift, your ability to get your property sold quickly is a vital decision to make. We continue to urge our clients to consider selling by auction. In February 2023, our auctions are selling in an average of 29 days, compared to private treaty delivering 60 days.

For vendors looking to capture the current window of opportunity in the market, the key questions to ask your agent are:

– What method of sale has the highest success rate?

– What method will see my property sell fastest?

For our Ray White Manukau, Manurewa, Mangere and Mangere Bridge offices, the answer is definite. Auction.

 

Make sure the house is well presented and well marketed

 

When there are plenty of properties for sale, sellers need to make sure their house looks as good as it can and that there’s a good plan in place.

Sellers should be prepared to follow their agent’s advice and get organised. While the process of decluttering, staging and getting professional photographs takes time, it is these measures that help your property stand out from other properties for sale in your area.

Good marketing including using social media and property portals is immensely important for gaining buyer interest and increasing your pool of prospective purchasers.

Signboards and open homes will help ensure your home is seen by all the right people.

Who knows, your buyer could be driving past your property each day, walking their dog or they may know of a friend or family member looking to purchase in the area.

 

 

 

 

Make sure the house is well presented and well marketed

 

When there are plenty of properties for sale, sellers need to make sure their house looks as good as it can and that there’s a good plan in place.

Sellers should be prepared to follow their agent’s advice and get organised. While the process of decluttering, staging and getting professional photographs takes time, it is these measures that help your property stand out from other properties for sale in your area.

Good marketing including using social media and property portals is immensely important for gaining buyer interest and increasing your pool of prospective purchasers. Signboards and open homes will help ensure your home is seen by all the right people. Who knows, your buyer could be driving past your property each day, walking their dog or they may know of a friend or family member looking to purchase in the area.

 

Don’t guess the bottom of the market .

 

When there are plenty of properties for sale, sellers need to make sure their house looks

Buying in a falling market can be a less daunting experience than buying in a frenzied one, like many endured in 2021. But buyers can make mistakes even when the market is in their favour. One of the biggest errors they can make is trying to time the bottom, especially when interest rates are on the rise.

CoreLogic chief economist Kelvin Davidson said while they might get a cheaper price or better property for same money in three to six months’ time, the mortgage rates could be higher too.

“Everyone needs to do their own sums and see how that balance comes out for them,” he said.

A slowing market could also be a good time for owner occupiers to trade up. “Don’t forget that if your property has gone down, probably most others have too.”

You’re never going to know the bottom of the market until it’s passed. Search out the good deals.

 

 

Don’t guess the bottom of the market .

 

When there are plenty of properties for sale, sellers need to make sure their house looks

Buying in a falling market can be a less daunting experience than buying in a frenzied one, like many endured in 2021. But buyers can make mistakes even when the market is in their favour. One of the biggest errors they can make is trying to time the bottom, especially when interest rates are on the rise.

CoreLogic chief economist Kelvin Davidson said while they might get a cheaper price or better property for same money in three to six months’ time, the mortgage rates could be higher too.

“Everyone needs to do their own sums and see how that balance comes out for them,” he said.

A slowing market could also be a good time for owner occupiers to trade up. “Don’t forget that if your property has gone down, probably most others have too.”

You’re never going to know the bottom of the market until it’s passed. Search out the good deals.

 

Don’t underestimate how long financing can take.

 

Financing can take time – with many mortgage brokers advising a minimum 15 to 20 days finance clause to get everything in order before the sale goes unconditional.

Property lawyer, Aasha Foley, says banks were drip-feeding requests so the longer time-frame meant there was time for buyers to organise a registered valuation if required, as well as a building report and any other information it may need.

With registered valuations becoming the norm, it’s recommended setting money aside for these.

 

 

 

 

 

Don’t underestimate how long financing can take.

 

Financing can take time – with many mortgage brokers advising a minimum 15 to 20 days finance clause to get everything in order before the sale goes unconditional.

Property lawyer, Aasha Foley, says banks were drip-feeding requests so the longer time-frame meant there was time for buyers to organise a registered valuation if required, as well as a building report and any other information it may need.

With registered valuations becoming the norm, it’s recommended setting money aside for these.

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