Timing the sale of your home is never easy. You may have heard that certain periods do better than others but how do you know which is best for you?

It all boils down to supply and demand and how this will affect your selling price. Below, we’ve highlighted what to consider when you’re deciding on when to sell your property.

1.  Phases Of The Real Estate Cycle

The real estate market goes through 4 main phases in each cycle:

• Recovery
• Expansion
• Oversupply
• Recession

Understanding these phases will help you identify when it’s most appropriate to sell your home.

Look Out For The Expansion Stage
While you will see sales and purchases throughout the year, the best time to let go of your property is during the expansion stage. Here, interest rates are low which makes it easier for buyers to secure loans to purchase properties. Also, demand is high because of the market having completely recovered and its generally easier to find new tenants.

The second best time to sell your home is during the recovery phase. This is a popular time for real estate investment since property prices are lower.

How do you identify each phase?

Interest Rates
High interest rates usually happen when the economy is in the recovery phase. This can act as a deterrent for home buyers or real estate investors because it’s more expensive to service their mortgage.

Low interest rates usually happen when the economy is experiencing a recession. This will make homeownership more affordable and encourage more real estate investments.

Market Reports
Observing how the real estate market is behaving will give you an idea of what phase it is currently in. If there is increased demand for housing, it’s likely that the market has entered the expansion phase.

If supply has exceeded demand and there is a property glut, the market is in the oversupply phase.

Enlist The Help Of A Professional
Sometimes, identifying the cycle of the real estate market can be difficult and may require some technical knowledge. Reach out to CT Real Estate and let our team of professionals assist you.

Nevertheless, the phase of the real estate market is only one part of the multiple factors that will affect the sale of your property.

2. Depends On Area And Type Of Property

Identify what you’re working with before you begin trying to time the market.

What is the area and type of property that you’re looking to sell? Beach homes for instance sell better during the summer months while homes with gardens fetch better prices in spring.

Similarly, certain types of properties are in demand at specific times of the year. For example, studio apartments or smaller dwellings do well on the market right before the start of the year as people move closer to their offices or universities.

To understand the trends for your property, do your research. Go online and survey properties similar to yours in the area. How many have been sold recently and at what prices? Is there a noticeable pattern?

This part will involve a lot of research and technical understanding so it’s also best to reach out to an experienced professional to guide you through this. CT Real Estate are experts when it comes to Melbourne real estate. They can help you process through tough questions like:

• Is it a buyer’s or seller’s market now for the area you are looking at?
• What is the demand for your property type?
• What is the asking price of properties similar to yours in the same area?

 

3. Reason To Sell

The reason you have decided to sell your home will also affect the timing of your sale.

Job relocation
Many decide to move because of a change in their job. In this case, you’d need to schedule the sale of your house to coincide with the schedule of your new job.

Property upgrade or downgrade
A change in the size of your house could be another reason you’d like to sell. Whether you’re looking for a bigger space because of a growing family or you prefer to downsize after retiring, this can affect the urgency of selling your home.

Family reasons
Perhaps you’re moving to be closer to family. If this is for health reasons, selling your home may require some urgency. Otherwise, if you’re not rushing you could take your time selecting an appropriate home that is close enough to your family.

Financial reasons
Another common reason to sell your home is to gain a cash profit. Depending on how soon you may need the funds, this will influence the time of your sale. Do you have the flexibility of waiting it out to get the best possible price? Or are you ok to settle at a reasonable price so as to not drag the sales process on too long?

Whatever the reason, it will likely influence how quickly you need to complete your sale. Contact CT Real Estate to get advice on how you can time the sale of your home to fit into your schedule.

4. The Season To Sell

Certain cities have stronger seasonal effects vs. others, such as Sydney, Melbourne and Hobart. In these cities, when you decide to sell will play a bigger role in the selling price.

Below we look at how Melbourne property prices change according to season.

Let’s go through the seasonal trends affecting sale prices throughout the year.

Spring
Typically, most people tend to observe a higher demand during spring time as the weather is more appropriate for viewing houses.

It also helps that the warmer season allows homeowners to display the best features of their property then, such as their garden in full bloom. With more buyers out and about to view properties, you will see more bids for a property which is then reflected in higher sales prices.

Summer
Summertime might be the best season to sell specific types of properties, such as beach houses or other waterfront properties. However, generally summer is seen as a bad time to sell a home. This is because summer is in the middle of the holiday season and most people are too preoccupied with this to be viewing houses.

Autumn
Other than spring, autumn is the second best time to sell your home. It’s a milder season versus summer and winter, which makes viewing houses easier. While this season is not as active as spring, it is still considered a busy period in the real estate market. There are considerably fewer listings versus springtime, which means less competition for you. Not a bad option too.

Winter
Winter is generally seen as the worst period to sell your property. The weather is not appropriate for house viewing, which could be a huge deterrent in closing sales. Also, your home may not look its best in minimal natural light and wetter weather conditions.

In Melbourne, most locals escape the worst of winter by getting on a plane and vacationing in more temperate climates. Because of this, you’ll find that there are less potential buyers around.

All in all, selling your property during winter is not a dead end. With less transactions happening during this season, there is less competition which would make it easier to stand out from the crowd.

If you’re unsure about which season is best, contact our experienced team to discuss and weigh up your options.

The Question Of When

We’ve explored what you should be considering when timing the sale of your property and by now, you can see why it’s tricky to pinpoint an exact time.

What’s optimal will always be unique to your situation.

That said, having a knowledgeable expert provide personalised and professional advice can make all the difference to your success.

If you are considering selling your home, CT Real Estate is happy to help. With decades of experience in Melbourne’s real estate, we are well equipped to assist you on all property matters.

 

Are you considering selling your home but you’re not sure if it’s the right decision or if you’ll fetch a good price? You’re not alone. Selling a property is a huge deal and requires some careful thinking.

Before taking the plunge, it’s best that you fully understand what you’re getting into. We’ve rounded up 4 things you should be considering before deciding whether or not to sell your house.

1. Understanding Your Reasons To Sell

Looking To Downsize
Perhaps you’re at a time in your life where you’re considering a smaller space. This is common for retirees or couples whose children have already moved out. Whatever the reason, a smaller home might be a better fit for you because it will be easier and cheaper to maintain.

Looking To Upsize
The other reason is that you’re looking to go bigger and better. This is common for couples who have a growing family and need more space. Also, some may choose to make the upgrade because they’re simply in a better financial position and can afford a larger home.

Cash Profit
Another reason is that the property market is doing well and you’re willing to let go of your home to take a profit from it. There are multiple factors that will influence how successful you are at selling for a profit. To maximise returns, you will need to

• time it right,
• set the right price and
• keep the underlying costs of selling a home under control.

Let’s go through these below.

2. Real Estate Market 101

Understanding the environment of the real estate market is vital if you’re thinking about selling your home at the right time.

Economic Trends
Just like any investment vehicle, real estate will be influenced by economic factors. GDP growth for instance is one of the main drivers of property prices and rental rates.

Growth trends of GDP per capita and median home prices tend to move in tandem with each other. Meaning, the better the economy and the higher the GDP per capita, the more likely for your home to sell at a higher price. This is because as a country moves towards a higher income nation, citizens are able to accumulate enough wealth to buy a home.

Other than GDP, higher inflation will translate to higher property prices and rental rates. Keeping these economic indicators in mind will help you make an informed decision if you’re thinking of selling your home.

Home Grants
Australia has a couple of government policies in place for home buyers and investors. Some notable ones include:

In addition to the above grants, stamp duty in Australia has been abolished for first time home buyers purchasing a house for $600,000 or less. As for foreign investors, the stamp duty is between 3.5% – 5.5%, depending on the state.

Having this information handy will keep you aware of where your potential buyers are coming from and how you can plan and time your sale accordingly.

Supply vs Demand
The real estate market is essentially all about supply and demand. When demand exceeds supply, prices will rise. When supply exceeds demand, prices will fall. The degree of how much change there is in price depends on the imbalance between supply and demand.

When deciding whether or not to sell your home, you’ll need to first consider the supply and demand in your specific area. Some factors that may contribute to a rise in demand include:

• New universities, schools or hospitals i.e. construction of the 1.5 bil new Footscray Hospital   
• Upgrades to infrastructure for public transportation i.e. new highways or railways
• Upgrades to recreational facilities like cafes, grocery stores and convenience shops

You can find information on these developments within Victorian suburbs from the Department of Treasury and Finance website here. 

Factors that could contribute to an increase in supply however include:

• Increase of new residential projects 
• Release of housing or land packages

Before deciding whether to sell your home, you should have a good understanding of the supply and demand for your particular area. Some things you could look out for include:

• Days on Market (DOM) data: Indication of how long properties remain on the market. If properties are getting sold quickly, this could indicate that the market is in boom.
• Rental yields: Rising rental yields are an indication that there is a strong demand for rental properties.
• Vacancy rate: This metric will indicate the vacancy rate of properties i.e. is there low tenant demand or a glut of rental properties.

Competition
Taking note of the competition is always a good idea. Observe the listings in your area, especially those with similar properties to yours. Have these properties gone up in value recently and have there been lots of sales? Has YOUR property or overall location become more popular?

This will give you a better understanding of the market you’re operating in and how you can plan your sale to your advantage. Which leads to the next point.

What’s The Value Of Your Home?

Do Your Research
Research your suburb and find out what are its advantages and disadvantages. A few key questions you should be considering are:

1. Is your suburb well connected with accessible public transport?
2. Are there amenities such as notable schools (look into schooling zones), grocery stores and parks? 
3. How safe is your area? What is the crime rate?
4. Is there noise pollution from nearby highways?

These factors will play a big part in the demand for housing in the area and subsequently the pricing. An indicator of strong demand in your area is if properties are on the market for a shorter period of time or if there’s little change in asking prices.

Appraisal And Valuation
It’s important to note that these are not the same. An appraisal is an estimate done by a real estate professional to determine how much your house would be worth if it were to be put on sale. It’s just a guide and therefore has no legal standing. If this is what you need, book a free appraisal with CT Real Estate here.

Valuations on the other hand give you the exact value of your home. A trained valuer will evaluate your property by considering multiple factors such as location, home features, ease of access and dwelling size.

If you’re deciding to sell your home, it’s important to get a valuation done to ensure that you are listing the accurate and reasonable price of your property. Overstating the price could turn away potential buyers while understating it could cost you.

How To Get The Best Price For Your Property?
There are multiple factors that will impact the value of your property. However, if you’re adamant about selling, you’ll need to accept that you have little control over its market value.

You could renovate certain parts of your home to add to its value but ultimately, external factors will still heavily influence its price.

While we can’t control the market, we can equip ourselves with a better understanding of it. This is where reading market reports for your area or speaking to a real estate agent would come in handy. Reach out to our dedicated team at CT Real Estate to find out more.

4. Consider Getting An Experienced Real Estate Agent

A good agent can make a huge difference to the final price of your home.

Experienced In The Area
A local agent that has experience selling property in your area would be a big plus. This would mean that they already have a network of reliable business connections to work with.

Also, the agent would have a better understanding of the properties as well as potential customers and what it takes to close a sale there.

Strong Sales Strategy
This goes without saying – you’ll need an agent that can actually sell. Having an agent that has a successful track record of selling multiple properties is a good sign.

A professional should have strong negotiation skills and a reliable sales strategy to ensure the best possible outcome for their clients.

Ability To Understand Your Needs
You should prioritise getting an agent that works for you and not the other way around. Getting an agent that understands your needs concerning the sales, be it the price or the timeline, is important.

A good agent would take the time to listen to your concerns and present a tailored solution that keeps your desires front and centre.

In Conclusion

As we’ve seen in this article, there are many things to consider when you’re thinking about selling your home. You’ll need to factor in the reason you’re considering the sale, the condition of the market, government policies, the value of your home and its location.

It can be easy to be overwhelmed with all of this information. This is why you should consider enlisting the help of a professional. An experienced agent would understand the ins and outs of how the housing market in your area and would be able to guide you through it- often impacting on the final selling price of your home.

CT Real Estate has deep knowledge of the real estate market in the Melbourne CBD area and the city fringes. If you’re thinking of selling your home in this area, contact our dedicated team to get started.