This market is presenting us all with some unique opportunities that can be right under our noses when we are not looking for them. Read on to discover how you could take advantage of this property market.
Since our last Perth Property Market update at the end of October, we have seen the number of properties on the market continue to increase from 20,966* (29/10/10) to 22,297* (5/12/10) but the flow of new properties is starting to taper off for Christmas.
(*Source: RP Data)
If you need to sell in the next 3 months, now is a great time to stand out…
With the busy Christmas season well and truly upon us, it’s a difficult time with everything else going on to contemplate selling your property now. However I have got some very compelling reasons to consider doing so-
1. With the lack of other new properties coming onto the market and the majority of existing properties on the market already having gone stale, it will be easier for your property to stand out fresh amongst the crowd.
2. A lot of people take holidays at this time of the year and can find themselves with some time on their hands to look for property. The shopping mentality can flow over to a bigger purchase of a new home or investment property.
3. A lot of buyers with families are wanting to secure a property over the next month so that it will settle in time to move in before the kids go back to school.
4. Early January will see even more new properties listed on the market (those that have held off over Christmas) and there will be a lot of other homes for buyers to choose from.
There is more supply but the same rules apply… sell it fast to get the best price!
The average selling time in Perth might be 64 days* but what many owners don’t realise is that by that point a property has well and truly gone stale. (*Source: REIWA)
After 2-3 weeks with good marketing everyone in the market place has seen your property and if positioned correctly you should have received an offer from any buyers already in their “buying mode”. Or be looking to revise your price as well as how you are aligned with buyer expectations and of course sometimes that can mean withdrawing your property from market and selling down the track.
You really only then have another 2 weeks for any buyers that may not yet have been in “buying mode” at the time of first seeing your property to now be ready. It is essential during this time to capitalise on declining buyer interest before the property goes stale.
At the end of 4 weeks my typical approach is to again revise our positioning, taking the property off the market for 2-7 days and then re-listing the property as new to the market with a new front photo and new advertising copy. Every time I have had to do this the new buyers through the home open that week always think that it’s just been listed…. because it has!
Selling a property fast and capturing the initial burst of buyer demand to a home is so important to getting you the best price that we are now guaranteeing that your property is Sold in 60 Days or Sold Free* For more details, terms and conditions click here.
Make money in this market by upgrading your family home
I know from the properties that I own, that when someone asks me what it is worth I instantly come back with the highest market value that the property reached back at the end of 2006. Isn’t our memory funny like that!
So often when it comes time for an owner to sell and I show them exactly what comparable properties have recently sold for and what competition is on the market, it can sometimes come as a shock that their place is now worth less than they thought.
What they don’t realise is that other properties in the market have experienced similar conditions and this is actually an opportunity for them to make money in upgrading their home…
1. If you are upgrading your home and the market has dropped by 5% then your place at $500,000 may now be worth $475,000 but the suburb you are buying into that used to be worth $700,000 is now worth $665,000. So the market may have dropped by the same percentage but in dollar terms the higher priced suburb has lost more, so in upgrading now you will be buying in at the lower price and making money in the changeover.
2. If you sell really well maximising your sale price with a highly experienced sales agent and then get some buyer assistance to buy really well, you can further increase the money you keep in your pocket.
It is an exciting time to buy Perth property!
Ok so how can I be saying in the same update that it is a great time to sell and a great time to buy???…. Well it’s best that I add a caveat to that- Only if you do it well!
I really do believe that there are opportunities in every market and sometimes you just need to be pointed in the right direction. This market has so much supply for buyers to choose from that it’s like getting an upgrade to the full buffet when you only paid for the salad bar.
Good opportunities lie with properties that need a little bit of minor renovation to be done, nothing more than $10,000-15,000 worth. The fact is that with so much choice on hand other buyers in the market just want to buy an end solution… they don’t want to do any work! You can get paid to provide the solution?
Only this week I have helped a buyer secure a 3×2 street front green title house, built in 1999 in Rivervale for $420,000. The plan is to invest $10,000 in a minor renovation by painting throughout, new carpets and window treatments and I would then be able to sell it right now for $470,000.
For details of our Free Buyer Assistance click here.
Signing off on an exciting year…
We have had so much fun helping hundreds of investors with their Perth Properties this year.
Remember that we are only too happy to sit down and discuss how we can help you over achieve your property goals. Just send me an email on [email protected] to arrange a time to talk or grab a coffee.
From all the team at Investors Edge I hope you and your family have a safe and enjoyable Christmas period ahead. I can’t wait to give you the latest from the Perth Property market in January.
To Your Investors Edge,
Not only a very informative newsletter Jarrad but interesting as well.
Keep up the good work.