I’m sitting here in bustling Sydney before a presentation to real estate business owners. As I wait for my coffee and look around at the vibey area of Barangaroo, I see that some businesses are thriving, and others are barely surviving.
Australia, like South Africa, is feeling the effects of a tough economy. The latest real estate data shows that sales volumes in Melbourne are down almost 28% in 12 months, and in Sydney the drop is just shy of 22%. As in all markets, when this happens, property values decline as well.
So how is it that, in the same market, some people achieve a good result, and others don’t? Whether it’s a business, a restaurant, or a property for sale – some are “busy” and achieving good results, and others are hanging in for dear life.
The answer is the same for everyone: if you have a product or a service that is in demand, well marketed, and correctly priced, the result is a “sale”. If any one of these components are missing, then the outcome is not what it should be. Your situation may be gloomy – so you’ll need to look for the silver lining.
Let’s relate this to real estate and the situation of a property owner who needs to sell. If you have a property that’s in demand – in a location and a price range where the demand is high – then you have a product that is saleable. If you want to achieve maximum market value you need to ensure it’s marketed better than competing product to attract the best buyers, create buyer competition, and sell for the most. Your silver lining is that you need to engage an agency with the very best marketing. You may also consider an agency that offers “no price” marketing strategies to maximize buyer interest.
If your property isn’t in a location with high demand there’s obviously not much you can do about that. Your silver lining will depend on your ability to attract buyers though great marketing. You’ll also need to appeal to buyers’ emotions. How well does your property present? What can you do to get people to fall in love with it despite the location?
Perhaps you’re in a price range where demand is lower, such as with more expensive properties. You create your silver lining be marketing your product, not your price. Consider “no price” marketing strategies where you remove the risk of out-pricing the market. Create buyer enquiry and competition. This will get you the best price, whatever that may be. Use these strategies with amazing marketing that make your property stand out from competing listings.
Whatever your situation, there will be a silver lining that you need to maximize. Not every estate agent will have the resources to do this for you – so find one that does. What marketing can they offer you? Do they have a “no-price” marketing option, such as non-distressed auction? No matter the market, you will be able to achieve a fair result when you look for your silver lining.
Steve Caradoc-Davies