Selling when the market is at its peak can be cause for celebration.
When is the best time to sell your home? For most people, the best time to sell is when their circumstances require it, says LJ Hooker’s head of research and business intelligence Mathew Tiller.
However, if you do have the luxury of being able to time the market, there are some telltale signs to look for that can help you maximise your chances at getting the best result.
KNOW YOUR COMPETITION
Supply and demand is the most basic factor in any market, which is why listing numbers are an important metric to consider, says founder and managing director of Sydney agency Horwood Nolan Ben Horwood.
“If you really boil it all down to one thing, the best time to sell your property is when everyone else isn’t,” Horwood says.
Horwood Nolan managing director Ben Horwood. Picture: David Swift.
Tiller agrees, explaining that as long as demand from buyers remains strong, low listing numbers in your local market is generally a good sign if you are selling.
“That creates competition between buyers – and the more competition there is between buyers for a particular home, the better the sales price at the end,” Tiller says.
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Even if there are plenty of properties being listed for sale but not many that are as good as yours, you could still be at an advantage.
“If you’re selling a house and there’s lots of apartments on the market, that may favour you,” Tiller says. “You may be in a unique position in that market.”
LJ Hooker head of research Mathew Tiller.
BUYER DEMAND
So how do you judge if there are plenty of buyers waiting to pounce? Tiller says the best way is to get out and attend open homes and auctions.
“See how many people are on the floor, how many people are bidding and see how quickly they go,” he says.
“Seeing that they have a high number of registered bidders and a lot of people actually bidding on the property, as opposed to just having a sticky beak, is always a good sign.”
Horwood says the time of year can play a part in buyer activity too, with a lot of families out in force during the school term when the flaws of their current homes become more apparent.
“I’m not a big fan of selling family homes or high end properties in school holiday periods,” he says.
Attending auctions will give you a feel for buyer demand. Picture: NewsWire/ Nadir Kinani
SIGNS OF A BAD MARKET
On the other side of the coin, if you notice similar properties to your own that are struggling to sell, it’s probably not such a good time to sell, Horwood says.
“There might be three or four of them in the market and none of them are moving. They’re either sitting dormant at a particular price or they’re winding backwards.” He says.
“That’s usually where, if you don’t have to sell, you would ideally wait that out and see what happens.”
The ideal time on market is about 30 days – and anything more than about 60 days is a red flag, he says.
“Nine times out of 10, it’s a pricing issue – the market has a different opinion of the price than the vendor has,” he says.
If there aren’t many buyers at inspections it may be a bad sign. Picture: NewsWire / Max Mason-Hubers
Other signs it’s a bad time to sell are during times of political and economic uncertainty – where people don’t seem comfortable making decisions and would rather sit and wait, Horwood says.
“If people know times are bad, they are looking to take advantage and buy in a market they know is not doing well,” he says. “If a market is rising, people have a motivation to buy because they want to buy before it gets too far in front of them.”
He says this becomes evident in the behaviour of buyers at inspections and auctions.
“People vote with their feet,” he says. “You see inspection numbers drop. You see inquiry numbers drop. You see the number of offers drop. You see the number of registered bidders at auctions drop. People sit on the sidelines – they don’t get in the game. They watch rather than play.”
Researching how comparable properties are selling will give plenty of clues. Picture: NewsWire/ Nadir Kinani
SELLER’S MARKET CHECKLIST
Is your local market advantageous for selling a property? Check these telltale signs of a seller’s market:
* Are there low listings?
* Are buyer inquiries strong at inspections?
* Are there high numbers of registered bidders at auctions?
* Are prices rising?
* Is the local economy strong?
* Are properties selling in 30 days or less?
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