When the market is hot, it seems like it’s a seller’s paradise. Buyers are buying properties quicker than new ones can be listed, competition is aggressive and prices are on the up.

Things are not always as straightforward as they seem though, and a hot market can present several opportunities and pitfalls for sellers to navigate.

Paul Hill Realty Hope Island knows that house owners who wish to sell have questions regarding ‘how they can maximise their sales result in a hot market.’

Q: What needs to be prepared before listing?

A: When the market is moving at such a fast pace, it’s critical as a seller to have everything in order prior to listing to ensure you don’t miss any opportunities that may come right out of the gate.

A building inspection should be done before a property goes on the market. If a buyer comes through and they want to buy on day two into the campaign, and they’re going to make an offer that’s well above all expectations, the property agent should have everything ready to go.

Having things like a building inspection, strata reports, contract of sale and other necessary documentation ready before going to market could mean the difference between snagging that perfect buyer and losing them.

Q: When is the right time to list?

A: Most seller’s personal circumstances are different, and factors like whether you are upsizing or downsizing, your financial situation or any other constraints need to be considered.

With that in mind, rather than trying to time the market, the best time to list is when you’re ready to list. If you are ready to go and the home is ready, sell straight away. Just go to market, because the market is red-hot.

Winter is a prime opportunity to sell because there is less competition, you are more in isolation, as buyers aren’t seasonal. However, there will be buyers regardless of whether we’re going into winter or not.

Q: Property styling: is it still necessary in a hot market?

A: When the market is surging and properties are being sold at such a fast clip, there may be a temptation to save on marketing tools like property styling. But is that wise?

In a hot market that could be the difference between getting $20,000 above your reserve or getting those extra two or three buyers that love your home that maybe would not have looked at it if it wasn’t styled, and next thing you know you’ve got $200,000 above reserve.

You want to make sure when the buyer scrolls through the portals – Real Estate or Domain or what have you—your property stands out from the competition. Virtual furniture is another more affordable option to present your property in the best light.

Q: What’s important when it comes to presenting your property?

A: One of the main benefits of property styling when selling is that it creates an emotional connection with potential buyers. Creating that emotional connection is really key in converting a browser to a buyer because it helps them to visualise themselves living in the house.

Optimising and maximising space is crucial when looking to appeal to the broadest base of buyers, a little money can go a long way.

When it comes to renovating for sale, if you don’t have a massive budget to work with, one thing we say is you don’t need to completely redo your kitchen or redo your bathroom. Sometimes something as simple as repainting the walls can really change up a space quite quickly.

Exteriors and outdoor spaces also should not be neglected – even if it’s putting an outdoor setting on the front porch or in the backyard, that will make the property feel more like home.

Ultimately, the extra effort you put into presenting your property the right way tends to pay dividends.

Based on research, sellers can see between a 5 to 10 per cent increase on final sale price compared to a non-styled property. And when you’re talking hundreds of thousands or millions of dollars, that’s a significant return on investment.

Q: How can you maximise an auction result?

A: A hot market means hot competition, and often it’s auction day when that competition hits its peak. So what’s the best way to approach an auction campaign to get top dollar for your property?

Short campaigns and being ready to adapt to buyer movements are key.

With an auction campaign, sometimes it can be too long and buyers can go and pursue other properties. That’s because they’re getting FOMO—they’re afraid they’re going to miss out and the market’s going to keep going up, they may just gravitate towards another property if it means they can secure it sooner.

That means preparing a 3.5 – 4 week campaign and being willing to move an auction forward if there’s the right kind of early buyer competition to “capitalise on that momentum.”

It’s all about analysing what buyers are showing interest. Are there any buyers that have been to the property three or four times? Are there any buyers who are measuring fridge spaces or choosing what colour walls they’re going to paint? They’re the emotional buyers.

After that initial two-week period it will become clearer how an auction could unfold.

If you’ve got two or three buyers that are absolutely emotional, or ‘must have’ buyers—the buyers that are frustrated and just exhausted because they’ve missed out on two or three properties—those are the buyers you want competing on auction day.

Q: How do you know whether to accept an offer prior to auction?

A: With buyers looking to get the edge on their competition in a hot market, it’s common for real estate agents to receive multiple offers ahead of an auction. So when is it best to take an early offer and when does it make more sense to let the campaign run its course?

Typically there are two scenarios that play out. In the first, several buyers are all showing interest around a similar price point, in which case taking things to auction makes the most sense.

In the event, though, that you’ve got one offer that’s made at the top end and everyone else is at the bottom end, then naturally you’d probably just try to negotiate privately and try to affect the best sale.

It’s very common for buyers to ask straight away whether a seller would be willing to sell prior to auction. But in all fairness, the buyer isn’t ready to buy the property; they’re simply asking the question. They have not fallen in love with it yet, they haven’t gone through the process.

After that first two-week period of open homes and tracking potential buyers, it’s a matter of bouncing between buyers to gauge whether the offers can be beaten.

If it’s looking like the offer is coming from a “unicorn buyer,” meaning nobody else is willing to put a comparable or higher offer forward, then it’s time to negotiate privately to extract the best deal. Otherwise, if the competition looks to be more evenly matched, it’s game on at the auction.

Homes.com.au has an information guide about “How to make appropriate property offers to clients” it does not only include what you need to know about these processes but we also included various tips and advantages of making a house offer.

Q: What’s the best approach when selling and buying at the same time?

A: The hot market conditions that can work in your favour, as a seller will also end up being challenges you face if you’re looking to purchase at the same time. Buying first and selling second may not be a possibility, and the circumstances around upsizing or downsizing can be very different.

Real estate agents advice to many of their clients is to sell first, find out exactly what your budget is, and then buy as quickly as possible. Have a couple of properties already in mind and try to make a decision in two to three weeks, because the longer you wait, you’re just going to keep missing out on properties.

When the property market is super hot, there’s a good chance you’re going to get a really good sale for your property, but you’re also going to have to pay for your next upsize. Stipulating a delayed settlement in your sale contract can buy you more time.

The general rule is to sell first, with a delayed settlement, because we all know cash is king – you know how much money you’ve got to play around with.

It makes your next purchase a bit easier because you can negotiate with an agent. Because if you haven’t sold, and you’re still looking at buying houses, when you put an offer forward it’s not tangible. The sellers may not take your offer seriously.

Sellers need to do some research on what is sold around their area recently that is similar to their property and base their price on that. With auction clearance rates at such high levels, the properties that don’t end up selling run the risk of being stigmatised by buyers.

Looking for a Reputable and Professional Real Estate Agent on the Gold Coast?

Remember experienced property managers can save you time, money, and headaches.

If you are a landlord looking for an experienced property manager with your best interests at heart – look no further than Paul Hill Realty Hope Island! You will not find a team that is more respected, reliable and trusted in residential property sales and management.

Paul Hill Realty office is located at Hope Island, and we professionally manage residential properties anywhere on the Northern end of the Gold Coast. Paul Hill Realty Hope Island is your best choice in property sales and management.

Learn more about Paul Hill Realty Hope Island – click here.

Get in touch with one of our experienced team at Paul Hill Realty Hope Island by calling 07 5577 1888.