Recent data from REINZ shows a nationwide drop in house sales with all indications pointing to a buyer’s market. As the number of property listings at the end of March 2019 was up 14 per cent year on year in Auckland and down just 3 per cent year on year for the rest of NZ, the drop in house sales is not due to less houses coming onto the market. So, what do you do if your house isn’t selling?
1. Wait to sell
If your home isn’t selling despite your best efforts – an extensive marketing campaign, weekly open homes – you may need to put off your house sale if you can. You may be selling in winter when there are fewer buyers, over a holiday period when people are away, or you’ve hit a market slump and it makes sense to wait a month or two for the market to recover.
Sometimes waiting to sell can work in your favour. The beginning of a new year is often the time when home buyers look to move into new areas – particularly into new school zones – and selling your home at this time could improve your chances significantly.
2. Rent it out
Renting your property out could be a short-term financial solution to help you pay your mortgage if you are considering buying a new property but you’ve not sold your existing home. Remember though that being a landlord is hard work and it’s important you have a plan in place to manage the property – either by yourself or with a property manager.
Talk to a Mortgage Express adviser about a bridging loan, a short-term loan (six to 12 months) that covers both your existing and your new debt. When structured correctly, bridging finance can be hugely helpful, but it’s important you check all of the loan features and have your mortgage adviser go over the loan structure with you to ensure you understand this form of finance.
3. Choose your agent
Choosing the right real estate agent makes a huge difference to how your property is marketed and ultimately sold. The right agent will have a clear understanding of the current market conditions and help you price your property correctly for sale.
When choosing an agent we recommend you ask three agents in your area to provide you with a strategy on how they would sell your property.
Ask questions around the sales process – would they suggest an auction, a tender, deadline sale – and why they would choose that method of sale. Look at recent house sales they may have been involved in as well as similarly priced properties to your own to get an idea of how these were marketed and how quickly they sold.
Attending an open home as a would-be buyer will give you an opportunity to assess an agent’s style, marketing materials and get a feel for how quickly they follow-up after the open home.
4. Have your property appraised
If you’re selling your home or you’re considering putting your property up for sale, it’s worthwhile contacting our partner company, Harcourts for a free market appraisal.
Simply register your details here and one of their agents will get in touch to arrange an inspection of your home at a convenient time. The agent will take into account your property's unique features, the area in which it is located and relevant market conditions. The market appraisal will give you an estimate of your home's current value and then it’s up to you to decide whether or not to go ahead with listing and selling your property.
While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Mortgage Express Limited for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication.
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