Tips for selling in a warming property market

Yes, properties might be selling faster and at greater values than they have done in recent months. But this doesn’t mean you can take your foot off the pedal and wait for the offers to come rolling in, otherwise you might end up waiting longer than you have to, or selling yourself short.

Even in a warming market, Kiwi buyers are still looking for quality, meaning that marketing and presentation continue to count for a lot. What does this mean in practice?

• Think home staging: check out our tips for how to stage your home to sell in summer. Whether you’re doing this yourself, or bringing in the professionals, a well staged home can make a big difference to prospective buyers’ thinking.
• Declutter: organising an open home? You want would-be buyers to be able to see themselves living in your property, which is hard if it’s full to bursting with your stuff.
• Know where to advertise: trying to sell a property without telling anyone that it’s for sale isn’t going to work. So, whether it’s listing it for sale on Trade Me Property, or talking to your real estate agent about what social media channels to use as well, you still need to get the word out.

In a warming market, it can be tempting to start boosting up the asking price for your home. And, of course, you want to get the maximum value possible for selling what is likely your biggest asset. However, it’s easy to get carried away.

You might have heard the term “Goldilocks market” used recently – meaning that conditions are pretty good for both buyers and sellers at the moment. Crucially, our October PPI also showed that supply was up month-on-month, actually at about the same rate as demand (~9%). So, buyers still have options, which means that if you price your property through the roof, you might make things tricky for yourself. Overpricing your home can make buyers reluctant to make an offer, potentially causing it to sit on the market longer. This could result in price reductions or receiving lower offers.

Luckily, making this mistake is very avoidable, as people and tools out there to help you value your home. These include:

• Our free Property Insights tool: This easy-to-use, free online tool provides an estimate by considering important factors such as market trends, rateable value (RV) data, sales history, property size, and age. You can also explore price trends in your area by viewing the values of comparable homes nearby.
• Work with a real estate agent: In Aotearoa, real estate agents are legally required to provide you with a written appraisal before you commit to working with them. Their estimate will take into account things like the agent's knowledge of the local area, sales prices of similar properties in the neighbourhood and the features and condition of your home.
• Pay for a valuation: if you’re considering selling privately (without a real estate agent), you can hire a registered valuer to provide an independent valuation. Although it comes with a cost, the report is typically more detailed than an agent’s estimate, offering you added confidence when setting a price.

Unless you’re planning to leave Aotearoa (and why on earth would you want to do that?), you’re going to need somewhere else to live once your home sells.

In a warming market, wherever possible, you want to buy first and sell second. There are a few reasons for this:

• There’s competition: as we’ve said, homes spent less time on Trade Me Property in October than in recent months, so you’ll be facing some competition when it comes to buying. If this takes longer than you hoped, it could push back your listing date for your current home
• Prices are rising: similarly, if prices continue to increase, you’ll end up eating further into your profit margin from selling your home.
• Buyers might not hang around: sure, you could include a condition in your sales and purchase agreement to stipulate that you need to buy first before a prospective buyer could move into your house. But, in a fast-moving market, this could scare off prospective buyers.

Several factors will go into deciding which is the best sales method for your property, your own preference, the property type and what your agent (if you have one) thinks, to name a few.

But, there are certain sales methods that tend to see particularly favourable results in warming or hot property markets. Selling at auction is perhaps the most obvious, because:

• Auctions are usually quick: typically, an auction is held after an intensive marketing campaign of around 3 weeks.
• There’s a chance for a bidding war: particularly when house prices are generally on the up, and buyers know they need to compete.
• Bids are unconditional: this can be a big time-saver, and welcome in a fast-moving market.

Being adaptable can help you capitalize on opportunities and attract more buyers. For example, when scheduling open homes. In an increasingly competitive market, potential buyers often have limited time to view properties, so offering flexible times for open homes – such as evenings or weekends – can increase the chances of attracting more attendees. The more available your property is for viewings, the greater the opportunity to create interest.

The same goes for your overall selling strategy. The initial price you set may need adjustments based on buyer feedback and market response. If your home isn't getting the attention you'd hoped for, consider making price reductions or enhancing the presentation to make it more appealing. Likewise, if multiple offers come in quickly, being open to negotiating on terms, such as settlement dates, can help secure a deal that works for you.