If you have been considering selling your property this year, you may have wondered – when is the best time to sell my home? There are many factors which may affect when you put your property on the market, including your reasons for moving and the performance of the market. Here are a few things to consider when deciding the best time to sell your property.
How your suburb is performing and average property values
Get an idea of how your suburb is performing by researching recent sales in your area and checking average property values. Toowong and St Lucia are quite highly sought-after suburbs which have seen a steady increase in property prices over the past 5 years. You can find recent sales online which will give you a better understanding of what is selling nearby and for how much. If you would like a more comprehensive report on your property, you can speak to us, your real estate professional to find out exactly where your property sits in the current market.
The performance of the property market
Property markets can fluctuate quickly and having an understanding of the type of market you are selling in will help you achieve a successful sale. There are three main types of property markets to keep in mind, they include a buyer’s market, a seller’s market and a neutral market. A buyer’s market is when there is an oversupply of properties on the market and buyers have choice and time on their side. Properties tend to take a little longer to sell and need to be priced appropriately. Even a property priced just slightly too high will be overlooked by buyers who find value in other homes. A seller’s market on the other hand, is where a shortage of properties creates competition amongst the buyers. With few homes available and many buyers competing for them, an auction can be a successful sales strategy in a seller’s market. A neutral market occurs when there is an even balance between buyer demand and properties for sale.
Stamp duty and first home owners grants
In Queensland, stamp duty will need to be paid by the buyer of the property. Based on a sale of $600,000, the stamp duty in Queensland is just over $20,000 – a significant amount which can affect their decision to purchase. If there have been any changes to the state tax levies, it’s important to understand how these might affect a buyers’ purchasing power. Similarly, the Queensland Governments’ First Home Owners Grant may impact a sale, especially if your target market includes first home owners. At the moment, first home owners may be eligible for $15,000 to $20,000 towards buying or building a new home and this has just been extended to 30th June 2018. This incentive has pushed some buyers to new developments around West End and Toowong, but changes in the future could see them guided back towards established homes.
Your motivation for selling
If there is a bub on the way and it’s time to upsize, your motivations for selling may be based more around having a suitable lifestyle for your growing family. Holding out to sell in a favourable market may be less important than ensuring your family is settled and comfortable when the new addition arrives. On the other hand, if you are looking to downsize the family home and move into a lovely riverfront apartment in St Lucia, you may have the opportunity to wait for a stronger market as a Seller. Either way, it’s important to remember it is usually most advantageous to buy and sell in the same market. A consideration should be given to ‘change over’ costs, not just profit when selling. Should you need to accept less for your home, you will usually make up this ‘loss’ when you buy if it is in the same market. Engaging a real estate professional who understands your motivations is key to achieving a successful sale and reaching your personal goals.
Image Source: Adobe Photostock; 11/58 Sandord Street, St Lucia.