I want to talk about some of the pitfalls and obstacles that come into play when you’re selling a property. Now, it’s important to understand that things never stay the same for very long; conditions and factors in the market are always changing. That’s just the nature of how the economy works.
The real estate market is no different. You’ve heard of “buyers’ market”, sellers’ market” and all the rest, and these terms reflect what the market is doing or how it is reacting to what may be happening in the larger economy around us. Of course, you and I can’t control the larger economy around us; but we can control what we do with regard to our properties.
Media (largely) controls market sentiment
One factor that we all hear about is the media and its impact on our viewpoints. Fortunately or unfortunately, depending upon how you look at it, the media dictates much of the market sentiment. How people regard the economy is greatly influenced by what the media says it is…
And for the most part, all they ever talk about or even look for is bad news.
Why does the media do this?
For one reason only: because bad news sells newspapers and gets higher television ratings. Once you realize this, you have an advantage in the market place because the reality is that things are not nearly as bad as the media wants you to believe they are…
In fact, for real estate investors, things are looking quite favorable!
Today, most real estate markets are rising in Australia, with a few minor exceptions that are bringing up the rear. There are several reasons for this, but one major factor is the falling interest rates, which are sure to drop even more before too long. The interest rate factor alone (which is basically the “price” of money), has a big effect on the real estate market because it allows you to buy more properties with cheaper dollars.
But even though the real estate market is rebounding, it’s not as simple as some might think to sell a property. This is particularly true in times when the market is changing but it’s not yet “common knowledge” due to the media’s affect on market sentiment that we just talked about. As a consequence, when market conditions do change, many buyers typically are behind the curve and so may not be in too big of a hurry to buy when there’s still uncertainty in the air.
On the market but not in the market
But no matter what kind of market exists, as a seller, you want to get the very highest price possible. That desire is also tempered by the cold, hard fact that in order to sell a property, you must find a buyer for it. If a property has been sitting on the market but is not selling, then there is a problem, isn’t there?
If your property is not attracting buyers, your property may be “on the market” but it certainly is not “in the market”, is it? If that’s the case, then you as the seller are not recognizing the kind of market that we’re in right now. Similar to what the media says, real estate marketers have called today’s market ‘a buyers’ market,’ which is true to a certain extent. But if you’re not getting buyers to your door, then whatever kind of market it is, you’re jolly well not in it, are you!
4 reasons for a property not selling
That brings me to the four possible reasons why your property may not be selling. Let’s quickly go over each and find out the likely cause of your property not attracting buyers.
Whatever it may be, when such market forces are at work, it can make it harder to sell your property than you anticipated. If buyers are difficult to come by even though your property is well presented and priced competitively by an agent with a stellar sales record and reputation, then you may well be at the mercy of current market conditions and sentiment.
Create your own market
Where do you go from here to sell your property?
You are not out of options; you just have to take the initiative to create your own market in order to find a buyer for your property. You need a marketing strategy that does not necessarily depend upon the broader market conditions. One of the most effective of such strategies is to hold a public auction to sell your property.
A public auction attracts well-funded buyers to your property, creates a sense of urgency and competition amongst potential buyers, and sets a specific time and date upon which you will more than likely sell your property. I say ‘more than likely’ because in real estate auctions, 80% of properties that go through auction end up clearing!
So you will know all the very important details on how to get the best results from selling your property auction!