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Property vendors must avoid becoming complacent amid Perth’s housing supply shortage or else risk potential financial losses, local real estate agents warn.

With less than 7300 properties for sale on the REIWA website at the end of February and a median selling time of just 13 days, Limnios Property Group Licensee and Managing Director James Limnios said it was a sellers’ market compared to the eastern states.

However, vendors should not be overconfident because market conditions could soon change.

“After selling properties in Perth for more than 50 years, one historic certainty has been that interest rates do have a major impact on property sales, whether they rise or fall,” Mr Limnios said,

“The market is fluid and buyers respond to interest rates, especially if they reach a critical tipping point, which we are now at.

“We are finding buyers are now taking more time to make a decision on purchasing a home and are factoring in more interest rate rises before making an offer.

These early signs of buyer caution mean sellers should be realistic when putting their property on the market.”

Ray White South Perth Sales Associate Cristina Spinella said sellers who became too complacent risked underselling their home.

This may be the case when a seller receives a good offer early in the campaign, but they decide not to accept it with the thought that the market is increasing, only to later realise they made an error and accept a lower offer,” she said.

“There is no reason for a property not to be sold in the first three to four weeks of launching to market, in particular family homes, unless it is overpriced and the seller’s expectations are too high, which is mainly a result of them being overconfident.”

Both agents agreed property after a closer inspection, may presentation and sales
be prepared to pay more than strategy were still crucial in achieving a premium price when selling.

“It is imperative that the presentation of the property be well executed.” Ms Spinella said.

“Some sellers are not preparing their property for market to the extent we we find those properties would normally expect, as they feel presentation won’t a pleasing price for the affect the result, which we vendor.” know is not the case.”

Mr Limnios said the three Ps – presentation, pricing and promotion – should be decided before a property was listed.

This is because every property will receive the maximum interest from potential buyers within the first few weeks of it being listed for sale – this is the most opportune time to achieve the best selling price,” he said.

“To achieve a pleasing result, the property needs to be correctly priced so it does not deter potential buyers who, after a closer inspection, may be prepared to pay more than they originally planned.

“The promotion and marketing are also critical, as the more people are aware of the property, the greater the number of potential buyers competing with each other to purchase it will be.

“If all three Ps are correct, we find those properties sell relatively quickly at a pleasing price for the vendor.

Ms Spinella said real estate agents could help sellers avoid complacency from the start of the sales process by providing an accurate appraisal based on sales evidence and market conditions, as well as a strategy to engage the market.

“Once the property is live, it is vital that the sellers are provided with great communication, including weekly written reports and meetings, to ensure they are fully aware of buyers’ feedback,” she said.

“This will enable a seller to have all of the facts when it comes to making a decision.”

Article by Keren Bellos of the West Australian published on 18 March 2023