January and February traditionally see a surge in property sales as buyers enter the market in big numbers after the holiday season. Anyone listing a property below $500,000 should ensure their house is sensibly priced.
Sellers have to factor in changing market conditions when listing their home and market conditions below $500,000 have changed significantly in recent weeks.
The phasing out of the First Home Owner Boost is already having an impact on lower priced properties, with Peard recording fewer inquiries today compared with three months ago. This is particularly the case in Kinross, Padbury, Clarkson, Heathridge, Beldon, Baldivis, Rockingham and lower-priced suburbs of Mandurah.
The reality is that there are fewer first-homebuyers compared with late-2009 and numbers are expected to decline even further during 2010 as a result of rising interest rates.
In coming months, a correctly priced house will become even more critical as buyers factor in rising interest rates. Properties that are overpriced will not sell. Sellers should remember the lessons of recent history.
During the interest rate rises of 2006-07, many homeowners failed to take into account changing market conditions. They beleived that prices would continue to rise by about 20 percent and they factored this into the sale price. As a result, many of these homes failed to sell and some are still for sale. It is important to get an accurate market appraisal of property, especially if it's priced below $500,000.
One of the biggest mistakes is to select an agent that promises the highest price. The longer a home stays on the market, the more likely it will become "stale" to buyers.
Houses on the market for a long time attract diminishing interest among buyers and that runs the risk of a property selling below its market value. Experience has shown that a house attracts the most interest in the first few weeks on the market.
With more properties now listed for sale, buyers have a greater choice and will often overlook a house that is even $10,000 overpriced in the present market.