I might be guilty of using too many analogies but they’re a great way to paint a picture. For those of you who follow the market, you’re likely to have noticed a shift as we enter a new phase of the real estate cycle. So here comes the analogy: Just like a yacht race, little strategy is required on the downwind leg, it’s all straight lines and wind at your back. This changes quickly as you round the bottom mark, strategic play and tactical manoeuvres are what’s needed to get you up the course and across the finish line.
What do you need to sell successfully in a changing real estate market?
1. Accept that the market has changed
If you’re serious about selling there is no point reminiscing about the market that was. The market, and the buyers, have long since forgotten. In fact it’s unlikely that the buyers looking now were even around during the growth. New buyers mean new behaviours and new behaviours need a fresh approach.
2. Engage a Real Estate agent who has experience selling prior to the BOOM 
Now more than ever it is very important that you take the time to choose the best real estate agent for your sale. Just the other day, an agent with two years experienced asked me: ‘What do I do when a house doesn’t sell at Tender?’ For a good, experienced real estate agent it had always been a game of two halves. Phase A of the marketing plan generally executed using a ‘no price’ method like Deadline Sale, Tender or Auction. Quickly backed up in the case of a non-sale, by Phase B, a ‘price method’ such as BEO (Buyer Enquiry Over). As we transition back to a more balanced market, discussing ‘phase b’ with your real estate agent upfront can help you quickly switch tack should your home not sell at the deadline. Being prepared will ensure you stay one step ahead of the market.
3. How can you attract buyers to your house in the current market?
Over the last three years one of the most difficult aspects of the job has been managing the overwhelming buyer enquiry. As the market softens, an entirely different problem arises – getting buyers in the door. Presenting your home well and ensuring you have a comprehensive advertising campaign is essential but possibly not enough. Agents who are working with a large pool of active buyers will not only be beneficial, but may be instrumental, to the success of your sale. So, when you are interviewing agents here are some questions to ask:
- ‘What changes have you noticed with regards to buyer behaviour in the current market?’
- ‘How have you changed the way you work with buyers in this market?
- ‘How will you market my property to active buyers who may not have come across it through their own search methods?” – this could be things like agent databases etc.
- ‘Have you sold any properties like mine recently and if so, are you working with any under bidders who might be interested in my house?’
4. How long will it take to sell my house?
Be patient. Just because you’ve been on the market for a couple of weeks, or your house didn’t sell at the deadline, doesn’t mean it won’t sell. As the market changes, days on the market starts to push out. The average days on the market prior to the boom were in the region of 30-35. As we switch markets, it’s important that you’re prepared for the sale to take a little longer. More thought needs to be given to the pre-market preparation and marketing approach. These days, getting it wrong upfront could be the difference between selling in four weeks, or not selling at all.
5.What do you need to do to prepare your house for sale? 
Stay on top of your maintenance. Buyers aren’t willing to pay a premium for property if they’re taking on significant deferred maintenance. Maintenance isn’t capital improvement but in a boom period escalating land prices hide the cost of the work required. When the market softens, and the FOMO (fear of missing out) disappears, buyers look for reasons not to offer. So, if you’re planning on taking your property to the market and would like to get a premium, ask your agent what needs to be done prior to the campaign. This will ensure there is no discounting your end result.
As always, beautifully presented homes sell the dream. Take the time to prepare your home for your target market. Ensure when you hit the market your house looks nothing short of spectacular. This means having a great street appeal, a well-groomed section, clean, clutter free surfaces, fresh flowers, linens and towels. This all works wonders when it comes to making people fall in love with your home. But don’t let your hard work go to waste. You will also want good quality photography, a well-considered photo sequence and well written copy in your marketing. This all works hand in hand for attracting your target buyer in the door. Be careful of showing too much. Advertising should show enough to entice people but leave them wanting to see more.
6. Be Prepared to Negotiate Your Sale Price
For the novice, or boom time agent, negotiating a sale may be a foreign concept. During the boom signs went up, ads went live then unpredictable, above market offers rolled in. Properties sold for record prices on a daily basis. Those days are gone. But an experienced agent will know how to work with buyers during and after the campaign and they will offer to ensure they negotiate the very best sale price for your property. It’s not enough to compare agents on their commission rates. You need to ensure you’re working with a skillfull and knowledgeable agent who is able to navigate and negotiate a sale.
The Wellington Market 
As you will have gathered Wellington has transitioned to a more balanced market. Well-presented, well-maintained homes continue to attract strong interest and good prices, while the less desirable ones are taking a little more time to sell. The number of new listings continues to be down on previous years but because fewer are selling the overall number advertised has started to increase.
WELLINGTON MARKET QUICK FACTS
Average sale price by Ward:
What’s on this April in Wellington:
Night Noodle Markets, Basin Reserve, Sussex St, Mt Cook, Wellington, Friday 5 April 2019 – Sunday 14 April 2019
Get excited noodle lovers because the ever popular Night Noodle Markets is returning to Wellington in 2019 for double the time and at a brand new location. Kicking off on 5 April at the Basin Reserve, prepare your senses as a fusion of Eastern flavours and Chinese lanterns will transform North Hagley Park into the ultimate Asian pop-up market experience. With authentic family-friendly entertainment, cuisine from top notch international and local vendors, and a fully licenced bar, the Night Noodle Markets will be the place to be in Wellington this coming April
The Children, Circa Theatre, 1 Taranaki St, Wellington, Friday 29 March 2019 8:00pm – 10:00pm
The Children has been an enormous hit on London, New York, Melbourne and Sydney stages. Playwright Lucy Kirkwood, one of the world’s most exciting young playwrights, offers this beautifully written play which tackles timely themes. Three of New Zealand’s most esteemed actors, Catherine Downes, Carmel McGlone and Peter Hambleton star in this gripping new drama that beautifully balances the realities of our times with intrigue and humour
The Performance Arcade, Wellington Waterfront, Wellington, Thursday 28 March 2019 – Wednesday 3 April 2019 10:00am – 11:00pm
The Performance Arcade is returning to Wellington Waterfront for its 2019 festival of live art and music. Running over two weekends, the festival is an accessible and free event for all. As an award-winning event, The Performance Arcade brings together Live Art, Music and Performance on Wellington Waterfront. Expect an exciting and diverse program of art, live music and performance, installed within a special architectural arrangement of shipping containers creating innovative new space for performance and arts presentation. This is a unique, temporary space showcasing both NZ and International artists.
Click here for more info
If you, or anyone you know, could benefit from a considered market assessment by Wellington’s only licensed agent and registered property valuer, please do not hesitate to call. We are always very happy to help.
