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July 20, 2018 | 07:08 AM
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22.06.2018What makes an Australian home sell well in 2018?

Discover the attributes that helps Australian homes sell in 2018


Australia has long since been known around the world for homes, of course. This is a country where homes are bigger and more beautiful than in many other parts of the world, and as a result people have been moving here for decades in search of a better quality of living. But the property market hasn’t always enjoyed as easy a ride as the stereotypical perception of the Australian economy might have people believe. One recent study, for example, found that while prices were seeing some growth in smaller cities, they are continuing to stagnate in Sydney and Melbourne.

Other than a pension, though, the family home is still probably one of the only substantial and tangible investment assets that the average Australian is likely to have – and that means it’s essential for a person’s prosperity that their property sells for a good price when it goes on the market. This post will explore some of the main factors that influence how well – or otherwise – an Australian property is likely to perform in the market conditions seen today. 

Location

Ironically, perhaps the most important factor in determining whether or not an Australian home is going to sell at a decent price is the one that most residential owner-occupiers have no control over. Apart from those who have the freedom to move (as well as those buy-to-let investors who perhaps have more flexibility over where they invest), it’s often a lottery as to whether or not you live in an area that has a buoyant housing market at the precise time when you want to sell. 

If you can adapt your location according to home sale market performance, though, it’s worth considering it. The study referenced above was carried out by CoreLogic and Moody’s, and it found that markets in the largest cities, including Sydney and Melbourne, were slowing down. There’s not been much movement at all in cities like Perth. However, there have been improvements in house prices in some of the nation’s smaller cities, including Hobart and Adelaide.

Agents

For most home sales, it’s likely that enlisting the assistance of an estate agent is something you’ll have to do.  It’s normal to pay well over 1% of the sale value for the agent’s services: so if a home is worth $750,000, for example, it’s highly likely that the seller will be parting with a fair amount of cash. Agents have also been known to slash the asking price of a home for the simple reason that it accelerates the sale time, and hence they get their commission faster and for less work.

For that reason, sellers should always double check that their agent is registered in their local area (through a public body like the state Department of Consumer Affairs, for example, or the equivalent) and also check that they’re registered with a professional trade body like the Real Estate Institute of Australia.

Features

Those who are looking for a more manageable solution will be relieved to know that it’s still important to have a well-functioning, well-designed home when it comes to making a sale. Studies show that Australians who are buying homes highly value features like increased bedroom and kitchen space, so owner-occupiers and investors can increase the chances of a speedy sale by considering the integration of these features into their properties.

The takeaway

The Australian property market continues to have its ups and downs, and that’s to some extent inevitable in the global economy. But there are plenty of things that sellers and investors can do in order to maximize the value of their homes. Whether it’s buying a property in a certain location, ensuring that the agents used are ones from a reputable firm or simply ensuring that the features in the home are suitable, there are plenty of options on offer.


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