Should You Sell Your Property Now or Wait Until Next Year?

If I had the answer, I'd be finding a way to get rich from it. I'm not really sure that anybody knows the answer. We've never been in this situation before, and it's clearly not going as anybody had thought it would.

This month I've actually agreed 10 sales, and closing in on number 11, and its quite correct that some properties are receiving lower offers than last years highs. Reports I've read over the last few days suggest The Capitals Prices are down by around 7% on average, and I'll not argue with that. 

How do you get a result right now, when the market is seemingly stalling?

Firstly you need to get your head around prices are down. Launching on the market too high, at last years achieved prices for example is akin to shooting oneself in the foot. Its difficult to recover from a badly executed marketing campaign.

Secondly, understand that you will get low offers, and don't take offence as you can't blame buyers for trying given the circumstances, however they are offers and you can leverage the interest if channelled correctly to help your negotiations with those who want the property and are more realistic with their opinion of value. 

Demand is critical. Nobody wants a property that nobody else wants - so marketing should be aimed squarely at creating interest. 

If you are buying, then take a pragmatic approach. There haven't been too many times over the last few years where you've seen London houses in the ￡600,000 to ￡700,000 category receive ￡75,000 reductions yet still remain unsold! If you can find a seller willing to drop their price as the need to move or sell is so great, then reduce yours to a price to get a buyer. You can make the move you want. Sometimes facilitating the move should be the goal, and the price you sell for becomes a mooted point, provided it financially works and you aren't any worse off.

Play a patient negotiating game. The urgency has all but gone from the buying market. They are in no rush. Play along as pushing too hard will push buyers away. If your marketing has been done correctly it will have created a little urgency anyhow. In fact many of the buyers that offered on the properties I've sold this month pulled out on the basis they didn't like being pitched with other buyers. It didn't sit well for them feeling under some level of pressure - because its a buyers market. But that's fine for me. Leverage. 

In tougher markets the buyers aim is to always be reducing the price further. Expect renegotiations if the survey brings to the fore any issues not obvious to the untrained eye. Therefore you really need to think about presenting your property as well as is possible. If you have some savings, and your property needs some aesthetic attention, it will help you produce a better result. You don't need to spend a fortune to make a property more appealing on the eye. 

Whatever happens with regards to property next year, it's the same for us all.