Buying or selling a home is a big decision.
In fact, it’s often the most significant financial decision most of us make in our lifetimes.
Our property choices also have a significant impact on our lives and lifestyles – sometimes for decades. So it’s not surprising that buyers and sellers may have concerns when they’re looking to purchase or sell a home.
But that doesn’t mean buying or selling property should be as stressful as many people make it out to be. With the right experts and information you have a good chance of achieving your property goals on any budget.
With that in mind, here are the biggest worries that we see buyers and sellers have in 2024 and how they can overcome them.
BUYERS
1. Getting finance
Many buyers become very worried (often without cause) about how much they’ll be able to borrow or whether their home loan will be approved. However, there are steps you can take that will give you a reasonably clear idea of what you’ll be approved for.
Try using a borrowing power calculator or a home loan calculator as a first step. Then speak with an experienced mortgage broker who has access to many lenders and can guide you through the finance application process.
You can also apply to a lender for ‘pre-approval’ or ‘conditional approval’- this is an indication that a lender will provide you with a certain amount so long as you can prove your income and expenses.
It’s also common for all types of home buyers, but particularly those upsizing or buying for the first time, to worry about how recent interest rate rises will impact their mortgage repayments and budget.
From historic lows of around 2% in 2021, to variable interest rates of more than 6.5%, a lot has changed in just a couple of years. In fact, the period from May 2022 to the end of 2023 was the fastest and most prolonged period of rate rises on record in Australia. As a result, mortgage repayments have increased and it’s sometimes curtailed people’s borrowing power.
If you’re worried about interest payments going up further, you could always choose to fix all or part of your home loan.
2. Overpaying
Regardless of whether a property is sold by auction, private treaty, expressions of interest or off-market, we often see buyers worried about overpaying.
That’s understandable – properties don’t usually come with price tags (although most will have a guide). Given that property prices are set by the laws of supply and demand, they’re worth whatever someone is willing to pay.
The best way to get a sense for a home’s value is to research what similar properties in comparable locations have sold for in the past. Although, the reality is, in a rising market like we’re experiencing now, you may need to pay a little more than the comparable sales prices, especially if those properties sold some time ago.
If you don’t have nerves of steel, consider engaging a buyer’s agent to guide you on value. They’ll also often negotiate on your behalf and reduce the chance of overpaying.
One thing to bear in mind is that property in Sydney’s East has been a sound investment over the past decades, and we expect prices to keep rising (even if they fluctuate in the short term). So, even if you feel you’re overpaying slightly right now, chances are it won’t matter too much in the long run.
3. Structural or other problems with the property
Rising construction costs have made building work expensive. And, with local trades in high demand (and short supply), it can take a long time, too. So there’s a reason why so many people are worried about uncovering hidden issues with their future home or investment (not to mention the headache).
We always advise buyers to engage the services of a good building and pest inspector, to identify any issues that are likely to cost you money down the track. This allows you to make a decision based on the facts.
Buyers can also get quite concerned about things they may not be familiar with: like the difference between strata and community title apartments and what that might mean for them. We always do our best to explain how this may impact them, but it pays to seek advice from an expert, like a solicitor or conveyancer.
SELLERS
1. The property won’t sell (or won’t sell for enough)
One of the biggest vendor fears is that their property won’t sell. But this rarely happens.
Sydney’s real estate market is currently experiencing steady and sustainable growth. According to CoreLogic, the citywide median dwelling price rose 9.6% in the year to 31 March 2024. We’ve seen healthy growth since then too, with another 1.2% added over the May quarter.
Meanwhile, auction clearance rates here in Sydney’s East have ranged from 60% right up to 80-something percent across the first six months of 2024 – a sign of a healthy market.
Sydney’s population is also growing, and demand consistently outstrips supply, with far more buyers in the market than there are homes for sale. There is especially strong demand for larger apartments in our area, particularly penthouses.
So, in short, your property is very likely to sell (even if it passes in at auction).
When a home doesn’t sell, it is often because the vendors aren’t realistic about pricing and are unwilling to meet the market. Sometimes a property can also take longer to sell if it’s premium, unique or different, or if there is a reduced buyer pool.
Sellers also worry that their home may not sell for the price they want to achieve. But a good real estate agent will always honestly appraise the value of a property upfront, based on the realities of the market. This may include telling you the bad news, as well as the good, rather than luring you with a dream price you’re unlikely to achieve.
A good agent will also advise you on the sales method most likely to get the best price (i.e. auction, private treaty, expressions of interest or off-market) and then negotiate on your behalf to make sure nothing is left on the table.
2. Privacy
Privacy is a big worry for many sellers. Sometimes that can be because they’re in the public eye but many simply don’t want neighbours to walk through to inspect their home and see how they live.
Your neighbours can actually be a valuable source of referrals when it comes to a sale. Even if they’re not in the market for your home themselves, they may recommend it to friends, colleagues and family who also love the area or building.
For those genuinely concerned about privacy, you could always consider inspection by appointment, or an off-market sale. However, this needs to be weighed up against the exposure a public campaign provides.
3. Return on investment
If you’ve renovated or extended your home, you may be wondering if you will recoup that expenditure when you sell.
The best approach here is to speak with an agent before you renovate. We’re always happy to offer advice on whether renovation plans will add value, and how much.
In the lead-up to a sale, we’ll sometimes advise sellers to spend a little money on getting their home ready. This is never a full scale reno, but may involve small improvements like painting, basic maintenance, plus staging or styling the property for sale to attract the right buyers.
If we do suggest spending money on your property, it’s because we know it’s likely to boost the sales price your property will achieve.
Want more?
Thinking of buying or selling your property? Get in touch with our experienced local team today.
