Kalgoorlie 
Market downturns don’t feel like the best time to sell but the reality is it’s all about strategy and knowing how to play the situation in your favour.
When it comes to buying and selling property, timing is everything if you want to come out on top.
Right now many parts of Australia are becoming a buyer’s market but if you’re looking to sell and upsize to a larger property, this can actually be a good thing. Here’s why…
Why sell your home during a market downturn
A market downturn changes the real estate sector to favour buyers. Offers are generally lower and there is less competition because buyers have less money to spend.
Selling your home in a buyer’s market can feel a little disheartening, especially after a couple of years of boom times. However, if you have owned your place for a while, it’s likely you will still make some profit.
What’s more, if you are selling a home with a plan to upsize, you will shortly be in the market as a buyer. All those factors that seemed painful when you were trying to sell your home are suddenly in your favour.
Why it pays to upsize in a downturn
Houses that would have been out of the question in a growing market may be more affordable than you thought during a market downturn.
Here’s a hypothetical example:
Let’s say you own a two-bedroom apartment that has dropped in value by 5%. It was valued at $500,000 at the peak of the market so it is now worth $25,000 less. That’s not the best news, but now think about the home you want to buy.
Your ideal home was valued at $1,000,000 last year and has dropped by the same percentage as your apartment. Now, when you buy that property, you are saving $50,000. The saving is greater than the loss and you now have yourself in the door of a larger home.
Many savvy buyers make a plan with their real estate agent and broker to ‘zig’ when the rest of the market is ‘zagging’, buck the trends and find ways to benefit from a downturn. If you have a deposit saved up and a clear plan, you don’t have to pay attention to negative headlines about market movements.
The long game
If you’re selling in a downturn, keep the long game in mind.
Buyer’s and seller’s markets always come and go, but real estate always trends up in the long term. The bigger home you stretch your budget to buy now when the market is low will eventually grow in value.
Snatching a higher-value home in a low market will also help you build your equity and deliver the potential to build an investment portfolio that can contribute to long-term wealth.
Need to sell?
Sometimes you simply need to sell, regardless of what is happening with prices. If the market isn’t where you want it to be, talk to your real estate agent about how to maximise the value of your property and make it as appealing as possible to the buyers who are interested. Even during a market downturn, there are ways to generate competition and get a healthy price.
Need help selling to upsize? Contact Professionals Platinum today.
