If we don't get our price...

Many sales are one seller and one buyer looking to meet on price and terms. Buyers who attempt to unfairly use the current market conditions against vendors are surprised to find the vendors have other options. One of the pockets of joy in the property market for owners is the rental market.

Many vendors have elected to lease their property out rather than succumb to market forces in 2023. Buyers may not have buyer competition, but in many instances they are in competition with tenants who are prepared to pay a very good rent to lease the vendor's listing.

As sales prices continue to slide and rental prices continue to rise, buyers will increasingly find themselves negotiating against tenants, rather than competing buyers, for the owner's interest.

Property owners with no or low debt levels are immune from interest rate movements. Therefore, it is easier for these property owners to take the higher rents on offer than having to reduce their sales price to achieve a sale.

This is not to say that leasing as opposed to selling is a better option for vendors in the current market. It is circumstantial and very much a case by case basis. One major consideration when deciding to sell or lease that is often overlooked is 'Land Tax'. Before deciding to lease any property out for the first time, fully understand the Land Tax implications. The only thing worse that knowing about your Land Tax obligations is not knowing!!

Vendors who only want to sell if they achieve above the current market price are better off not even listing on the market and potentially wasting $10,000 on advertising and staging costs.

When the market is falling, quickly concede to the market price before the market price falls further, or sit the entire cycle out.

Buyers should not be surprised if vendors refuse to drop their reserve price below the current market price just to achieve a sale. In such circumstances, the vendor may well be better off leasing their property out for a few years and waiting for the next cycle.

Even in a downturn, the best homes are the least negotiable.

Every pundit, commentator and analyst will have a different view as to how long the current downward cycle will last. When you see opinion so split on one issue, the reality is obvious - no one really knows what happens next. For some vendors, it will be better to go with the market price now, for others, it's a case of ABS - Anything But Selling.

The property market cycle throws up opportunities that reward patient buyers and sellers, albeit at different times. Taking advantage of circumstances is savvy play. Attempting to take advantage of vulnerable people is dirty play. Knowing the difference is wisdom.

~ by Peter O'Malley, author of Inside Real Estate