The last five years have brought incredible results for homeowners in Mosman and across the lower north shore. Many properties have doubled in value. Although this meteoric rise has finally settled somewhat, owners and investors are still far better off than they were five years ago.
Most people understand that the real estate market will rise and fall over the years. In Australia, we’ve been exceptionally lucky to have a growing population keeping the market declines more like lulls. There is always a recognisable ‘cycle’ of peaks and flats, and savvy sellers and buyers can profit in any phase by implementing appropriate strategies in accordance with these trends.
Lately, when speaking with homeowners about the Mosman property market, some people have expressed concern with selling in what could be described as a softening market. But I assure anyone who is thinking of selling a home this year, that Mosman continues to demonstrate that its a suburb in high demand.
Why upgrading your home in a flat market makes sense
If you are looking to upsize from a two or three bedroom house to a larger property in Mosman or along the lower north shore, a flat market is an ideal time to do so.
Let’s say the value of your suburb has dropped by five per cent since this time a year ago. With this in mind, your $4.5 million detached four bedroom property may now be worth closer to $4.275 million. Yes, that may be a slight drop, but assuming you’ve owned your place for more than two years, you should still be ahead financially.
Now let’s consider the larger property, up the road, that you have your sights on. With a huge garden, room for two cars to park undercover and five generous bedrooms it is the ideal home for your growing family. Priced a year ago at $6 million, it is now seeking a buyer at $5.7 million. This vendor has adjusted their price by around $300k, while you have only adjusted your final sale figure by $225k. All things considered, you are now ahead!
Those upgrading to larger more expensive properties benefit financially in a flat market.
One thing to note; while lending regulations have tightened, if you have your finances in order, and are able to leverage the equity in your current home, you’ll still be an ideal candidate for a mortgage. You may even find the banks are willing to offer you special discounted packages if you are willing to lock in your home loan for two to three years.
Mosman properties generally buck Sydney real estate trends
There are two more reasons why it makes sense to upgrade to a larger Mosman property at this point in time.
Firstly, there are always more buyers at the lower end of the market. A motivated agent will be able to bring multiple buyers to your property, while you may be one of only a handful of bidders for the much larger place, putting you in a strong negotiation position.
Secondly, many homeowners ‘freeze’ their plans to sell when the media reports that prices have dipped. When this happens, particularly in Mosman, we see more buyers competing over fewer properties, especially at the more affordable end of the market.
How to get a great home sale result in a flat market
The skills of your real estate agent really come into their own when property value growth is taking a breather. A skilled agent knows how to position your property to encourage competition between buyers.
A well thought out property marketing campaign that focuses heavily on local and overseas buyers will attract maximum attention. Preparation and styling are also essential to create a good first impression. Investing a small amount of money in cosmetic upgrades and stage your home with the help of a professional stylist to help increase the emotional connection buyers feel. It’s the emotional attachment that drives up the price in negotiations or on auction day.
An experienced real estate agent will also be able to unearth home buyers who have been ‘circling’ for several months, waiting for the ideal property and the right time to put in an offer. These buyers have finance ready and are keen to finally make a purchase, which can make the negotiation process easier.