Clearance rates are a vital part of the real estate market, taking first place among the statistics that set the hierarchy of successful agents. Keeping them looking strong, however, isn’t always easy.
The right sale method will impact clearance rates
There was a family who insisted on selling their home on an auction, and by choosing the right method, they managed to add a significant sum of money to the final price as clearance rates were up to 80%.
Typically, any value above 70% means that you’re in a seller’s market. Properties will be coming off the market with ease, leaving you room to drive your asking prices.
Clearance Rates in Sydney
Sydney sits firmly in seller market territory, with a clearance rate of around 72% in 2016.
Just five years earlier, the clearance rates showed it within a buyer’s market close to 53%, with low sentiment and an opportunity to negotiate on prices. This was largely because many sellers were listing their homes well above expectations of the market, which led to unsuccessful auctioning campaigns.
A market that has high clearance rates may lead you to think that selling by auction is how the majority of houses are sold, but that isn’t the case. These rates just reflect the ratio of houses that are sold at auctions by the total number of auctions that have been reported.
However, most of the auction sales are by a private treaty, with over 70% of houses in Sydney sold this way throughout 2016.
4 Quick tips for boosting your property clearance rates
In a buyer’s market, your clearance rates might not be looking so good. Fortunately, there are several simple methods you can employ to get them back up where they should be.
1) Set a Realistic Price
If you want to sell your house quickly, the most important thing is to be prepared. You will need to set the sale price on your property and by consulting with your real estate agent you will be able to put a realistic price tag on it.
You don’t want it to be too high and get stuck for months, but you also don’t want to go too low and lose money by doing so.
2) Present your property well
You will also need to make your home look good. By investing money in things like a fresh coat of paint or planting some flowers in the garden, as well as cleaning the house until it is spotless, you’ll make your home more appealing to potential buyers. Every dollar you spend on the presentation is money well spent.
3) Promotion and Photography
Promote your on-sale property in digital and printed media and hire a professional photographer to take pictures of your house.
Since the pictures will be the first thing a potential buyer will see when going through listings, professionally taken photos will have a better chance of catching their eye.
4) Invest in Renovations
If there are some things that need fixing, fix them. Don’t leave anything half-done, because it can significantly decrease the value of your property. Doing minor renovations can help you boost the price of your property and earn you some extra cash.
Always remember that there are external factors that can influence the clearance rates. Observe them like a statistic along with other market indicators or seek help from one of professional agents, who are experts in their local market.