Sales figures from Estate Agents and the major banks reflect a slow down in the current SA Property Market. Seven consecutive rate hikes and the NCA are the main reasons property price growth has slowed down in most – but not all areas.
The key is to focus on how you can take advantage of the current market conditions, whether you’re buying a new home or selling your existing property – in a growing or slowing market.
The Buyer:
A slow down in the market is generally regarded as a buyers market. Sellers are forced to lower their asking prices and more bargains become available. As a buyer you have more leverage and should negotiate a better (lower) price for the home you’re interested in purchasing.
Any saving you secure now will greatly increase your profits later when selling. Also a small purchase price means a smaller more manageable bond repayment.
The Seller:
As the seller it’s a little tougher to secure a good deal in a slowing market, but it’s not impossible. What you need to remember is that a slow down in the market affects all business related to property and there in lies your leverage.
At this time you should put more pressure on your Estate Agent but negotiating a really low commission rate. Agents need to meet targets and are therefore more inclined to offer lower commission fees.
Lower commission fees will help to recover looses in profits caused by having to accept a lower purchase price for you property.