If you’re planning on selling your home in Greater Perth this spring, there’s a good chance you’ll have plenty of interested buyers. (after all, it’s still very much a seller’s market). Home prices have increased by 9.2% to a median of $865,000 in the year to August. While Darwin and Brisbane saw slightly stronger year-on-year increases, Perth ran a very close third. Also, let’s remember, in the previous calendar year of 2024, home prices in Greater Perth increased by around 25%. In fact, Greater Perth has been the best performing capital city in Australia over the last two years by a country mile.
But there’s a problem for some home sellers. Despite strong buyer demand for local properties, many owners are reluctant to sell due to concerns they won’t find a home to buy themselves. (at least, not one that ticks enough boxes).
Put simply, there’s not enough stock. Most experts would consider a balanced local market is 11,000 properties listed for sale during this time of year. While exact figures are difficult to ascertain, it’s fair to say we’re well short of this figure. At the same time, around 800 to 850 properties are being sold every week.
While it’s tempting to sell and take advantage of strong capital gains (and many sellers have done just that), there’s another segment of the homeowner population who remain extremely cautious of selling their property. Whatever price they may achieve for their property, these sellers know they’ll still need a roof over their heads after everything is settled.
Not everything is about the price.
Clearly, the price put forward will always be a factor in any negotiations between a buyer and a seller. But in today’s market, some of the conditions of the sale are almost as important.
Longer settlement: If a buyer can accommodate a longer settlement (ie, 90 days or more) this can be attractive to the seller. Given the comparative scarcity of properties on the market, this gives the seller time to do their homework and find a property that ticks as many boxes as possible.
Rent back agreement: Another option is to include a rent back agreement This means the seller of the property doesn’t have the pressure of finding a new place to live, as well as the stress of moving out on a tight timeline. It also means they receive the sale proceeds but continue to occupy the property as a tenant. Of course, with this arrangement, it’s crucial to have a formal lease agreement or tenancy agreement in place, regardless of the length of the arrangement. This protects both parties by clearly outlining the terms and conditions.
Be comfortable with ticking seven or eight boxes out of 10.
In the current climate, being out of the market can feel a little risky given the continued growth in local property market. If you’re looking for a property that ticks 10 out of 10 boxes, you could be waiting a very long time. In the meantime, by setting such a high bar you could outthink yourself out of hundreds of thousands of dollars in property growth. There’s a good argument that it’s prudent to be comfortable with ticking seven or eight out of your 10 boxes. (and let’s face it, is any home ever absolutely perfect?)
Here at C & R Settlements in Mandurah, we’re renown for our hard work, attention to detail, and going the extra mile for our clients. We’re Mandurah’s Number One independent settlement agent with over 80,000 settlements under our belt (and still going strong).
As an added bonus, when you choose C & R Settlements, you can use our free courtesy truck when it’s time to make the move. All you’ll need is a standard driver’s licence (and perhaps a few strong mates to lend a hand on moving day). Just be aware that our free courtesy truck is very popular, and bookings are essential. Just another reason to make the move to C & R Settlements in Mandurah. For details, call us on 9581 2148. Or email mandurah@crsetts.com.au