Play it safe or gamble? The selling toss up

Gamble: When time is on your side

If you are managing mortgage repayments well – or better still, have no mortgage – and time is on your side, then it can be extremely beneficial to hold out for a good sales price. After all, nothing is pressuring you to sell. Markets are on a cyclical move, and in five to seven years’ time, your property might be worth more than it is now. Then again, it may not be.

Tip: Do market research to know the realistic value you can expect from your property.

Gamble: When your property can’t be priced

Some properties just can’t be priced. They may be so unique in their design, location, features or heritage that they attract a whole different breed of buyer. If you own one of these properties, it could be in your best interests to hold out for a decent offer. Like a collector, the right buyer will fall in love with the property and pay what they think it is worth – regardless of the market.

Tip: A good auction strategy can get interested and competing buyers bidding above your expectations, delivering surprising results.

Play it safe: When you’re in debt

If you’re barely keeping your head above water when it comes to your mortgage repayments, then you’re better off taking a market offer than holding out for a big one. While the temptation is there, you may have to pay thousands of dollars in mortgage interest while you wait for that elusive buyer. The result may even be no real saving at all.

Tip: Cut your losses, offload your property and get back in control of your finances with your next downsized purchase.

Play it safe: After a renovation

You’ve renovated your property and put it on the market to sell, hoping for top dollar. Chances are a property is only worth what a buyer will pay for it, and if you don’t move fast, that newly renovated property will soon look stale on the real estate agent’s books.

Tip: To motivate buyer interest and put the pressure on, go for an auction strategy.

Play it safe: If you’ve bought elsewhere

If you’ve already bought elsewhere, the legal contractual consequences of delaying that settlement can have a huge financial impact on you – you may be liable for interest and costs for causing the delay.

Tip: Stick with your game plan and try to sell as fast as you can. Now is not the time to be choosy.

Whether you choose to hold out for a top buyer or sell quickly based on your property’s market value, always consider the cost versus the benefit of any decision you make.