What to do if your home doesn’t sell before Christmas

If an unsold property is taking the edge off your Christmas cheer, some expectation adjustment could kickstart an unencumbered new year.

Vendor’s advocate David Melatti, director at Exclusive Vendor Advocates, says a very recent shift in the market might have left December sellers disappointed.

“An important aspect of selling any home is pricing it right and if a lot of vendors haven’t sold before Christmas it’s because there has been a change in the market, a shift in the last four to six weeks. There’s a flood of properties coming on to the market and that’s created an oversupply for the constant number of buyers out there.”

Melatti says that price adjustment is “first and foremost” in a market coming off the boil with lower clearance rates and median price growth. “People need to do their research, really looking at what’s sold only in the last two to three weeks. A lot of vendors have to come off their (price) expectation based around the October mark and unfortunately December 2015 is a totally different time.”

Taking a second look at a property’s presentation is also vital, he says. “I’ve been looking at a lot of homes and the way they’re being presented and I think if you want to stand out from your competitors, your presentation, photos and the way you’re presented online really needs to sharpen up.

“Gardens and presentation from the front of the house right through to the back has to be in shape right through the Christmas period because there will be buyers around looking, people from interstate coming to relocate, people looking to snap up a bargain, so vendors really have to keep on top of things.”

Unsuccessful vendors could also consider giving their selling campaign a break over the holidays, Melatti suggested. “Maybe just take it off the market for a few weeks and get it back mid January, take it off the internet and just come back refreshed, the photos rearranged or presentation just a bit different.”

Real Estate Institute of Australia president Neville Sanders says that while there has been some easing of median price growth he sees that as a “stabilisation” period. There will always be some properties that don’t sell before the summer holidays, he says, and advises those sitting on a property they’d hoped to offload not to panic.

“Don’t lose heart, simply relax and talk to your agent to try and find out what level of inquiry there is, do they still have some people interested but just not ready to make a commitment,” says Sanders. “Sometimes the next step is to wait a little while, try to make sure you’ve dealt with all the people who expressed interest, get some feedback.

“Is there evidence to say that your reserve price, or the sale price you’re prepared to accept, isn’t realistic and that’s why it hasn’t sold? Or is it something else, perhaps your property’s a bit unique and it might take a little bit longer to find the right person, in which case you understand there will be a pause over the next two to three weeks and then the world does come back to normal.”

Sanders points out that most real-estate offices make sales through the Christmas period, and that property websites operate irrespective of holidays. “The urgency is probably a little lower but there are people who’ve got time to actually go real-estate shopping, they go ‘well I’ve got time now, I’ve finished work for the year, had my Christmas with the family, now I can do a little bit of looking around, visiting properties’.

“It’s certainly a time for vendors to revisit the whole market, their presentation, price expectations, and have that discussion with their agent. Is the price you’re seeking still in line with the market? There’s one way to make a property attractive to the market and that’s reducing the price.”