In the residential property market, like anything else, the good times
can't last forever. The property market is cyclical; that's what keeps
it sustainable. For every period when demand outweighs supply and
buyers are practically knocking your door down, there is another when
buyers are less active and supply equals or outweighs demand.

For
the past few years, it has been a vendors' market. Now, we're moving
into a buyers' market, with auction clearance rates moderating to
around 30%-35%. If you're selling a property under these conditions,
you'll need to adjust your strategy. Here's how.

Make sure your
real estate agent is actively seeking buyers, rather than waiting for
them to come to you. The agent should be contacting people who have
recently shown interest in properties similar to yours in the local
area.

It's also worth being more flexible regarding inspection
times. Hold open-for-inspections, but make your property available for
private appointments as well, so that individual buyers can come
through at times that suit them.

Many buyers are motivated by
lifestyle considerations and emotional attachment as well as financial
concerns. In a buyers' market, they have the luxury of being fussier
than they otherwise would and more inclined to reject a property on
fairly minor grounds.

For this reason, it's essential to make
sure your property is presented in the best possible light. Make sure
that the garden is shipshape, worn carpet is replaced, kitchen and
bathroom are sparkling. Ensure there's no lingering odour of cigarette
smoke, mould or pets. What seems acceptable to you could put someone
else off entirely.

You should also ensure that the advertised
price range truly reflects your property's current market value. If you
pitch it too high in a buyers' market, it won't attract enough
interest. Remember: a property is only worth what the market is
prepared to pay for it. The last thing you want is to have your
property languishing on the market for weeks or months just because you
weren't realistic or flexible in your price expectations.

It's
worth considering the method of sale, too. Auctions work well when
there are buyers aplenty because the lead-up marketing campaign only
takes a few weeks, and intense competition drives up the sale price.

When
buyers are thinner on the ground, however, it can take longer to
attract them; sometimes six to eight weeks. It may be more appropriate
to advertise the property as a private sale, with a clear asking price.
This way, you're spreading your marketing dollars over a longer period,
and you can deal with buyers on an individual basis.

When you're
negotiating the final sale price, it's important to be realistic. Of
course, as a vendor, it's natural to want as high a price as possible
for your property. But when the market cycle is turning in favour of
buyers, they won't be feeling as "desperate" to secure your property,
so their spending may not reach the giddy heights you're hoping for.

Think
about the reason you're selling. Will the best offer on the table allow
you to get on with the next phase of your life? Will it give you enough
money to buy another home or investment property, retire or achieve
another key goal?

If it will, it's worthy of serious consideration. If it won't, maybe now is not the right time to sell.

Mark Armstrong and David Johnston are directors of Property Planning Australia, property planning.com.au.