Selling a property can be a stressful experience, especially when you’re feeling pressured to sell quickly. However, making decisions in haste can lead to big mistakes—mistakes that can cost you a significant amount of money. At Teach Me About Property, we want to help you avoid the biggest pitfalls and make more informed choices when selling your property.
Don’t Sell Under Pressure
One of the most common mistakes people make is selling their property because they feel they have to. Selling under pressure creates a sense of urgency that can force you to accept a lower price. When you feel like you need to sell immediately, you’re far more likely to settle for less than the property’s true value.
The best way to approach a property sale is from a position of strength. When you sit down with an agent, say, “I’m not in a rush. Here’s the number I need to get, and if I don’t get that, I’m not willing to sell.” By doing this, you maintain control of the process and avoid selling yourself short.
On the other hand, if you tell the agent, “I’m desperate. I need to sell,” you’ve just guaranteed yourself a quick sale at the lowest possible price. This desperation often results in a rushed sale where you’ll lose money. It’s better to hold firm and be clear about your price expectations.
Timing Matters: Now is NOT the Time to Sell
Right now, selling your property might seem tempting, but it could be a decision you regret later. Why? Because interest rates are expected to go down soon. Some of the major banks have already lowered their two- and three-year fixed rates below 6%, which indicates that they know a broader drop in interest rates is on the horizon. They’re locking people into these rates so they can profit when the official rates fall.
If you sell your property now, you could miss out on a significant increase in its value when interest rates drop. We can’t say exactly when rates will fall—it could be in the next month or the next few months—but we do know that when they do, property values are likely to rise.
There’s nothing worse than selling your property only to watch its value go up right after the sale. So, what should you do instead if you’re feeling a bit of financial pressure?
Three Better Solutions for Sellers
Before rushing into selling, consider these three strategies that could relieve some of the pressure without sacrificing your property’s value:
1. Rate Review
One of the easiest and most effective things you can do is request a rate review from your lender. Speak to your mortgage broker and ask for a better deal on your current loan. Rate reviews are free, quick, and often lead to savings. Simply asking for a rate drop could lower your interest rate by 1% or more, giving you some breathing room financially. Many lenders are happy to renegotiate rates, so don’t hesitate to make that call.
2. Equity Release
Another option is to tap into your property’s equity. Releasing $20,000 to $50,000 in equity could provide the financial relief you need and buy you more time to make a better decision about selling. Sometimes, financial pressure is temporary, and a small equity release can make all the difference without the need to sell.
3. Patience is Key
Finally, and perhaps most importantly, practice patience. As the saying goes, money loves time and patience. Rushing into a decision to sell might seem like a quick fix, but waiting a little longer could lead to a much better outcome. Property values are likely to rise when interest rates fall, so if you can afford to wait, holding onto your property could result in a much more favourable sale later on.
Conclusion: Think Twice Before Selling
Selling a property is a major decision, and it’s important to approach it with a calm, clear strategy. Avoid selling under pressure, time your sale with market conditions, and consider alternatives like rate reviews or equity release before making any rushed decisions. In today’s market, patience could be your biggest asset, and waiting could save you thousands.
