It’s no secret that the housing market has been tough over the past 12 months. With high interest rates, a cost-of-living crisis and increased price sensitivity the pool of potential buyers has shrunk, while the supply of listings has increased.

Hunkering down, riding it out and delaying a sale is one way to tackle the slump, but for many that’s not an option. So, what can you expect if you’re planning to list your house for sale in the next six months?

WHAT’S THE MARKET LIKE RIGHT NOW?

Bayleys National Director of Residential Johnny Sinclair says the current climate is incredibly competitive.

“Unfortunately for the people who have to sell, there's only going to be so many buyers out there. If they're competing with other similar properties, then buyers have a lot more choice and they're going to be pretty brutal on what they're prepared to offer.”

That means for vendors looking to sell in the near future, timing is everything to get the best deal possible.

“Buyers know that we've hit the bottom of the market, and therefore they know the longer they wait the more that they're going to need to pay for a property.”

“But despite the recent OCR cut, the cost of borrowing is still expensive, so we don't see a huge influx of buyers coming into the marketplace, but those buyers will be ready to meet the market.”

Sinclair says it’s the perfect storm where vendors who need to sell, do, and legitimate buyers know that whatever deal they secure is as good as it’s going to get.

“Vendors need to be realistic too and accept what the market is prepared to pay for their property.”

But while things have bottomed out, Sinclair says there’s only one way up from here.

“Every economist is predicting that interest rates are going to come down. The only question is just how quickly are they going to keep coming down?”

“I'm picking in the next six to 12 months, activity on the housing market is going to pick up a lot.”

WHEN IS THE BEST TIME TO LIST?

While it might not be clear exactly when to list, Sinclair says the time to get your property ready to list is now.

“What I mean by that is do the painting, and whatever you need to do to get it looking perfect.”

“Then I would be researching. I'd be taking advice from real estate salespeople and looking at all the key economic indicators. The most important thing is that you want to be listing your property before the rush.”

When that rush will be is hard to predict, but Sinclair says it hasn’t happened yet.

It also pays to look at your finances and what the market is doing so you can manage your expectations around any sale price.

“The buyer's mindset can be the biggest hurdle. Two to three years ago many would’ve had the advice that their property was worth a certain amount, and they’ve held onto that figure. But the market needs to realise that covid actually inflated house prices.”

“My advice would be that you need to ask the agent what your property is worth in this current market.”

Sinclair says you’ll want to get two numbers out of that conversation.

“You want the worst case scenario if you had to sell tomorrow, and another number that reflects a robust marketing campaign and movement through a really good negotiation period.”

“I think it's if everyone does that and they build their budget on the worst case scenario, they won't get themselves into trouble.”

Seasonal changes will also have a huge influence on when the best time is to put your property on the market.

“If your property presents well in winter, you're actually at an advantage and therefore won't be competing against the others when you list sooner rather than later.”

Sinclair says the industry standard for a listing is 47 days before a sale.

“So it’ll probably take anywhere between 40 and 55 days to reach a deal.”

WHAT ABOUT THE CHRISTMAS PERIOD?

If you have a property that presents better in the warmer months, you’re more than likely going to be listing it closer to Christmas, and if you’re wanting a settlement this side of the holidays there’s a few things to consider.

“People can easily get caught out. To run a standard three-to-four-week marketing campaign, you need to allow yourself 10 to 12 weeks (about 3 months). That means you need to work backwards from settlement.”

“If you do those figures, you soon work out that you run out of runway really, really quickly. It’s only a few weeks away.”

Sinclair says if you haven’t gone unconditional prior to Christmas, then you’ll need to add a couple more weeks to the process.

“Generally during that period the market cools down significantly.”

WHAT CAN I DO TO GET MY PROPERTY READY?

Sinclair says the first thing to do is talk to your sales agent.

“Ask who the likely buyer is for the property. Then you should be prepping it for that type of buyer.”

“If it's kid friendly, go a little bit softer and if it’s a lock up and leave do things differently. Ultimately, it’s about identifying who those bio types are going to be, and then staging it accordingly.”

Presentation should also be a big focus, but that doesn’t mean you need to break the bank.

“Street appeal is right up there. Because when someone walks into the property for the first time, everyone wants to feel proud.”

“Do the lawns, do the water blasting, trim the hedges and really make that street appeal look as sharp as possible.”

Sinclair says it’s likely you’ll also need to do a bit of maintenance to bring things up to scratch.

“Talk to the salesperson about that. But there will be some little touch ups that will actually make a big difference.”

Something as simple as decluttering your home can also do big things for your staging and listing.

“Being a little bit minimalistic actually does create space, so store stuff away if you can.”

“Make light a focus too. Making sure your blinds are open, and keeping it light, airy and fresh. Ambience is also key as well. There are small things like lighting a candle, arranging some flowers or baking bread that can make a huge difference.”

Sinclair says you can tackle all of those things by hatching an open home strategy with your agent.

“Have a little bit of a checklist. There might be three or four things that are fundamental that need to happen. Write those things down, because you're probably going to have three or four open homes.”

DON’T CUT CORNERS

While it may be tempting to try and save during a cost-of-living crisis, Sinclair is urging vendors not to cut corners when it comes to marketing.

“The marketing investment is an investment that will get you the best outcome at the other side.”

“Really look at that marketing budget to make sure that it’s robust and is hitting all the different demographics that you need in the room.”

Sinclair says there’s two criteria to consider when picking the best agent to work with.

“Firstly, is who the best marketer is. These are the people who can cast the net out as far and wide as possible.”

“Secondly you need someone who can take buyers through the process to get the vendor the best possible outcome, and that is an art form.”