When To Sell And When To Buy?
Bali Property Report
Predicting the “Right Time” to Sell or Buy
We cannot see into the future, but we can make informed decisions.
Buying or selling a home at the right time is tougher than it sounds. People usually take these actions because of a life event or financial issues, and the economy and real estate forecasts tend to be secondary considerations. Yet both buyers and sellers often pose the question, “When is the best time to buy or sell?”
If you have the luxury of choosing when you enter the real estate market, here are some points to consider when timing a home purchase or sale.
Just because the 24/7 national news outlets tell stories of hot real estate markets with multiple offers and quickly rising prices doesn’t mean that’s happening where you are or where you want to be next.
In fact, real estate activity can vary widely within the same geographic cluster. One town can see tremendous activity, while another 15 kilometers away has a glut of inventory and few imminent buyers. Bali is one such market at the moment, and in these times of fire sales and fluctuating market values, certain villages are fairly sleepy while other pockets are popping. Legian and Seminyak are both a little bit sleepy at the moment. Good deals are there for the diligent searchers. Given that Legian and Seminyak consist primarily of leasehold investment properties, there are plenty of villa owners with varying lease terms who are keen to get out while others are happy to ride out the lull, given that they have got year-long tenants to cover expenses for the year. Certain pockets of the Bukit along the cliff are enjoying a lot of good activity, as are parts of Canggu up north a piece. It seems that buyers are looking for big sky and deep discounts. There is an active year-long rental market underway, so taking on a Hak Milik or Hak Sewa property in an active area could be the right move for you.
If you want to purchase or sell, dig deeper, look around and get as much local information as possible. Meet with a good local agent early and often to stay informed about shifts in the market.
Traditionally, the busiest buying months were September and January/February. September has always been (IMHO) the best month for great weather and many of the tourists are back home. The beginning of the calendar year used to always bring down the bankers with their year-end bonuses. We miss those days. There is still plenty of business though. While the idea to invest would have blossomed long before the end of the year, once the holidays have passed, and both buyers and sellers are making those annual life changing decisions, the market always saw a lot of activity from New Year’s day through Chinese New Year.
While 2020 has been a different kind of year in thousands of ways, the market has seen a rash of predictable activity. Local buyers are amidst a frenzy with no sign of letting up. It is a market that requires both patience (some folks may hold out on their ‘market price’ for longer than they ought to) and adroit decision making on the day. So the best advice that we could give is to be ready.
While the typical buying windows will likely resume in 2021 and 2020, what can be done in the meantime? Given how simple it is to check out property links and the like from our phone, the new paradigm makes it easy for anyone to shop for a home or prepare their basic understanding of our processes over here anytime and anywhere. As in the tourism industry, there is no longer a low season in the Bali property market. We have peaks and troughs – October/November and a bit of both February and March are slowish – but luckily for us demand is fairly constant.
If you have a home to sell and aren’t in a rush, consider yourself lucky. If you need to sell, ask your agent for the best strategy for a quick sale.
Don’t try to time the market based on last year’s assumptions about seasons. It’s more important that you show your home in its best possible condition and choose the right listing price. If it’s priced right and shows well, it will sell anytime.
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Call Patrick for a chat today on Whatsapp +62 817 973 3031; [email protected]