Wednesday 22 Aug 2018
There has been a lot of talk, including in this blog, about what vendors need to consider as a result of changing sentiment in the current market. There is no doubt it is important to understand market conditions which is why we also need to talk to potential buyers. Because they too need to be realistic.
Buyers need to be careful they don’t read too much into reports of easing demand. If they turn up at an inspection or an auction with an expectation they will automatically be able to secure a property for a price way below the advertised guide price they will be disappointed. And that’s not a good outcome for anyone.
My advice to buyers is that it’s fine to be conscious that the market has eased, but equally understand that vendors have responded.
True it has taken a little while for vendors to acknowledge Sydney price growth might be stalling. Years of fantastic growth had us believe it was inevitable we could automatically sell a property for significantly more than we paid for it. As such vendors set their price expectation based on what they wanted for their property rather than what the market was will to pay for it in the current economic climate.
But that has changed.
Based on their experience and analysis our agents work hard to ensue vendors understand that the market has changed and the impact that might have on price expectations. That means the advertised guide price for a property really does reflect what the vendor expects to receive. It’s not a guide set in hope but in consideration of the facts and it reflects the true value of the property based in the current economic climate.
So if you are on the look out for a property then yes, now is undeniably a good time to look, but if you are setting yourself up for disappointment if you think you will be able to bag a bargain way below the guide price.