Don’t cut your nose off
Wednesday 17 Oct 2018
There is one very important thing to remember when considering the residential property market right now. It’s still there. There is no doubt it has changed but equally there should be no doubt that a market still exists. Apartments and houses are still being listed and sold. It’s not desperate but it is different. That prompts the question - what to do?
When I’m asked what to do in the current market my answer is always the same. Do what you have always done. I would also advise both buyers and vendors to keep in mind the phrase: don’t cut your nose off to spite your face.
The fact is decisions around whether to buy or sell property should be the same regardless of the state of the market. Buying and listing a property might be motivated by a need to upsize, a decision to downsize, a determination to reduce debt, a desire to invest or a determination to realise an investment.
Before any of those motivations can be transformed into a decision to proceed and take action buyers and vendors must first determine if their goal can be matched by the market conditions.
You need the facts.
And right now buyers are significantly more cautious. There are definitely still buyers active but we are increasingly seeing those buyers prepared to pull out rather than push beyond their budget. Potential vendors need to know that and take that reality into consideration when determining their motivation to list.
At the same time potential buyers need to acknowledge underlying value exists and vendors can reasonably expect to achieve that value. Nobody is going to give their property away.
That’s what I mean when I issue the warning: don’t cut your nose off to spite your face. Expecting too much could mean you miss out. And I say that in terms of vendors price expectations and buyers discount demands.
The market is moving so more than ever vendors and buyers need to be open to negotiate. Vendors need to actively listen to what the market is prepared to offer for their property and be prepared to take that into consideration. Equally buyers need to be open to the value expectations of vendors in the context of making an offer that might better facilitate them achieving the property goal.
Our team of sales agents continue to do what they have always done. They provide clients with the facts so they can make the right decisions and they work very, very hard to ensure clients understand the value of being open to negotiating to find that perfect point where a deal is done that puts a smile on everyone’s faces.