Ewan's Blog

Changing expectations

Wednesday 24 May 2017

In the wake of the Federal Budget I think it is timely to reflect on the value of skilful negotiation. As our Prime Minister continues to discover making a decision is one thing. Negotiating to successfully implement that decision is a whole other story. And that is certainly the case in real estate, now more than ever.

The reality is buyers and vendors always have a different view on the value of a property. No surprise there. Value is generally founded on a combination of hard evidence, such as land value and comparative sales, together with a significant degree of less scientific opinion and analysis around the quality and uniqueness of the property and its place in the market. 

Negotiating to finding a pathway that leads to those different opinions meeting on common ground is the responsibility of the real estate agent.

Right now that role is as important as ever as buyer and vendor expectations of the market seem to be changing.

There is no denying that residential property values remain incredibly strong. In their Quarterly Housing and Economic Review CoreLogic reported the annual value growth rate for Sydney sitting at a whopping 18.9%. In recent weeks it appears that extraordinary rate of growth has eased as buyers have stepped back a little, but the important thing to remember is that value is still incredibly strong.

And that is the foundation on which our team of agents continue to negotiate successful deals on behalf of their clients.