Choose your language
Call us today on 03 9640 0408

Market Demands Attitude Shift

26 Sep 2011 - Paul Kounnas from http://hudsonbond.com.au

The real estate market is all about the size of the gap between the expectations of the seller and the desires of the buyer.

In simple terms it’s when the gap widens that the market slows. It doesn’t go away or cease – it just slows.

Right now in our undoubtedly slower market there are buyers and sellers enjoying a meeting of the minds with wins on both sides. Sellers who lower their expectations slightly and adjust to the market are enjoying sales successes with buyers prepared to raise their own bar a tad.

At the same time there are buyers and sellers going nowhere waiting for windfalls that may well never eventuate.

If your property has been sitting on the market for too long you need to ask yourself how long can you afford to wait before you make a realistic adjustment to your expectations and adjust your asking price to meet the market.

On the other hand, buyers who haven’t quite found the ultimate bargain should really be asking themselves whether they are undervaluing the homes they are considering. Interest rates are still at very low levels and there is even talk that they may fall.

There’s some great buying and good deals to be done, it’s just a matter of perception and negotiation in good faith by both parties.

If your home has been on the market for too long you would be well advised to get a second opinion on your asking price, preferably from a professional valuer, and perhaps to look at ways you can increase the buyer’s perception of value.

There is a general misconception that valuers come in with a low price. This is not the case. Valuers don’t think high or low, they think accurate.

Every property has a fundamental market price at any point in time. It is a price that is in line with all other recent comparable sales in the market place. A price point that can be justified to third parties such as the banks, valuers, mortgage insurance etc… the people your buyer will have to convince of the worth of their purchase.

While the bargain hunters are still sitting empty handed waiting for a deal that may never eventuate, intelligent, serious investors are quietly going about the business of capitalising on a slower market and building their portfolios.