Green Square Blog

We are still achieving some good sales, but many of them are taking place off-market. Even the agents who are listing properties to be sold at auction end up selling eight out of 10 of them prior.

When the market is quiet, agents know that a pre-auction offer might disappear if they dismiss it, whereas a year or two ago, there would have been multiple other offers to choose from.

The challenge for agents is managing vendor price hopes. At the moment, people selling still have unreasonable expectations. They don’t want to sell for what the market will pay.

In a tough market, agents need to be honest with vendors up front about the price they can expect, rather than promising higher to get the listing and revising downwards during the selling campaign.

If a seller is reducing prices, buyers get skeptical. “What’s wrong with this place? Three price drops in six weeks? I’ll just wait until they drop it again and buy it cheaper”.

I heard recently of someone who paid $5 million for a house a couple of years back. About a year ago they had it on the market again and turned down an offer of $4.9 million. Some months later they were down to an asking price of $4.5 million and they ended up selling it for $4 million to the same buyer who had offered $4.9 million. They cost themselves $900,000 because they wouldn’t accept what the market was willing to pay. There’s a lesson there for anyone thinking of selling.

The other lesson is that in a market like this, you’ve got to promote the hell out of your property. Sellers may be reluctant to pay the fees for advertising in print and online, plus other marketing if a good sales result is not guaranteed, but you really need digital, social and print advertising to get as much exposure as you can.

 

Published by Trevor Back

Principal, Raine & Horne Green Square

Phone: 0428 006 900

[email protected]

 

 

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