Following up on the quoting article yesterday, this issue seems to be a very emotional debate at the current time.
As buying property is what I do often, I must say that I rarely have trouble with how property is quoted. When you've done your research and know the market, then you can often predict an outcome for a property.
Yet, sometimes two or more people love a property so much and become emotionally invested, that the price pushes past anyone's expectation under competitive circumstances.
Lets face it. The market is back and strong. Runaway sales are happening with regularity. So is this just 'sour grapes' from potential buyers who've missed out on a property or two? No doubt some rogue like behavior exists and this needs to be rectified. However the market has a funny way of disciplining this. If agents mislead, then they'll lose potential buyers and their reputation.
Turning up to a single fronted property in Northcote quoted at $350k+ and expecting to buy this under $400k is normally just wishful thinking.
Experienced buyers often understand this and avoid these type of auctions. However the thought process of 'what if the property sold for $350k' see’s many buyers stick around.
Often a property that is quoted low, helps you as a buyer exploit other listings in the market place. If everyone is interested in the cheap one down the road (which will eventually sell over what's worth) then the other houses on the market at the same time can suffer from not having the interest they deserve. Thus allowing you to buy well.
Buying a home is one of the most emotional processes of the average Australian person. Newspapers know this and they know nothing gets good solid debate going like a story on 'underquoting'.
Variables so often exist with pricing. The market changes from week to week, some owners have low expectations and some have high, some agents are experienced others are not, buyers become emotional with one property while they neglect another.
Now I'm not saying that we don't have some poor behaviour from Estate Agents. At the end of the day they do want to sell the property to you, however they want to maximize the process.
Just to put it into perspective, average people who earn $40k per year own a house worth over $1 Million. Selling their biggest investment is not an every occurrence and this might possibly be the most stressful financial situation they have ever faced.They auction their home and their expectation changes from week to week.
This is a variable business. Each owner is different, every house is different, every buyer is different and every agent is different. Each situation has to be seen on its own merit.
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