Buyers Market Explained

Hello Again.

Devonport is in a "buyers" market. In fact most of the country is.
What exactly is a buyers market?

Basically a buyers market means that the market conditions favour the buyer. Sellers must be aware of this situation when setting an asking price for their home.

During a buyers markert the amount of homes on the market increases, this means that buyers have the luxury of picking and choosing between a wide selection of property.

Example:

Say a buyer is looking at 6 different homes. All of these homes are are very similar and would probably bring similar prices in any market at any time. Homes 1 to 5 are priced at around $250,000 but the owner of home 6 has decided to ask $280,000 hoping to get a higher price.

The buyer will go through a process of elimination until he/she singles one home out. Things like size, kitchen, bathroom, yard, location will come into play and so will price. In fact price is often the first thing buyers look at.

Why would our buyer even consider house no. 6 if the price is $30,000 higher than everybody else?
You may say that the buyer would make an offer... the fact is buyers get scared off by prices that are too high and as a result don't even bother simply because they have other options.

In these conditions buyers have the negotiating power and there is nothing we can do about it except be aware of it and price accordingly.

A skilled real estate agent should be bringing this point to the attention of their client.

A skilled real estate agent will also develop a pricing strategy that not only considers this situation but also allows space for negotiation.

It is a fine line but with the help of a skilled agent you should be able to determine a price that will work in today's market. If you're thinking of selling call for a chat today.

I'll leave you with a pearl of wisdom from Donald J. Trump:

"Over-priced homes are like old soldiers, they never die... they just fade away"

For advice selling or buying - Halliwell First National Real Estate

http://www.halliwellfn.com.au/

(03) 6424 1496

Alan Halliwell - Director