It’s interesting to see what is happening in the market now as we wait for legislated changes to come in. Buyers are still confused as we’ve basically now got a 2 tier pricing process right now until all agents tow the line as at 1 July when it becomes mandatory.
Some agencies are now quoting within the realistic range. Others are not. So buyers who don’t know each of the real estate agencies and how they behave/quote don’t know if that is the vendor’s price or to add that 10% that they’ve done for years. Confusing for the buyers and to some degree, disadvantages the honest agents as buyers just don’t believe them when they quote a price honestly. So buyers dismiss properties they potentially could have afforded.
Add to this, a hot Melbourne market. The vendor sets a reserve and buyer competition takes it flying past that. The vendor would have happily sold for what buyers were told in the lead up to the auction, if that is where it ended up on the day, but competition took it $200,000 over that and the agent cops the flack.
As a Vendor Advocate, we sold a property for a client on Saturday in Kensington for well over the reserve. The agent appointed to sell the home quoted accurately to the buyers as to what the property was worth based on comparable sales and within the price range that our client was prepared to sell the property for. On auction day, the reserve was well within the range. If that is what the highest priced buyer offered on the day, it would have been sold to them at that price. However, under competition, it sold for $55K more.
We do not let the agents we work with under quote and we closely monitor and manage the pricing and buyer feedback throughout the entire sales process. If the feedback indicates a price higher than originally advertised, the price is lifted.
Come 1 July, I think there will be clearer guidelines for buyers to understand and trust regarding the quote range, which is long over due. It is designed to stamp out under quoting and let’s hope it does.
Let’s hope the bad apples in the real estate selling game are finally weeded out. But the many good agents out there are not always to blame if a massive selling price is achieved because 2 buyers go at it on the street to win the keys. That’s the market.
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