Posted Tuesday, 21 September 2010 at 09:26 by Michael Chan
Tagged: house prices | Home Buyer | First home buyer | Free Property report
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Going once....going Twice....going Three times.....SOLD!
It's one of those clichés you'll often hear in real estate ... properties that are priced appropriately are selling. It seems so obvious, really. When you're making such a big investment surely you'd only do it at the right price? But of course buying houses is emotional and there's so much more that goes into it than rational thinking about whether it is money well spent. It could be the look and feel, the layout, or the location that sways one buyer to pay a whole lot more than the rest.
If you want to look at how complicated human decision-making is just look at how we pick which political parties will win government. Now that there's a federal election looming, we'll all have more than enough opportunity to gawk from the sidelines as votes are won or lost on looks, tone, sound, hair colour, and a little bit of policy, real or perceived.
Nevertheless, when it comes to houses, a lot of real estate agents are saying that buyers are being a lot more careful, and really weighing up where to put their dollars. Less competition from other buyers is providing house hunters with more choices, and they're taking their time, choosing wisely, and demanding properties are up to scratch.
Agents are saying many vendors are yet to catch up with the swift market cooling of the last couple of months and want higher prices than buyers are prepared to fork out.
When you're selling working out what price you should go for is hard. But just as house hunters are told to find up to a dozen recent comparable sales when they are researching a house's value, vendors can do that too. The advice for house hunters is to look at the prices places nearby have sold for in the last six months, being careful to compare apples with apples by finding properties that have similar land size, bedroom numbers, layouts and car parking. Sales in the last three months are particularly telling.
If you're a vendor and you want to find out where the buyers' thinking is in terms of money, you'd do well to do that research. That way you will find out which direction the market is going in your area, and will be using the same pricing method as your buyers. Of course, if you decide your home has special features and it's worth holding out for a better price, you might just be lucky – after all spring is just around the corner and the warmer weather brings out the buyers.