The moving market
Back in the day, Nannup property prices were low compared to areas like Perth and Margaret River. The property bubble began to inflate prices in 2006 with some properties doubling in market price. The bubble culminated in the Global Financial Crisis in early 2008. When the bubble burst, property values immediately fell by an average of approximately 30%. For example, a block which cost $70,000 in 2004 could conceivably have fetched $140,000 in 2007, and its market price would then have plummeted to $98,000 immediately following the GFC.
Property sales ground to a halt and the local real estate industry suffered a period of stagnation where very few properties sold at all.
Now the market is moving again, and it is moving at post-GFC prices. Buyers are very market savvy and are doing their research. Vendors need to take a leaf out of the buyers’ book and become market savvy. That means pricing property at a level which is reasonable for the buyer and still gives an acceptable return for the vendor. Unfortunately, buyers who come in with ‘low ball’ offers (an offer well below market value) are putting vendors off accepting more reasonable offers, and vendors with asking prices above what the market will look at are simply not attracting interest.
So the trick for vendors is to price reasonably and the trick for buyers is to offer reasonably. If either party goes too low or too high, nobody is happy. The art of the real estate agent lies in bringing the vendor and the buyer to agreement. We can advise vendors on where to price their properties so that the market will bite, and we can advise purchasers on where to offer so that the vendor won’t walk away.
The art of being a good vendor or a good buyer lies in doing your research and listening to the real estate agent so that you can make a well-informed decision. Don’t be afraid to ask us questions. We’re always happy to answer them.
– See more at: http://nannuprealestate.com.au/2014/10/the-moving-market/#sthash.HD80KSpj.dpuf