What To Do When Offers Are Too Low

THE MEDIA

2 weeks ago news headlines were saying things like :  ‘Offers Are Too Low’, ‘The Market Is Crashing’, ‘Prices Dropping In Sydney & Melbourne’, ‘Brisbane’s Falling’, ‘Western Australia’s Gone to S#%$@’, ‘No-One Wants To Move To Tasmania’, ‘Darwin’s Still F#@!$% Hot…’

So there is just so much talk in the media at the moment and then I turn on the news this morning and I don’t even normally watch the news,  and it says “The Brisbane Market by 2019, the median price is going to rise 6.9% to $583,000” and we’re all like “WTF? Explain to me…”

So I thought, you know what, I’m going to give a quick market update on what is actually happening in the marketplace right now.

Sydney/Melbourne if you’re reading this, yes, it’s dropping. Sydney and Melbourne’s prices go up more dramatically than anywhere else in Australia. So they’re going to fall dramatically quicker than any of the other states.

BRISBANE

So the Brisbane market right now seems to have bounced back a little bit, yes prices have corrected themselves and the market has dropped a little bit. It’s sitting around that 4.5% where the market has dropped. The average discount market reduction price that we call it, where the difference between the listing price and what the property actually sells for is -4.2%. Most vendors on average are dropping their price by about 4% from their original asking price to get the deal done. Which is actually great news because people are understanding where the market is and adjusting their expectations accordingly.

In saying all this though, as far as sales go, last month and this month (October and November 2018) have been two of the biggest months that I’ve had in eleven years. So, what the hell is going on with the market? Yes, prices have dropped, but it’s this simple… If you are on the market right now and your home is priced for the market, your home will sell no matter what the market is doing. If you are receiving offers for your home and they are lower than your expectation,  I’m here to tell you that the buyers are probably right. It may be that you’re still living in the start of 2018 property prices and haven’t adjusted your reality of what your home is actually worth currently.

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ADJUSTING YOUR PRICE PERSPECTIVE

If you have the luxury of receiving offers and those offers are all very similar, why do you think that is? The buyers aren’t all communicating with each other, but they’re all coming in with similar offers. It’s because these buyers are the ones that know what properties are worth and what they are willing to pay.

So if you’re on the market at $800,000 and you’re getting $770,000 offers, and you’ve had three or even five offers, you really need to take a step back and think that’s probably what my house is worth.

THE EXPERTS KNOW 

Just to keep it all in perspective, I’ve had such a huge couple of months. We’ve settled 12 this month and I have another 15 settling next month. So I’ve had a total of 27 properties sold and settling in the next two months! The average real estate agent in Australia sells between 8 to 12 homes per year. Chris Gilmour team alone have 27 sales in the next two months.

So how are we doing this?

  1. Our marketing is still spot-on. We make sure that our homes are being promoted appropriately
  2. We’re opening/showing our homes as much as possible.
  3. We’re having that critical conversation with our owners and making sure that when we start the process and put their homes on the market, that we’re not over-inflating.

We’re experts, we know where the market’s going to sit, we know where property prices are going to be.

IF YOU’RE NOT GETTING WHAT YOU WANT

If you’re on the market right now and you’re getting offers much lower than what you want, you could do one of three things 

  1. take your home off the market,
  2. rent it  
  3. adjust your price expectations and meet the market where it’s at

Remember, as a seller you have the choice. You can sell, or you can stay. It’s that simple. Don’t complicate this process.

So to wrap up… Whatever you’re hearing in the media, don’t pay it too much attention at all. At the end of the day, what’s happening at your property to the suburb across the street can clearly be two completely different markets. What you need to do is study the market, just like Real Estate agents do. We see what homes are coming on to the market daily, we see what homes are selling for daily but so is the buyer.

The person who has done the most amount of research is the one who always comes out on top financially. So if you’re very well-researched as a seller and your buyer isn’t, you’re still going to be able to extract a great price. Conversely, if you have a buyer that is more educated than you the seller, and they’ve seen all the properties and they know exactly where it’s going to be, then those will be the offers you will get.

So it doesn’t matter if you’re in a falling market, or a rising market, the process of selling will be the same. If you present your home perfectly, If you market it perfectly and invest in vendor-paid advertising to make sure that your home stands out and shines in it’s best possible light and you price your home for the current market your home will definitely sell.