Hi guys, Have a curious question from someone that is looking at buying a PPOR in the Melbourne eastern suburbs. I’ve noticed when contacting agents asking them what the price guide is, they respond with a “Buyer interest in the xyz vicinity”. If they were truly buyers, wouldn’t there be contracts already on the table? Is buyer interest just a way of anchoring a price range, thereby getting you to offer more? For example – I asked one agent and they said buyer interest is in the $1.4 million mark. A week later, it sold for $1.37 million. Being inexperienced, I may have been tempted to offer more just because there is “buyer interest”, but obviously this successful buyer decided to lob in an offer much less and then probably moved up once more to $1.37. What’s the best way to respond/offer? Thanks.
I would have thought that meant this property is for buyers interested in paying around the $1.4M mark. Not that there are currently buyers interested.
"Buyer Interest" does not mean they have buyers interested. It is just a price guide. The best way to respond is, once you have done all your DD, to make an offer of what it is worth to you.
.....and Buyer Feedback means what exactly? These are typically numbers that buyers coming through Open for Inspections, give the the agent when the agent says "Where do you think the value is, or what do you think the property will sell for?" Do buyers really tell the truth to a selling agent?
"Buyer Interest" is typically for auctions. I assume the agent is trying to say "couple of people have indicated they would pay $X at auction". The agent should also be feeding back this figure to the vendor (to "adjust" expectations if need be). As a buyer, you'd be adding 10% or more depending on the market as the "true" buyer intentions. The Y-man
That kinds of hints at why they say 'buyer interest'. The vendor hasn't indicated a reserve price, hence they can avoid (or at least delay) issues with under-quoting.
There's no harm in playing with the agent/vendor's minds. Inflate your level of interest hence the vendor's expectations, then go off the air.
Do not listen too literally to agents, do your own research so you know what a place should be worth and what it is worth to you.
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