Emotional sellers and inflated prices - do RE agents need to give them a reality check?

Sale by a Vet possibly.

 

Hes talkin about himself

 

Sutherland shire? it's down 13% the past 12 months. More peak to trough.
https://www.propertyvalue.com.au/suburb/sutherland-2232-nsw

Market doesn't care if they don't care?

 

Its all about supply and demand. For there to be a transaction, there must be a price that both buyer and seller are happy with

How are you confident thay your price is spot on?

 

I'm pretty confident, and some agents are even telling me so (they are indicating their buyers are having unrealistic expectations). I'd just be interested to know how the sellers arrived at their expectations in the first place. It's it purely an emotional attachment to the property, or are RE agents giving them inflated values (in order to secure the sales contract), then aren't able to sell the property for the indicated price.

I'm not actually buying a place at the moment - just monitoring the market (but may be thinking of buying in the near-ish future) so I don't have an emotional reason for hoping for a cheaper-than-advertised price. I'm just noticing that there currently seems to be a much bigger gap between sellers expectations and market data than what I've experienced in the past when I've been looking at places.

Although 'market data' doesn't cover every house, using that data, along with your own knowledge of the area and the houses in question, should be able to give a good indication of the value.
When the data showing houses in the same street, with the same specs and in the same condition, valued at mid-high $800K, and the seller is knocking back an offer of over $1 million (because they think it's worth more), you'd got to wonder why that is. It's been on the market since May 2018, and hasn't sold (and things have dropped even further than the October values shown in the graph below).

And this isn't the only local property that seems to have a vendor value set much, much higher than what appears to be justifiable/supported.

Just my observations.......

 

Hello, what application are you using to get that data?

 

I usually check a few different real estate sites, and look to see if the data presented on each site is pretty similar.

 

Oh sorry I was referring that aerial image showing the prices and that graph. Where did that come from?

 

@Jello_B
it could be this one

https://www.onthehouse.com.au/real-estate/nsw/abbotsford-2046?types=

 

Part of the problem is the market is moving down more quickly than expectations, which is why stock is often sitting on the market, and why you see vendors rejecting offers. The fact they could have got $880k doesn't mean similar places will sell for $880k, and it doesn't mean they'll receive a higher offer. The problem is oversupply and lack of credit. Sydney has fallen a median of more than 4% this quarter alone.

 

It's from www.onthehouse.com.au

 

consider the quoted values with a grain of salt. they can be way off

 

Absolutely, as they don't factor in renovation work etc. However, it's a great starting point. If most of the houses in the immediate area have the same specs, and are of the same age/condition, then they should be valued around the same $ amount.

 

They may be way off.

But I have found some sites show a price that the lenders *used* to seem to agree on (meaning I have not tried it lately), and in most areas teh high end would match what price I would likely get if selling, but this is in areas that are still increasing, if it is a falling market, I would ignore and just talk to agents and recent actual sales that agents can or will tell of.

 

Some houses I’ve been following in Ryde area have been on the market since May to July last year. The owners are reducing the price but not quick enough so they’re just chasing the market down.

 

That is a long time.....and people are scared of country towns ?

 

That pretty much describes the Perth market the last 5 years. It never ends well for the seller

 

Vendors chasing the market down are just mucking around, they dont have immediate need to sell and are likely still in the $$ after the boom.

Its those stressed vendors who NEED to sell, those guys will list at market price or lower for quick sale.

 

Agree.

 

Just like desperate buyers, in-spite of small numbers, play a pivotal role in increasing the valuation in boom time, desperate sellers do the same in downturn.
On the way there is a sudden influx of very many freshly minted experts who justify the irrationality with rational arguments bringing in ever more gullible's in the game. Human fear then kicks in and take prices to a level devoid of any fundamentals.
This madness continues till it can't and then the course reverse.