Managing vendor expectations. Help please!

The question I'd ask is , who's to say that the value those people paid is 30 k over , and the others didn't get a bargain ....

How old are those comparables ? The market is moving in Brisbane at this stage .

Cliff

 

That was an irrelevant statement on my behalf. Regardless of what they're worth, they were not comparable sales in my view. They were current sales however they had better elevation / outlook and were in more prestigious streets in general. But of course these were the comparable sales their RE provided them so that's what they're running with.

 

Maybe the RE had something to do with the price jumping.
You stated it was a private sale to start with,Then all of a sudden the RE is involved and now sell the property due to their valuation.
Maybe he/she can try and sell it for 680k but when he/she cant they still have control of the end sale and make something, instead of it being sold privately and making nothing.

Just thinking out loud

 

I thought I should post an update to this thread...

From what I understand the property did indeed sell at the first open home for $680k. This was back in early November however I haven't seen the sale come through on RP Data yet so I'm only going on what the owner has told me.

The whole process has been a big learning curve for me, and even though we didn't get the house we wanted I have certainly learned a lot. At least I will be able to go into my next negotiation with a broader appreciation for current market conditions.

 

You were trying to convince the vendor to lower there price because of a valuation but were clearly emotionally invested into the property? Buttttt isn't emotion what drives property prices? Just imagine everyone could get a non emotional Val and pay that price, I don't think we would have seen half the property boom we have.

You fell in love with it straight away and the vendor knew more would so why sell on the back of a Val? I wouldn't do this in 1,000,000 years. I'm surprised you wasted your money on one TBH.

 

Why not get a valuation done? Seems like the smart thing to do, as you've said it removes the emotional component from my negotiation and provides a professional third party opinion.

I personally didn't think the property would go that high, so there was no way I was going to pay that price. If someone decides they're happy paying it then good on them - in their minds they've secured a property at a price they feel comfortable with.

 

In a hot market, a vendor is more likely to take a punt. There's always a sucker in every market.

 

Sorry Bris that didn't come out right, I meant no disrespect.
What I did mean was a valuation is a logical YES but conservative and non emotional look at property. As I said if everyone purchasd on valuarion price we would have not had the boom we have had. In 95% of cases I would say a valuation would come in under what the property actually sells for. So why would a vendor ever accept that as what they should sell for?

There are 1,000s of reasons someone is willing to pay more than what a valuer will ever see. A valuer uses statistics and market comparisons. But they put no weight on the fact a park is 40 meters down the rd and 3 families who want to move into the area have young kids. They put little value on the fact the walking trails nearby a great for dog lovers and cherish their dogs and walk them everyday. All these things fuel emotion which is what ultimately drives prices. Ofcourse a valuation is a great base to say this is what others NEARBY have sold for. But in reality 3 streets can be the different between 80k.

 

No worries Albanga, I misunderstood what you meant there.