Seller greed a good thing in rising markets

While in the process of buying my latest IP, most properties I inspected/shortlisted were sold in first 1-2 weeks and only a few times I thought vendors were dreaming or being downright greedy even in this market. However, it appears that those properties eventually got sold close to the asking prices after 4-5 weeks on the market.

So if you are selling in the current market, about the worst mistake you could make is sell in first 1-2 weeks. Stock levels are dwindling, investors are starting to enter the market and there is nothing on the horizon to indicate any roadblocks ahead for atleast next few months.

- Set a price 10% above recent sales (don't tell the agent)
- Resist any pressure tactics from the agent
- Be ready to leave the property on the market for up to 6-8 weeks. Going by last few months, most properties are worth more at settlement than at contract stage.
- Worst case if you don't sell, list again in 6 months and it's likely market would have moved higher without you doing anything.

Everyone's circumstances are different but this is what I would be doing if I was selling today and if I was in a position to hold a bit longer.

(Back in 2018, I listed a property for $950k but market worsened and best offer I could get was $50k less than asking price. I resisted agent pressure and took it off the market as I had resources to hold it. Today it's worth $250k more than best price I was offered).

Thoughts?

 

Back in 2018, did they call it seller generosity when they cut 15% from 2017 prices?

 

I think that is a good idea. I can't imagine it is a good idea in current market to sell in no time vs sell in 4 to 6 weeks.

Greed and fear being the dominant motivations there is no need for fear. That only leaves greed.

 

I'll let you know soon.

I've rejected some good offers. Still fishing.

 

Don't give in .. a rising market will catch on with your expectations pretty fast .. I am pretty sure anyone who even sold 2-3 months ago is now regretting.

 

Oh believe me I'm not. And it's quite the story to tell. Once it's all over

 

Hahaha me too rejected 3. First one was from a database open prior to the first official open.

Same holding out.

I feel market is adjusting to the new higher price.
People are offering although are really worried and are moving to offer on the next property if you don’t accept.

 

Yes, my gut says the same. Although markets remain strong. I thinks (at least for me and sounds like for you too) it's worth the risk to wait for put price.

 

I agree generally... and it’s what I am doing at the moment.
I think where you can choose to sell earlier is whether holding costs will outweigh any potential gains and if you need the sale to move quickly to another opportunity.

 

Where are you located ?

 

Which city are you referring to and do use SQM or such to determine total stock in market ?

 

@Sackie how much you holding out for (as a % above recent sales in the area)?

 

7 to 10% above recent sales where the recent sale is a strong price.

When you don't need to sell, you're psychologically in the strongest position to negotiate.

 

Yep we are seeking 5% due to the base being high although the percentage is small the number is fairly high.

 

I have always been a huge fan of selling, taking some profit off the table. I am now changing my view, as what I sold a few years back is worth so much more today.

 

Ah. Finally. You and @kierank can now agree on something

 

Lol….. don’t get carried away

 

I’m selling in regional NSW.

Anyway, I’ve just caved…..It’s not all the bad.. I’m pretty close to what I wanted.. but yeah, got sucked in by the REA telling me about the buyers (who are apparently very nice people) etc etc….

 

I have told you many times @Sackie that I am always right .

It looks like after all of these years you are starting to see the light .

I will never give up on you, buddy .