Brisbane real estate prices and making sense of those ads!
Okay, it might just be us. But are you having trouble working out the asking price of some inner-Brisbane real estate at the moment? And when we say “some” we mean heaps! Here’s what we’re witnessing:
It’s becoming common to leave the price off a home altogether and leave it to buyers to ask. In the price box on the websites you’ll see “Price on application” or “For sale”. Or they’ll have “Offers over $x” or a price with a big PLUS sign after it. Yes, this owner would like more than this amount. But you and I are left wondering – will they take that amount? Or only more than that amount? And how much more? Definitely not less, right?
So what does it all mean?
Firstly, if this is annoying you then you’re not alone. One major Australian survey revealed 92% of home buyers were unlikely to enquire about a property that has no price. Yes, they can sort those search results by price to get an idea. But unless it’s an auction campaign (a very valid method but sometimes over-used in our opinion), why not advertise the price?
We’d suggest it’s often the agent’s solution for an owner that’s unrealistic in their expectations, and they’re hoping to take price out of the discussion. Get the buyer through first. Show them how great it is, then they’ll see value. Better still, leave it to the buyer to make an offer, showing the owner what it’s really worth. Prices are not soaring ahead in Brisbane’s inner-city at the moment so there’s currently more than the usual mismatch between sellers and buyers on price. It’s rare to see an agent with a property listed at a realistic price, who doesn’t put that price on the ads!
Sometimes there’s some unhelpful ‘low-balling’ going on. Here’s what happens: Owner wants $550,000, agents thinks it’s maybe $500,000. The ad goes up as “offers over $499,000”. Buyers who have $450,000 to $500,000 to spend come to look and, not surprisingly, the offers come in at $490,000. Unless this owner has a genuine reason to sell and adjusts their expectation, they reject the offers and everyone has wasted their time.
And there’s the problem. Home buyers are busy people and if the owners want 10 or 20 or 30 per cent above market value then they’d much rather skip it from their Saturday rush-around. They’re not going to take time off work to do a private viewing on the off chance it’s ‘the one’. You see, I used to think I could get away with this too. I could write a clever add. Entice the crowds, lure them in. But if you’re wanting way too much for your property buyers know. Home buyers understand the market today so much better than they ever did.
If there’s one thing the internet has taught the modern consumer it’s this: they want information, lots and lots of it, and they want it now! And they won’t invest their time if you’re way off the mark. So if you’re selling and do want a price a bit more than your agent’s recommended (perfectly normal human nature!) please be brave and put a price on it.
It’s the quickest way to know what the market really thinks of your piece of Brisbane real estate.
The Bees Nees Realty sales team specialise in Brisbane’s inner-city, those homes in a 5km radius of our CBD. And we’d love to help you with the sale of your property – with a price or by auction! We’re on 07 3214 6800 or here’s the contact form.