I had an interesting discussion with a long-serving successful agent who said he has never quite seen anything like today’s market. He wasn’t referring to the prices being achieved because he has worked through several booms and busts.
What he hasn’t seen before in the buyers he’s talking to is the FOMO (fear of missing out)
He said, “The perception is that if a buyer offers a price in the Statement Of Information (SOI) range, they will own the property. Buyers don’t want to risk going to an auction for fear of missing out and want to wrap up a pre-auction sale”.
“We really feel for potential buyers when we tell them the vendor wants to see it through to the auction and has instructed us not to receive offers. There is a bit of frustration out there”, he said
There are many contributing factors:
- Shortage of some stock like good family homes in inner Melbourne
- Bank interest rates at a historical low – tempting people to borrow more
- It is taking longer today to find the right property
- Despite last year’s lockdowns Melbourne is still one of the safest places in the world to live.
Our advice is this :
- Don’t jump into the wrong home for fear of missing out
- It may take longer and possibly more money but buying the right home is the sound strategy rather than buying emotionally or on price
- Have a considered strategy – do your homework and due diligence before auction day
- Seek the advice of an expert Buyers Advocate to help with your property search, access to pre and off-market properties and most importantly, understand what you will have to pay.
If you are concerned about entering the market under today’s conditions and need some help and advice, call us at ela Property Advocates. Guy Angwin 0412 022 998 or Geoff Briscoe 0419 740 351. Web: www.elapropertyadvocates.com.