It's time to have a firm word with potential buyers

I think it’s time to sit down and have a firm word with all potential buyers out there. 

Over the last couple of weekends I’ve been to auctions where people have excitedly told they hope to get the property for a price way below the advertised guide price. Yes we know it’s a buyers market but even in a buyers market that just isn’t being realistic.

True, earlier this year vendors were not always prepared to accept that Sydney prices were stagnating.  Years of fantastic growth almost had us believe it was inevitable we could sell a property for significantly more than we paid for it.  As such vendors continued to set their price expectation based on what they wanted for their property rather than what the market would be prepared to pay for it in the current economic climate.

That often meant a property would end up selling at significantly below the initial price guide. But that’s changed.

Obviously I can’t speak for everyone but in most cases these days the price expectations of vendors has changed to match the market.  That means the advertised guide price for a property really does reflect what the vendor expects to receive for the property.  It reflects the true value of the property together with the economic climate.

So if you are on the look out for a property then yes, now is undeniably a great time to look, but I think you’re setting yourself up for disappointment if you think you will be able to bag a bargain way below the guide price.