Editor's Note: September 2014
They want how much?
I recently submitted an offer on a property that was just below the seller’s asking price. That is, just $5000 below. The reason why I went in with such a ‘high’ offer was that I knew the seller had been trying to sell the property for months and had actually lowered their asking price by tens of thousands of dollars before I came along. How did I know this? I did plenty of research online, and also asked a few experts that I’m very fortunate to know and whose objective opinion I trust.
What sellers want for their properties can sometimes be a long way off what they actually achieve – unless it’s a super-hot market like Sydney has been experiencing. The old adage that your home or investment property is your castle, but buyers look at it like a shack and want to pay an appropriate lowly price is never truer than when it comes to asking prices.
Unfortunately, there are agents out there that will convince unwary sellers that they can get a ridiculously high figure for their property, just so they get the listing. Then they quickly “re-educate” the seller from “buyer feedback” that their property is actually over-priced and their asking price needs to reduce by five, 10 or 20 per cent.
The problem is, interest in your property can be strongest in the first week or two and if it’s over-priced from the outset you’re likely to turn off plenty of potential buyers.
To help API readers get inside the heads of sellers (metaphorically-speaking), and to understand real-time market movements before anyone else does, in this issue you’ll find exclusive seller asking price data, courtesy of SQM Research (page 38).
As investors, we always want to buy in an area before prices start to rise, and we also hope to sell before the market potentially drops, but timing is paramount.
So from the September issue, each month we’ll supply API readers exclusively with asking prices data by postcode across the country to help you along the path to financial freedom and to assist you to make smart and informed investing decisions.
Also this month, we unveil our new API digital data supplement (page 16), which features a variety of data sets tracking property movements and indicators in every state and territory.
Other new features this month include an exclusive column by Domain senior economist Dr Andrew Wilson (page 48) where he debunks worsening housing affordability, and we have a special first homebuyer feature (page 24) to help first-timers save their first deposit.