A survey by property professionals this year has revealed that managing sellers’ expectations has been the most difficult challenge in 2018. And guess what? It’s going to be even tougher in 2020!
This is according to over 50% of the Melbourne and Sydney based real estate agents polled by auction streaming service Gavl and while attending a local training session last Friday, realestate.com.au’s Greg Braun reiterated this message.
Another 31% stated that reaching the sales price that their client is trying to reach was going the most difficult, while 16% were most concerned about drawing in a sufficient number of prospective buyers. The results matched my own experience this year.
Something that homeowners must realise is that growth has slowed this year. Home values have, in fact, fallen across Australia since January 2018 and despite what you may hear locally, Newcastle is no different which brings me to the next point.
Sellers continue to expect that growth will be similar as last year. Sellers’ expectations are that the market is still increasing and therefore are seeking a sale higher than the agents appraisal price range. Sellers are also currently rejecting offers within the appraised price range, their properties are staying on the market longer and some are even having to been withdrawn from the market in fear of underselling their homes. Some even change agents and go through the same process again because their expectations have not changed.
In my opinion, I believe that real estate agents are partly to blame with their tendency to over-inflate a home’s value in an effort to gain the listing. On the other hand, sellers could also be looking at the market through rose-coloured glasses.
Sellers do need to keep their expectations realistic by doing their own research and hiring an agent with integrity who can provide evidence of genuine factual information instead of providing stories the sellers want to hear.