Last night I had a real Nanna moment. I don’t often watch Today Tonight for fear of turning into a Howard-era racist hack. However, yesterday evening I was doing some copywriting and on that very show a few of inner-city Melbourne’s auctioneers and agents popped up in a typical ‘overquoting’ story.
I was really sorry to see these capable and respected, hardworking guys who are regularly getting AMAZING results for their vendors getting canned by a spray-tanned sweetie with a plastic handbag and a mini cam.
I just wanted to touch on the topic of under-quoting, but looking at what kind of market we currently are experiencing. Over the past few weeks in Melbourne, clearance rates have been at abot 85%. This is due to a number of factors, namely:
– At the moment there is 7% less housing on the market for sale than there was a year ago
– Interest rates (although having gone up a little) are still very low and competitive
– People are moving in Melbourne to work in absolute droves
– The rental market is becoming increasingly pricey
When you have all these factors coming togther, what you have is an upwardly mobile market that is all hot and bothered. Thus, vendors who sell in this environment have more bidders competing for the stock (ie supply and demand competition).
So when you see stock that goes for above its quoted range – this isn’t a miss quote. This is the market paying what it feels the product is worth. On all the tacky Today Tonight reportages, you don’t see a happy vendor saying how pleased he/she is wirh the market – nor indeed do you see the happy purchaser who has just secured a place in the competitive Melbourne market. What you do see is often Neil Jenman on his toxic soapbox, or Jane Fleming moaning about ‘why the agents can’t get the price right’. Isn’t she a runner?
The question is – who is really being hurt by the rising market. Of course, it is the punters who miss out. Disappointment does suck. It sucks hard. But maybe these purchasers just need to move out a couple of suburbs, or purchase a smaller home. Or maybe they need a good buyer’s advocate like me to help them work out where they fit into Melbourne’s dynamic market.
Anyway – don’t feel like victims buyers. It is a competitive market, we just need to be smart about getting you into the best house you can get your grips on.
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