What to do when you can’t agree on price

By Ros Burton (Principal – The Real Estate People)

Bringing buyers and sellers together is an integral part of the real estate industry and, as with any negotiation process, sometimes the two parties aren’t always singing off the same hymn sheet. 

Quite understandably, the seller wants “top dollar” for their property and the buyer doesn’t want to pay a cent more than they think is fair. 

On the rarest of occasions, both sides hit on a similar figure and eagerly put pen to paper – which is perfect when everyone walks away with a perceived win. 

It CAN happen, so here are some things to consider when you’re looking to find that middle ground: 

Know the neighbourhood 

As those TV meerkats continually tell us: “You have to compare the market”. 

You need to look at houses/units that have sold recently in your chosen area that are similar to your property and see what they went for. 

Compare bedroom numbers, bathrooms, kitchen layouts and land size. 

Has a competitor’s property been renovated while yours is still stuck in the ‘70s. Price accordingly. 

Also monitor comparable homes that were withdrawn from the market because they didn’t find a buyer. 

Were they overpriced or required too much work to modernise? 

How long were they listed (and did the price drop from the original advertisement)? 

These observations will give you a great start to establishing a price that is fair to you and will still be attractive to potential buyers. 

What’s the market doing? 

Is it going through the roof or in a slump? 

Even in a seller’s market, a poorly priced home will be shunned by buyers. They know they’re being gouged. 

And, in a buyer’s market, you’ll possibly be competing with a larger number of available properties. 

Will your price and presentation even get them to an inspection? 

Also, keep an eye on interest rates and where unemployment levels currently sit – it all feeds into the economy and can directly influence property prices. 

These are just a handful of things you need to be across when buying or selling; and that’s why you’re always better off with an experienced agent in your corner. 

We’ve got some pretty good ones here at The Real Estate People who’d love to help you on your next property journey. 

So, feel free to call us anytime or pop into our Herries Street office (just up from Glennie School).