Most vendors’ price expectations are too much considering the declines in the property market, according to a recent survey commissioned by online auction platform Gavl, in coordination with data insights firm Pureprofile.
In the data gathered, almost all (92%) of agents believed that vendors have unrealistic price expectations when selling their property. 55% of agents, meanwhile, confirmed that vendors’ sale expectations are above market price expectations by $50,000 or more.
Further, it was found that 36% of sellers had expectations up to $50,000 above the market price.
Aiming to measure these vendors’ flexibility in the market, the survey posed this question to the sellers ⸺ would you adjust your price guide based on agent feedback and market expectations? It was determined then that half (52%) would tweak it only slightly. A noteworthy insight for agents was that a further four in five (39%) vendors said they would adjust their price expectations to match the agent’s.
Somehow, this is coincided with the positive responses from agents when they were asked how vendors take their advice for a listing price or price guide. 77 % admitted vendors took on their advice most of the time, while only 7% think vendors will take on their advice every time.
Gavl spokesperson Justin Nickerson forewarned though that the results may not be true for all.
“While the data reveals that there are agents who don’t have trouble managing sales price expectations, I haven’t met one who said this wasn’t a challenge. These differences will always be a factor for agents and vendors to work through, but there are ways for agents to manage vendor expectations such as presenting recent sales of similar properties in their area,” he noted.
To determine the abovementioned price expectations, 1001 Aussies, who were in the market to buy or sell property, served as respondents for the survey.
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