Buyers Aren't Liars

As the Perth property market continues to correct itself with prices easing and supply outstripping demand – something positive is finally occurring: affordability is currently increasing. Buyers hold the majority of power in the real estate equation and it’s time for sellers and agents to respect their needs.

Recent figures released by the Real Estate Institute of Western Australia confirmed what most of us already knew – median property prices in Perth have dropped for the second quarter in a row.

This price adjustment is not good news for sellers who are after high, short-term capital growth. But according to Realmark director John Percudani, it is all part of the property market cycle and has a healthy effect on housing affordability. But it also creates uncertainty – and buyers, sellers and agents alike are all feeling a little unsure.

“When people are feeling unsure in the market place, sometimes they go about things the wrong way when trying to find solutions,” says Mr Percudani.

“Right now – and for the foreseeable future – we are seeing a significant adjustment in the property market. Suddenly agents need to focus on buyers and making sure their needs are looked after.”

Instead we have seen an increase in selling solutions – including hybrid selling methods such as “expression of interest” and “price ranging” – that only confuse the buying public.
According to Mr Percudani it is a buyer’s market, and buyers’ needs must be addressed. So what does this mean?

“What buyers need now more than ever is clarity, simplicity and transparency around the buying process, “ says Mr Percudani.

“The way some of the property industry is trying to address market uncertainty is counterproductive.”

Mr Percudani believes a buyer’s needs must be met on several levels – from marketing through to the transaction of selling a property – to ensure the process is a success for everyone.

“Sellers entering the market must work with their agent to establish both desire and value. This should be done by showcasing their property to ensure it stands out from the rest. It also means attaching a pricing strategy that has integrity in the current market.

“When it comes to transacting, buyers need to feel comfortable and have confidence in the process. They are looking for forthright answers and transparent processes. If they don’t see these things, they are not going to be engaged in the process.”

Now is not the time to be trying out hybrid selling methods, he says. Recognising that the majority of property in WA is sold by Private Treaty, Mr Percudani warns against using techniques that confuse or distract buyers. Don’t put a “dream” price on your property and see what the market says.

“Similarly, putting a wide price range which starts well below the seller’s desired or realistic price is also going to create false expectations which can damage the chances of a successful result.”

Mr Percudani recommends using recent sales data to develop a truthful and realistic pricing strategy that makes a seller’s expectations clear to potential buyers.

“No matter the market cycle stage, buyers are the most powerful force in the property market place and should always be shown respect. As a seller, take the time to ensure that both you and your agent approach the process the right way. This is a time when informed advice from a real estate agent could be of high value in achieving a favourable sales result.”