A star is born.
Recently my lifelong barber (Zdravei George!) told me something I had always suspected to be true…I look exactly like Bradley Cooper. Ok, so it’s possible that our bromance may be affecting his judgement but I’ll take it. Thankfully, I’m self-aware enough to know that on a good day I’m probably a strong seven but let’s face it, on a bad day ‘Coop’ is a solid 12. Nevertheless, as I sit there watching George masterfully re-create my schoolboy haircut the sweet sweet lies are music to my ears.
What’s my point? Many of us ignore reality and are seduced by what we would like to believe is true. Sure, it’s a stretch to segue into real estate but this newsletter wouldn’t be what it is without a touch of cray.
Market weary buyers, this note is for you and whilst it may contain some hard truths I actually just want you to avoid having your time, money and emotions wasted.
Let’s start with a fact, many agents in the current market will lie straight to your face about the price guide. It’s called bait pricing and even though it’s supposed to be illegal it’s as common as ice cold beers in the ‘alcohol free zone’ in Coogee. I agree, it’s terrible, and no I don’t know how some of them sleep at night either but maybe that’s just it, maybe they don’t need to?
What makes it even trickier is that some agents do provide accurate guides but buyers who have previously been burnt by underquoting then pass up properties thinking they will be out of their range…but they actually aren't…FML.
The only way to avoid heartache in this market is to understand it and make your own assessment of what a property should be worth. So here are some tips and clues that may help.
1. It’s a seller’s market. If you go to an open house and there are 4,000 people sipping almond lattes requesting contracts there are two things going on here. The price guide is too low and somehow someone has figured out how to milk an almond.
2. The price feels too low (or too good to be true) *refer to point 1.
3. The price feels too hot. If you are using past sales to gauge value (which is smart BTW) in a rising market you must allow for market movements since the date of that sale. Yes it matters what next door sold for last year but you have to add on an appreciative value to get into the right zone.
4. Stop waiting. There is no such thing as perfection. We can’t all look like ‘Coop’…sorry. While you wait the market is going up, this means you may end up having to compromise even further down the track…your first home is rarely your dream home.
All jokes aside, in a hot market brimming with hopeful buyers only the ones that are realistic and decisive win out. Good luck out there, things are moving.
Until next week,
David Murphy