With almost double the number of listings on the market in Western Australia compared to last year, one real estate commentator has warned against overpricing properties for sale.
In light of the current market dynamics, RE/MAX WA managing director, Geoff Baldwin said using an effective pricing strategy was critical for sellers.
“The days of coming up with a dream price, then adding on another 10 per cent, are well and truly over. Today’s buyer is much more informed and simply does not have the time to be deciphering over-priced properties,” he said.
Mr Baldwin said even though “most people” are driven by emotions when purchasing property, they will never become emotionally attached to something they will never see because they were deterred by poor pricing strategies.
“Overpricing is a sure way to restrict inquiry, viewings and to stale a listing to the market,” he said.
“Many sellers believe they can always bring the price down over time, but one of the most asked questions when a buyer does like a property is, ‘How long has it been in the market?’ And the fact is, the longer it’s been for sale, the less the buyer is likely to offer.”
Mr Baldwin said properties that sell within 30 days of coming onto the market invariably fetch a higher price than those that sit on the market for extended periods – a problem exacerbated by the summer holidays.
“The market will always slow down as we move towards the holiday season, and this year the slowdown has been accentuated by a general lull in the state’s economy," he said. "However, there are still buyers in the market and they will always be attracted to, and pay well for, properties that are priced and marketed correctly.”