Property sellers sobering up

AFTER months of sitting on properties that won’t sell, there are signs that sellers now have more realistic expectations about the true worth of their properties.

Sellers are finally sobering up.

After spending a good while not budging from their unlikely asking prices — and consequently not selling their homes — the gap between asking and selling prices is now beginning to narrow.

Sellers got carried away with what they thought they could get for their properties.

Though there is no evidence of selling prices falling, there has definitely been a pull-back in price expectations — and hence asking prices — which is good news for the market because it could provide the impetus for the emergence of a more realistic reflection of value.

Though prices are still moving higher, the last quarter of last year and the first quarter of this year were characterised by lower sales than usual — an indication that sellers’ expectations were way too high.

Serious sellers have reduced their expectations and are selling their homes at what remain excellent

Another positive aspect of the slower market is that many of the “rats and mice” who flocked to the estate-agent game are being flushed out.

These Johnnies-come-lately, who have no experience in property valuation, are being forced to close shop because people are now much more fussy when it comes to choosing who they want to use to sell their home. They want a professional with years of experience to advise them.

Article by: Lew Geffen form