With Marty Maher Great Ocean Properties
In our last Great Ocean Report (published in the Surfcoast Times on March 4) we explored what we thought would bring this incredibly buoyant real estate cycle to an end.
Asset markets run in cycles, whether it be shares or property. When you are in the middle of the buoyant phase of the cycles, it feels like the new normal but history shows us that they do end or at least slow down in their urgency. The timing of these cycles can only be seen in hindsight, as can the triggers that caused them to slow.
One element that we touched on in our last Great Ocean Report is buyer fatigue. This is a little discussed topic but is something that we are seeing at present.
Buying real estate, for most people, is an emotional roller coaster where buyers find a property they like, visualise themselves in the property, explore the changes they would make if they owned it, often pay for building and pest reports, confirm their finance, then participate in a negotiation process to try and secure the property.
The issue at present is that there are a lot more buyers than properties available. Currently we are seeing the same buyers competing for properties in their preferred area over and over again, only to miss out as the property price exceeds their budget. After a while, this emotional roller coaster takes its toll on many and what we call “Buyer fatigue” sets in and they just give up.
Even though we clearly act on behalf of the vendor to maximise the sale price, we also have a responsibility to provide a fair and transparent pathway for buyers who wish to secure any particular property.
As a buyer, all you want to know is where you stand in the process and have a fair opportunity to purchase the property with no “smoke and mirror” negotiations. We pride ourselves on providing this and explain it clearly from the outset to any active buyers and therefore, hopefully limiting the emotional roller coaster that can lead to buyer fatigue. If you are an active buyer at present, feel free to reach out if you have any questions at all about how we handle our negotiations.