With a number of successful sales having been achieved for clients in various suburbs across Melbourne, I've noticed an interesting trend...
Buyers have their bark back.
Whereas many buyers were at the mercy of a steam rolling Melbourne market which saw prices soar until the peak in October 2017, now in many cases the tables have turned.
Buyers who were previously simply priced out of the market are surging back in, particularly first home buyers. Sidelined for many years, their numbers are swelling, particularly in suburbs rich in homes under the $600,000 price point that, for a first home buyer, equals stamp duty savings.
With this renewed activity comes choice and, based on what I am seeing and what agents have confirmed to me, perceived bargaining power. And it's not just about the price.
I've witnessed examples where a purchaser has threatened to cool off unless the vendor agreed to remove the bird droppings from the solar panels on the roof. In another case, the purchaser demanded a perceived issue be fixed or they wanted the vendor to drop the price by $40,000. They didn't substantiate this figure, it appeared to be chosen totally at random.
In a market where the buyers now often have the upper hand, those same buyers are choosing to wield their power to negotiate fixes to minor issues or threaten to walk away.
Obviously, this tactic is unlikely to work at an auction. But with a Melbourne clearance rate hovering just over 50% and many homes being sold privately, it would seem that savvy buyers are prepared to ask in the hope that they will get. In a lot of cases, they do.
Please share my details with anyone you know that needs a hand. I'd love to help.
