Owners of expensive homes tend to be the most dissatisfied when it comes to selling their properties, data from RateMyAgent shows.
The real estate review website surveyed around 30,000 sellers over the past two months and found that 31% were unhappy with the price they sold their properties with, according to News.com.au.
Sellers in New South Wales were found to be among the least happy, as they reported the highest occurrence of below-expected prices. However, the unhappiest place for sellers is Canning Vale, a Perth suburb where 15% of sellers reported below-expected prices.
RateMyAgent co-founder Mark Armstrong said sellers in the lower end of the market are typically more satisfied with sale prices in times of downturn, given that more buyers can afford properties at those price points.
"When a market softens, the top end of the market gets hit really hard. That $5-10m sector, when the market softens, there is no market. Zero-point-one percent of the population can afford to buy a $5m property," he said.
Armstrong said real estate agents have a role to play in setting price expectations.
To explain his point, he gave two examples of real estate agents — one who says, "We’ll definitely get $1 million for this property, but I’m going to try and get as high above $1 million as possible," and another who claims, "I think we can get $1.2 million for this property."
"The first agent has been more realistic, the second has essentially bought the listing. It’s very hard for a consumer to knock back an agent who says he can get $200,000 more than the other guy. When it sells for $1.1 million, the price point is exactly the same but you’ve got one happy and one unhappy customer," Armstrong explained.
Collections: Mortgage News