Vendors often have very specific reasons to sell, affectionately called the ‘Ds’ in real estate: death, divorce, debt, diapers, diamonds, and downsizing. Debt reduction has been a key motivator in recent years.
There are always vendors who need to sell as opposed to want to sell. In the current market, with increased land taxes affecting second homes, higher interest rates and cost of living pressure, there are more vendors than usual who need to sell. These vendors will potentially list for a lesser price and then keep dropping until they sell. In doing so, the price of comparable or neighbouring properties is dragged down, and buyers adjust their expectations of value to the cheapest property. This can be disastrous for vendors on the market at the same time who want to sell but don’t need to. The result is confusion among buyers over value, and other properties selling for less than necessary can have a domino effect.
The vendor and the agent can also directly affect the sales result. Choosing the right agent and establishing the correct price for a home is a complex process in any market. The style, amenities and condition of the home, its location and size, and ‘X factors’ like water views or more expensive neighbours all affect the final selling price.
The single most important thing a vendor can do to get the best price is to engage the right agent. Most agents genuinely want the best for their vendor, but the wrong agent – if lazy, greedy or opportunistic – won’t protect the vendor’s price and will simply be chasing the fastest transaction. Be sure to interview as many agents as you have the energy for and choose carefully.
