Buyers to regain power in property market
Property investors looking to buy in 2014 will have more power to negotiate as price growth stabilises and the ‘hype’ around selling slows down, according to a leading real estate commentator.
Speaking at a media briefing this morning, CENTURY 21 Australasia’s owner and managing director, Charles Tarbey, said in recent months hype and heat in the marketplace had been causing sellers to set high asking prices.
Potential vendors read media reports about sky-rocketing values and neighbouring properties selling for certain price points, and believe they can get a higher price, he said.
“The pricing has not been driven by demand from buyers,” he said. “It is being driven by the anticipation of a higher price by the sellers and that’s why you’re seeing new benchmarks being set.”
This dynamic, Mr Tarbey believes, is set to shift in 2014 because valuers are going to become more conservative, giving potential investors more room to move.
“Property prices have jumped, so valuers are being asked if they can justify this value," he said.
“Valuers got absolutely smashed a few years back and there was a lot of litigation because they valued peoperties and the markets crashed and a lot of people sued the banks, who sued the valuers. The valuers’ insurance premiums have gone through the roof [as a result].
“There’s balance coming back into the marketplace, which is what we felt would happen. This will be the year of negotiating. This will be the year where buyers and sellers are going to come back to good old negotiating because prices are going to be a lot higher.”