How much should you expect to pay over the asking price?
Prospective homebuyers should brace themselves to pay more than the asking price that is listed on the property. But how much more?
A survey of 1,012 respondents found just 19 per cent of Aussies agree that houses sell for the price they are listed for, according to Finder, and they’re not wrong.
First Hand Property director Mitchell Farah told Yahoo Finance it’s a good rule of thumb to add 10 to 20 per cent to the price guide to get a more accurate idea of what price the sellers are looking for.
“When they give you the price guide, you should always put the price guide against recent, comparable sales in the area to get a full picture,” he said.
“Do your research to determine whether you feel the price guide is realistic or not before you consider moving forward.”
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The research found that most Aussies agreed with this sentiment with 26 per cent thinking that properties normally sell for between 11-20 per cent over their asking price.
Richard Whitten, home loans expert at Finder, said it’s not surprising that people are dubious about home listing prices.
“It’s an agent’s job to garner as much hype as possible on their listed property,” he said.
“This, coupled with the property boom having instilled a fear of missing out among prospective home buyers, means we’re seeing more homes sell for well above their reserve price.”
Aussie property boom
Australian house prices ticked up 1.9 per cent in the month of June, recent CoreLogic data revealed, bringing annual growth in the 2020 financial year to an eye-watering 13.5 per cent.
Dwelling values in every single capital city grew over the blockbuster year, with Darwin marking the most meteoric growth at 21 per cent, followed by the nation’s capital of Canberra at 18.1 per cent.
Even property prices in Perth – which marked the lowest annual growth of all the cities – rose by 2.1 per cent.
But it may not all be doom and gloom - the non-stop rise in house prices may hit its apex this year, according to the latest expert predictions.
The Finder RBA Cash Rate Survey revealed the majority of economists (68 per cent) believe property prices in NSW will hit their peak this year while the remainder believe it will come in 2022.
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