More than you bargained for: Only 19% believe you can buy property for the asking price
Prospective homebuyers should brace themselves to pay more than the asking price, according to new research by Finder.
A nationally representative survey of 1,012 respondents found just 19% of Australians agree that houses sell for the price they are listed for.
The research revealed 70% expect property to sell for more than what the seller asks.
1 in 4 Australians (26%) think that properties normally sell for between 11-20% over their asking price, while a further 5% think they sell for 21-30% more.
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.
"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."
A house in Thornbury, Melbourne recently sold for $260,000 above its reserve, while a terrace in Queens Park, Sydney beat its reserve price by more than $500,000.
Interestingly, baby boomers are the most likely to think a property will sell at its advertised price (26%), compared to 19% of millennials, 17% of generation X and 15% of generation Z.
Whitten said that a combination of low interest rates, rising land values and readily available access to finance have all contributed to a supercharged property market.
"This is particularly the case in capital cities such as Sydney, where the median house price is more than $1 million.
"If you're concerned about rising property prices and your ability to enter the market, take a step back, create a savings plan and focus on your goals.
"There are lots of ways to enter the property market, and it's not a race."
The survey revealed 1 in 4 (23%) Australians think that properties typically sell for 6-10% above their asking price, while a further 5% believe they sell for 21-30% above it.
Just 11% of respondents think that houses sell for less than their advertised price.
|How much over the asking price do you think property normally sells for in your area?|
|More than 50%||2%|
|I think houses sell at the price they're advertised for||19%|
|I think houses sell at less than their advertised price||11%|
|Source: Finder survey of 1,012 respondents, June 2021|
Looking to enter the market? Check out our tips on how to save for a deposit.