Wednesday, 24 December 2008

[PropertyInfo.034] Mirror mirror on the wall, how much should I sell my house for?

I am always interested in how some owners/agents decide about how much should they ask for when putting a property on the market.

With the recent economic downturn, there were lots of mixed information every where. For example, there's this one about "Real estate agents flee industry", and this one talking about "Rising home loans could tip recovery".

I also mentioned in this post about owners trying to take advantage of the first home buyer grant and increase their selling price to a incredible level. And I just found a very good example in our suburb recently.

There was this developer who purchased a triangular shape land with an old house at the end of Willoughby Street Epping, applied for sub-division, knocked it down and build 2 modern houses. Can't remember if it's late last year or early this year, they were asking for over $920K each. Which we think it's ridiculously over priced.

If you search on the net, you might still able to find this page, which as shown below, asking for $849K each around April/May this year.

Then price dropped a lot and around Sep/Oct this year, it dropped to around $650K as shown in this page and a copy below.

Surprisingly, a few weeks ago we noticed the price rocketed to $779K! The latest ads is available here.

Based on our understanding of the market, from the size of the land and the quality, we think an acceptable price would be around $600K - $650K. Don't understand why would the owner do it like this, wasting time and effort, damaging it's reputation/image by keep on changing the price & agent every few months. All the buyers nowadays are really cautious and always do a lot of homework before making any commitment. If the owner had started within the reasonable range earlier this year, both houses could have been gone ages ago!

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