Coronavirus: Buyers’ cheeky tactics to try and secure bargain deals
Those still in the market to buy are doing their best to secure “absolute bargains”, which industry figures have slammed as taking advantage of distressed vendors and adding to hysteria.
Agents are urging property buyers to be reasonable and not take advantage of vendors who are vulnerable to the uncertain market conditions.
Low-ball offers and threats to pull out of negotiations have been among the ways buyers have tried to seal cheap deals amid the coronavirus pandemic.
Full Circle Property Advocates director Rob German said there were buyers who had decided to prey on vendors, who have been forced to cancel auctions.
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“They think they’re entitled to an absolute bargain because of coronavirus and they are making silly comments and offers,” Mr German said.
“It’s not helping hysteria at the moment and its preying on people’s positions in the marketplace.”
Greg Hocking Holdsworth agent Simon Gowling said many buyers had suggested they would pull out of the market, but would still eventually come to the table to negotiate.
In March, five parties interested in buying 92 Page St in Albert Park said they were “out because of coronavirus”. Mr Gowling said all of them still turned up and bid at the auction — which occurred before just shutdown measures banned them — pushing the sale price $1 million above reserve.
While experts have predicted the pandemic could cause a downturn, property values have so far held firm — but the worst is believed to still be ahead of us.
CoreLogic’s Hedonic Home Value Index shows Melbourne house and unit values increased 0.4 per cent in March to a $695,299 median.
But the data firm reported slower growth across the board in Australia during the second half of the month as government shutdown measures came into place.
Realestate.com.au chief economist Nerida Conisbee said there appeared to still be plenty of interest for properties listed in premium suburbs.
Whether vendors chose to take offers below their price hopes “depended on their personal situation”.
“There are a lot of opportunists out there looking for cheap properties, but it’s important to keep in mind that this downturn is not being caused by a financial crisis,” Ms Conisbee said.
“There are government reprieves in place, like mortgage payment freezes, that will cushion the blow in terms of how much prices will fall.”
She suggested vendors speak with quality agents and vendors’ advocates to help determine whether an offer was worth accepting.
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Originally published as Coronavirus: Buyers’ cheeky tactics to try and secure bargain deals