When is a Property Overpriced?
Nathan McIntosh and Adrian Abel talk about how to determine the true value of a property and what factors go into making this extremely important calculation. See full video transcription below.
Adrian: It’s Adrian Abel and I am here with Nathan McIntosh from Abel Property Cottesloe office. Nathan, I want you to unpack a couple of ideas with you in terms of utilising your experience in the marketplace which I know you’ve been around a while. Tell me from your experience, how do you know when a property is overpriced?
Nathan: Adrian, I think there’s two key elements to a property being overpriced in terms of the feedback that I get from buyers and the first one is the actual lack of feedback, we bring a property on the market; we believe potentially that it is well priced but the market tells us otherwise and that is generally the signature behind that from the buyers is that I don’t actually get a lot of contact from buyers whether that be via email, enquiry is the big one.
Adrian: And what about the buyer feedback?
Nathan: The buyer feedback is positioned where let’s say we have 30 or potentially 30 or 40 buyers that come through the property over the first 3 or 4 weeks and if we don’t receive an offer or we‘re not getting a lot of feedback on that property that’s when we generally know that there might be a problem there with the price.
Adrian: I have a personal theory and it’s just from my own experience that if we are on the market for 3 weeks or have 30 groups through or a combination of those we will know what the market price is.
Adrian: Do you agree?
Nathan: Or we know what the market price isn’t.
Adrian: There you go, same thing. That’s deep Nathan. Nathan McIntosh, Abel Property, Cottesloe.