“Buyer Interest is around $x”…

February 12th, 2017

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“Buyer interest is around $x”… a trap for unrepresented property buyers:

If you are a Sydney property buyer looking for a “price guide”, beware of the agent’s response that “buyer interest is around $x.”

Although they sound the same and many buyers assume they are the same, the two concepts are very different to each other and can expose property buyers to risk.

This is because if the figure the agent gives you turns out to be way below the eventual selling price, (as is almost certain because few prospective buyers ever reveal to an agent or even know how much they might eventually pay), that agent does so with impunity and is certainly not guilty of underquoting.

For there to be an underquote, there has to be a “price guide.” If, as is their right (and one which is being exercised more often these days), sellers and their agents do not provide a price guide, there can be no underquote.

If you are met with this response, you should therefore press the question with: “Thanks but I’m not interested in buyer interest but your price guide.”

That should expose whether or not there is a price guide and also tell you something about the seller.

If you’re trying to find out what a property might sell for, there is no substitute for doing your own research.

In any event, never rely on “buyer interest is around” unless that is, you believe in “alternative facts.”