It’s the price stupid

I am often asked how someone decides what house to buy.

My answer is “The best price they can find at the time”.

Others in my space will wax lyrical about being close to work, in the right school zone or being near public transport.

These factors do play a role but nowhere near as much as the price.

A recent survey by CoreLogic supports my claim.  This survey, conducted in 2017, found that the top considerations when deciding what to buy included:

  • 79% price
  • 40% proximity to work
  • 39% near good public transport
  • 37% near major infrastructure like hospitals
  • 30% distance from the CBD
  • 29% close to existing family
  • 28% close to school/sjp
  • 28% larger block of land

I am amazed how few resale properties are placed on the market these days without a clearly listed price or even price range.

In the new building space, especially off-plan development, the asking prices are almost always hidden from view.

You have to make an inquiry to find out what remains for sale and how much the developer is charging.  And even then, the answers supplied are opaque at best.

And forget trying to get a full price list!

I reckon sellers are missing out on potential sales, and maybe more than they realise, by hiding the price.

No other major sales item hides the price.  This is especially the case on the internet.  Look at the car industry or holiday packages, for example, and how they promote the price/deal.

I just don’t get it.  The real estate portals and promotion blurbs are chockers with babble about the secondary things on the survey list above, yet the most important thing is missing – the price.

Maybe it is time to rethink how real estate is promoted.

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