What should you do, buy, sell or wait? John McManus Principle of LJ Hooker Willoughby & Artarmon shares his insights on what to do in the current property market.
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Here’s the transcript of the video:
the opportunities for buying and selling now versus waiting what's your thoughts so maybe maybe call me a dreamer but you know a lot of people are asking me John you know when's the market gonna tank should I should I wait now or should I wait another 12 months in the market might come off another you know 10 percent yep so maybe another day is you know you should sell when you're ready to sell and I think really at the end of the day if you're going to sell in a market that's moving like it is and it's a bit sort of displaced a little bit but you would have a value of what your asset is worth and if you put your hand on your heart that's how much your house is worth yep so if you're after a premium in this market you're not gonna get it but if you are willing to meet the market and and your your heads in that in that mindset you'll be able to move on and and and move on with your part of life that you're looking at doing cos if you want that sea change that tree change your wanting to downsize well there's a price that you're going to be happy with okay so if that price isn't achievable then you should be upfront with your agent is this price that I want two million bucks for instance achievable if your agent says to you you're probably only worth one point eight you probably shouldn't be selling yep but if you're saying that your price is two million bucks and the agent says I'll get that any day of the week you've got to get another agent in okay because he could potentially be taking up the garden path and you might end up then selling for 1.8 which is not the price that you want thank you so make sure you get honesty in the first place get the price that you want and if it's unrealistic don't go to the market yep you might as well go on holiday with the market yeah the money that you're gonna spend yeah okay so on the other hand now this buyer coming into the market that wants to buy so the buyer says well I'm gonna wait till it tanks so when it tanks what happens in then? next part of the journey is let's be competitive on auction day because I've got three other people that want the same house as me and now I'm going to pay over for the same asset that I could have bought if I liked the asset at two million bucks I was willing to pay 2 min but I waited for the agent to sweat on auction day the vendor passed his property in and potentially bought at 185 yep yep but that's the house I wanted and I could have paid too but now because the markets moving the other way and going up again I'm gonna feel comfortable in my own skin that I paid one point two point one five for the asset because I had two other people next to me bidding against me and now it must have been fair market value for the asset yeah that's crazy I sit down I ask buyers so what do you think is assets worth were you're quoting - it's probably only worth 1.85 in this market John yep and I say to them listen so if I had someone else telling me it was worth 2 million and you were there an auction daily bidding against that other person and you thought it was two million as well would you give me 2 million 50 well I probably would so if the guy next to you or the woman next to you is bidding well we better bid as well because that must be market value yeah and it must have already tanked so a 2 million 50 must be a good buy yep crazy and I'll say to people every day what do you honestly think it's worth without actually discounting the property too much yeah yeah and be fair with a vendor because everybody wants to get the best I can for themselves and you want to get it for the cheapest you can so if I'm quoting you too near anything's 185 let me find you another home no but I want this one John the markets going to drop in 12 months time it probably only be worth one point seven so you should go and work on your vendor and sell it to me at 185 No this is what my client wants this is where I honestly think fair market value is so you either give me the two million dollars I help you secure it or you don't give me the two million dollars and I'll find you something else for one eight five yeah what would you like to do and if you are a buyer i can help you secure the property yeah
