Half of vendors accepting lower offers as market weakens

Half of all residential sellers in 2011 had previously refused a higher offer, according to a straw poll undertaken by Ray White Group estate agents.

“This is an incredible statistic,” the group joint chairman Brian White says.

“In a profession that prides its purposefulness in achieving the highest possible price for our sellers, it comes as a shock.

“Is there a better way that we can communicate with our sellers the attractiveness of early offers?

“At the present time, so many sellers are hopeful of higher figures – conditioned by years of justified confidence in the underlying value of their assets,” he notes. “It’s only natural to express disappointment at earlier offers and to ignore them.

“It is clearly painful when that rejection leads to even further disappointment later on,” White says.

The Ray White Group’s total turnover for July totalled $2.03 billion, which held its $2 billion plus monthly track record.

Sales volumes has been maintained year on year, with the 10% overall reduction from July last year reflected chiefly by falls in price values.

Queensland had its strongest month for 2011, as did Western Australia – the two Australian states with highly publicised difficulties.

“Our other markets continued at previous levels established this year,” White notes.

“But the market is adjusting. Our high-profile Broadbeach office made four sales in the month – each under $200,000 – for properties that haven’t realised that amount for more than 10 years.

“Spring is just around the corner, and already our offices are reporting increasing marketing campaigns set to soon commence.”