Market Comment – Monday June 2nd 2008

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Another week of 64% clearance rates. Another week of agents saying that it is impossible to pick this market. Most media outlets have moved to call the market a “Buyers Market” and to some extent I agree with this. Most agents, however will keep telling us the market is fickle and that good properties are still commanding higher prices.

All of the above statements are true!!

The key ingredient here is the type of property that you are looking to purchase. Good properties do sell very well. These properties need to be taken off the market early in the campaign for a fair and reasonable price. Some properties, that are not presented well and may need a fair amount of work, are currently not selling very well.

A case in point. We looked at a property in Prahran that was offered at auction and encountered no bids. It was a well located period home with very good “bones” but a little tired and in need of some tender loving care. The property was offered at $850k, $815K then $799k. We purchased this property in the $750’s. An apartment that we looked at in Glenhuntly on the weekend was being offered at $330 – $360k. This was a two bedroom apartment with lock up garage in a small block, easy walking distance to the station. We told our client this property was an excellent prospective investment and should sell between $400 – $410k. It sold for $407K.

If you are in the market to buy a property today, you should speak to a professional buying Agent who is on your side. We are currently in a market that would make it very easy for the ill informed to easily pay 10% more than you would need to, and for the investors out there, you could easily miss very good opportunities simply because they are not quoted accurately.

Ian James

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About the author

Ian has been operating his own businesses for more than 25 years. During this time the self taught lessons of building the business, dealing with staff, suppliers, clients and economic woes have been invaluable. Ian is a fully licensed Real estate Agent, a member of the REIV and registered with the Business Licensing Authority.

Buying property is not just sticking up your hand and outbidding your rival. It is an emotional, fiscal and psychological decision that needs to be planned and well executed. Ian is usually involved in over three hundred property negotiations per year; ranging from the $250,000 first unit purchase for a young couple to multiple million dollar residential developments. Ian's business background and endless numbers of negotiations make him one of the industry's leading negotiators.

Ian is married with two adult children, living in Patterson Lakes. He is a keen fisherman when weather and business allows the time.

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