You will no doubt have heard the expression ‘talk is cheap’. Well, let me tell you something for nothing, that expression absolutely does NOT apply to the residential property market. In property, talk has the power and potential to cost people money.
I think it’s really important for people to remember that talk isn’t cheap when it applies to residential property. The market can move in response to rumours. Activity can atrophy on the back of predictions. Talk can impact perceptions, motivations and therefore it can impact money.
It’s happening now. The talk is that the power balance between a buyer and a seller has changed.
Buyers believe they now have all the power because the market is easing. They’re assuming every property is over-valued and subsequently entering negotiations with a determination to drive the listed price down and a confidence they can succeed.
I’m not trying to deny that the market has eased. I recognise tightening economic conditions are leading potential buyers to re-evaluate what they can realistically afford to spend on a property. They are rightfully price-sensitive and need to determine at what value they are prepared to buy.
However, don’t forget those same economic conditions exist for vendors who are equally conscious of cost-of-living pressures and interest rate increases.
Vendors are also re-evaluating what they can realistically expect to secure for their property. At the same time all the talk of a ‘buyers’ market’ has meant vendors are incredibly sensitive to being taken advantage of. Vendors need to determine at what value they are prepared to sell their property.
And there you have the truth. Talk of a shift in the power dynamic is not cheap because it’s a perception and the only reality is that perception can cost the chance to secure a deal that could be a very good deal for both the buyer and the seller.
That’s the tightrope our team must navigate every day to negotiate a deal. We must earn the respect of clients by demonstrating a commitment to facts and stats as well as honest, transparent communications. At Morton we are forever conscious that talk is not cheap so rest assured, we are very careful to set realistic expectations and to say only what we mean to do.