- 26% believe properties will normally sell for 11-20% above asking price
- Finder's home loan expert is not surprised people are "dubious" about listing prices
- Baby boomers most like to believe a property would sell for the listed price
A national survey conducted by Finder has revealed less than a fifth (19%) of Australians believe houses sell for the listed price.
Furthermore, 70% expect a property to sell at a premium to the asking price.
Just over a quarter (26%) believe properties normally sell for 11-20% over the asking price, another 5% think they sell for 21-30% more.
Finder’s home loans expert, Richard Whitten, said he is not surprised people are “dubious” about listing prices for homes.
“It’s an agent’s job to garner as much hype as possible on their listed property,” said Mr Whitten.
“This, coupled with the property boom having instilled a fear of missing out among prospective home buyers, means we’re seeing more homes sell for well above their reserve price.”
Richard Whitten, Finder home loans expert
Recent examples of houses selling well above the reserve include a Thornbury property that sold for an extraordinary $260,000 above reserve. A terrace in Sydney’s Queens Park saw a sale price of $500,000 above its reserve price.
The survey also found that baby boomers are the generation most likely (26%) to believe a property will sell at the advertised price. 19% of millennials hold this belief, 17% for generation X and 15% for generation Z.
Mr Whitten added that supercharged property has been caused by a mixed bag of factors such as low-interest rates, rising land values and easy access to finance.
“This is particularly the case in capital cities such as Sydney, where the median house price is more than $1 million,” he said.
11% believe houses sell less than the advertised price, while 2% added they believe house prices sell for 50% above the advertised price.