Prospective homebuyers think they should brace themselves to pay more than the asking price, says new Finder research.
A national survey of 1012 respondents found just 19 per cent of Australians agree that houses sell for the price they are listed for.
The research revealed 70 per cent expect property to sell for more than what the seller asks.
One in every four Australians (26 per cent) think that properties normally sell for between 11 to 20 per cent over their asking price, while a further 5 per cent think they sell for 21 to 30 per cent more.
Home loans expert at Finder, Richard Whitten wasn’t surprised people were dubious about home listing prices.
“It’s an agent’s job to garner as much hype as possible on their listed property,” Mr Whitten said.
“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.”
A house in Thornbury, Melbourne, recently sold for $260,000 above its reserve, while a terrace in Queens Park, Sydney beat its reserve price by more than $500,000.
Interestingly, Baby Boomers (1946 to 1964) are the most likely to think a property will sell at its advertised price (26 per cent), compared to 17 per cent of Gen X (1965 to 1980), 19 per cent of Millennials (1981 to 1996) and 15 per cent of Gen Z (1997 to 2012).
Mr Whitten explained that a combination of low interest rates, rising land values, and readily available access to finance had all contributed to a supercharged property market.
“This is particularly the case in capital cities like Sydney, where the median house price is more than $1 million,” he said.
“If you’re concerned about rising property prices and your ability to enter the market, take a step back, create a savings plan, and focus on your goals.
“There are lots of ways to enter the property market, and it’s not a race.”
The survey revealed one in four (23 per cent) of Australians think that properties typically sell for six to 10 per cent above their asking price, while a further five per cent believe they sell for 21 to 30 per cent above it.
Just 11 per cent of respondents think that houses sell for less than their advertised price.