Consumer News

What determines a property’s price? 

26 May 2017

By Tim McKibbin – REINSW CEO

We are constantly bombarded with news about the property market and in particular the increasing cost of housing. It is not uncommon for purchasers to hold vendors and real estate agents to blame for the cost of housing.

However is it true, are vendors and agents to blame?

There are many others factors, including the limited supply of property in the market which increases competition and therefore price.

A real estate agent’s role is to generate interest in the property from as wide an audience as possible. Ultimately however, it is the purchasers who decide the price of the property. The best and most obvious example is an auction.

So, the biggest problem purchasers face in their bid to buy a home is the desire, perceptions and buying power of their fellow purchasers.