How Someone Decides What House to Buy – Price Matters!!

Weekly Real Estate Market Update with Leigh Martinuzzi MPG

At Martinuzzi Property Group, our focus has always been on delivering the best results for our clients, both buyers and sellers. Over the years, we’ve refined our approach to selling properties, now often leaning on a three-week expression of interest (EOI) campaign. This method has been highly effective in generating interest quickly and allowing potential buyers to see how they stand against others through a transparent platform. It also allows a homeowner to gauge where the price sits in the current market based on real-time buyer feedback. When run for its full length, this process tends to bring out the best offers. However, there are times when a strong offer comes in early, and the property is sold before the campaign reaches its end.

Recently, we’ve re-evaluated our strategy and rather than just listing the property as an EOI campaign with no price, we’ve started to use a price or price guide. In an article shared by Matusik this week, there seems to be some compelling data that supports this trend. A survey conducted by Matusik revealed several key insights into what buyers prioritise when choosing a property:

Survey Summary:

• 79% price
• 40% proximity to work
• 39% near good public transport
• 37% near major infrastructure like hospitals
• 30% distance from the CBD
• 29% close to existing family
• 28% close to school/sjp
• 28% larger block of land

The standout statistic here is that 79% of buyers prioritise price above all other factors. This insight has led us to reconsider our previous reluctance to list a fixed price. While determining an exact price has always been a challenge, especially given the wide range of offers we often receive, we’ve realised the importance of providing at least a price guide. By doing so, we can better align with buyers’ expectations and ensure they know whether a property falls within their budget.

These findings give confidence that our approach at Martinuzzi Property Group will be well received by the market and lead to more positive outcomes for our clients. Previously, while we often provided a verbal price guide upon enquiry, many potential buyers might not even reach out if there’s no price listed. Realestate.com.au reports that most buyers will simply bypass a property that doesn’t have a price displayed, which has encouraged us to be more transparent in our listings.

The response to having a price or price guide for our properties has been overwhelmingly positive. We still may run an EOI with no price for the first week of a sales campaign before setting a price just to gauge price expectations based on feedback. I believe that this approach will become increasingly common across the industry as market conditions evolve over the next 6-12 months.

One of the challenges with setting a price in the current market is the variability in offers we receive—sometimes differing by as much as $100,000 to $200,000. This disparity can make it difficult to pinpoint an exact price. However, by offering a price guide, we help buyers determine whether a property is within their financial reach, making the process more efficient for everyone involved.

It’s important to note that the auction process remains an exception to this new approach. Auctions, especially in Queensland, are conducted without a disclosed price, and it’s actually illegal to discuss price during the auction campaign in this state. While auctions can be highly effective in markets with high demand, such as Sydney or the Gold Coast, they may not always be the best approach in regions like the Sunshine Coast, where population density and buyer demand differ.

So, there you have it, my opinion and our decision to list prices or price guides, aligning with market expectations and enhancing the buyer experience. While the auction process remains valuable in certain contexts, we believe that transparency in pricing is crucial in today’s market. This approach not only helps buyers make more informed decisions but also increases engagement, ultimately benefiting both buyers and sellers. As the market continues to evolve, we expect more agents to adopt this strategy, making it the standard practice in property sales.