Slash by 20 per cent to sell

Real estate agents say the magic number is 20 per cent: motivated home owners who slash their asking price by that number can defy the property downturn and have offers flooding in.

Better still, agents are advising sellers to remove the asking price from advertisements or rely on an auction to set the price.

Average property prices have dropped only 8 per cent from a November 2007 peak. But reluctant buyers are demanding far more substantial cuts to prices.

Min Sarginson, from Min Sarginson Real Estate in Canterbury, said that tipping point was 20 per cent.

"Across the board, we're looking at asking vendors to drop 20 per cent to get the offers flooding in. Other real estate agents around the country are also suggesting vendors drop 12 to 20 per cent."

She said industry sales figures, showing a 5-7 per cent drop in prices, understated the real price cut needed to attract buyers. Buyers who have cash to spend are trying to anticipate how far the market will drop - and, if they can't get those prices now, they're willing to wait.

To read the full NZ Herald article click here

Posted: 23 Feb 2009

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