"Perception is Reality"
There is a saying that I pretty much use every day about real estate, and that is “perception is reality.” If someone believes something then it must be true, no ifs or buts, that’s simply the way it is. As an example ask 4 different Hurricanes fans who their player of the year is and you will likely get 4 different answers (ok, maybe not for this year when Ma’a Nonu has been absolutely outstanding) All four fans will have a compelling argument about why their player is the best, they may listen to other arguments why a different player is the best but they will not change their opinion, their perception is their reality.
The reason I say this is because of late we are seeing a good number of properties selling under their Government Valuation (GV). As a result of this the majority of buyers it seems are taking the GV as the asking price and taking 8-9% off stating that is the what a particular property is worth. They are not taking into account a number of factors, very recent selling prices in the street or area, that no-one comes to your home every 3 years from Quotable Value to actually value or appraise the property, that the GV figure may grossly wrong either too high or too low, and one more very important factor that while a lot of houses are selling under GV it is equally true that a good number are selling at or over the GV.
I understand that people want to negotiate and that it is currently a buyers’ market but adopting a one size fits all policy in terms of buying property simply doesn’t work, ultimately the market will dictate the price and hopefully it will be a figure that suits both parties not just the buyer, a true win win.
Perception is reality. Homes are selling at or over GV as well.
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