The Canberra suburbs where vendors are discounting homes

Finding the right asking price is one of the critical elements when it comes to selling your home. It is not as clear-cut as pricing a litre of milk. A plethora of factors can, and will, affect the price potential.

It may seem astonishing that vendors are discounting considering price strength and demand for homes in Canberra. A decline in home building figures released by the Australian Bureau of Statistics suggests additional pressure could be put on prices – pushing them up further.

Despite housing market buoyancy there are some vendors who have offered discounts in order to achieve a sale. Discounting under strong market conditions highlights the importance of setting a realistic price no matter the market.

Discounting occurs when the final price of a home, sold by private treaty, is lower than the original asking price. Data reveals the five suburbs that experienced the heaviest slash to prices – some buyers have found themselves substantial discounts.

The suburbs with the highest level of discounting can be found across the territory, not confined to the upper end of the market. Homes in Bonner had the highest reduction to asking price at 7.1 per cent, followed by 4.9 per cent in Calwell, 4.8 per cent in Kambah, 4.5 per cent in Isabella Plains and 4.2 per cent in Watson, based on private treaty sales over the 12 months to the end of March.

A true asking figure will ultimately encourage a timely sale. Buyers are likely to snap up a home priced too low and equally avoid unrealistic prices. It is likely a naive vendor will ultimately be led to discounting.

Canberra has experienced increased unit supply compared to the long-term average that has resulted in a negative price output. Adjusting asking prices in line to market behaviour has been imperative for unit vendors. A slide to unit building figures could suggest that the price reductions may start to stabilise. It is important to keep a finger on the property pulse since markets are dynamic and can change relatively quickly.

Vendors in certain suburbs are discounting. Units in Chifley had the greatest reduction to asking price at 8.1 per cent, followed by 6.2 per cent in Forrest and Belconnen, 6.1 per cent in Griffith and 5.8 per cent in Barton.

To avoid discounting, market research should be the starting point for anyone looking to sell. Seek out comparable sales and active listings, within a realistic time frame. It is important to keep pace of market behaviour. Sticking to a three-month period will provide a clearer understanding of current market dynamics, helping to give a better price indication.

Conducting your own research is key but don’t forget to ask the experts. Agents are entrenched in the market and brimming with a wealth of information. Start by tracking down the agents that specialise in your suburb and gain insights.

The moral of the story – the best seller is an informed one.

Nicola Powell is a property expert for Allhomes. Tweet: @DocNicolaPowell