Buyer vs Seller Market: Gurinder Singh of LM Realty Explains the True Value of Hamilton Homes
Hamilton real estate agent Gurinder Singh says that CV, or rateable value (RV), is not an accurate indicator of a property’s true market value.
Instead, Singh, an agent with LM Realty, says there are several factors that influence property value, and one of the most significant is the type of market.
"A property’s value can shift depending on whether it’s a buyer’s market or a seller’s market, in other words, the dynamics of supply and demand," Singh says.
"When supply exceeds demand, it’s a buyer’s market, giving purchasers the upper hand. Conversely, when supply is limited, it’s a seller’s market, allowing vendors to command higher prices," he says.
The Real Estate Authority (REA) requires that every licensed salesperson provide an estimate of a property’s value before listing it. This estimate is largely based on recent sales of comparable properties in the area and helps set a realistic, market-informed benchmark. "This is what I call a research-based value," Singh says.
"On the other hand, every vendor enters the market with an expectation of what their property is worth, their dream price. While this can often be higher than market reality, it represents the seller’s aspirations and emotional attachment to their home," Singh says.
"In today’s market, which currently leans toward buyers, it’s ultimately the buyer who decides what they are willing to pay. Often, there can be a gap between the research-based estimate, the vendor’s dream price, and the buyer’s perception of value, and this is where negotiation skills of a real estate salesperson and market strategy become critical," he says.
"Understanding these dynamics is key for both buyers and sellers. CV may give a rough guideline for rates, but real market value is determined by research, market conditions, and ultimately, what buyers are willing to pay."
Contact Gurinder:
Licensed Real Estate Salesperson (REAA 2008)
gurinder.s@lmrealty.co.nz
021 491 424
https://www.lmrealty.co.nz/gurinder
Proof in the Pudding: “A home holds two treasures: the life you live and the wealth you build.”
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