The myth of the Eastern Suburbs buyer – Don’t be fooled by sales tactics
- February 17, 2022
Sellers frequently ask us whether we attract buyers from the Eastern Suburbs, with this question often motivated by a general assumption that these buyers will pay more for Inner West property. This notion is largely driven by the media and often other agents’ misinformation. There’s a belief that Eastern Suburbs buyers perceive the Inner West as offering superior bang for their buck and therefore, in theory, they may dig deeper than local buyers to secure a property.
We hear this comment with such regularity that we thought it was worth putting it to the test. We assessed sales across an Inner West region over the course of this year, including transactions made by us and our competition. We also conducted a review of conversations with buyers and feedback obtained from more than 500 open houses.
The results are in and let us be the first to tell you that buyers making a move from the East do not pay more than local buyers, or buyers from any other part of Sydney for that matter. In fact, we have discovered that buyers from the East tend to be more critical and in many cases they suggest there isn’t a recognisable upgrade in either value or lifestyle to make the switch that enticing. Of course, there are always exceptional circumstances when a buyer may pay more but it’s an anomaly rather than the rule.
The reality, we’ve discovered, is that local buyers actually pay more for property. This is largely because they immediately recognise the nuances of the location, such as its access to a favourite coffee shop, park or transport route. Typically, this familiarity adds significant weight to a buying decision and will regularly result in locals outbidding, outperforming and outpacing buyers from other regions.
Our results were nevertheless very interesting and it’s clear that buyers from the North Shore, the Hills District and the South all find their way to open houses around the Inner West. If you’re looking to sell, make sure you ask any potential agent the origin of the buyers from their last 20 sales. I believe you’ll find it’s a total mix of suburbs and a variety of reasons why they chose that property.
We’d love to buy into the notion that one particular group of buyers, namely those from the East, will pay a premium for property they like. Unfortunately, this simply isn’t the case and the reality is far more complex. If you’re pinning the hopes of your sale on a buyer from the East, you may want to reconsider your strategy or the advice being provided because it doesn’t stack up. It never has and probably never will.
Information
It’s what we do behind the scenes all day every day that matters most
At CobdenHayson, we are selling more property in a range of areas than our competitors, which provides deep insight into what is motivating buyers and sellers. As we meet more buyers each week, we quickly pick up subtle adjustments in sentiment and can adjust our guidance and information to match the mood of the market. We’re not a cookie cutter agency, we’re constantly evolving around the nuances of the market to ensure both buyers and sellers are provided with the most accurate and up to date information. We understand buying and selling can be a challenge but if an agent can provide genuine well-supported information it certainly helps to provide trust and comfort. Buying or selling? We’d love to help.
