However, it has changed from the FOMO acronym “Fear Of Missing Out” to one I have come up with called…. “Fear Of Market Over”
With declining property prices across most major Australian cities, this new F.O.M.O phenomenon is taking over with property buyers everywhere scared to pull the trigger and buy a property due to the very real fear of paying too much for it.
A lot of sellers are realising the property market is falling and are rushing to sell however they still have the expectations of the last sale in the street which might have been from 2017 when Sydney had a huge surge in price values.
With dwindling numbers at open inspections and even fewer people turning up to bid at auctions – 1 or maybe 2 bidder registrations (if you’re lucky). Compare this to 2017 when you had 6-9 bidders on average attending auctions. The pendulum has clearly swung in the buyer’s favour however when the auction stalls due to lack of bidder competition interest and buyers should be pouncing, they become frozen like a “deer in headlights” and proceed to do and say nothing at all during the auction.
Its hard to fathom, considering they have spent money, time and a fair bit of emotion to make the decision to buy that day and then do nothing because no one else is bidding and they are paralysed by the fear of paying too much for the property.
Thoughts run through their minds “why is no one bidding?” “Maybe there’s something wrong with the property” “Is the seller’s price too high?” “Should I be buying now or later?” or they become motivated and think “No one is here, and I’m going to try and steal or get an absolute bargain for this property”
Now, I understand this last thought being a buyer’s agent however you need to be realistic about it.
In some cases, if there are no bids during the awkward silence at the commencement of the auction bidding process, the buyer then throws in an offer from house prices of 1988 because they feel at that price point they won’t be “paying too much” invariably that offer is not accepted and the property is then usually passed in on a “no bid” or “vendor bid” scenario.
Our advice to clients as a buyer’s agent is – Once have found your dream home that suits you or your family, it’s in your budget (comfortably) and you have done your due diligence on price values in the suburb, this preparation will negate your “Fear Of Market Over”
You don’t need to be afraid to buy a home in these times. For most families, this purchase is long term and life’s too short to procrastinate. Good luck and happy house hunting.
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