Received A Low-Ball COVID-19 Offer?

PHOTO: COVID-19

Almost all of us have been impacted financially by the COVID-19 pandemic. Personally, I’ve been impacted on a number of fronts – but perhaps the hardest one has been my property sale.

This home is listed for sale for $875,000.

Today, my real estate agent reluctantly forwarded an offer:

“As the market is clearly on the way down, we would like to make an offer $675k for this property subject to building inspect. Finance 14 days. $10k deposit cash.”

I’ve been a property journalist for almost 15 years, so I’m not surprised by this low-ball tactic. But I am disappointed that there are bottom feeders in the market already, seeking to profit off of our collective pain and misery.

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It’s obvious that this buyer has taken the scattergun approach: he’s messaging dozens, perhaps hundreds of property sellers and making skeezy low-ball offers of 25% or more below asking price.

The thing is, the buyer clearly hasn’t done his research. We’re not quite at “pandemic pricing” yet…

1. “The market is clearly on the way down”

Is it? We’re at the very beginning of this pandemic, and the only thing that is clear right now is that everyone has left the market – buyers and sellers alike. Demand has fallen, but so has supply. Where buyers are forced to sell, they may be inclined to accept a low-ball offer. But overall, the fundamentals for Australian property are solid. As property analyst John Lindeman confirms, “leading indicators suggest that property prices will continue to rise in our major capital cities despite the pandemic, and that they could rise strongly once the coronavirus has