Fear and panic gripping house sales and auctions
Expert says buyers 'worry they’ve paid too much or that the market will drop further, and they pull the pin'.
HOUSE sales are “falling over at the 11th hour and it’s happening more often than people think”, according to a peak industry body.
The Real Estate Buyers Agents Association of Australia said cooling property markets are triggering a surge in failed sales, with buyers walking away from contracts, collapsing auctions and leaving vendors blindsided.
And it’s a trend that the REBAA believes “will become a defining feature of the traditionally strong spring selling season”.
REBAA president Zoran Solano said the association is hearing increasing reports of buyers getting cold feet after verbally agreeing to terms, or even after winning auctions, which is forcing sales agents to relaunch properties while leaving vendors exposed.
“In the past few months, we’ve seen deals fall over at the 11th hour and it’s happening more often than people realise,” Solano said.
“An agent said to me just recently ‘negotiations have progressed, we’ve got an agreement, we’re signing the contract, so this one’s gone’.
“And 24 hours later I get another email saying ‘the deal has fallen over and we’re back on the market. Is your buyer still interested?’
“That’s the reality right now. Buyers are getting cold feet, they’re panicking and they’re walking away from contracts they’ve already agreed to.”
Solano said this kind of behaviour becomes more common in softer market conditions because people start second-guessing themselves.
“They worry they’ve paid too much or that the market will drop further, and they pull the pin,” he said.
“It’s incredibly destabilising for vendors and sales agents and it’s exactly why having a professional buyer’s agent involved can make a difference.
“Our clients don’t bail out because they’ve done their due diligence, they understand the numbers, and they’re confident in the strategy.”
Solano said buyer hesitation is being driven by fear of overpaying as prices soften, with many attempting to time the bottom of the market, which is a strategy that is impossible as well as counterproductive.
“Buyers are terrified of buying today and seeing a similar property sell for less at Christmas,” he said.
“That fear is paralysing people and it’s causing chaos for vendors and sales agents who think they have a done deal.”
He said market indicators, including rising vendor discounting, longer days on market and an increase in withdrawn listings, show a clear shift in conditions.
“This is a market where negotiation matters, where due diligence matters, and where professional guidance matters,” he said.
“The buyers who stay calm, stay informed and stay strategic are the ones who will come out ahead.”
Despite the slowdown, Solano said the current conditions present opportunities for well-prepared buyers who understand how to navigate a shifting market.
“Markets don’t move in straight lines and buyers shouldn’t make decisions based on fear or headlines,” he said.
“What we’re seeing now is a natural part of the cycle – sure, conditions are shifting, but the way you buy property must shift with it.
“The buyers who stay disciplined, who rely on good advice, and who focus on long-term fundamentals rather than short-term noise are the ones who will make the smartest decisions in this environment.”
