Time for honesty when markets lose their sparkle

Time for honesty when markets lose their sparkle

01 August 2011 by Pamela Bennett 0 comments

Ensuring vendors are well aware of their property’s value is one way to keep properties moving in otherwise lacklustre markets

>There are many in the real estate profession, with perhaps 10 years’ experience, who have had to adjust their thinking and way of doing business because they haven’t experienced anything like the current flat market conditions.
In Queensland, the property market has been flat-lining for more than a year and was struggling well before the Reserve Bank increased the cash rate seven times in little more than a year.
There always have been – and always will be – peaks and troughs in the property market and it is during times such as this that an agent’s professionalism, client database and perseverance must really come to the fore. With so many properties on the market currently stagnating due to a lack of committed buyers, it is vitally important that agents only list and work with realistic sellers who are prepared to meet the market on price.

Now is certainly not the time to be using up valuable resources on properties that are stagnating in an ever-increasing pool of listings.
If your seller is not realistic about the price they can achieve – and it is part of a good agent’s job to make sure they are – then it is highly likely that the listing will languish on the market, unsold, for months, which is detrimental to your reputation as an agent.
In this situation, the agent should recommend the property be withdrawn until the seller is prepared to be realistic about price or until the market improves. Given that days on market has pushed out to beyond the usual 60-day appointment
period, it is also imperative that agents communicate with their sellers openly and honestly throughout the process to ensure they do not become disheartened when their property does not sell immediately. Having a professional and respectful demeanour will not only help your relationship with your client, and help to secure a future appointment to act if needed, but will ensure that the selling process is as stress-free as possible for them.

Unfortunately, in a market such as this one, there is no magic spell that will conjure buyers out of thin air. Confidence levels are low because of continued uncertainty about the state of the economy both here and overseas.
The cost of living seems to be rising continually and the current interest rate setting is certainly restrictive when you
put it into the context of all of these economic factors. A good agent, however, should have an understanding that we are currently at the bottom of the real estate cycle – and in Queensland, the billions of dollars of investment in mining and infrastructure will soon see the market turn around.
Growing your client database in quiet times such as this will mean that once the inevitable upturn begins, you are already one step ahead of the rest.

promoted content
Recommended by Spike Native Network
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
William Phillips on how agents can expand their database and grow their business

In this episode of Secrets of the Top 100 Agents, host Tim Neary is joined again by William Phillips to discuss the real estate database and...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
upcoming events
REB Awards
Sydney The Event Centre 12 Sep
REB Awards
Sydney The Event Centre 12 Sep
Melbourne The Event Centre 14 Oct
Brisbane The Event Centre 18 Dec
View all events
Do you have an industry update?