Are you using these strategies? Top tips for a fast-moving market 

In recent years, the real estate sector has been affected by various factors, including changes in interest rates, government policies, and tighter supply and demand.

According to Phegan, to stay ahead, agents should understand market trends, build and leverage client relationships to generate leads, and cultivate motivation outside of work to drive growth.

Know your market

Phegan said that understanding market dynamics and the factors reshaping them, such as government schemes, was essential for agents’ ability to adapt to changing conditions.

“A lot of people do really well in a good market, but when a condition changes, they don’t adapt fast enough,” he said.

Phegan said there was a range of market indicators that agents should already be looking at, including the number of listings, average days on market, and the number of interested buyers.

“Then I want you to think about what the government is doing to drive particular segments, so you understand where the drivers might be and then learn how to apply.”

As different states have different regulations, agents should not only have a national understanding of the market but also a hyper-local one.

He said that, apart from the first home buyer deposit scheme, the Victorian land tax was an initiative some agents should watch.

“I don’t understand how there is population growth [in Victoria] but traditionally very slow growing, or declining prices – so something’s not right.”

Phegan said that agents should also understand the current market cycles, shaped by economic factors such as interest rates.

“Market cycles are seven to eight weeks now, not seven to eight years. You will potentially see this year, one or two interest rate increases, maybe it’s stable, who knows.”

Phegan said that once agents understood the dynamics of their market, they could develop their growth plan and focus either on average sale prices or on volume to boost revenue.

“So learn more about your market and its dynamics and what you can do to personally be really successful in that.”

Build relationships

Phegan said that while it was essential for agents to understand market dynamics and cycles, they should never underestimate the importance of building relationships to generate long-term leads.

“I would say, relationships are the way forward. There are businesses that have built this into their formula for success.”

He said some businesses used loyalty systems, encouraging customers to spend money over the long term to earn prizes and discounts.

“If you spend a thousand, you’re level one, level two, level three, level four. And if you’re level four, you get free merchandise. What they’ve done is that they’ve got a customer ascension program based on that.”

Phegan said that, likewise, when agents kept in regular contact with clients and made them feel special, developing respect, trust and a desire to continue using their services.

He said that while the best way to connect with people was face-to-face, agents could also call, text, or email to check in or share updates.

“In a world that is confused, in a world that is chaotic, in a world that’s always on, the thing that gets you through all of that is about building long-lasting and very powerful relationships.”

Build a buyer database

In addition to building relationships with sellers, Phegan said agents should also build their buyer database to ensure future pipelines.

He said that agents in a booming market like Perth, where properties sell in eight or nine days, should take the opportunity to compile lists of interested buyers.

“If you’re getting 50 people at an open home, you get the chance to build one of the biggest consumer databases of all time,” he said.

“Some are not realising that because they’re like, ‘I’ve just got to find the offer and get it sold’.”

But this is your chance to build a big database. So when and if the market does change, you’ve got heaps of buyers to ring and say, ‘hey, if you didn’t get one then I can sell you one now’ – and it’s probably better value than it was six months ago.”

Find motivation

Ultimately, Phegan said that agents can receive all the tips that exist, but if they don’t have something to motivate them in their role, it can be difficult to commit to learning new skills.

“If you have not yet committed, there’s no real need to go and pursue the skill set,” he said.

“But if you’ve got a bit of commitment in your life, where you go, ‘I have to do this because I’ve bought the house or I’ve just got married or I’ve had the baby’ often the driver can be that.”

He said that to find inspiration, agents should look at photos on their phones to remember what was important to them, whether it be sunsets, holidays, classic cars, or their children.

“Get out of the saddle more often so that when you’re in the saddle, you can be better as a performer. When you find something that works, double down on it. Turn it into a system,” he concluded.

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