Cooler market prompts campaign strategy shift

According to Raine & Horne Gosford sales manager Kristian Bingham, while the market’s pace would typically keep agents busy, the latest drop in activity had prompted a change in campaign strategy.

“We are definitely seeing less buyer activity in the market,” Bingham told REB.

In June, the latest Cotality data showed days on market rose nationally from 28 to 32, as buyer sentiment shifted.

Despite the relatively minor increase in days on market, Bingham said agents have had to adjust their listing strategies to leverage the fundamentals and coach clients through an extended process.

“The success of your campaign comes down to getting the basics right.”

Back to basics

Bingham said that in a slower market, agents should turn the tables and put the emphasis on buyers, ensuring they have a great experience, which could lead to a sale

He said that as the market becomes harder and buyer activity declines, agents need to maintain strong follow-up with interested parties.

“Whereas in a strong market, that is probably one of the first things that falls away as agents get very busy, open homes get busy, and buyers have to climb all over each other to find a property.”

Bingham said that agents should focus on doing the “buyer work”, such as understanding their motivations, reasons for the transaction, and what they are searching for.

“We are finding out exactly what they need, what they’re looking for, then going out there and finding it.”

“It’s also knowing more about, not just what they need in terms of the property, but also what the buyer needs in terms of their timeframe and reason for wanting to transact.”

By understanding the profile of their potential buyers, Bingham said agents could improve their listing prospects in the future, achieving better results for the vendor and strengthening the existing relationship.

The three P’s of property sales

According to Bingham, the key to any listing strategy was an agent's ability to price the property correctly, promote it, and present it well to generate interest.

He said that starting at the right price was an almost surefire way agents could ensure they generated interest in their listing from the beginning.

Additionally, he said that a successful agent needed to ensure they were leveraging the full power of the marketing tools available to them, from property platforms to their own database.

“Buyers have never had more information about what they are shopping for. All they have to do is get online now, and they can compare every property online before they even bother to come and inspect.”

“A well-presented home with professional marketing and realistic pricing is always going to attract more buyers. They’ll attract more inspections, and they’ll help agents provide a better service overall.”

Bingham said that agents should ensure their clients were prepared and educated about the process beforehand to minimise friction between the parties and achieve the best result.

“If you aren’t having the conversation with your client about how to make the property more compelling and more appealing to purchasers prior to hitting the market, especially in a market where buyers are being more selective, that could really impact your result.”

Additionally, Bingham said the market's performance in the coming months would likely differ across segments and would largely depend on the property.

“As for what the market is doing, I can definitely see winter being a little bit slower than normal.”

“I would like to think that going into Spring, we’ll see some fresh momentum in the market as the months get warmer, but honestly, it’s a wait-and-see because nobody really knows what’s going to happen.”