By helping downsizers during the sale process and beyond, agents can build recurring business from a single transaction, turning a family home sale into multiple referrals. This is how it’s done.
As older Australians become increasingly hesitant to swap their family homes for smaller properties, agents have a golden opportunity to win new referrals by guiding them through the process and easing their concerns.
LJ Hooker Gordon principal Jing Peng said that by supporting downsizers through the entire process and earning their trust, agents can boost their reputation and generate extra referrals.
“Downsizers live in the area for years, so they have a lot of connections – helping downsizers spreads out our reputation, our name, and we do appreciate this kind of relationship,” Peng told REB.
To unlock new selling opportunities through one transaction, Peng said agents should ease the vendor’s concerns by educating them on the market, assisting with presentation, and helping them find their next home.
This is how to do it:
Educating the vendor on the market
In a slower market, Peng said downsizers may be hesitant to sell as they fear they will not achieve a satisfactory price for their existing home.
However, she said the shifting market conditions could also create opportunities for those reassessing their options.
She said that by buying and selling in the same market, downsizers may be able to keep the price gap between their current home and their next property relatively stable, depending on how each asset performs.
“As long as they can see that the market can work for them on both sides, it’s no different from any other market,” she said.
Peng said agents could help ease concerns by explaining current market conditions for both buying and selling, allowing clients to make informed decisions about their next move.
“We understand the market has seen some shifting because of interest rates and other policies, but it’s also a good season for downsizers to secure the next one,” she said.
Ultimately, she said the decision to downsize depended on each family’s circumstances and whether a suitable next property was available.
“If they can see that the next home in their plan has a good opportunity in this market, I think that’s a good time for them to act.”
Get the property in order
Once an older vendor has decided to sell their home, Peng said that agents should help them declutter, ensuring the property was free of any mess and preparing it for open inspections.
“We prepare the house on the market because most of the downsizers need to sell the current home to finance the next one,” she said.
“We organise the logistics for this part and work with the vendor’s family so that they feel comfortable with what we have been suggesting and what we are proceeding with.”
She said that agents should then help the vendor prepare the home for marketing, including styling and the presentation of the home.
“We talk with the owner, discuss the quotes and the styling, and introduce the styling company to them,” she said.
Additionally, she said that agents can make small recommendations such as fixing up the interior with a coat of paint or advising them on how to make their lawn stand out.
“In our area, we have a lot of landscaping, so we use a lot of greenery and natural colours,” she said.
Help the vendor secure their next property
As part of the entire process, Peng said agents should help downsizers secure their next property to ensure they have a home to move into once they sold their current one.
“Before putting their property on the market, most downsizers fear being left without a home to purchase for the next one. So that’s their biggest fear, that they might be left in limbo,” she said.
She said agents should find out which areas the downsizer had in mind, their criteria for specific features, and their overall plan for the future.
“We assist them with that market search based on their current home’s value, how the next one will suit their lifestyle and the price range to match their finances,” she said.
“If they don’t have any ideas, we will talk to them in detail about what they like about the current lifestyle and what would be a good option for them to consider for the next stage.”
After collecting details from the vendor, Peng said the agent can then show them listings that match their criteria.
While the suggested properties can include their own stock, Peng said agents should not explicitly recommend their listings as it would create a conflict of interest.
“We would like them to have a full picture of what the market is supplying. So we’ll give them everything which we think might suit them, including other agents’ properties,” she said.
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