How a listing surge reshapes agent strategy

The latest data from SQM Research found that total property listings rose by 12.4 per cent in July, reaching its highest point in over a year at 278,984.

As more options became available for a smaller pool of buyers, LJ Hooker Terrigal director Matthew Farrugia said agents would have to become accustomed to doing the heavy lifting.

With almost 15 years of industry experience, Farrugia said the property market’s slowdown had brought it back to a more reasonable level.

“I don’t think what we have had is normal, expecting 20 people at every open home,” Farrugia told REB.

He said that the market’s adjusted pace was something many newer agents had not experienced.

While agents grew accustomed to letting the market drive interest in a property, he said that those who understood how to adjust would set themselves up for success.

“A lot of agents that are struggling at the moment are the agents that are so used to putting a listing up, booking the open home and hoping that people turn up,” he said.

“I think the agents winning at the moment are the ones that really work their buyers and explain to their vendors exactly what is happening in the market.”

Growing visibility

With days on market also on the rise, Farrugia said agents needed to reconsider their campaign strategy and make adjustments.

Farrugia said that properties needed to be exposed to the market much more frequently when supply outstripped demand, resulting in an increase in targeted social media campaigns.

“The best way we have found to do deals at the moment is to keep that property front of mind for potential buyers.”

He said that he had “doubled down” on marketing strategy, leveraging property platforms as well as targeted social media advertising.

“Then it comes down to your buyer work, knowing what they are looking for, staying in touch and matching the right people to the property.”

Looking beyond the headlines

In addition to using property platforms for their own listings, Farrugia said agents should stay as up to date on their own market as they can.

He said that rather than focusing on the headline data, agents should be specific about their area, and remind their vendors that the nation’s property markets reacted independently of each other.

“It’s really important for agents to make sure they are staying across what’s happening in their market day by day, and try not to think too far past that.”

“Our access to media happens so quickly, which means good news or bad news travels fast, and then the market reacts accordingly. At the moment it’s about getting used to trying to drown out some of the media noise.”

Identifying the opportunity

According to Farrugia, while the increase in listing supply would prompt many agents across the industry to change tactics, it was largely a positive.

“I think with listing numbers on the rise, it helps everyone. It might not always feel that way as a seller when you see comparable listings come to market, but I think that ultimately, more choice brings more buyers.”

When there was less supply for buyers to choose from, Farrugia said they often elected to sit back and wait.

He said that many were afraid to transact for fear of selling their property and ending up without a new one to move into.

“In a hot market, everyone’s so confident to put their property on the market and sell it for big bucks, but then they have to go out and buy something in an inflated market that is on the rise.”

Farrugia said that agents needed to remind sellers that a softening market would provide them with the opportunity to purchase a higher-value asset that had also come down in price.

“You have the time; you can be patient; you are not going to be pushed out of the market.”