How many times I have had buyers ask, ‘what is the market doing’?
Over 20 years of selling real estate I have been asked this questions more times than I can remember, through the cycles of real estate, the hot and not so hot markets, luming elections and the tumbling of the Australian dollar…..as a real estate agent I’m meant to know the answers to all these questions with absolute certainty!
If I could read the future surely I wouldn’t be giving up my weekends to chat with buyers at Open House, do follow up calls on Monday and loading Open for Inspection times on the internet? I would like to think as a fortune teller I would be mulling over which exotic destination takes my fancy and be booking a flight!
As agent we sit with potential vendors to discuss the ‘market worth’ of their home and look to current trends and any significant upcoming events that may impact on that worth. We look at all recent sales around the property but also look at the ambience that will attract a buyer…it sometimes is difficult to place an absolute worth on a property and it is at this point an agent draws on all their experience and ability to arrive at it’s worth.
However the property market can change like the wind, particularly as I sell in a beachside resort area and this has great impact of the original worth placed on a property at the time of listing. In most cases the lead time from saying hello to a potential vendor to opening the front door at the first Open House can be six to eight weeks… Therefore in a falling market the worth is out of date before hitting the market which is extremely difficult for the vendor but also for the agent, as we can’t control the external forces of economies nor public perception of a property nor the market. Same theory apples to a rising market when the vendor is greeted with numerous offers at the first open house and they begin to wonder maybe it’s too cheap and should have asked for more. It is these factors that an agent has to deal with constantly the reality of a property worth and the vendors expection…it is hard to say to a vendor well nobody sees your home worth that amount or buyers just don’t attend Open House which is deflating for a vendor. Your agent unfortunately is the one who has to deliver the news and relay what buyers have said, yes a buyer may have come through and loves your home and says I’ll be back to you which as an agent you pass onto the vendor but the buyer never calls back and once again the agent must relay this disappointing news.
Selling property is what I’m passionate about and maybe this is what I’m most suited for in life..so while the media does nothing to invoke confidence in the market, the banks have tightened borrowings, all your friends say wait till it bottoms out… it is your agent there with you all the way so spare a thought for your them as they are working with you in a tough market as they also want to achieve the result for you. They invest their time free of charge, give up any resemblance of a normal life constantly working, have to deal with buyers who may waste their time and are not as truthful as they should be, all to get the best out of the market for you.