BEST PRACTICECONTRIBUTORSElite Agent

Mark McLeod: Great challenges create great opportunities

The past two years have gifted us with a real estate market unlike many we've seen before. But with the tide turning, agents may be a risk of blaming themselves for the change in circumstances. Here, Mark McLeod explains what you can do to ensure you come out on top of the latest market cycle.

Over the past couple of years it has been pretty easy to be a winner in real estate in Australia and New Zealand.

You could walk down the street and find the youngest person possible and they would be unlikely to have experienced a market like we have been gifted in their lifetime. 

Virtually every market, in every state, every hamlet, every town and city across Australasia has most likely, never before, collectively experienced the almighty growth we have witnessed in the past couple of years.

But what goes up, must come down and, if we look to the future, it’s inevitable that the market has, and will continue to change.

As time ticks on, you need to fully accept that there will be losers. However, what side of the coin you end up on, a winner or a loser, is ultimately up to you.

The good news is you can influence where you end up, so let’s look at some key points I believe will help you along the path to becoming a winner. 

Responsibility

We must fully accept that we did not create the property boom. Circumstances way out of our control caused that.

Once you accept this then you can accept that any correction is not your fault either.

As agents we operate in the market, we don’t bring it into existence and nor do we dispel it.

What remains our responsibility is to get the very best price for our customers, regardless of the market cycle we find ourselves in.

We were wrong

If I asked you how many properties sold for more than what you thought they would in the past couple of years, many, if not all of you, would say every one of them.

So, it is fair to say that our price assessments were incorrect.

Remember this saying; we were wrong on the way up and we will be as equally wrong on the way down.

But so often in the correction phase all you hear in agencies is, “this property has to be, it must be, it has got to be and, it should be worth this”.

Let go of being right, and attach yourself to quality, strong, precise, feedback and recommendations instead.

The experience has changed

The experience for the buyers has changed significantly in recent times.

Six to eight months ago there were huge crowds at open homes, and properties were selling in just days and prices were surging.

But times have changed. Buyers no longer have the same sentiment or feel the same experience.

They see property starting to be passed in, or withdrawn prior to auction, seemingly with no interested buyers.

The winners help clients understand that the experience for the buyers has changed.

I suggest you act quickly on this. 

Last but not least

If you understand this quote, you will be well on the way to winning:

“When the market was surging the buyers created the sale, when the market corrected, the vendors created the sale.” 

There will definitely be winners and there will definitely be losers, but what is exciting is you get to choose which one you are, not the market. 

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Mark McLeod

Mark McLeod has been named the Ray White Group's new Chief Strategy Officer of Real Estate.