It’s no secret that there’s an oversupply of buyers and an undersupply of homes in the Australian property market right now. Market Buy’s John Hellaby says the stop-start impact of lockdowns has only exacerbated the problem. Here, he explains how agents can work with the changing market, not against it, to generate great results.
Imagine a small garden hose.
Now, imagine connecting that hose to a fire hydrant, and blasting it at high pressure.
Imagine putting a kink into that tiny hose to stop it from flowing, waiting for the pressure to build, then suddenly releasing it.
That’s a pretty good reflection of what we’re currently experiencing in the real estate market, thanks to lockdowns forcing it to stop and start ad nauseum, causing listings to plummet, while buyers pile up.
This pandemic, and its impact on our industry, has never been seen in our lifetime; so there’s no data for real estate professionals to rely on when it comes to devising a strategy to manage it.
Put simply, we have an overwhelming supply problem – and it’s likely to get worse. Add low interest rates to the mix, and the problem is even further exacerbated.
In contrast, demand is growing. Fast.
At some point, something’s got to give.
In the meantime, real estate professionals need to learn to work with this changing market, not against it – for themselves, for the buyers, and most importantly, for the sellers.
As a real estate agent, it is your core duty to get the best possible deal for the vendor.
To do that successfully in the current market, you need to be able to access an ever-growing pool of buyers – quickly.
Rather than wait for them to come to you, or trawl through a database of contacts, Market Buy gives you the tools to engage and qualify buyers quickly, meaning those that missed out on the last sale, can get in on any relevant new listings early on.
Over the past year, one thing I’ve found incredible is the number of active, registered, and qualified buyers per sale.
I don’t remember a time in my 12 years in and around the real estate industry, where you could honestly report an average of between eight and 12 buyers competing for each sale.
By using technology like Market Buy, real estate professionals can actually take advantage of the current market, and the reason for that is simple – better offers, from more buyers – thanks to streamlined, real-time communication between all parties.
Buyers can make offers directly through the website, immediately notifying both the seller and, importantly, other buyers, who can then quickly decide whether to make an offer of their own.
This creates a swift negotiation process, prompting more buyers to put their best foot forward.
Buyer competition is already so fierce, with homes listed on realestate.com.au almost selling themselves.
Rather than sit back and allow the market to do the work for you, why not make the most of that competition, nurture it, and maximise the outcome?
Putting the systems in place to manage buyers effectively and efficiently also has a direct impact on their willingness to trust you.
The transparency afforded through this system, means buyers aren’t anxiously waiting for updates or progress reports.
They’re kept informed through the entire process, and in turn, feel in control of the outcome.
The icing on the cake?
Having all this unfold on Market Buy provides you with an open platform to show to potential clients why they should choose you over the competition, demonstrating your results in real time, through shareable links.
And with so few listings up for grabs, standing out from the crowd is critical.
Imagine a potential seller watching one of your sales explode, with dozens of offers coming from a large pool of buyers.
You can then demonstrate that this isn’t unusual for you; in fact, your past sales using Market Buy all look similar, as do the results.
This creates an unassailable position in the listing presentation.
But this data also presents a roadmap as to what to expect for potential sellers.
Much of the confusion and uncertainty evaporates, leaving the vendor feeling secure and confident.
Until the underlying supply issue is met, I don’t think we’re going to escape from this crazy market.
Let’s face it, COVID isn’t going anywhere. And the market repercussions aren’t unlikely to either, at least for the foreseeable future.
So, ride the wave, and take the buyers with you.