It might sound strange but I’m actually really starting to enjoy this market. It’s definitely challenging and there are headwinds aplenty but I’m proud of my team in here who remain steady and are continuing to put sales together.
The reality is that most transactions are involving a lot of work to bring both sides together, some deals feel as delicate as a docking procedure in outer space…one wrong move and it can crash and burn.
As through all turbulent economic times the one truism that has bound the market together has been that most property owners in good areas have options. Yes they want to sell but if it’s all too silly, they just won’t.
Despite many buyers feeling overconfident at the moment, the reality is to get the keys to the front door you need to get the owners to the table first. Gun-slinging buyers and buyers agents take note.
Another thing I’m hearing from a lot of people is “it’s a weird market”. It’s not weird, but one old metric is throwing people off.
The numbers.
I roll my eyes when agents tell me a sale campaign is going well because they are getting ‘good numbers’. *This means foot traffic through open homes.
The problem with relying on numbers especially at the moment is the vast majority of people out on the circuit are not looking to buy, they are in research mode.
If an agent doesn’t know their marketplace and/or how to qualify they often report to their owners that the open went well because quite a few people visited. Then the follow up produces nothing. The numbers are not much use if the open list is full of people just getting a feel or anxiously trying to work out what their own property is worth.
This is often where you see agents with low stock get completely unstuck. It’s like the blind leading the blind. Sellers need to know who the real buyers are and what they think, the rest is noise. It makes me laugh out loud to hear competitors say we are too busy because we have lots of property, well I’d say to you I’d rather list my place with someone who actually knows what’s going on.
Even buyers can get confused at present, they hear things are slow and then attend the odd open house that’s heaving with people (pro tip…go to auctions for the real story).
Our general advice to our sellers is that if the buyers aren’t prepared to engage with their conveyancer/solicitor and put their offer on a contract then we should question their level of commitment. I expect to get some flak for this but in an uncertain market isn’t it reasonable to seek genuine intent and certainty before engaging? I think so.
Buyers, take note. Certainty has real value at the moment and actually showing agents and owners that you are serious will put you at the top of the list.
All a bit dry this week I know, but hopefully this insight will help some of you out there looking understand what’s happening.
Until next week,
David Murphy