November 2011 Market Update
John Minns - Sales and Marketing Director
Let’s not beat about the bush. If you are selling a property in the current market conditions and expect to get a good result, you will need a professional agent working with you on the sale.
“I can’t believe you of all people would think that!” I hear you say. And I guess it would come as no surprise. So before you assume I am just stating the obvious position of the real estate industry, let me hasten to add that I am not recommending you employ just any agent. This month I will update the market changes I spoke about in September and more importantly look at the strategies you will need to adopt to achieve the outcomes you need and the questions you should ask your agent before you go to market.
Here is a snapshot of the first 9 months of 2011:
- There are over 2,000 properties being advertised each week – that’s a 27% increase since February and the market is regarded as being somewhat oversupplied by most analysts.
- Enquiry rates are down by 11% in the same period (although these have improved from the 38% decline I spoke of in September).
- Clearance rates (the percentage of properties sold against new listings) have reduced from 95% to 83% across the Independent network.
In a market of this nature it is important we are clear on the role of a great agent in achieving what you need and adapting fast and effectively to change. When I came into the industry 25 years ago, a key part of the advice provided by agents was based on access to information about the market. Now information is available everywhere and while I may have more complete sources, the truth is if you look hard enough you will be able gain a pretty clear picture without needing my advice. Any agent who simply turns up with a list of competing properties and recent sales is doing no more than saving you a bit of time and even at the cheapest fee for service is not offering you value for your business relationship or investment. And anyone can put a sign up and run an ad.
So here are 9 questions to ask to determine if your agent will provide the results you need:
- What does this information mean to me and my property right now?
- What is really happening in my area - enquiry levels, sales rates, days on market and prices?
- How will you find a buyer if there are low responses to advertising?
- How much will we really get for our property and (most importantly) why do you believe that?
- What are you doing differently now than you were 6-12 months ago?
- How are you staying at the forefront of industry knowledge and best practice?
- How will you professionally manage buyers’ needs, concerns and occasionally unrealistic offers while still maximising our sale prospects?
- Do you really understand what we need to achieve and why?
- What can we do to ensure our property stands out from the crowd?