For three years, we (sellers and agents) haven’t had to worry about finding a pool of buyers for every property simply because of the powerful effect covid lockdowns and rates had on the market. Now, as the market shifts, we need to know the buyer more than ever.
In the current market we’re seeing days on market blowout from the buoyant ‘covid-era’ where properties routinely sold in 30 days or less. It was a glorious time to be an agent. But now, properties are taking far longer to sell – if at all. This is due to the broad focus in the real estate industry on finding listings and sales opportunities. I contend that the focus now needs to be on buyers; dedicating that same level of attention and service to scarcer parties in this market.
Although a commonplace term in America for years, the concept of using a buyer’s agent is only now gaining traction here in Australia. In fact, they say for every 35 agents (who are appointed by the seller) there is only one who focuses on the buyer. And while I frequently am appointed by sellers, I have always been a buyer’s agent too! I started my real estate career in a role where I was required to take buyers around to a rather long list of properties and that group of clients soon also became sellers who appointed me. For me, it’s always been about providing great service and attention to buyers because they ultimately control the success of the sale, and – when treated well – become your sellers.
Knowing the buyer’s why
It’s essential to understand a buyer’s “why” so I can provide the “what”. To have a clear picture of what my client is looking for, I must assess their needs. You see, they might tell me they want a three-bedroom house in Cremorne, but being accepted into the local school might be the real motivation behind the move. Contant curiosity is key. Asking, ‘why do you need three bedrooms?’ Is it for work from home or for the new puppy? These answers reveal what buyer’s are truly seeking in their next purchase.
My approach is based on the belief that there are active buyers everywhere, it’s simply about seeing the unseen. For example, an auction room only has one successful bidder, and several other registered bidders who were ready to buy but didn’t on that day. I make it a point to not only connect with these buyers but invest time in getting to know their needs. Typically, it’s a call the next day, knowing they’re likely quite disappointed about missing out, ready to support them through their journey. We’re also still seeing high numbers of people walking through our open homes, another great opportunity to meet potential buyers. The important part of these introductions is what happens next. Where most agents lose interest or forget, I make it my priority to regularly communicate and stay in touch with these new clients.
My experience has taught me that real estate is all about the long-term view. Eventually the buyer is also going to sell and they’re likely to seek out a property professional they know and trust. With this view, finding one buyer their dream property often entails working on several other transactions to provide a positive outcome for all parties. For example, when we find our buyer their dream property, now I need to find the seller somewhere else to live. Interestingly we often source these properties off market, where relationships are essential to the transaction. You only know about these opportunities through connections, as they’re not published publicly.
This relationship building is about digging deep and dedicating time to understanding the buyer so that I can find them a property that ticks all their boxes. When spending time with buyers it’s important to understand what they want, what they’re trying to achieve, and the timeframe they want to do it in. Whether it’s supporting them with coordinating finance, hearing their school catchment needs or some other need, my job is to keep talking, put lots of options in front of them and ultimately help them reach their goal.
I believe the more time an agent invests in their client, the more trust they build. Cliché, but true. Building a positive relationship requires time, communication, a genuine interest in helping the client achieve their property goals and ultimately trust. And without that relationship, you will never know what a buyer wants.
The brutal reality is that most agents right now have few buyers at the ready, but I have plenty because I’ve dedicated time to that party in the transaction. With a list of buyers at my fingertips I believe days on market can remain low, ultimately achieving the best price for the seller and a great outcome for my client. As agents, I truly believe a shift in focus to building relationships with our buyers, will overcome the challenges that come with fewer listings.
Although buying a property is a complex process, it doesn’t have to be. My job is to help all my clients, including the buyer, find the right home, provide guidance on market conditions and pricing, offer advice on the condition of properties, and negotiate the best possible deal for them.
Let’s dig deep and work together on making your real estate goals a reality.
Stewart Gordon
Director
0409 450 644
stewart.gordon@raywhite.com
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