With all the media and practically every economist predicting the market is going to crash by up to 20%, a lot of buyers and sellers are very unsure of what to do.
We heard these same doom and gloom stories when Covid first hit and the so called “experts” couldn’t have been more wrong, markets surged to unexpected levels all over the country.
When you consider that median property prices in Brisbane have risen by more than 40% over the past 18 months, even if this prediction were to eventuate, we still have a gain of 20% within 2-3 years.
One of the reasons that many are losing their minds in Brisbane is that we’ve never seen such a correction… mind you, we’ve never seen a 40% rise in prices over 18 months either. As a result, we’re seeing many sellers panic and making dramatic decisions…such as changing agents.
Last time I touched on some of the reasons sellers may blame their agent for the lack of suitable offers. Sometimes these concerns are justified and sometimes there are good reasons to cut your ties and move on. So, let’s look at a few more times when you may consider changing agents.
4. FIGHTING FOR YOUR PRICE – Is the agent prepared to fight for the best price?
As enquiry levels drop and a contract has yet to be produced, an agent can often “under quote” the asking figure to a buyer to attract more interest, especially for properties being auctioned.
If you are getting a low number of offers or the offers themselves are low, you need to ask yourself whether this is due to the market or whether the offers are being influenced by your agent’s price guide. Is your agent prepared to stay for the duration and fight for your price, or does it seem like they just want to sell it for any figure (just to get their commission) and move on?
It’s so important to get an appraisal from the beginning. If the agent is bringing you offers inline with the appraisal, perhaps you’re not accepting where your property sits in the market… but if the agent is quickly trying to get you to accept offers that are well below what they appraised your property for, you have every right to be annoyed.
5. DATABASE OF BUYERS – Does your agent take the details of potential buyers?
Every agent will tell you they have a database of buyers that they can introduce your property to, should you list with them. It’s an easy statement to make, but there are a lot of agents that don’t collect information from the buyers that make enquiries on a property.
It’s a pretty basic action to take a buyer’s details, but if an agent doesn’t do this, you’d wonder what other shortcuts they are taking in order to secure your successful sale.
The very best way to ascertain if the agent you are considering selling with is the best agent for you is to “mystery shop” them on a property. What does this mean?
- Have a couple of your friend attend one of their open homes and see how they conduct themselves.
- Ask a couple of questions on the property and see if they know the information or, if not, see how long it takes for them to get back to you.
- Is the agent providing a price guide that helps or are they using the old line “we don’t want to limit the price”, etc. An agent that is unwilling to give a price guide probably doesn’t have any idea what the property is worth…beware of these agents. If an agent won’t give a price guide to potential buyers, then how do you know these buyers are in the price range you expect for your property. If your buyer can only afford $800,000 there is no point showing them though your property if you expect $1,000,000 for your property…it’s just wasting everyone’s time.
- Can the agent justify the asking price for a property? Do they know the similar properties that have sold in the area; do they know the features of the property and the area?
- Does the agent follow up with you/your friends after the open home to get your feedback for the sellers?
Real estate doesn’t change. Some new agents may say that other agent’s practices are outdated but they are probably doing the exact same thing, just with a fancy new name.
The agents that have a long history selling in the area are usually the agents that know the area like the back of their hand.
I quite often say there are not many houses in the Redlands that I haven’t been inside, or previously sold…experience counts, and you only get one chance to sell your biggest asset!
Remember, if you need any help or advice, we are just a phone call away.
All the best, Simon.