July Market Update
The common theme about the market at the moment is that nobody knows exactly what represents ‘the new norm’ and that’s providing a reality check for all parties involved in real estate transactions across the Sydney real estate marketplace.
The changing property scene means that it’s difficult to predict final outcomes which makes the role of a real estate agent significantly harder, but equally important.
One of the hardest jobs of any real estate agent is to put in place from the outset, setting the right expectation. The fact is, real estate agents don’t buy and sell property, buyers and vendors do.
An agent is there to serve and the fundamental role is to negotiate a deal that is satisfactory for both parties involved. For that to be achieved the agent must first set the right expectations or will always risk setting up a vendor for disappointment.
The fluctuating weekend auction clearance rates are a great demonstration of the importance of setting realistic expectations from the initial listing presentation, to the price range indicated on the Sales Agency Agreement.
We have to find the new normal where those expectations are not so far apart that a deal cannot be reached between buyers and vendors.
Buyers need to feel comfortable they are securing good value and vendors can feel like their asset is being appropriately valued. The hard part is the fact it has shifted and understandably that can be difficult for vendors to accept. But there is also an important role for buyers to play in terms of setting their expectations.
Residential property is a solid investment and to secure a property they must be willing to pay the right money.
At The Property Lab, we understand and have the long term market experience to read the changing market conditions and understand how to manage buyer and vendor expectations. Having the skills to identify the right price guide and provide vendors with the right information so they can feel comfortable with their selling position and when to exchange contracts.