Buying and selling property is one of the most significant ventures a person will ever undertake – both emotionally and financially.
As with any important decision, it’s important to conduct your research and set clear goals.
It’s key for sellers to work closely with their real estate agent – while buyers must also strategically navigate their engagements in order to beat out the competition and land their dream home.
But what does it all look like from the agent’s perspective? And what factors do they consider?
A period of change
Queensland has been an extremely popular market over the past 24 months – in fact, the Sunshine State outperformed traditional powerhouses Victoria and New South Wales for sales settlements in FY22, leading the way nationally.
Today’s market is in a period of transition and Rebecca Herbst, Real Estate Institute of Queensland Zone Chair and Sales Manager at Brisbane based Bees Nees City Realty has witnessed the impacts of this.
“Currently the market is a bit variable depending on the style of property and location, but generally, we hear from buyers that there is still not a lot on the market to choose from.
“Buyers say they are not rushing their purchase and have become pickier on properties and are mostly offering below the listed price. Sellers are starting to realise that buyers are wanting to negotiate and that the market has changed. The interest rate rises have impacted buyers borrowing amounts and sellers have had to adjust their expectations in some cases.”
The buyer’s side
Thorough preparation is key for buyers, according to Herbst. She believes completing the requisite groundwork and coming to the agent with clarity and confidence can help your approach standout immensely.
“Buyers can prepare by speaking to a bank first, knowing their limits and starting their pre-approval process before they begin looking at properties. It’s also helpful to do a lot of research first online on areas and prices for the style of home they are hoping to buy.
“This gives them a better understanding of the market and any offers they make are stronger and able to be submitted quickly and confidently.
“If buyers are interested in the property, they should talk to the agent and be clear about their interest, so the agent is less likely to let them slip through any communication cracks if they are overwhelmed with potential buyers.”
The seller’s side
“We ask our clients lots of questions right at the start and then tailor a strategy that works for them and the property. Sellers need to know what is happening (or not happening!) with regular feedback so they can make the best decision when offers are received, and then be kept updated through to settlement,” Herbst shares.
This is helpful for buyers to understand as well – the seller’s goals, urgency and flexibility.
And where is it that sellers typically slip up? It’s in the research phase, Herbst explains.
“A common mistake for sellers is looking at sale prices from more than four months ago.”
In that amount of time, the market can certainly undergo significant change. Comparing Q1 financial year settlement data from PEXA demonstrates how volumes and indeed prices can shift.
|State||FY22 Q1 property settlements||FY23 Q1 property settlements|
|New South Wales||58,000||44,000|