recent case study buyer challenging market

 

Selecting the wrong agent would have cost you thousands of dollars!

 

At the moment we are currently experiencing a challenging sales market, however you need an experienced agent to represent you.

Recently our office was marketing a 2 bedroom apartment and we had received an offer to buy the property before Auction for $1,000,000. The buyer would not increase the offer and had just reiterated to us they would not pay anymore for the property. Leading up to the Auction we were told by the buyer that another property was coming up in the building and they would buy the property we were marketing for $1,000,000, they also mentioned they may not come to the auction. First of all, an experienced agent would be able to determine whether this was a tactic from the buyer or they were considering another property.

The owner of the property we were marketing had loved living in the property for close to 27 years was committed to moving onto the next stage of their life and was prepared to accept the offer. The owner had told me that they didn’t want to lose the buyer and was becoming concerned with all the media publicity on the Banking Royal Commission which is definitely having an impact on the property market, as well as the weak Auction clearance rates.

Most agents in this situation would have proceeded to sell the property at $1,000,000 and do a deal and move onto the next property. Most sales agents incomes are decreasing as the number of transactions are significantly decreasing from the previous 12 months and it is definitely a more challenging sales market.

We meet with the owner on the day of the Auction and set up an Auction strategy to test the buyer. The buyer turned up to Auction, we only had one bid which was from this buyer and they paid an extra $15,000 to secure the property.

The owner was extremely happy to have sold the property and achieved an extra $15,000, the owners friend who was at the Auction, couldn’t believe what happened and just said “Thank you for working in the best interests of Wendy”.

This is were it pays to select the right agent to sell you property, selecting the wrong agent would have cost you $15,000! What would you do with an extra $15,000?

 

In Summary:

  • It doesn’t matter what is happening in the market, some buyers just really want a property and will pay more than they ideally want, to secure it.
  • When a buyer makes an offer and is not prepared to increase the offer, it could very well be their best offer, however you need to set and adopt a strategy to test the buyer.
  • Most sales agents incomes are decreasing as a result of the number of transactions which are significantly decreasing from the previous 12 months and it is definitely a more challenging sales market. A lot of agents are becoming desperate and just want to do a deal and sell the property at whatever the price the owner is prepared to accept and move on to the next property.
  • If you select the wrong agent to sell your property then they don’t have the experience, confidence, desire or time to test the buyer.
  • Large agencies or an agency with a big team of sales agents have high costs associated with running a business and again they just want to do a deal and sell the property and don’t want to test a buyer. 
  • Be informed and avoid making a mistake when selecting an agent/agency to sell your property, make sure you select a real estate agent that demonstrates strong negotiation skills in this current market. Ask an agent to speak with recent owners that they have sold a property for and find out what their experience was like.