Wednesday 14 Mar 2018
We’re entering interesting territory. Stock levels have now finally reached record levels which changes the balance in the selling equation. It means for the first time in years there is a different kind of pressure on agents and I think it’s very important vendors are mindful of that changing dynamic. Being aware can be the difference between disappointment and dreams coming true.
I think now is a great time for people looking to move in the market to get active. For a long time many with a foothold in the residential property market who were hoping to upgrade, downsize or relocate have been too nervous to act. The risk was real that selling first would leave them unable to get back on the ladder because stock levels were low and prices were rising rapidly.
With increased stock available that risk has eased somewhat which is exciting for buyers. They now have more choice so the stress of rushing a decision to proceed to purchase has certainly eased. For vendors the key is to recognise that buyers are still active and excited to buy but they are more considered before making a commitment. That’s evidenced by the fact that even with more stock on the market the prices being secured are holding.
For agents the key to success in this market is to appropriately manage the expectations of vendors. Given we have experienced an incredibly buoyant, sellers market for the last five years there is a significant proportion of agents who will for the first time face that challenge. It can be a hard lesson to learn but it is incredibly important.
It’s equally important that vendors also reflect honestly on the reality of the current market. As I’ve said, prices are holding but it’s no longer the certainty that it has been. Vendors need to recognise the danger of being told only what they want to hear, not what they need to hear.
A good agent will not be afraid to present a potential vendor with the facts. A good agent will see any risks to success and present a plan to address them. A good agent won’t sell hope – they will tell the truth and then work every angle and every minute to achieve the best outcome possible.