Skill And Experience Matters
The public at large are unlikely to give a second thought to the fact that many agents are pondering their future in the industry. Those on the fence may wait and see what the summer market throws up. They may want to see whether the annual lift in sales can provide them with enough oxygen to keep going. Others, perhaps newer to the industry, are likely to exit quietly through the back door having come to the realisation that real estate is not the gold rush they were led to believe.
This year, the New Zealand market has experienced the largest drop in value since records began in the early 90’s. But is it really a drop? Or was Covid a market anomaly. Either way, now more than ever, the careful selection of your agent is imperative if you want to achieve a result for your sale. So how can you tell that your agent has the right skills to get the job done?
Prepare For Plan B
For anyone who has endured the tedious process of interviewing multiple agents, you are likely to have been pitched a one phase approach. Whether that’s auction, tender, deadline or price; most agents are unlikely to have considered, or discussed, a plan B with you. Whether they are dealing in hope and have concerns about losing your business, or they simply haven’t thought beyond plan A, is irrelevant. The best plan of attack is to have a plan of attack. Select a method of sale and discuss an alternative should you not achieve the desired result at the deadline. A plan B strategy can prove very effective because when done well it will use all the market feedback collected from plan A. This will mean a move quickly to send a very clear signal to the market.
Question for your potential agents
‘If we do not achieve the result we want at the deadline what is your Plan B?’
The Buyers Know
Buyers know that the market is soft and that the balance of power has shifted. Pricing at the beginning of your campaign, especially using a BEO provides buyers with a reference point. In the current market experience dictates they will look to offer under this and negotiate to a midpoint. Pricing at the beginning of your campaign is a dangerous thing to do. In this market it is almost impossible to pitch the right price at the beginning, if you get it wrong then there is only one way you can go and that is down. A skilled agent knows this and will avoid painting themselves into a corner. The best time to introduce pricing is after you have had some real market feedback, normally immediately following an unpriced marketing campaign eg tender or deadline.
Question for your potential agents
‘Can you provide me with an example of your vendor reporting which clearly shows how I will receive pricing feedback from the market’.
You may be surprised to know many agents provide no pricing feedback or reporting at all. In this market you would be best to avoid any agent who cannot provide high quality and detailed vendor report examples at all costs.
Days On Market
Once your property has been on the market for more than 60 days you have about a 20% chance of selling. As at the time of writing this blog the average days on market in Wellington are 60. This would indicate to me that the chances of selling most of these properties without some significant change in approach or price reduction are slipping away. While the average might be 60, skilled agents will have lower average days on the market. A visit by Trade Me to our office last week highlighted how we’re faring better than most. Based on Trade Me statistics, our team has an average of 38 days on market, with multi offers being achieved at around 50% of our deadlines.
Question for your potential agents
‘What are the average days on market for you/your team (not your brand). And how have you sourced this figure?’
Money Ball
If you haven’t seen the movie, I would recommend it. The storyline is about a Baseball club who decided to start recruiting on performance not talent. They predicted success based on winning on percentages, a theory which can easily be applied to operating in the current property market.
The percentage play in real estate is to generate as many inspections of your property as possible. But we can no longer rely on advertising bringing the buyer to your door. So, what now? Operating successfully in this market requires a significant database of current buyers and a structured and consistent approach of not only calling, but also convincing them it is worth their time to view. Most agents look for ‘the buyer’ where they should really be focusing on how to attract the highest audience. More buyers, more market feedback, more offers, more ability to leverage and a better result for your sale.
Question for your potential agents
“Outside of advertising my property for sale, what will you do to attract buyers? How can you demonstrate to me how you will do that?’
If you were to ask our team the same question, we would tell you that we have five agents calling potential buyers for your home on a daily basis. All of those calls are recorded and reported on, and you would receive this as part of our weekly vendor reporting. Now this kind of approach takes a lot of time and resources but is ultimately what is proving successful in this market. We are proud to have retained a 86% clearance rate in a market which is hovering around the 60% mark.
The Wellington Market
The market appears to have found its baseline with price points shifted significantly off their peak. September didn’t bring the normal levels because many vendors hold off in the hopes of signals of improvement. Numbers at open homes for well-presented, well-maintained homes continue to be steady with anywhere up to 30 groups present in recent times. The sale of 17 Fairburn Grove in Johnsonville last week netted 6 offers and sold unconditionally on the day. Of the past four sales, three have sold unconditionally. Unconditional offers have been almost nonexistent since earlier this year so it’s encouraging to see their return.
Anyone thinking of selling it would be wise to address their deferred maintenance. There is not a buyer in town who will pay you a premium to take on work which you have overlooked. If you are unsure what needs to be done around your home prior to sale and you’re keen to start tackling that now, give us a call we’re always happy to advise and do have some great contacts for getting your work completed in record time.
Wellington Market Quick Stats
What’s On This October In Wellington?
Shrek The Musical, 12 – 16 Oct 2022, St James Theatre, 77-83 Courtenay Place
Everybody’s favourite ogre is headed to St James Theatre, with the Broadway hit Shrek The Musical coming to our capital in October.
Based on the hugely popular and award-winning film of the same name, the lavish production is set to bring the humour, the classic characters and the uniquely twisted fairytale to life, complete with full musical numbers.
Click here to find out more info
World Of WearableArt Awards Show, 29 Sep – 16 Oct 2022, TSB Arena, 4 Queens Wharf
A spectacle like no other – the World of WearableArt Awards Show – is back! The WOW Awards Show will bring Wellington’s TSB Arena alive this spring with incredible works of wearable art, dancers, aerialists, and music that makes the soul sing.
Click here to find out more info
Wellington Jazz Festival, 19 – 23 Oct 2022, The Opera House, 111-113 Manners Street
Encompassing more than a hundred gigs across the capital’s bars, restaurants and venues, the Wellington Jazz Festival is back in October. With a star-studded international and Aotearoa New Zealand programme, the festival will feature some of the world’s most exciting and innovative jazz musicians.
Click here to find out more info
