Into the Fire.
Last week I promised to report on what we can see now that the market is officially open for the new year.
Before I start…spoiler alert. When discussing market conditions we make a concerted effort to call it as we see it (seemingly a revolutionary concept in real estate).
The market is patchy, this means some properties are attracting good interest where others are not. Buyers are cautious, and with good reason. Whilst the general consensus is we have reached the crest of the interest rate cycle many are still counting their pennies.
Conversely property journalists only ever seem to write about the unicorns, i.e. the sales that delivered a surprisingly strong outcome. My proverbial eyebrows raised this week when a journalist reported a local sale as a ‘windfall’ when in fact the owners had lost over a million dollars from their original purchase.
The other issue at present is the absurd over quoting that seems to be the MO for a select number of agents. For people thinking of selling you should be wary of hyped up optimists, if you look there are clues and patterns to identify who these agents are.
A number of properties that failed to sell late last year have now come back on the market with new agents, the majority of these have come on with a minority.
This trend has emerged as frustrated home sellers from last year were hounded by these agents claiming a connection with the paranormal, mythical Chinese buyers and magical contacts that only they have. It seems that many people believe in magic…(or at least want to).
Sign jumping is a term in real estate that refers to agents that ‘jump’ the signs of other agents listings. It’s our industry’s equivalent of ambulance chasing - an unprofessional self serving practice but worst of all it can lead to decent people jumping from the frying pan into the fire.
When looking to employ an agent your focus should not be on whimsical promises but a sound and proven strategy; social proof helps as well. Talk to friends, neighbours and colleagues who have recently sold, their opinions are more valuable than a blue sky sales pitch.
Perhaps a better way to coin this is not choosing an agent who buys your listing (overquotes) rather one who has the track record to prove they will sell it.
Until next week,
David Murphy