Market Matters

Agent More Important Than Advertising In This Market

Ongoing confirmation that buyers are standing back as house prices ease across the country, highlights the critical importance of getting the right real estate agent from the outset, says Tim Kearins, Owner of Century 21 New Zealand.

“With prices softening and buyers taking their time and throwing out cheeky offers, vendors need an agent who can push back on their behalf yet still close a deal. In this market, charm or good luck will not ensure a successful real estate negotiation and sale. Vendors need to engage a proven and proactive professional,” says Mr Kearins.

The Century 21 leader says when choosing an agent ask for some recent references, seek out how they’ll achieve the best possible price, who will manage the open homes, how they’ll work with their colleagues to widen the net, and what methods will they apply to attract the right prospective buyers.

“The quality of marketing does vary, but not as much as the quality of an agent or agency. People, not advertising, sell properties in quieter or challenging times. Ideally, you want an 80:20 agent – reflecting the fact that 20% of agents sell 80% of homes.

“On a rising market when demand is strong, the agent may play a lesser role but in a softening market, the agent is all-important. They need to be hungry but not desperate, fully prepared, and have the skill to target the most likely buyers and keep them interested,” he says.

Mr Kearins says many vendors get disappointed that the agent they engage ends up not to be the one who fronts the open homes or potential buyers. Another common disappointment is agents talking up the property’s value to get the listing, then drowning the vendor with negative buyer feedback to lower their expectations.

“You want your chosen agent to front every weekend. You also want your agent to stand by an agreed realistic sale price until all the options are exhausted. If a buyer can sense an agent doesn’t believe a property is worth what the vendor’s expecting, they’ll smell blood and start low-balling their offers,” he says.

A good agent will work with a vendor to settle on an acceptable agreed price prior to marketing a property. Accurately pricing a house from the start is key, as is then defending that property’s price.

Mr Kearins says it’s important for vendors to remember that even in a quieter market demand remains, with new buyers entering the market every month.

“Ideally your agent will have comparable listings in your wider neighbourhood, so they can bounce buyers around from property to property. You want buyers referred to your property if they’ve missed out down the road,” he says.

Also, ask your agent to physically take you through their planned walkthrough. Mr Kearins says knowing how agents will show a house will help vendors better present it.

He says a good agent will also be aware of government-assistant schemes first-home buyers may be eligible for, as well as any avenues and opportunities out there if buyers require extra credit.

“Many buyers presume it all begins and ends with the big banks. However, mortgage brokers like Julius Capilitan of Century 21 Financial do all the running around, to deliver competitive rates and greater borrowing flexibility than the traditional lenders,” he says.

With expats returning and borders re-opening, another consideration is engaging a real estate agency that’s part of a global network.

“We’re seeing increasing searches of our local listings via Century 21’s global website which can be translated into 19 different languages. With New Zealand an attractive place to migrate and invest, having your property visible from anywhere in the world is increasingly important,” says Tim Kearins.

www.century21.co.nz