Navigating change

Even with all the statistics and media analysis showing an easing in the market I know it can still be hard to come to terms with the potential impact of a changing dynamic. Navigating change is never easy, so achieving a positive outcome in a changing property market relies on a couple of key things.

Communication is crucial. And so is experience. I know I sound like a broken record but it’s true and never more so than when there are signs of market movement. 

Before any statistical analysis highlights a change in sentiment there is usually a less factual but equally relevant change in the market ‘vibe’. Our team of agents spend a significant proportion of every day talking. Each day they might chat to tenants, buyers, vendors, the local barista, builders, plumbers and bankers. And while they’re chatting and getting work organised they’re also listening. A good residential property agent will be carefully tracking the ‘vibe’ and gathering indications of market sentiment.

If those insights demonstrate growing market reticence that’s important information to be factored into client expectations.

Vendors need the truth. They need information. They need to be given the tools to make informed choices about the potential value of their property given current market conditions and potential movements in those conditions. They ideally need to have realistic expectations which can mean some uncomfortable conversations. 

Statistics released this week by Domain concluded 10.5% of properties for sale in February this year had been discounted. That’s one in ten properties where initial vendor expectations had to be revised. I should highlight discounts happen in every market. In July last year when demand was incredibly strong the same Domain data showed 5.9% of listings were discounted. There will always be a percentage of vendors with expectations beyond what even the strongest market can deliver.

But adjusting those expectations is never an easy conversation and doing so once a property has been listed is never ideal. Our team would prefer to set the right expectations from the start but two things have the potential to impact that objective. A vendor may be determined to test the market with a higher value expectation and/or the market might move faster than anticipated.

At Morton, we rely on building trust with our clients so they know we are telling them what they need to hear, rather than what they necessarily want to hear. Our team communicate with vendors regularly and always provide honest feedback on how their property is being received.  

Morton continues to recommend auction for a majority of our property listings. It sets a defined timeframe within which our team executes an intensive and extensive marketing campaign to ensure every possible avenue to generate and capture interest in the property is captured. The auction then delivers the very best possible result achievable.

We have the processes, procedures, experience and determination to help every client navigate every market to achieve the best possible result for their property.

Posted in Ewan's Blog on 23rd March, 2022