For the past few years, quality Sydney property has been in constant demand, with multiple buyers vying for most properties.
But that isn’t necessarily always going to be the case.
Sometimes, just one buyer may make a bid at auction, or place an offer, and an agent has to negotiate the best price for the vendor.
When do you get just one buyer?
Sydney’s eastern suburbs is very popular with buyers, and auction clearance rates remain close to 80 percent. My own team’s auction clearance rates are closer to 100%.
But there are certain times when buyers tend to come in ones and twos and not tens and twenties. If the market slows down, and clearance rates fall, there could be more one-buyer scenarios. And at the top end of the market, properties are routinely negotiated with just one interested party.
There are naturally going to be fewer buyers for a ten million dollar home compared to a one million dollar home.
That means, in both scenarios, your agent needs to be able to extract the best price for the client without having the luxury of buyer competition driving it up for them. So how exactly does that happen?
Targeting the right buyer
When there isn’t as much buyer competition, people can afford to be more discerning. They are often more than happy to play the waiting game or to keep biding their time until something better comes along.
The only way around this is to make someone fall head over heels in love with a home so that they can’t imagine being somewhere else.
A good real estate agent knows their area and their buyers well enough to know who is likely to do just that. They will put together an advertising campaign that attracts the buyers and will target them through the right media. They will make sure the house is styled in a way that appeals to them and do everything they can to connect them to the property emotionally – so that they can picture their life right there.
Without that initial connection, no one will ever pay the most they can for a property.
A full range of skills
Real estate agents who have been operating in the Sydney market for less than six years will only ever have seen blue skies and rising home prices. However, during the GFC or at times in the 1990s, flat, or even declining home values were the norm.
Real estate agents who weathered this period – and even flourished during it – acquired a completely different set of skills.
In a flat market with limited buyers, local knowledge, an extensive database and a wide network of connections become more important than ever. It is also when persistence becomes important, as well as the ability to try different tactics without losing sight of the bigger picture.
Even though the right buyer is still out there, it can take more time and more research to uncover them.
A different kind of negotiation
When there are multiple potential buyers, negotiating means dealing with several parties who are essentially bidding against each other, even if it is not in an auction environment. When there is only one potential buyer, the negotiation becomes a two-way deal between buyer and vendor.
Getting someone to put their best foot forward in this situation requires being able to pick up on the cues people give, to read between the lines and understand intuitively what makes them tick and to know where their limits are.
Again, these are only skills that can be learned through experience with a wide range of buyers in all market conditions.
Knowing when to use it
Finally, while a one buyer negotiation may seem like a tactic that’s only used when there are no other options, a good agent knows that it can be an invaluable tool in any market.
Find out more about how my team can help you sell your property by getting in touch with us today.
Sydney’s Eastern Suburbs Market Snapshot
A detailed annual assessment of the property market focusing on the Eastern Suburbs of Sydney, Australia.