5th December 2018
BUYERS Market, what does it mean?
As a property investor and licenced real estate agent.
I have learned quite a lot about how agents talk.
I started the real estate agency, with thanks to the agents who was handling my properties. I was not happy with the way I was being treated as property investor.
So, what does it mean when agents say, “It’s the buyers’ market”to the seller?
Or when the agent says, “It’s the tenant’s market”.
What does it mean, what is the normal market?
Is the ‘sellers’ market’ a normal market?
Buyers market means the buyers are “no longer chasing” for property. The ‘emotion of fear’ is gone from the property buying decision, the ‘fear of loosing the property’ is gone, they are no longer emotionally vested to buy the market. The IMPULSE BUYING is gone(yes, even when it is BIG MONEY involved, the biggest decision the buyers will make, emotions still comes into the picture), the buyers are now, ‘thinking’ instead of being impulsive to chase for the property, fearing that the property will be gone if they do not buy now.
The buyers are taking their time to THINK about buying, (buyer agents are a great way to help with this, you are no longer emotionally invested in your buying deicion) which give them time to search for their property without being afraid of loosing out on the property being sold. When this happens, the property price will tend to drop, because the ‘demand’ from the buyer has dropped while the supply remains.
Property Pricesdepends on one fundamental, the ‘supply and demand’.
Buyers market means the DEMAND for property has dropped.
What the agent is saying when you hear, it’s the buyers market, they implies that the property price will not be as high as before, do not expect to high a price for the property that you are about to sell.
I was caught in the ‘it’s the tenant’s market’ from my agent on my property (yes I use other agents to manage when they are good, when they have my interest in their mind and heart, in real estate business, there is a 50km radius boundary from the registered business).
I was told to drop the rent by 100.00 per week within a week because it is a buyers market. I agreed but then the next week, I was told to drop another 50.00 per week, because it is the buyers market, it is the worst recession ever!
I was not buying in to the ‘it’s the tenant’s market’ fear tactic, to drop prices (not to say the market did not soften and drop, it did).
I went to another agency to get them to market the property, guess what?
I rented it out without dropping another 50.00 per week.
As property owner, know what the agents are saying and be in charge of your assets, do not be frightened into dropping just because the agents are telling you, go look for another agent who has your interest first!
Remember,YOU HAVE THE PROPERTY that agents NEED to sell.
Be in charge or your property assets. Do your own research and look for agents who has your best interest in heart, then keep the agent! Even when it is a buyers market, look for agents who have your interest heart and mind, not just the commission.
www.oracodesrealty.com/sell.html A new listing, for your consideration, if you are thinking of starting your own business or just an investment for your future.
Have a great day, everyday!
Licence Real Estate Agent | Stock and Station Agent| Auctioneer | Strata Manager
Oracodes Realty Pty Ltd
Licence Real Estate Agent in NSW.