From time to time Property Owners will get a Real Estate Agent, who is not local, to sell their property.
Why? I don’t know…
Chances are, if a Real Estate Agent doesn’t know a suburb well, the property could sell for less than it’s worth. That’s not a good result for the seller.
But it might be an opportunity for the well-informed buyer or Suburb Expert.
Lets look at it from the sellers point of view for a minute. Why is an out of area Agent not a good move if you want to sell for top dollar?
The first reason is the Real Estate Agent will not be familiar with the recent sales in the area. By recent sales I don’t mean simply looking up sales in Realestate.com.au or Pricefinder. Anyone can do this.
A good (local) Real Estate Agent will have their ‘finger on the pulse’ so to speak. For each of the recent sales, a good local Agent will know
– who is the seller
– who bought the property, why their bought it and are they local/interstate/overseas buyers
– how many offers were made on the property
– what were those offers
– did those buyers show urgency with their offers (i.e making full price or close to the asking price)
– how many people showed up at the open for inspections, how many serious buyers, who were tire kickers (or sticky beaks)
– how long did the property take to sell (as indicated by days on market), if longer than the suburb average, why?
This is the second reason. An out of area Agent won’t have the the same buyer database as an established local Agent. Agents keep a list of buyers who are ready to buy but haven’t found the right property. As soon as a property is listed for sale, the Agent will contact the suitable buyers on their list.
The third reason is this. Agents lose enthusiasm to sell a property, especially if the property has been on the market for a while (Days on market)
Think of how often, and far, an Agent has to drive to attend an open for inspection in another area. Along with the Saturday inspection, an Agent will drive back and forward many times during a week. Start to calculate the hours in the car if the property is listed for many months?
After a while the Agent will lose interest and enthusiasm. This lack of interest is reflected in a low number of inspections (and possibly offers as well). The Owner is motivated to do something about the low numbers and agrees to reduce the price to attract interest.
For a well-informed property buyer (or suburb expert), this might be an opportunity to buy a property at a good price.
A suburb expert is someone who is on-the-ball and has their ‘finger on the pulse’. They will be familiar with recent sales and attends lots of inspections/auctions. A suburb expert will build up a good rapport with Agents so they get called when a new property is listed for sale
Read the article called “Get ahead of the competition, be a Suburb Expert”.