Aussies are finding the property market a lot more competitive of late, with median home prices in the major capitals surging over the past decade. In this crazy environment, buyer’s agents are proving their worth by plugging into market data, sniffing out gaps in the pricing and putting on the pressure to get a good deal. Their approach is a slick combination of research, a bit of timing, and negotiating with a smart.
Getting the Real Story on Market Value – Not Just What’s on The Listing
The number on the property listing isn’t always the real market value of the place. Across Australia, listing prices are often more about marketing spin than actual sales evidence. During the good times, CoreLogic data showed that properties were regularly undersold, with the gap between the asking price and the final sale price being upwards of 10% in the major cities.
That’s where buyer’s agents start. They’re not just looking at the number on the listing, they’re looking at what recent sales in the same suburb have gone for. And it’s not just the house itself. They’re also looking at things like land size, the quality of the renovation, how the place is looking, what schools are in the area, and how easy it is to get to work. Small differences can make a huge difference in the price. Take Melbourne, for example. Two houses on the same street can be worth AUD 150,000 more or less just because of the width of the frontage, the way it’s orientated, or how much potential it’s got for development.
As the market got tighter in Australia during that big property surge in 2021 2022, auction premiums in some suburbs actually went up by more than 20% above the original sale price. But buyer’s agents who were keeping an eye on historical pricing trends were often able to spot when the market had got a bit manic and push prices beyond what was reasonably fair. That allowed their clients to avoid getting caught out with a big overbid before they’d even signed on the dotted line.
When it comes to high demand areas in the inner city, where there’s loads of competition from investors and interstate migrants, and the vacancy rate is super low, the role of an investment buyers agent Melbourne is more important than ever. In Melbourne, the rental vacancy rate has stayed below 2% in many areas for years, which is putting pressure on both investors and owner occupiers who are fighting for the same limited supply.
The Art of negotiating with sellers
Property negotiations aren’t just about numbers, it’s about understanding what makes a seller tick. Sellers are people after all, and they’ve got their own reasons for wanting to sell, just like buyers have their own reasons for wanting to buy.
Research from the Real Estate Institute of Australia has shown that sellers who are under financial pressure, going through a divorce, or relocating are generally way more open to negotiating. Before the negotiation even starts, buyer’s agents will typically dig up info from the selling agent about how long the property has been on the market, whether there are other buyers eyeing the place, what’s happened to previous offers, and what the seller’s expectations are.
That sort of info is gold dust because it changes the dynamics of the negotiation. Properties that have been on the market for more than 60 days often become a much stronger negotiation opportunity as people start to lose interest and the seller gets more and more desperate.
SQM Research data has consistently shown that listings that are getting on in years in the major cities are more likely to get discounted. And in the slower market times, stale listings in Sydney and Melbourne have been getting discounted by 5-8% below the original price. Rather than rushing to increase the bid, buyer’s agents often use silence, delayed responses, and carefully timed conditional offers to get a better deal.
Getting Your Foot in the Door Off Market Deals
The game changes completely when not everyone knows that a property is for sale. That’s why off market deals can be such a lifesaver for buyers’ agents. We reckon that anywhere between 10 20% of residential homes in Australia are sold behind closed doors, especially in the pricier suburbs and areas where property owners tend to stay put. Without public advertising, the hype and stress that comes with auctions and listings gets dialled back a notch, and negotiations can be a lot less intense.
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