There is no denying that real estate is no longer as lucrative as it was two years ago. Survey data shows that hundreds of real estate agents have left the industry since New Zealand’s property market entered a downturn. However, some suggest that a quiet property market could also be a golden opportunity for career development.
The latest figures from the Real Estate Institute of New Zealand (REINZ) show that, as of June this year, national property prices had fallen 9% and were 17.7% below their peak. Although data from REINZ and CoreLogic shows increased sales activity and a market recovery in recent months, sales volumes undeniably remain very low. Signs suggest that the downturn may have ended, but commentators caution that this does not mean the property market will immediately rebound strongly. It may well remain quiet for some time.
Meanwhile, other views are emerging in the market. Some real estate company owners say they want to recruit more franchisees, believing this is a good time for ambitious people in the industry to expand their market presence. For experienced agents, a subdued property market could be an excellent opportunity to win more business.
What qualities should a good real estate agent have?
So how can you choose one of the best real estate agents in the market? A competent agent’s working week must revolve around following up with clients, updating their manager on sales in progress, preparing for open homes and auctions, and developing a pool of prospective clients. Success in real estate sales requires arriving at work on time every day, communicating and working closely with the team, and being ready to deal with any issues as they arise.
Senior managers at real estate companies say that, to some extent, salespeople are the face of the business. Through them, clients can see that a company is trustworthy and ethical. Salespeople also represent the company’s values, which is why supporting and encouraging team members is part of a sales manager’s responsibility.
Real estate sales has now become a profession encompassing laws, regulations and a range of professional requirements. Agents must understand and comply with all these laws and regulations. Training and teamwork are essential to ensuring this happens.
A subdued market brings greater challenges
A subdued property market is more challenging for salespeople because selling a property is relatively easy when the market is booming. When conditions become tougher, securing new listings and completing sales becomes much harder, particularly for less experienced agents.
One real estate company manager says the business is more about people than the properties themselves. In his view, a house is a house: often, it is the property’s own appeal that attracts offers, rather than the salesperson selling it. An agent’s role is to help sellers complete a sale efficiently and ensure both buyers and sellers are happy with the result. He also says improving salespeople’s skills should be a priority during a market downturn.
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YIJU also interviewed Kitty Long, an experienced real estate agent at Barfoot & Thompson’s Highland Park branch. She has her own insights into the difference an excellent agent can make for clients.
Kitty Long
Residential/Rural Sales Highland Park Branch
YIJU: What main factors should sellers consider when choosing a real estate agent?
Kitty Long：In my view, an excellent real estate agent should have the following qualities:
- Professionalism. Choose a professional, licensed real estate agent to ensure your property can be sold lawfully.
- Extensive experience. A good agent should have a strong sales record over the past two years and know the market around your property, enabling them to provide the most realistic appraisal.
- A good reputation. A strong reputation is built through professional service over time, and a good real estate agent should stand the test of time.
- A positive attitude. A good agent always puts clients’ needs first and works actively to achieve a sale.
- Flexible marketing. A good agent offers flexible sales approaches and develops a strategy suited to your property, maximising its exposure and attracting prospective buyers.
- A database. A good agent builds a database to match sellers with prospective buyers promptly, making transactions faster and more efficient.
- Reasonable commission. This is an unavoidable topic when selling a home. Do not be tempted by low commission, because real estate agency work is a service requiring considerable expertise. Paying a reasonable commission for a professional, efficient agent is the way to receive professional, efficient service.
- Excellent negotiation skills and extensive industry experience. An experienced agent with strong negotiation skills can achieve your desired price, or even exceed it.
YIJU: What difference can an excellent real estate agent make to a seller’s experience?
Kitty Long：An excellent real estate agent conducts a comprehensive assessment of the property being sold. This considers the economic environment, immigration policy, bank lending rates, the wider property market, sales in the property’s area, future local planning, prospective buyers, the home’s selling points, school zones and future trends. The agent then analyses the seller’s reasons for selling, timing requirements and price expectations to provide a realistic appraisal.
Before listing a brand-new home, we recommend home staging to improve its presentation and attract buyers. For existing properties, we provide a list of suggested improvements to help owners prepare their homes. We also recommend cleaning the house and tidying the garden so the property presents cleanly and neatly. In our experience, homes prepared this way quickly attract prospective buyers once listed, sell in less than the average time and achieve a desirable sale price.
Once the listing work is complete, we arrange professional photography, write the advertising copy, produce attractive brochures, put up a sale sign outside the property and set weekend open home times. We develop a marketing approach suited to the property’s sale and advertise on multiple websites. We also print attractive listing flyers for distribution around the property, inviting neighbours to the open homes.
Our Dream Team sales team also gets to work, using its database to quickly find prospective buyers. The new listing enters Barfoot & Thompson’s sales system, where agents throughout the company can see it and introduce it to their prospective buyers. Every Friday afternoon from 6h to 7h, we also present and promote it in detail on AM 936’s “Property Live” programme.
We use these marketing methods flexibly for each listed property, providing comprehensive promotion to reach a wide audience and find prospective buyers quickly and efficiently.
YIJU: As an agent, how do you provide the best possible service to your clients during a property market downturn? Can you share some examples of successfully helping sellers sell their properties?
Kitty Long：As everyone knows, the property market has been subdued over the past year. As real estate agents, we can feel the market pressure and our clients’ anxiety. But we believe housing is an essential need. However subdued the market becomes, there will always be people buying and selling. With the right approach, we can find the right buyer for a home.
Our recent sale of 1/123 Gossamer Drive is a good example. The owner was moving overseas and needed to sell urgently, but she worried that the subdued market would make it difficult to sell, or that any sale price would fall short of her expectations. When I met her, I provided a comprehensive analysis. I also inspected the property with her and suggested improvements. I am grateful for her trust and cooperation: she followed each of my recommendations and agreed to increase the budget to include staging.
After two weeks of preparation, the home was successfully listed. The improvements and staging showcased its strengths fully. On the day it was listed, a prospective buyer already wanted to make an offer. Three weeks after listing, on Tuesday this week, 25 July, the property went to auction. Four groups competed, and it ultimately sold for more than the owner had expected. She was delighted and even emailed our manager to express her thanks.
Over more than a decade as a professional real estate agent, what I have most wanted to offer is professional service with warmth: becoming a friend to buyers and treating every seller as I would family and friends. I also bring a professional, enthusiastic approach to helping every buyer find their dream home. Thank you for your support and trust in Kitty Long and the Dream Team.