There are, however, several ways that Real Estate Agents can influence prices to a certain degree. These include;
Getting the price right in the 1st place – an overpriced listing will attract less buyers, which will mean it stays on the market for longer. It is a fact that the longer a property stays on the market the less chance it has of obtaining a premium price. Advice on presentation is I remember watching an episode of Selling Houses Australia in which the host questioned the Agent as to why he hadn’t advised the sellers to clean the house and yard, and get rid of clutter, etc. Marketing is a well executed campaign, starting with quality photography and a well written advertisement will attract more buyers. Put these buyers into competition, and hey presto – a premium price is achieved.
Negotiation Skills have the ability to steer a buyer towards the right result for all concerned. No tricks, no fancy lines, just knowing what to say and when to say it, and quite often what not to say. Quite often this is accompanied by the Agent actually building a relationship with the buyer in order to gain their trust and respect. There are of course many areas in which a Real Estate Agent has no influence at all over the prices. In contrast to the above, these are the Macro Influences. These include;
Interest rates: unless your Real Estate Agent happens to be on the Board of the Reserve Bank, there is nothing the agent can do to influence these.
Employment: again, unless your Agent also owns a major corporation in your area (such as one that employs thousands of locals) then they are unable to do anything about this. If more people want to live in your area as it is close to work, prices will increase – simple supply and demand.
Local planning:
Unless your Agent is a Member of Parliament or on your Local Council, they are unable to do anything to influence local planning issues that will address shortages in local housing, thereby addressing the major influencer of prices – again, local supply and demand.
New taxes:
From time to time, the Government sees in their wisdom to implement taxes and charges which directly influence supply and demand. An example of this was the Vendor Tax introduced in New South Wales towards the end of Bob Carr’s reign as Premier, and subsequently removed by Morris Iemma, although by then, the damage had been done – the number of investors wanting to buy was basically reduced to zero, and took years to recover. http://rainehorne.wordpress.com/
Getting the price right in the 1st place – an overpriced listing will attract less buyers, which will mean it stays on the market for longer. It is a fact that the longer a property stays on the market the less chance it has of obtaining a premium price. Advice on presentation is I remember watching an episode of Selling Houses Australia in which the host questioned the Agent as to why he hadn’t advised the sellers to clean the house and yard, and get rid of clutter, etc. Marketing is a well executed campaign, starting with quality photography and a well written advertisement will attract more buyers. Put these buyers into competition, and hey presto – a premium price is achieved.
Interest rates: unless your Real Estate Agent happens to be on the Board of the Reserve Bank, there is nothing the agent can do to influence these.
Employment: again, unless your Agent also owns a major corporation in your area (such as one that employs thousands of locals) then they are unable to do anything about this. If more people want to live in your area as it is close to work, prices will increase – simple supply and demand.
Local planning:
Unless your Agent is a Member of Parliament or on your Local Council, they are unable to do anything to influence local planning issues that will address shortages in local housing, thereby addressing the major influencer of prices – again, local supply and demand.
New taxes:
From time to time, the Government sees in their wisdom to implement taxes and charges which directly influence supply and demand. An example of this was the Vendor Tax introduced in New South Wales towards the end of Bob Carr’s reign as Premier, and subsequently removed by Morris Iemma, although by then, the damage had been done – the number of investors wanting to buy was basically reduced to zero, and took years to recover. http://rainehorne.wordpress.com/
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