Has the traditional sales method changed?
Melbourne’s property market has been re-shaped dramatically in recent months as COVID-19 forced major changes to the way the industry conducts business.
Having now had open for inspections and auctions twice placed under restrictions, what is already clear is that traditional sales methods have changed – perhaps permanently.
Properties are selling without public open for inspections and auctions, despite a drop-off in the volume of property on the market. Buyers and vendors have readily viewed homes through online tours, while meetings between agents and vendors or buyers are now being held quickly and easily online, negating the need for multiple groups to commute to one location.
Remarkably, most agents across the Jellis Craig network report a dramatic tightening in the time taken to sell homes. Where previously a four-week campaign was the norm, the combination of ready buyers and targeted marketing strategies has seen most properties sold within two to three weeks.
This proves that the agents who are leading their local markets understand that managing the buyer is a very important part of the service. It is the agencies with the strongest systems, ability to collect and use buyer data effectively and connect directly with the right buyers that have delivered the strongest results throughout this challenging time.
Inefficiencies across the industry have been brought sharply into focus, with buyers now accustomed to engaging almost exclusively online, and changes in market conditions have meant an abrupt shift in the typical approach to selling homes. To that end, expressions of interest campaigns have proven a runaway success at Jellis Craig, with both buyers and vendors quickly embracing a new way of selling homes.
Previously the process of selling property was predominantly a four-week marketing exercise whereby a campaign was conducted, advertisements placed, open for inspections held and finally a result achieved through competition at auction. Now properties are transacting under very different processes, with homes trading swiftly through private campaigns, expressions of interest and online auctions, which have quickly gained traction as the market becomes comfortable with transacting online.
At Jellis Craig, the capacity to tap into an established network and database of qualified buyers has seen our offices continue to sell properties consistently through COVID-19.
While buyer enquiry may have dropped off in its more traditional forms such as newspaper adverts or even attending an open for inspection, buyers have instead looked to agents whom they’ve formed a relationship to bring available properties to them.
Agents who traditionally rely heavily on putting a property online and waiting for people to come through the door have found things very challenging, while agents who have better systems in place have been able to readily identify potential purchasers.
Jellis Craig’s technology platform, coupled with a longstanding focus on building an interconnected buyer database across our agency network, has benefited us and allowed us to continue to sell. Key to this is the fact that databases are not limited just to the nearest office - all agents in the Jellis Craig network can access the same potential buyer pool, allowing them to find specific buyers across more than 900,000 registered contacts.
People who visit a Jellis Craig property or contact an agent are registered in the system, and every time they inspect a property the agents have that information to hand.
This allows the Jellis Craig team to efficiently solve an owner’s problem of finding a buyer who is looking for a property like theirs. For vendors it means there are always buyers at hand.
In a rising real estate market, sales methods can afford to be reactive, but what recent months have highlighted is that a proactive approach that allows vendors to find buyers regardless of the market conditions will always prevail.
THE REPORT
2020 edition
