Why You Keep Missing the Best Buys in the Eastern Suburbs - May 2024

By Munro Donen, Principal Buyers' Agent & Director, Propertybuyer East

We’re in interesting times in Sydney’s Eastern Suburbs. Property market performance is patchy across housing types, price points and even streets throughout the region and it’s playing havoc with buyers’ decisions.

For example, quality property priced above $5 million sees plenty of interest but there’s limited available stock. However, if you are in a more affordable housing bracket, such as units, then listing numbers are up and buyer desperation has dissipated somewhat.

Auction attendances have softened with buyers sitting on their hands while the gap between vendor expectations and what buyers are prepared to pay is widening. I’m increasingly attending auctions where there will be only one or two registered bidders and even when there’s more, they aren’t readily raising their paddles. In fact, the number of cancelled auctions due to lack of buyer interest is rising with agents increasingly opting to sell pre-auction where possible.

Yet time and again I hear buyers complain they just can’t secure the property they want. Be it an investor or homeowner, they’re seeing great properties sell at the right price, but they just can’t seem to get ahead of the process and secure one.

Well, there’s a good reason why this is happening.

Here’s why those who keep shooting for the bullseye end up missing their target.

The rise of buyers’ agents

One factor that’s playing a major role is the increasing number of buyers’ agents coming to the industry.

I’m noticing more and more buyers’ agents turning up to open homes and attending auction events. In some respects, that’s a good thing. Purchasers are now understanding that to get the best chance of success, they would be well positioned by having a buyers’ agent represent them in the property buying process.

Keep in mind when selecting a buyers’ agent that not all are equal. You need one that’s suitably qualified, experienced, connected and – most of all – has comprehensive local knowledge to get you to the front of the queue.

Here are the benefits that great buyers’ agents are doing differently to put their clients in a position to win.

Networking

Having a direct line of contact with local selling agents and affiliated professionals is invaluable and building that sort of network takes time in the game and a huge amount of effort.

A locally based buyers’ agent will have forged relationships for several years. These buyers’ agents will hear about potential listings well before they hit the portals… if they actually even get to the portals before selling that is.

My team and I speak to every selling agent in my service area on a regular basis. In addition, I am constantly reaching out to them with client briefs to ensure I stay ahead of anything that’s coming to market. Also, agents will call me with those hidden gems/off-market listings because they know they’re dealing with a serious buyer ready to trade.

I guarantee you this, that any Eastern Suburbs listing that flags on your listing alerts has already been assessed or been seen in some fashion by a local buyers’ agent.

Market research

As an experienced buyers’ agent, I have intimate, up-to-date knowledge of all the relevant local market transactions. I have walked through almost every sale and will know what elements to adjust for when comparing one property to another.

Buyers’ agents like me are also aware of buyer demographics, rental returns, capital growth rates and host of other relevant metrics to help gauge the current stage of the property price cycle.

Being across the market in a nuanced way assists in making quick decision on whether to proceed with a potential purchase. Most of the time I’ve either engaged in negotiations or moved onto the next prospect well before most buyers have even inspected the home.

Due to my years of experience, I don’t rely on price guides and instead do my own research to determine what a property may trade for.

Unemotional negotiation

Another key reason you’re missing out is that professional buyers’ agents are adept at the negotiation process whether it be an auction, private treaty, off-market listing, or any other form of sale.

And the way we relate to selling agents helps inform how we’ll approach the negotiation process too.

A few weeks back I was at an open home and witnessed a buyer fervently losing their temper with a well-known local agent in Paddington. The agent was keeping his cool, but the buyer couldn’t contain her frustration because she felt the agent was being evasive and manipulative with the property’s price.

I was able to spend a little time with this buyer and we discussed how the agent’s job is to achieve the best result for their seller. The selling agent’s approach to pricing was designed to elicit the highest possible figure from her as a purchaser, and her emotions could be detrimental to her goals during the negotiation process.

Fortunately, this buyer became a client, and we are about to secure a great property for her needs.

In negotiations you must know your limits, be accurate in your value assessment, stay unemotional and understand the tricks and tactics used by agents. You must also be

able to act fast based on good information while responding appropriately to queries and counter offers with confidence.

All these things can be hurdles to everyday purchasers, but professional buyers’ agents adopt these practices as a matter of course.

So next time you’re house hunting in any market, look around and see if you can spot the professionals at work. These are buyers’ agents getting in and closing deals ahead of everyone else and, in the process, making sure their clients secure the right property at the best possible price.

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