New Zealand real estate salespeople may be able to offer pointers to their Australian counterparts, as they go through possibly their most significant market downturn in recent years.
By Susan Edmunds of RNZ
Australian media have reported on the struggles of some salespeople, who have posted on social media about the downturn.
One, Liam Cromarty, posted a video telling people not to lowball with their offers, because they could end up insulting the owners.
"I had one buyer who offered more than $100,000 less than the bottom end of the range," he said in the Instagram video.
"The buyer thought they've got all the power, the market is terrible and if the owner wants that price, they're going to have wait years for the market to turn around."
He said the property ended up selling to a buyer who offered a higher price.
"Then the buyer that was trying to convince me and that owner the property was sh*t and the market was falling and wasn't worth anywhere near what the owners wanted... they turned around and said we'll pay more than where the current offer's at, and by that stage, the owner said, 'I don't care if they offer $10,000 or $20,000 more, I don't trust them'... so don't lowball the owner."
Australian house prices were down 0.7% in July and 1.9% over the quarter.
The country has been through downturns in house prices before, although not as large as New Zealand's, but this time, the drop could end up being more significant.
Auckland real estate salesperson Diego Traglia said he had operated in a downturn since 2022.
"To put it into perspective, our auction success rate went from 92% in November 2021 to around 8% in 2022. We went from double-digit open home attendance to being lucky to have one or two groups through, all within a relatively short period.
"Agents had to get better at what they were doing. Even experienced, high-performing agents like myself had to sharpen their tools and adapt quickly.
"The best way I can explain the change is this - in 2020 and 2021, it was like going for a run downhill with no weight in your backpack and a fresh bottle of water to keep you hydrated.
"Fast-forward a year or two, and suddenly you were running uphill with a 20kg backpack and a bottle of lukewarm, salty water.
"It was tough. Buyers didn't want to engage and vendors struggled to come to terms with the fact that property values had dropped around 10% in a year."
He said the solution was to be more disciplined.
"Daily training, re-engaging with my mentors, scheduling dedicated calling sessions throughout the week, and building better systems and processes to manage the day-to-day work of helping buyers and sellers.
"Ultimately, I actually enjoy operating in markets like this, because my market share tends to increase. Tough markets expose the difference between average agents, and those who have the discipline, systems and skills to perform regardless of conditions.
"As the saying goes, you find out who's been swimming without their togs when the tide goes out."
Brooke Gibson of Found agreed that going back to basics would help.
"Good agents will always list and sell. When we've had such a high, anyone's become an agent and can do well."
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