We asked the Young guns Two Questions:
These Guys and Girls (should be a lot more of them) are some of the best we deal with and as a general rule we have found that if you are youngish and want to start in real estate choose the company you want to work for carefully and keep trying until you get in. There is no doubt in our mind that the Kay and Burton, Marshall White and Jellis Craig are the three best places to start if you want to be involved with $m+ real estate. But it is not easy - the first year is very tough and you don’t really hit your straps until you have been doing it for around 5 years. We are also finding that the younger agents who have been well trained and well mentored have a higher level of communication which facilitates better deals for both sides. As an old fart it is good to be involved with the enthusiasm that many below exude on a daily basis.
The two questions we asked the Young Guns were
1. What will happen next year and why?
2. What do the younger generation (20 to 30 year old buyers) want from good buying and/or selling agents in the future?
Our Words: Great agent, hard to believe he is the age he is. While our dealings with him have been tough, we have found him an honourable negotiator.
Andrew’s Thoughts: Next year will be much the same as this year. Well located property will sell very well and be well sought after in the inner suburbs. It will also be in short supply so don’t expect a flood of homes to come onto the market early in the New Year. Interest rates will move which will affect some buyers decisions to participate in the market (or not) and that may see prices start to even out after what has been a good year for capital growth. Vendors who are realistic about the value of their home will be well rewarded with competition and strong results. Buyers will continue to pass up buying opportunities for overpriced property where vendors are too full and are chasing a premium that is most likely not there!
Buyers between 20 and 30 will continue to find the going tough as it will be competitive at the entry level. They will be looking for sensible advice and will want information quickly without the fluff! Price Guides are preferred on advertising for purchasers as they hate to waste time looking at things they can’t afford. Sellers will traditionally look to someone they feel they can trust and communicates with them on their level. Someone who provides substance and reason to their recommendations and they feel confident will represent them well throughout the experience. Whether younger or older- anyone selling hates surprises and usually values to truth by way of feedback.
Our Words: 2010 has been a landmark year for Oliver where he has moved up to the next level as a high quality, mature, professional selling agent. Has potential to be a first rate auctioneer.
Oliver’s Thoughts: I expect there to be strong results in all sectors of the market in the City of Port Phillip. There is talk of continued shortage for desirable real estate. I have no doubt that demand for City of Port Phillip will be as good as ever. Living between the city and the bay gives the best of both worlds. It is no surprise that we see queues at our open houses. As a real estate professional, I will watch with a keen eye the performances of other local agencies and the recent announcement of a few new firms. Interest rate rises will no doubt fuel further growth similar to 2007 when rates and prices spiralled. I don't think we will see further growth of 15 - 20% but it is so tough to say as there are so many factors that go into these predictions. Personally, next year will be very exciting. There is nothing quite like the anticipation when entering a new year in business.
The younger generation have clearly learnt well from their parents and mentors when considering assessment of properties, individuals and companies. Like anyone getting ready to make a move whether it be buying or selling, the public, young or old, do rely on trust, track record and timing but being able to deliver information concisely to the tech savvy time poor consumer is very important. Tenacity, being polite, being available, being knowledgeable and communicating well are all qualities required to succeed in this sector of the market.
Our Words: A consolidation year for Marcus and in the next 3 to 5 years we expect him to take over as one of the Marshall White’s premier high end agents assuming his drive continues.
Marcus’s Thoughts: Considering the strength of the current market, the resilience to such an unseasonal busy finish to the year along with the depth of buyer interest with every successful sale, I can only foresee a continued strong property market in 2010.
Inevitably at some point, rising interest rates will play a part in consumer confidence especially at the lower end of the market; but still bear in mind that we are at this stage, still sitting comfortably below interest rates that were being paid in the peak in 2007 property market.
My depth of experience dealing with clientele in the 20 - 30yr is quite minimal with most of my clients being in the 40 - 70 year old age bracket but I believe irrespective of age, all buyers want the same single most important thing.....great communication from their agent. Whether it's specific details regarding a home, price/buyer interest or simply a prompt return phone call or email, I believe consistent and precise communication is always highly regarded.
Our Words: As happy as we have ever seen Maddie in her own abilities. Confidence levels have gone through the roof this year and deservedly so. Maddie is no longer just Maddie – she is now a formidable opponent across the negotiating table – although she still smiles as she is taking your money.
Maddie’s Thoughts: I feel the market will continue to tick along, given increasing population and demand for good housing in our market. The influence that the empty nesters/baby boomers have on the market can only continue given the general lack of appropriate properties for them to downsize into. On the flip side, the adult children of these empty nesters are filling their own nests and need to upgrade; but with lack of opportunities in the family home market, there seems to be one big gridlock! The lack of supply (empty nesters staying put) and strength of demand (young families needing to upgrade) obviously puts pressure on prices! I can’t see this changing in the short to medium term!
The younger generation wants quick responses, quality information, and transparency. Some will want to be able to handle a purchase/sale mostly independently of their parents. Good personal service cannot be replaced by e-service but the two can go hand in hand to make a lasting impression!
Our Words: Nick is a quiet achiever and to most who know him you wouldn’t think he is a real estate agent. The ego is well in check. Some very strong results on and off market this year and we have found all our dealings with him positive, co-operative and fair – although please they have not been easy.
Nick’s Thoughts: The market will maintain/enjoy stable growth slower in the 1st half of the year given the current volume of homes on the market. Interest rates are still historically low and smart buyers have already factored in rate rises. The influx of some 90,000 new people calling Melbourne home and the loosening of foreign investment guidelines will continue to see demand remain constant and build throughout the year. Market sentiment is currently strong with buyers realizing they need to be in the market not on the sidelines.
Young buyers are not dissimilar to any other buyers. They want fast service, importantly accurate information & the right advice. It helps to know someone they can trust to work with them to achieve their goals. It is this experience that good agents can provide. To guide them through the steps of either buying or selling, knowing what to expect and how to handle it. The closer you work with a great Real Estate Agent or great Buyer Advocates the more information they will impart. Most agents want to help!
The best advice I was given many years ago, still rings true; Don’t wait to buy property, Buy it then wait!!!!!!!!!! Get in amongst it.
Our Words: Not as many dealings with Kaine this year as previous, mainly due to lack of transactions at our $M+ level in his Albert Park patch for most of 2010. Kaine is a slow burner, takes a while to get to know him but when you do you will find he is one the more genuine people going around.
Kaine’s Thoughts: The market will continue on its stellar form & raging sellers market, from where it left off at the end of this year , providing there is still the shortage of property hitting the market combined with the continued confidence in the economic sector . I see this being the case for at least the first half of the year. Following that, and after a few more interest rate rises the market will level off and stabilise, coming back to more of a balanced market for both buyers and vendors alike.
The younger generation are wanting and have a strong appetite for lots of up-to-date accurate market stats, such as website hit rates, days on market, recent & relevant comparable sales, Ave. $ per sqm & so on, as well as transparency and straight down the line feedback from their selling agent of choice. Also from a selling point of view, they are hungry for more internet based ideas/products to further enhance their property's exposure while starting to move their preference away from print media advertising where possible.
When dealing with buying agents, they simply want the facts, mostly based around a realistic selling price guide that has been set with a combination of recent sales evidence & vendors expectations.
Our Words: Halli is almost a lone star being a young, very competent agent in the million+ Bayside market, unlike Stonnington and Boroondara where they are knee deep in such agents. What we like about Halli is he is always smiling, always pleasant, knows his homes eg land size, price etc and will hop in the car and meet you out of hours. He is one of the best going around and don’t be fooled by his manner, his negotiation skills are very high. And they should be with Bert Stewart as one of his teachers.
Halli’s Thoughts: I think that the market next year will be a year of leveling in terms of prices. I believe that a continued rise in interest rates may see buyers adopt a more conservative approach to buying. Stock levels will have a large bearing on what happens. The lack of stock this year has been the key driver of the market. We have a few auction bookings already for February , so hopefully it will be a good year.
I think that the the younger generation of buyers and sellers have become so intune with what the real estate market is about. Technology has been a large part of that. I think that people have set high expectations in terms of what they look for in agents. They expect professionalism, accountability & reliability in terms of information (no bull). Agents will have to be upto date with all the technological advances through the net in order to keep up and not be left behind.
Our Words: Daniel is a super worker and would be on many other agencies shopping lists. Has built up an excellent following amongst new builders, which shows his mind works ahead of most in looking forward and setting and adopting winning strategies, evidenced by this year in the new build market.
Daniel’s Thoughts: 2010 is going to start where 2009 has left off…with a bang! Low interest rates, sound employment, overseas migration and a steady Australian dollar are going to continue to fuel what still is a shortage of quality property across all price points.
The younger generation, more than any, I feel want; quick, clear and concise communication without all of the ‘agent’ speak - especially in a marketplace where we aren’t quoting prices. Honesty, a no bull-shit approach and thorough, prompt feedback are also essential as when selling. We are well educated, time poor and are very much up to speed with the market through the availability of information on the internet.
Our Words: Smart, seemingly well balanced and ambitious. Sam will go a long way in this business if he chooses to. Enjoyed the communications this year and one or two bloody hard deals – please Sam give an old guy a break next year. A highly professional young agent.
Sam’s Thoughts: Barring a catastrophic event I foresee confidence remaining strong throughout 2010 and the market benefiting from that. For buyers the opportune times to "get in" could be early next year (typically the market can take a little while to gain momentum after the Christmas break), or next Spring (if you can wait that long). With interest rates looking like they will be on the up for some time yet, there will come a time when they start to slow down prices. With the increase in supply that Spring typically brings, this could be the time when things start to level off and buyers may benefit from greater choice and more opportunities.
The younger generation want information, and they want it now! Particularly buyers, if you are referring them a property they want to see photos and a floor plan on their computer screen before even contemplating arranging a time to view. They, like any buyer, don't want their time wasted. This is why they have been the biggest advocates against under-quoting. Understandably, it infuriates them! They want an agent who will give them honest and reliable advice and they will reward them in turn. When purchasing a property young buyers want to be treated fairly. For the most part they see auctions now as a fair and transparent system of buying. However, very often they also want "a 2-3 bedroom house in South Yarra, Prahran or Richmond where the vendor wants to sell quietly and not go to auction!".
From a selling perspective I think communication, demonstrated knowledge and trust are what young vendors value most. They also value relevant information such as recent sales of homes comparable to theirs.
Our Words – Elliot has enormous potential – been through a bit this year and should come out stronger in 2010. Will be interesting to watch progress going forward. Have found our dealings with him very professional.
Elliot’s Thoughts - Next year we expect see slower growth after we have seen a price surge over the past 12 months that has taken most by surprise. We will see increasing interest rates throughout the year and as more property becomes available we will see more stable prices as we move into the cycle of long term steadily increasing values rather than the spike that occurred in 2009. As always, well located, quality homes will see very strong results that will continue to surprise.
We have found this year from friends and clients that buyers are hoping to see much more transparency and readily available information from agents and their advertising. Younger buyers are time poor and refuse to chase an agent for a price or information about a property they are considering. Having an accurate price guide which truly reflects the market value assists a buyer to be adequately prepared on the day regardless if you are spending $500,000 or $5,000,000. There is nothing better than realistic, honest advice from agents for buyers and vendors alike to take the bumps out of the sometimes daunting process of buying or selling. The better agents are starting to embrace new technology and utilising some great new tools to market and sell property. More and more, buyers will seek instantaneous, qualified information online to cater for their needs.