"There are three kinds of lies: lies, damned lies and statistics", British Prime Minister, Benjamin Disraeli (1804-1881).
One of the things that makes life difficult for most estate agents is the messages that are sent through the media via the commentators and experts who are able to summarise the state of the market for all the punters out there who want to know. They talk about the "Sydney property market" or "the Australian property market" or the "Melbourne property market". They often refer to a singular market condition and quote statistics to back their opinion.
Median house prices in Melbourne are at, or above, or below, 5 year averages. Sydney rental vacancy rates are at less than 1.4% - a sign of dire things to come, of rising rents, of supply issues for the next x years. The "data" is used to predict what is going to happen to the Brisbane property market.
The only problem with all the data used by the commentators and "experts" is that there is no singular market to which the information and numbers can be applied. They're usually "metropolitan averages". What happens in the eastern suburbs is different to what happens in the north, south or western suburbs.
Every agent in the country knows that there are vast differences even within suburbs or towns let alone "district", region, or state. There is no point talking about the "Adelaide property market" - because what the statistics reveal about the generic Adelaide market, bears little relevance to what actually happens in Brighton, which is very different to what happens in Elizabeth and Blackwood.
Newspapers and TV are not particularly interested in the micro-environment of the specific areas an agent usually works. The difficulty for agents is that their clients read the papers and watch TV - and get their "knowledge" from there.
The challenge is for agents to use their "local statistics" to provide clients and potential clients with relevant information that is as factual as it can be. It has to be based on local circumstances - to be able to "counter" the noise of the generalisations the media use in their commentary. There is no substitute for agents being up to date with their local area statistics and being able to demonstrate that local knowledge to their clients and potential clients.
There is no better way for agents to secure a sale or grow their managements than to be able to show they "know their stuff" about the area and the specific property they are trying to sell/let/manage. Of course, they need to be able to effectively & efficiently convey that information, as well as know it!
Estimating "sale price" is an imprecise science. No two properties are the same. No two vendors are the same. No two buyers are the same. Agents know that.
Working out what a property will sell for on any given day is (at best) a "guesstimate" based on previous sales in the area. Agents need to be able to "justify" the price guide provided to clients. Local statistical information is necessary for that.
Removing the emotion from that "guesstimate" and basing it on sound knowledge is important. Statistics play an important role for the agent in endorsing their "opinion". Having that local knowledge underpinning their appraisals goes a long way to endorsing their claims of professionalism. However, those statistics need to be local, relevant and current.
Agents must have a clear, sound understanding of the myriad things that impact their local market. They need to know data about transport, schools, shops, council, planning & development proposals. If they do, they have a much better chance of being able to demonstrate to their vendors (& potential vendors) that they are, indeed, "local experts" - and the one most suited to seeling the vendors property!
An agent with limited local knowledge is not good for the Real Estate Industry - and not good for the clients.
Tony Rowe, Managing Director, Best Practice & Governance Pty Ltd (BPG).
BPG seeks to provide training solutions for businesses "from the boardroom to the storeroom". Tony has been involved in the administration of a number of Registered Training Organisations and has an extensive background in education, training & coaching. He is well known for innovation in training delivery and has a particular interest in the area of RPL (recognition of prior learning). He has established a reputation as a key solution provider for employers & businesses that require a focus on the development of their teams to meet the business objectives. Tony is well known for his focus on the importance of service delivery & client satisfaction for the profitability of business ventures.
BPG provides a vehicle for Tony to pass on the knowledge, expertise and insight gained from working with a wide variety of businesses across many industry sectors and being able to apply that broad knowledge to the specific requirements of client business operations.
Tony has a university degree, as well as post graduate & vocational qualifications in Education, Business and Training & Assessment Systems. He is a licensed real estate agent in NSW, and a Justice of the Peace.
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