Anyone buying or selling real estate property in Melbourne at the moment knows you need to have nerves of steel and an iron backbone. Real estate is climbing at an unimaginable rate, and that growth looks set to continue as interest rates remain at record lows.
According to the Australian Bureau of Statistics, the residential property price index rose to 7.5% in eight capital cities over the last year. The total value for residential homes also grew from $8,328.1 billion to $8,924.6 billion, as of June. These figures show that more people are seeing the opportunities in Australian real estate, giving property buyers and owners the chance to capitalise on this fast and growing market.
And no wonder, with a wide selection of metropolitan homes, inviting cultural atmosphere and beautiful surroundings, it’s easy to see why people choose to move to the Melbourne region and how Aussies can make incredible profits from selling or renting out their Melbourne property.
However, navigating through the real estate market can be tricky, especially if you’re not familiar with the processes and best practices. The real estate industry is highly competitive and without the right information and guidance, you can be left at a disadvantage from your competitors.
This is where a real estate agent comes in. A good real estate agent can advise you on what to do when it comes to buying or selling your property, so you’re able to get the best deal possible.
Properties sold without a real estate agent account for less than one percent of total property sales made in the country, further proving the importance of having an agent when purchasing and selling property.
A well-established and experienced real estate agent will be able to meet your expectations, understand your terms and conditions for selling, and provide you with the best service.
What does a real estate agent do?
A real estate agent is a person who’s licenced to help you buy or sell real estate. They provide guidance and strategies that allow you to maximise sales and position your home on the market.
Contrary to popular belief, real estate agents don’t just occasionally walk through your property and grab their concession. They work hard behind the scenes to promote your sale, find your perfect match and make sure everything runs smoothly with contracts and paperwork.
Here are some of a real estate agent’s responsibilities and daily tasks, to give a good idea about what they do and how they influence the real estate business.
- Spending time at the office – Real estate agents spend hours at the office to accomplish administrative work like processing contracts, reviewing real estate agreements and keeping track of lease records.
- Meeting with clients – Through virtual calls or personal meet-ups, real estate agents catch up with their clients on the latest developments of their property listing or their residential property search results.
- Staging and showing homes – Real estate agents are usually present when residential properties are staged for professional photoshoots. This is to ensure that the architectural photographer and the interior designer are able to capture the best features of the property for the photos to be posted. They also attend property viewings to give details to potential home buyers and answer their questions about the property.
- Scheduling appraisals and inspections – Because real estate agents have a network of connections, they are able to schedule visits with a trusted appraiser who can inspect and provide an accurate quotation of the property for sale.
- Generating interest – As well as their own list of investor contacts, real estate agents have the knowledge and the expertise to develop strategies that can generate interest and tap potential home buyers to consider looking at your property.
- Accompanying clients to property closings – Real estate agents join property sellers and buyers in closing transactions to make sure that nothing is amiss in the contract and transfer of ownership between both parties.
If you’re buying or renting Melbourne real estate, you can benefit from the real estate agent’s database of property listings. This allows you to sort through a variety of properties more quickly and narrow down your search to a few properties that meet your standards.
On the other hand, if you’re selling or leasing real estate property in Melbourne, hiring a real estate agent will put you at ease knowing your property is reaching more potential suitors. Remember, these agents have the resources and expertise to attract a pool of prospective buyers to your property, which can make searching for tenants or committed buyers less time-consuming and help create higher prices through competitive bidding.
You do need to be careful with your real estate agent choice as not everyone is qualified to handle your particular transaction. To identify whether a real estate agent is good or bad make sure you carry out background checks to:
- Research their property experience (type, location, numbers)
- Know their sales history (length of sale, price)
- Read online reviews about them
You’ll find that some real estate agents work better than others and are more worthy of your time and money.
As well as helping sell your home in a shorter time for a better price, hiring a real estate agent for your Melbourne property reduces the stress of making mistakes when filing or processing documents. Agents are familiar with the paperwork, permits, and documents needed to close the property sale or purchase so, you can feel confident that everything will be legally bound, complete, and correct when finalising the transaction.
3 reasons why the real estate industry needs agents
Hiring a real estate agent might cost extra in expenses, but you’ll find that they are a necessary asset to have when dealing with property sales and purchases. That extra expense typically evens out, or is surpassed through the agent’s knowledge, experience and expertise, which helps to increase the profits of a property sale and ensure transactions run smoothly.
To better understand their positive impact on the industry, here are three ways agents add value to the real estate market.
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Clients value agents and their expertise
Good real estate agents have years of experience under their belt. In many cases, these agents become more than just a third-party hire, they function as advisors for their clients too.
In fact, 82% of homeowners see their real estate agents as trusted advisors.
In this role, agents serve property buyers and sellers by:
- Assisting them in the transaction processes – The real estate agent provides assistance throughout every step of the buying and selling process, from paperwork and the legalities to the transaction end.
- Making recommendations – Their suggestions and comments give clients valuable insights to make decisions on things like pricing, property specifications and even contract terms and agreements.
- Providing key insights and sound advice – Agents can provide current property reports, like comparative market analysis (CMA) to their clients, providing the necessary information they need to put the right price on their property.
Experienced real estate agents are also well-versed with the right negotiation tactics, so that they can get the best results for people looking to sell or rent out their property.
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They have strong ties and influence in the wider community
A qualified and experienced real estate agent will have a large network of people they can contact for important information or leads. This network includes other real estate agents, property sellers, investors, appraisers and even local developers and community leaders.
Through these connections, real estate agents are able to gain knowledge on every aspect of the neighbourhood, including other available properties and local buyer trends. They can also recommend qualified professionals for additional services like inspections or appraisals, and know who to contact for counsel or advice on concerns relating to the property.
This database also allows agents to get a headstart on generating leads. They know who is looking for your property type, from owner-buyers to investors and can give these committed buyers a first look. Because they have strong relationships with locals in the area, they’re able to immediately reach them to gather early interest in the property.
When it comes to real estate property in Melbourne, you’ll greatly benefit from a qualified agent’s strong ties to the Melbourne community, making the search for prospective buyers quick and seamless.
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They’ve undergone specialised training and education
Real estate agents go through complex processes to qualify for the job and apply for a licence. To be able to fully practice their services in real estate, agents need to:
- Have at least one year of full-time work experience as an agent’s representative – This must be done within the last three years before applying for a licence.
- Complete a real estate course – Real estate applicants must go through courses offered by a registered training organisation, such as a Certificate IV in Property Services (Real Estate).
Although additional requirements will differ from state to state, these two particular points are vital in a real estate agent’s application to practise dealing in property.
The intensive and specialised education and training sessions equip real estate agents with the tools, skills, and techniques to manage negotiations and take care of real estate documentation. This, along with years of produced experience dealing in residential real estate in your local area enables them to adequately and effectively handle your buying and selling needs.
At the end of the day, what matters most is being able to conduct your business in a seamless and efficient manner. With the guidance and assistance of a real estate agent, you’ll find that buying or selling Melbourne real estate can be hassle-free and rewarding.
If you need any assistance in buying or selling property in Melbourne, give Nicholas Scott Real Estate a call, we’re qualified and experienced to help you achieve amazing results.