We’ve discussed earlier on exclusivity and its importance especially for resale homes today to get sold effectively. We will now touch on the trending of real estate salesperson role change for you to understand how market has also evolved.
For the past 3 years it has been a primary buyers market. There was a short period of time when market started to pick up and it belonged to the sellers until July 2018 when the last cooling measure was introduced. LTV was reduced and ABSD was increased by 5 points.
It wasn’t made any better when the HDB was unsure of how to respond when citizens were asking about what happens thereafter when their apartments reached 99 years; thus floated the tenure decay term. This has been since patched by Prime Minister Lee’s National Day Rally speech in August 2018 with a VERS solution apart from their usual SERS exercises.
Real estate salesperson whom primarily only serves the resale sellers during this period suffers a decline in transactions for both private resale and HDB homes.
New Home Rush Drove Primary Sales Numbers
Home buyers has been predominantly driving up the primary sale numbers on identifying values from prices that the developers are priced for their inventory.
The sheer numbers for primary sale to do well has got to do with many effects in play including merits such as developers reputation, location, product offerings and pricing as developers usually priced them well especially at the launch stage before adjusting median prices upwards overtime, allowing home buyers to sit with a paper gain when the developments obtain Temporary Occupation Period (TOP).
There is also a step up on the real estate agencies with consumer enrichment and awareness with great value knowledge not normally presented that steps up the engagement from the realtors to the intended home purchasers for transparency and product awareness.
The Consultant Trend
We see a newborn consulting role which salesperson assumes new responsibilities in growing wealth and sophistication methods such as decoupling to assist consumers in leveraging for another asset.
Realtors undergo trainings to understand their clients needs better by picking up skill sets from the banking calculations, and understanding better on possible legal solutions to offer solutions.
Such solutions if being effectively and responsibly offered would benefit home owners in the long run as real estate is a long term investment.
As mentioned with new added abilities of marketing, traditional realtors whom usually chooses sides (doing either more of buyers or sellers) are doing both extremely well with technology adaptation and wide spread knowledge trainings that the realty companies provide them with.
Trust is a two-way street
Not all clients are suitable for such leveraging and real estate is one sure but not the only way to grow wealth effectively. Again, clients would be in safer hands having trusted realtors since sensitive information such as net worth might need to be diverged for a clear structured advice.
Trust is a two-way. If the realtor exercises responsibility and common sense when advising, the plan should be sound based on the objectives of the client and will nurture a business relationship in the long run.