After a buoyant property market, where money was chasing properties, and the real estate agents had become the kings of the street, getting chased to buy a property was almost unthinkable. At least for those who had not seen property downturns before.
With interest rates tripled compared to the first quarter of the year, the price-interest rate combination is too toxic for the buyers to stressfully chase properties. The properties are now chasing the buyers.
And these new realities have been reflected in the marketing techniques of some Jersey real estate agencies. Here are some of them.
Callbacks and texts
Real estate agents have started to follow up with the buyers about whether they are still interested in the properties and to offer a lowered price. With the properties staying significantly longer, the sellers’ appetites soften, allowing the agents to try and sell actively.
According to our observations, a callback usually means a 10% discount on the original asking price. How much will be agreed, if agreed, depends on how you negotiate. Still, the standing wisdom is simple – you are in a better-negotiating position when the seller is actively willing to sell.
24/7 service. Night call?
One of the local estate agents is advertising that they are available 24/7 for buyers. Call and ask for the meeting anytime! That is an excellent idea indeed. Who is going to give a night call when the demand for properties is at a low?
Still, the step is positive and deserves praise! However, the optimal outcome for the buyer is achieved through price declines. One would rather sacrifice a lunch for a cheap property than enjoy a 24/7 service once to then repay for it a couple of decades.
Video ads, Tiktoks, Reels and the like
This one was unexpected. The agents have resorted heavily to social media video content, with TikTok-type videos actively being generated and shared on social media. The music choices are plentiful. They even make a 30sqm overpriced one bed look like a dream home.
One problem here, though. Seeing the same video with the same property month over month is slightly dull. The buyers demand new content!
So what?
It is apparent that with money in the low tide and no cheap credit available around the corner, the property industry is starting to face the moment of truth. The correction of the prices is a must for a healthy flow of the markets.
TikTok’s and other marketing tricks may be funny unless they are used to keep the pumped prices up. Without a doubt, a buyer would prefer a sensibly priced home to a real-estate entertainment experience to help an overpriced sale!
