Real estate agents excel in communication, but new research highlights key areas for growth
In a rapidly evolving property market, real estate agents remain central to the buying and selling experience, providing critical guidance and expertise. However, recent research by InfoTrack has revealed that while agents are highly regarded for their communication skills, there are significant opportunities for improvement in other areas.
Navigating the property market can often be overwhelming for buyers and sellers, with many complexities and emotional stakes at play. To better understand the current realities faced by consumers, InfoTrack conducted an extensive national research survey – the first of its kind in Australia.
The 2024 State of Real Estate Report: Insights from Australian Buyers and Sellers reveals captivating survey insights, highlighting key trends, positive experiences, and challenges encountered during property transactions. It also offers an in-depth analysis of how key stakeholders, including real estate agents, were rated by the Australian public.
Key findings of the report
The transaction experience and satisfaction levels
75% of survey respondents bought or sold a property for their expected price. While most respondents expressed satisfaction with their transactions, a significant 25% reported less than optimal experiences, indicating a clear need for improvement in the buying and selling process.Real estate agents most challenging stakeholder
Real estate agents were voted the most challenging stakeholder by one third of respondents. Lenders and financial institutions, along with the other buyer or seller consecutively followed, while lawyers and conveyancers lead the way in client satisfaction.
Interest rates and the impact they have on decision-making
An intriguing insight from the research showed that 38% of respondents reported that interest rates did not significantly influence their decision to buy or sell a property. In contrast, 62% cited them as a major factor in their decision-making process. This disparity highlights the varied financial considerations among buyers and sellers in the current market.
How did real estate agents perform?
In the Australian real estate landscape, interactions with key stakeholders greatly influence the transaction experience. InfoTrack’s research uncovered the following insights about real estate agents:
- 90% of respondents engaged with a real estate agent during their property journey.
- 47% rated their experience with a real estate agent as ‘excellent’, with an additional 28% rating it as ‘above average’.
- 36% of respondents highlighted communication with their real estate agent as the most positive part of the transaction process.
However, one of the most striking findings from the report is that one-third of respondents encountered challenges with their real estate agent, which is more than any other stakeholder in the transaction process. This emphasises the critical need for improvement to enhance performance and foster a more positive consumer experience.
The report also identified the following key areas for improvement among real estate agents:
What can you learn from this research?
While real estate agents demonstrated notable strengths, the mixed feedback underscores the importance of addressing specific areas of concern to improve and further enhance client experiences. Key areas include:
- Communication and transparency
Emerging as a central theme in the research, effective communication and transparency is highly valued by clients and is essential for a successful transaction. While 36% of respondents cited communication with their real estate agent as the most positive part of the transaction, it also topped the list of areas requiring improvement, with 33% of buyers and sellers noting it as a challenge.
Transparency, closely tied to communication, was identified as the second key area for improvement by 27% of respondents. This underscores the importance of maintaining consistency and clarity in client interactions.
- Providing more support around finding a property
Finding a property was recognised as one of the top three most positive parts of the transaction process by 32% of respondents, however, 14% also found it to be a significant challenge. This duality suggests that while a third of respondents had a positive experience, a considerable portion felt their expectations were not fully met.
This demonstrates the complexities of the property search process, and the varying experiences clients have had, emphasising the critical role of agent support during this phase in a transaction.
- Price negotiation
Price negotiation is a fundamental aspect of transactions, as both buyers and sellers aim to secure the best possible deal. 17% of survey respondents identified price negotiation as a key area where real estate agents could improve, and it ranked as the fourth most challenging part of the overall transaction process. This indicates a potential disconnect between agent strategies and outcomes expected by clients.
Lee Bailie, Head of Property Australia at InfoTrack said, “These findings underscore the pivotal role real estate agents play in shaping the property transaction experience. While many excel in communication, our research highlights a pressing need for improvement in transparency, negotiation, and overall client support. By addressing these areas, agents have a significant opportunity to enhance client satisfaction and deliver more successful outcomes in a complex market.”
The findings from the 2024 State of Real Estate Report offers valuable insights into the current state of the property market and the performance of stakeholders involved in transactions. By addressing the areas of improvement highlighted, you can significantly enhance your service quality, leading to higher client satisfaction levels and better transaction outcomes.
To learn more about the experiences of buyers and sellers and how key stakeholders were rated, download the complimentary report today.
Read more REIQ property sales articles here.
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