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Market Insight

A few weeks ago, the Hood Journal featured an article about “buyer profiles”. Please go check out our 6 buyer profiles on the Hood Journal page on our website! However, this week I’d like to elaborate on the theory and delve a little deeper into why they are important (especially at this time!)

Often, we explain the theory behind the concept through the buyer pyramid and bell curve graph. The bell curve graph is used as a guide and visual estimation of the expression of interest and activity associated with your property as it's time on the market increases.

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As you can see the property will reach its peak activity amongst all buyers within the first 1-2 weeks on the market. However, as it progresses into the third and fourth week on the market its activity deteriorates. This is where buyer profiling and marketing is utilised, allowing specific buyers to be reached that match your property in order to sell it for the best price possible.

The buyer pyramid is used to identify the scale and degree of buyer traffic one might expect to see from a property based purely on the demographic and price range. Depending on the price estimation found at an appraisal depends on which bracket of buyer the property will fit into and available percentage of prospective buyers to target.

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For example, if your property is roughly worth between $750,000 - $900,000 you can expect to see buyers from the second and third tier interested in your property which has a higher scope of individuals compared to if your property was in the $2M price range. However, the higher the price the lesser the amount of available prospective buyers.

Since prices are so high at the moment, it is crucial to boost the exposure with marketing techniques directed at specific buyer profiles in order to expand on that scope of prospective buyers. This targets them due to their potential preferences so that despite the higher prices, the property being sold continues to receive high market activity.

The theory is important to remember when you begin your next journey of listing a property on the market. With the market remaining resilient in Brisbane, the real estate environment and then the impact on interest levels has changed. There is a restless sense of urgency to buy and sell in the environment, which has created the opportunity to create auction environments within the 1st week on the market in the high activity period. This is resulting in fast sales, multiple contracts submitted on properties and with ideal conditions. It may seem complex but with the right agency and the right agent guiding you through the intensive process, it can be very exciting and leave you with a great result making it all seem worth it.

Thanks for reading!

Annie  

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