New real estate agents are in for a market shock

PHOTO: TRG Founder Gavin Rubinstein said newer agents would have to work hard in the current market.

According to NSW Fair Trading there are almost 20,000 more current real estate licences in the state than in 2019, while the Office of Fair Trading recently noted Queensland saw an increase of almost 7500 agents in 2021 alone.

In South Australia, numbers have increased slightly, up from 3481 registered agents in 2019-2020 to 3586 in 2021-2022.

In Western Australia the number of active licences dropped 831 in 2021, but is so far up 106 this year.

Gavin Rubinstein, TRG (Sydney)

High-performing agent and Luxe Listings Sydney star, TRG Founder Gavin Rubinstein said the market was in for a mighty shakeup.

He said new agents, who were used to securing listings with ease, seeing groups of buyers and achieving high prices, would be in for a shock.

“Good luck,” Mr Rubinstein said.

“The market is in such a flipping state right now. It’s changing and some days it’s better than others so every new result is counting.”

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Mr Rubinstein said now was the time for every agent, even those who have been in the industry 20 and 30 years, to check their ego at the door, increase their service levels and “show up every single day as a student”.

“I say it all the time – I’m a beginner,” he said.

“Today, I’m a beginner. Tomorrow, I’m a beginner. Have an open mindset and just overwork.

“This business has a way of exposing you when you don’t put in the work and don’t put in the effort.

“When the tide pulls out, you’ve got to be making sure you’re putting in the effort for the reward and, when you do that genuinely, over a period of time, that will compound and you’ll see a return on that.”

Mr Rubinstein said now was the time for newer agents to “over-service” clients and look to team up with the top agents in their office to maintain momentum and learn.

“You’ve got to over-service your vendor in every single way possible,” he advised.

“It’s not just about selling the home, it’s about anything they need, whenever they need it, however they need it.

“If you’ve come in during the past one or two years and you’re starting to struggle, I’d work with someone in your office who is on top of things and comfortable in this climate.

“Maybe even bring them in on your listings and leads to try and help you convert.

“You’re still going to be involved and get the benefit of the positive energy that’s produced from running the campaign and the result.”

Mr Rubinstein said perseverance and persistence were critical in every market, but particularly a changing environment and it was important to advise vendors carefully.

He said there was still depth in the buyer pool, particularly in the high-end market.

“They’re not paying prices that we were seeing in 2021, but if you get the process right and price your property accordingly, you will create competitive tension and that’s got to be the objective of every single real estate agent,” he said.

“It shocks me when guys who have been around for one or two years, or even a longer period of time, try to state that they know where it’s going to end or what a property is worth.

“No one at the moment – no one – knows true value.

“It’s almost like 20 or 30 years of experience means nothing right now, too. It’s who’s most active right now? Who’s feeling the market? Who’s at the coalface?

“Product knowledge is integral. You need to know what’s coming on, what it offers, how it compares and when it sells, what it sells for and why it sold for that.”

Mr Rubinstein said agents who could do all of that, and more, had a chance to build a solid reputation in the market downturn.

“You’ll start to see certain agents become outliers in this climate, and it’s really where some individuals can build a great reputation and make a name for themselves,” he said.

“I’m seeing the biggest opportunity I ever have in my 15-year career right now.”