Property buyers: demanding more information and taking their time

Scott Kuru November 8, 2024 5 min read

Image from Domain.com.au

KEY POINTS

The largest-ever survey of Australians in the market to buy property has found buyers want more detailed information about real estate listings, especially price information
Buyers are also taking more time to research potential properties before they buy
Vendors are also doing considerable online research about real estate agents before choosing who to list their properties with

Australian property buyers are demanding greater transparency and more detailed information on real estate listings, and they’re not scared to take their time to find out more.

REA Group’s 2024 Property Seeker Survey of more than 13,400 Australians has revealed well over half - 55% - of aspiring buyers want clarity on price more than anything else before even inspecting a property.

And from that cohort, 76% say they’re more confident making an offer or placing an auction bid once they know the price point.

The details

REA Group runs Australia’s largest real estate search portal, realestate.com.au.

The company says 12.1 million visit their platform every month and spend 40 minutes browsing on the site.

What they’ve found by talking to people who use their website is instructive for both vendors and buyers.

The Property Seeker Survey is the largest annual survey of its kind in Australia and has been tracking consumer

The latest study doubled the sample size from last year and uncovered a significant shift in buyer thinking and behaviour.

Agents and sellers are being encouraged to be ‘more enablers than gatekeepers’, after the survey data found when price information is not available, the property falls to the bottom of a consumer’s search list and may not make the shortlist at all.

Buyers are no longer motivated by a ‘fear of missing out’, but rather a fear of missing out on a better option.

The average time taken to buy a property has blown out by a massive ten weeks from 34 last year to 44 weeks this year.

In 2022, the buying journey was just 23 weeks.

The September figures show the median number of days on the market for residential properties has increased from 27 to 34 days - the highest it’s been since September 2020.

Fussy buyers

The emerging trend suggests consumers are more discerning than ever before, putting sellers on notice to be upfront in their listings.

REA Group Executive General Manager - Consumer Product, Jonathan Swift says buyers “are slowing down and undertaking more research as they weigh up their options for the right property.”

Buyers aren’t just doing a once over background check.

They’re seeking information on a property’s build and sale history as well public transport options, local services and amenities.

But the survey data has identified women and upsizing buyers - those with families needing more space - are craving the most information ahead of making any decision.

They want details on building and pest reports, school zones, crime rates and natural hazards, as well as the number of people attending inspections or auctions.

Serge Petrichenko, head of Market Research and CX, REA Group says “information and transparency really is still the big trend.

“We need to continue to highlight the importance of adding more info on these listings.

“I think of the Three Ps, price, photos, property features”.

Sellers hone in on agent performance

Sellers too are increasingly doing their homework - 50% of first-time sellers, and almost 40% of experienced sellers are looking for their agent online.

REA Group’s Jonathan Swift says potential sellers “are seeking authentic, local experts, and ensuring an agent profile is up to date helps set our customers up for success.”

And both buyers and sellers want more guidance and support, with Google searches for buyers’ agents climbing significantly over the past five years.

But more than any other trait, honesty is what consumers value the most in agents, over problem solving, knowledge understanding and effectiveness.

Fiona Wong, Market Research and Insights Manager, REA Group says consumers want real estate professionals to “give it to them straight”, even when it’s bad news.

“It’s not sugar-coating, it’s not telling them all the great things and great results we’re going to get.

“It’s about being transparent and giving them all the facts so they can manage their expectations”.

Buyers prepared to compromise

The survey found three in five Australians are feeling negative about the property market.

More than 60% of buyers are currently feeling stressed, overwhelmed, anxious, or nervous about housing.

Those with less experience or those with a smaller budget are even more likely to be feeling these negative emotions.

It’s little wonder, with the cost of living, interest rate hikes and affordability - for buyers and renters - now at the worst levels on record.

But hope springs eternal - with one in three believing that their finances are set to improve in the coming year.

Compromise is in abundance, with 82% of people looking to buy planning to make some kind of compromise on their intended home choice - be it a smaller dwelling or a less desirable suburb.

And 64% of homeowners say they’ve had to make some kind of compromise on the most recent home they bought, while buyers are casting their net widely, searching across an average of seven suburbs.

But REA Group says while there’s negative sentiment about the property market and compromise is the order of the day, the dream of home ownership is most definitely alive for Australians.

Almost three million people are currently looking to buy a property, while 1.4 million are looking to sell.

REA says the data also serves as a reminder that sellers have more than just vendor needs, with two in every three sellers, also looking to buy their next home.