Active Plus Passive Buyers Equals More Competition

In this video Henry Wong from Harcourts Beyond discusses how to create the best outcome for selling your home by creating competition between active and passive buyers.

“Hi, I’m Henry Wong, Lead Strategist here at the Henry Wong Team and I’ve got something in store for you. You see in life, there are people that you do know and people that you don’t know. Now obviously there’s a lot of people that you don’t know than those that you do know. After spending tens of thousands of dollars literally over the last couple of years on coaches, advisors, and courses, this is what I’ve uncovered in real estate.

In real estate, the marketplace is made up of the active buyers and the passive buyers. The active buyers are buyers that know you. The passive buyers are buyers that don’t know you. Let me explain this a bit more. The active buyers are buyers that have actually seen your home online, they’re actively looking every day, every week. They’re on realestate.com.au on Domain. Whether you’re looking to sell yourself or you’re getting an agent to sell, they’re going to find your home no matter what.

On the other hand, you have the passive buyers. You see, these are the buyers that have never heard of which suburb you’re in. Say for example, you’re living in Wishart, you’re selling your home in Wishart, these buyers are looking in Stretton. They can’t find you because Stretton is not a surrounding suburb of Wishart. They’re not looking at Wishart, they need an agent to introduce them to your home in Wishart. These are also buyers that are scrolling through Facebook. “Oh, oh. No, I’m looking in Stretton, but I’ve never considered Wishart but I’ll click on it.” That’s a passive buyer. These are buyers that an agent actually introduces the buyer to your home in Wishart. So passive buyers are generally buyers that have never actually considered your area or your home, or they’re not actually looking at this point in time.

On the main portals, like realestate.com.au and Domain, it’s great if the buyers are actively looking now. If they’re not looking, you can’t find them. You literally need someone to introduce them. And this is where social media has a major role with regards to building relationships with the passive buyer. You see, in order to get a passive buyer to come have a look at your home, the agent needs to have a relationship with them via social media or some other means of communication.

There you have it. This is an explanation of active and passive buyers and why you need the two to come together to compete to achieve the best outcome for your home. Oh, one more thing I forgot to mention, more than one in two properties that we’ve sold this year in 2020, we have actually sold to passive buyers. If you have any other questions, feel free to contact us.”