How to trim the costs of your renovation

How to Trim the Cost of Your Renovation
– 27 Secrets for Keeping More Money in your
Pocket

Prepared by Hotspace Consultants, which is the brainchild of Jane Eyles‐Bennett - award winning interior designer, serial property investor and master renovator!
www.hotspaceconsultants.com

Renovating can be a fun, rewarding and exhilarating experience. And whether you’ve renovated your own property or properties in the past or just witnessed other people’s experiences,
you’ll know that there are plenty of things to learn and traps to avoid during
the process.
The one area where the majority of people trip up is with their budget.
This could be because they simply plan to do too much to their property and end up over-capitalising. Or because they spend too much money on getting what they
plan on doing, done. Or worse, a combination of both!

As a comprehensive 'to-do'-type checklist (including all the colours, fixtures, fittings and materials to use throughout every part of your renovation), freshlywritten specifically for your property, it’s a sure-fire way to only do to your property what is going to add value.
It’s also the smart way to make sure you only spend what you need to spend on your property - and avoid overcapitalising.
The 27 ‘secrets’ in this report give you some good ideas for reducing your renovation costs for the things you do decide to do to your property – so that you reduce the risk of over-capitalising
and increase your chances of making a profit!


AROUND THE HOUSE
Repair and Re-use
Re-use fixtures and fittings whenever possible. Particularly with low budget reno’s, re-using as much of the existing fixtures and fittings is essential. However, you’ll find this may sometimes be the case on more expensive properties too. Only change and update the ‘must do’ items (just make sure the new colours and finishes will tie in with whatever is remaining in the space). You may need to perform some repair work in order to reuse some fixtures and fittings – so work
out the cost to repair vs. the cost to replace before deciding.

Sell, sell, sell
Consider selling everything and anything you are removing from the property.
What you consider as junk might get you even a few dollars toward your renovation costs. Even if you sell the old oven for$50, the old laundry tub for $30, and the old light fittings for $60, there’s $140 to spend on paint or a plumbing job. Your trash is often someone else’s treasure – and it’ll save you on dumping costs too.

Relocate
There are a few things around a property that you can generally relocate to enhance your renovation. Plants are usually easy to relocate, as are pavers and curtains, light fittings and plenty of other things. You might relocate some of your existing fittings to less important or
prominent parts of the property and install new fittings into the immediately obvious areas (e.g. exterior, kitchen and lounge).

Do your own demolition
If you’re a little bit handy, then doing your own demolition is a great way to reduce costs. If you are retaining some of the surrounding elements, then be extra careful when pulling things apart. If you’re not careful, the extra costs to repair the damage caused when you hastily removed a bench-top or vanity or tiles – or whatever, could have better
been spent on someone else doing the work for you.

Remove your own rubbish
Removing your own rubbish and demolished materials from the property is a good way to save costs. It can be messy work, but can save you hundreds (maybe even thousands) of dollars. Tell your trades-people that you will remove all the rubbish yourself and for them to let you know in advance when it will need to be taken away. Sometimes a skip bin is much more practical, so weigh up your options first.
Get a ‘Scrapping Report’ to give your accountant before you start your renovation
In many cases, the fixtures and fittings inside an older property can still be written off prior to removal. This is called scrapping’ or ‘writing off’ and can amount to thousands of dollars in some cases. Although you do not directly save money (in fact you will have to pay a few hundred dollars for the report), you will gain the deductions at the end of the year when your tax return is completed.

Get a Depreciation Schedule once your renovation is completed
Once your renovation is completed, the new fixtures and fittings may then be depreciable. A qualified Quantity Surveyor will do this report for you to pass to your accountant, again for end of year tax deductions.

HOW TO BUY
Buy at auction
There are warehouses all over the place that sell all sorts of fixtures and fittings for bargain hunting renovators. Try auction houses for vanities, taps, baths, appliances and even kitchens. You’ll benefit from end of line items that retailers are trying to get rid of.

Buy in bulk
Some retailers will negotiate their price with you – particularly if you buy more than one or two items at the same time. Buy all your appliances, bathroom accessories, flooring, lighting etc. all at
once to increase your negotiating power. At the very least, try to negotiate free delivery.



Don’t buy retail
Go direct to the source for your best bargains. For example, kitchen retailers usually sub-contract the making of your kitchen to a cabinet-maker – and charge a hefty margin as a result. So buy directly from the manufacturer or at the very least, wholesaler to save truckloads of money. Hunt around for manufacturers and wholesalers selling direct to the public for things such as appliances, flooring, lighting, plants, landscaping supplies and anything else you need for
your renovation.
Set up trade accounts Many retailers will let you set up a trade account if you own a company and can provide them with the details. Discounts will vary depending on how much you buy and how well you can negotiate.

Buy on-line
Shopping on-line usually means you are buying wholesale because there is no showroom and associated costs for sales staff etc. This is in theory, however! Double check that you are getting a good deal and that delivery is included in your costs. You might do your research at local
retailers but then buy the products you select, from an on-line seller. Try:

WHAT TO BUY
Choose in-stock items
Suppliers are much more likely to ‘cut you a deal’ if the products you’re negotiating on are in stock.

Buy factory seconds
Plenty of retailers sell seconds all year round – not just at sale time. Sellers with large showrooms often have an area set aside for less-than-perfect stock ready to
be bought by bargain hunters. Don’t take their discount price at face value – even
though it is already discounted; try your luck on reducing it even more. You’re really doing them a favour by helping clear their floor for full priced stock!

Buy Asian imports
Years ago Asian imports were not the quality they are these days. You can buy an excellent range of well priced items and I particularly favour the cheaper imported products if I am selling a property immediately. Always buy good quality, but you can get away with slightly lower quality in many cases.

Replace like with like
When replacing some fixtures and fittings, it’s a good idea to keep their same size and/or location. For example; replacing light fittings in the same location will save you costs on repairing and painting the entire ceiling. Replacing cabinet handles with the same size as previously will ensure you use the same fixing holes again (and not left with gaps you need to fill). Keeping flooring the same thickness helps eliminate problems with the skirting boards in some cases. Think about what you are replacing and how its differences will affect the areas
surround it.



Replace with bigger and better
This is true ONLY in some circumstances. For example if you are replacing the bathroom vanity but not upgrading your floor or walls, then make sure the footprint of your new vanity is bigger
than the footprint of the old one. This will ensure that any floor and wall damage caused when the old vanity is removed is concealed by the new vanity.
Consider what damage is likely to be caused when removing any item that is going to be replaced and when possible, replace it with something bigger/taller/larger. Eg: a larger wall tile
area to cover damage caused when the old ones are removed, a larger toilet
footprint to cover the old footprint,
larger light fittings to cover fixing holes etc. Eliminating ‘making good’ (restoring damaged surfaces) is a great way to keep costs down.

MANAGING YOUR RENOVATION

Work out your budget BEFORE starting your renovation
So, 1) know your budget and then 2) work out what to do to your property with that amount of money. DO NOT do this the other way round. You must fit your renovation to your budget NOT fit your budget to your renovation. The latter will always lead to overcapitalising.

Know exactly what you’ll do and what it will cost
Knowing in advance exactly what you are going to do to your property is essential for sticking to your budget. You will already have worked out how much money you plan on spending, so now it’s time to work out what – exactly – you are going to do, and what it will cost. Get pricing from reliable and recommended trades-people on every aspect of your renovation before you start a thing. Try to get fixed pricing for everything (as opposed to un-capped hourly rates) and assemble all your supply/delivery/labour prices together on a spreadsheet.

Buy in advance
Give yourself plenty of time to hunt around for the best bargains. Buying in a rush often leads to spending too much. Put the time into researching exactly what you need (dimensions, colour, specifications required) and who will sell it to you for the best price.

DIY Finishing – painting, tiling, gardening etc
If you’re a little bit handy and you have the time, then doing your own ‘finishing’ can save you thousands. I’m not a huge fan of DIY simply because it tends to take so much longer than paying someone else to get it done for you (taking into account the holding/mortgage costs you’ll be
paying for the duration of your reno if you’re not living there). Use good tools and educate yourself on the best way to perform the job at hand. The internet is of course a great place to get help – try
www.eHow.com and type in the search function whatever it is you need to know.

Supply your labour to your tradespeople
Being the errand runner or ‘lackey’ to your trades-people will save costs on their running around for you. You will need to be available to do many sorts of things – sweeping floors, going down to the hardware store, stripping paint, cleaning glass, stripping wallpaper, sugar soaping walls etc. It’ll be physical work but will save you having to pay skilled trades-people to do unskilled work.

Supply products to trades-people and pay them labour only
This is a great idea if you have some experience. Buy the materials, fixtures,
fittings, products etc. for your renovation and deliver them to site for your tradespeople to install. Trades-people will usually add a margin on to any materials, fixtures and fittings they provide, so supplying your own can be an excellent way to trim costs. However, be wary that if there is any problem what-so-ever with what you are supplying to the tradesperson, then they will take no
responsibility for it. For example, this is particularly a problem with electrical
items where the fitting is installed by the electrician but doesn’t work. With a ‘labour only’ contract, you are paying the electrician to install your lights/switches/fans etc only. If there is a problem with the fittings then they will charge you extra to replace or repair them. So on the face of it, supplying your own materials is a good idea, but unless you are an experienced renovator, it can cause real problems. Be careful.

Hire or borrow tools if you choose to DIY
If you’re going to do all or some of the renovation yourself, then you’ll need some tools of the trade. Unless renovating is your business, then you’ll want to avoid spending money on tools as
much as possible. Borrow as much as you can, then hire the rest. Buy tools if you absolutely have to – but if you’re forced to buy the tool to carry out the job, then work out if you’re financially better to just pay a professional to do it for you.

Renovate the whole property all at once
Rather than spreading your renovation over a period of months and having one room completed at a time, it is a real cost saver to have it all done at once.
This of course is not practical if you or someone else lives in the house, but it is the best thing to do for a vacant property. Trades-people will charge more to keep returning, and fixtures and fittings will cost more if purchased individually (rather than in bulk), so get it all done in one go.

Manage your renovation well
When your renovation is under way, visit the site briefly and frequently (if you are not doing the work yourself) to resolve inevitable issues that will arise and risk your budget blowing out. Good
communication between yourself and your trades-people is essential. Make sure they know you are available any time to answer questions and discuss problems throughout the course of your project.

Keep track of variations
Problems and un-planned situations are always going to happen during a
renovation. Even the most experienced renovators can’t predict every problem that arises. The trick is to track and monitor your renovation spending on a daily basis. You will have your costings laid out on a spreadsheet – so as soon as you know about a change to the specification (and price), update your spreadsheet accordingly.


WHAT TO DO NEXT

 Establish the potential re-value of your property after it has been renovated
 Ascertain how much money you should spend on your renovation to get the best return & avoid over-capitalising
 Discuss possible renovation changes that will most effectively magnify the value of your property
 Clarify how a Renovation Action Plan will help you:
o Reach the upper limit of your property’s re-value potential
o Ensure your renovation costs stay on track & you don’t overspend
o Know exactly what changes to make to your property in the form of a to-do checklist –
including what areas to
renovate and what colours, products, fixtures and fittings to use throughout
o Transform your property into a valuable asset to re-value (and benefit from the increased
equity) or sell


Presented by Geoff Grover, The BUYER Reach agent, REMAX Property Associates
Coolum Beach, Sunshine Coast
– www.geoffgrover.com.au. – Mobile 0414 337 402 – geoffgrover@remax.com.au

Geoff recommends Jane Eyles‐Bennett of Hotspace Consultants for a professional
Renovation Action Plan
www.hotspaceconsultants.com - info@hotspaceconsultants.com

Mount Coolum Real Estate: Geoff Grover Contact Details and Recommendations from Start Local

Mount Coolum Real Estate: Geoff Grover Contact Details and Recommendations from Start Local

Home loans fall to nine year lows

The LCTeam reports on 9 August that home loan commitments fell to nine year lows in June as investor demand weakened and housing momentum slowed, posing monetary policy concerns for the central bank, economists say.
The housing recovery was now at an end as higher interest rates continued to bite, they said.
Australian housing finance commitments for owner-occupied housing fell 3.9 per cent in June, almost twice the market forecast of 2.0 per cent, the Australian Bureau of Statistics (ABS) said on Monday.
Total housing finance by value fell by 1.9 per cent in June, seasonally adjusted, to $20.710 billion. CommSec economist Craig James said the figures showed “continued weakness” in the housing market.
“In the last couple of months, investors had served to prop up the overall market, but that wasn’t the case this time around,” Mr James said. “It must be starting to come as a concern for the authorities.”
He said Australia was now seeing the “loss of momentum” in the housing market, with housing finance commitments at nine year lows.“Certainly, the rate hikes that have been applied late last year and early last year are continuing to bite.”
He said weakness in retail spending, the housing market and manufacturing services and construction now revealed an economy that had “lost its way to some extent,” he said.
Mr James said the poor construction finance figures would signal concerns about a lack of demand for projects in the second half of the year.
The ABS said finance for construction projects fell by five per cent in June.
AMP Capital Investors chief economist Shane Oliver said the falls pointed to an ongoing deterioration of the housing sector.“It’s basically telling us the housing recovery that we’ve seen over the last 18 months has come to an end,” Dr Oliver said.“We can’t rely on housing construction to continue pushing the economy ahead. We’re going to be more reliant on the consumer and particularly business investment.”

Weakness in housing finance would also flow through to weakness in house prices, which was becoming evident towards the end of June, Dr Oliver said.“It’s another reason for the Reserve Bank to leave rates on hold.”
Westpac economists said the figures “surprised on the low side” as the investor upswing “took a breather”. A decline in housing finance in June was expected, but not one of that magnitude, they said. “We would interpret this as the tail end of weakness in response to the RBA’s rapid fire normalisation of rates,” the economists said in a statement.
The Reserve Bank of Australia (RBA) may well leave rates unchanged for the rest of this year.“ This points to finance demand stabilising and most likely moving higher during the second half of 2010.”

Time on the market & pricing

Everybody says you can only go down in price when listing, you can`t go up, hence the basic incorrect premise when starting off selling is set in stone. Combined with the inexperienced real estate agent providing a "big" start price so they don`t lose the listing, the downward spiral starts.

Michael Matusik, probably the most respected Queensland property analyst in the business, put it in very sharp perspective in his latest article in the Courier Mail 31 July 2010.(full article available by download from my website at www.geoffgrover.com.au) He says that his research shows that the first offer can often be the best offer, the next one 5% below and the third offer often not eventuating.

The question is asked as to why buyers and sellers pontificate over small sums relative to the total offered price and try to hold their positions? Over time, these sums become regarded as trifling, and almost a laughing matter in retrospect of a few years duration.

Is it a macho thing where one can`t seem to be giving in? It all puts in clear perspective the skills of an experienced real estate agent in enabling relativiites to be examined rather than claiming moral ground and a perhaps phyrric victory! It is, after all, a win-win scenario we are all seeking.

Residential properties are in essence a place to enjoy living in and to hold relative value, not a speculative investment to make money at the expense of fellow man (and woman), and those that seek that journey are destined to be very lonely people indeed and to stuff up their sale process to their extreme detriment in the meantime - my advice if you are this way structured, please don`t give me a call to sell your property, even though my record shows I perform at a level way, way above the industry average - check out my report card at www.geoffgrover.com.au.

What not to do when Interior Decorating

Here is our list of the top things NOT to do, not now, not ever!
1. Don't Let Someone Make Choices for You
Your home is your personal space. Don't let someone else tell you what you should do. If you need help, ask for suggestions. But when the time comes to make decisions, they should be yours. It's your home and you should feel comfortable with the choices.
2. Don't Paint First
You can buy paint in every colour under the sun. In fact, you can have paint mixed in any imaginable colour you might want. Choose fabric, carpet, and upholstery first.
3. Don't Choose Paint From a Paint Chip
A small chip of a paint sample might look great in the fluorescent light in the paint shop. But a whole wall of it might be overpowering. When you've decided on a colour, purchase a sample of the color and paint a small section to see how the colour looks in the room with natural light. If you don't want to mess up the walls, paint a piece of cardboard and tape it on the walls in the room where you plan to use the color.
4. Don't Decide on Colours in a Shop
Never buy fabric, flooring, or paint on your first visit. Ask for samples of paint and carpet and swatches of fabric so you can see what they look like in your home. Check them out in natural light and in the evening with lamps.
5. Don't Settle for Blah If You Love Bold
A litre of red paint doesn't cost any more than a litre of white. You get my point! If you love colour, find a way to use your favorite colours in your home. Choose colours that express your personality and coordinate with things you love.
6. Don't Make Your Favorite Colour the Main Colour
If you love red, you don't have to choose it for your walls. Instead, choose a more subtle shade to provide a background that will let items in your favorite colour really "pop."
7. Don't Ignore the Psychology of Colour
Don't think that you can create a relaxing sanctuary in a room with red walls. Blue and green are more calming and relaxing. Choose red and orange for play rooms or family rooms where the action is. Select a colour scheme to create the atmosphere you want in the room.
8. Don't Forget Colour Undertones
Not all blue is blue. Not all whites are the same white. Look beyond the main colour to see if the hue is light or dark, crisp or dull. Choose coordinating colours with the same intensity.
9. Don't Force a Colour Scheme
Don't "make" things match. Just because you have a red print sofa doesn't mean that it will coordinate with any red stripe draperies. Choose your colour family, identify the major pieces, decide what you have that will have a place in the room, and then recover, repaint, and coordinate all the elements. Find another place for or get rid of anything that doesn't fit your plan.
10. Don't Ignore the Focal Point of Your Room
Not every room has a focal point, but if yours does, make it important. Arrange the artwork and furniture around this important element.
11. Don't Let Your Furniture Hug the Walls
Don't arrange the chairs, sofa, and tables all around the room unless you have no choice. Make groupings of furniture for conversations and pull pieces into the centre of the room for a warmer feeling of comfort.
12. Don't Build Barriers
Don't put a chair in front of a door or a table in an obvious traffic area. Leave room for easy access and movement within the room.
13. Don't Settle for Cheap
Don't choose a piece of furniture because of a pretty cover or fun colour. First, see if it's well made, has interesting details or classic lines. If it does, you can always recover the upholstery in a fabric you choose or refinish the frame.
14. Don't Invest in Trends
Don't break you budget on pieces that are trendy. Trends come and go. You'll want to spend your precious resources on pieces that will last for a while. If you are attracted to crystal studded or fur-covered furniture, experiment with a less expensive crystal embellished lampshade or faux fur throw.
15. Don't Keep Mismatched Furniture
If you inherit or end up with a lot of pieces that don't match, find a way to tie them together in your decorating scheme. Paint odd wooden furniture frames to match or recover pillows and upholstery with coordinating fabrics.
16. Don't Be Extravagant on Useless Pieces
If a piece doesn't serve some function and won't last for years, put your money back in your wallet. Save your funds for the necessities unless you just can't resist.
17. Don't Keep Things Because You Think You Should
Don't feel obligated to keep a piece you've inherited. If it doesn't appeal to you or it doesn't fit your space, either fix it or get rid of it. After all, it's your home. They'll understand!
18. Don't Allow Ugly Anywhere
Of course, ugly is in the eye of the beholder. But don't think you can learn to like something if you really don't. Get rid of it!
19. Don't Display Every Personal Treasure
Don't overcrowd your home with collectibles. Make each piece be important. If it isn't or if you don't have room, store them away and change your collection from time to time. You'll be glad when it's time to dust!
20. Don't Forget the Details
Don't just paint the walls and put the furniture around the room. Learn about details that make your decorating style unique. Find interesting lamps, arrange books neatly, add decorative pillows to furniture, and include fragrant candles and flowers.
Decorating is fun! If you follow this advice, you'll be able to avoid most of the major decorating mistakes and have a home you love to come home to!

Geoff. Grover
REMAX Property Associates
www.geoffgrover.com.au

Property investors missing out on millions of dollars of tax relief

The Sunshine Coast, along with a great proportion of Australia, is a land where over 30% of all properties are owned by absentee owners and not as their prime place of residence, ie, by definition investment properties. They are not all the “ pure property player” investor building a long term and substantial portfolio and engaging professionals to advise on capital return and tax implications, many simply have a second property as a long term renter or a renovator and try to keep running costs to the bare minimum

The problem is, thousands of these people are missing out on potential and perhaps substantial “tax breaks”. The responsibility for clarifying and claiming tax concessions are with the investor, not the ATO, and this is a specialized field requiring professional assistance. Long term local real estate identity, Geoff Grover of REMAX Property Associates sees time and again where the “Mum & Dad “ investor or “tradie renovator’ looking to buy for the above reasons simply do not understand the tax implications nor the tax relief available.

It was recently reported by Etax Accountants, The Australian 19 May that “the deduction we find most people miss is depreciation and building write-offs on their rental property” said Scott Griffin, director of Etax Accountants. “There are a whole lot of things people could be claiming on their rental property, but they either just put in a few items of depreciation or even leave it out completely”.

The advice is that everyone who has a rental property - residential, commercial or industrial – simply has to engage a quantity surveyor to make a thorough list of all the things for which they can claim, all the things that they have done to the property or things that were there from prior years.

Bobby le Roux, director of Accord Quantity Surveyors based on the Sunshine Coast, says
“The benefits of having a tax depreciation schedule prepared by a specialist, is very often understated and worst of all completely unknown! “
Accord says owners of income producing properties may be eligible to claim substantial tax deductions on their properties. The current tax legislation permits a building write-off allowance. In addition, owners will be eligible to depreciate the furniture, fittings and plant within their property, as well as their share of the common property. Claiming this Tax Allowance may significantly enhance the after tax return on a property. Both the first and subsequent owners of a property may claim Tax allowances. The owners' accountant may further be entitled to adjust the past 4 years' tax returns in lieu of unclaimed allowances.
As an example of how complex it can become, there is often confusion from investors when it comes to knowing what landscaping in investment properties can be depreciated. The ATO will allow you to claim depreciation on ‘hard’ landscaping such as driveways, pathways, paving, pergolas, gazebos, clothes lines, retaining walls, fencing, rainwater tanks, swimming pools and spas. These items all fall under depreciation.
Pool equipment, rainwater pumps, irrigation controls and motors for gates are all depreciated under ‘Plant’ and therefore depreciated faster. Unfortunately, you are not able to depreciate ‘soft’ landscaping such as plants, soil / fill, turf, mulch, and rocks / pebbles.

Renovations of properties whereby the initial build date is post 1985 where the internals of dwellings may be torn apart can become quite complex. Fittings intended to be removed may retain a residual value that can attract an immediate be tax deduction, so it is important to establish a quantity surveyor authorized value prior to demolishing original fittings. Even with the purchase of a house built prior to 1985, the owner can claim depreciation on the plant and equipment, but not the building.

Given the above situation, it is sensible advice for property investors to have Property Tax Allowances prepared by a professional that will ensure they receive their full Tax Allowance and Depreciation benefit available under the current tax legislation

House selling tips

It is an apt phrase, you don’t get a second chance to make a good impression when selling your real estate, and this applies whether you have a basic or a million dollar property in Mount Coolum, Coolum Beach or absolutely anywhere. Impressions are what counts if achieving a premium price for your property is what it is all about. It is amazing how quickly purchasers react to an inspection leading to the conclusion that your home is “on their list”. Getting your property on the list is the main objective. From there, the environment is set. The framework of negotiation starts early.
Information on the Real Estate Sales process is another service provided by Geoff Grover – Mount Coolum Real Estate and is required reading for those embarking on selling their property. Copies of this report and other relevant articles are found at www.geoffgrover.com.au and http://geoffgrover.blogspot.com
So what are the elements that count to getting a premium price for your real estate in Mount Coolum , Coolum Beach or where-ever?
Following are some important property selling tips.
Gardens are important.The first rule for creating a good first impression is having a great looking front garden. This is where potential buyers first see your property and it is important for it to look well maintained. This can be difficult in beachside locations such as Mount Coolum and Coolum Beach with minimal nutrients in sandy soil, so that extra ffort may be required.
Spring Clean Tidy up, hold a garage sale and get rid of anything you don't need. Light Bright houses sell well, open curtains and turn on lights before inspections. Fix Obvious Faults Faults encourage buyers to look for more. PetsYou love them, but maybe buyers won't. Keep them outside during open inspections. Many buyers are afraid of animals and some are even allergic to them. In the new beachside developments in Mount Coolum, we often have large houses on small blocks, so it is better in these cases to make arrangements to take the dog for a walk or visit a neighbor!
Smells, Cooking, pets, dampness and smoking can all give your house a nasty smell. Have carpets and curtains cleaned and open windows before inspections. Fresh air smells best. With the extremely wet and moist weather in Coolum Beach and Mount Coolum this year, mould has become a real issue and is a major turnoff Kitchen and Bathroom The most important rooms in the house. Squeaky clean they can help to make a sale. Neighbours.
Any unsightly problems in your street will detract from your home. So get together and clean up, ask them to remove their semi-trailer from the footpath.
Views - Prune trees and shrubs if they are blocking your best views. Clean windows and screens add to the view. OutsideSpruce up the exterior by washing down or repainting. Clean guttering, brush away leaves and cobwebs. Homely touches Add to the feel of the home, by placing fresh flowers on the table, a bowl of fruit, or jars of cookies in the kitchen.
Buying is an emotional decision. Silence is Golden Turn off the television and any loud music. Soft light classical music is appropriate. Little Things Fix all those "little things", the loose doorknob, or the screen that won't close, or that leaky tap. Cupboards Clean out cupboards, the less they have in them, the bigger they look. Storage space is a definite selling feature. Temperature Welcome buyers with a warm home in winter or a cool home in summer You Buyers are timid. Try not to be around during inspections, but if you are, try to be as inconspicuous as possible. Let our salesperson handle it all, they have lots of experience and that's what you are paying for. Also never apologise for your home. Tell people your home is for sale

House prices – are you a Doomsayer or a Property Spruiker?

The range of issues in the housing market bouncing around make it possible for both the doomsayers and the property spruikers to mount realistic cases to suit their argument – it is the balanced opinion, derived from professional statistical analysis that makes for the valued opinion.

Unfortunately, both partisan sides are prone to pulling out myths and graphs to illustrate points. The old saying is lies, dammed lies and statistics, and in today`s age of graphics, anybody can pull out a graph and statistics to ‘prove ‘ a point.

Let me make my stance quite clear. I am in the real estate industry, yet abhor the altruistic, vested interests of many agents whom perpetrate myths as to prices and growth. They trot them out every year and do our industry untold harm. My position is made quite clear on my blog site at http://geoffgrover.blogspot.com and my website at www.geoffgrover.com.au.

It is possible today to mount a cogent argument for both the extremes, and produce stats that at first flush prove the point. However, it is the balanced, analytic dissertation by an independent professional , that is is widely distributed to the investment community that is important to impart an understanding of the issues.

The value in this balanced advice is illustrated by the strength of each sides particular arguments:
The Doomsayers
• Cite chronic overpricing of the Australian housing market - our prices are one of the most expensive in the world, general approval by the experts.
• Cite overvaluing – prices are currently 29% higher than the long term trend. With this in mind, any current plateauing is not guaranteed to go up in the short term or even move up at all.
• Cite massive household debt – no argument here!
• Cite affordability – now at its lowest levels and going down further with interest rate rises continuing- just chat to Glen Stevens from the RBA!!
The proposition - all lead to a “price bubble” and the prospect of a collapse in prices

The Property Spruikers (usually those with a vested interest)
• Cite chronic shortage of housing and no surge of supply in sight
• Cite strong employment and business growth.
The proposition - all leading to house prices taking off, Sunshine Coast to follow the southern states lead, quoting examples of Sydney and Melbourne now, jump in before it is too late approach- in this context, note the article in the Australian 8 April about Harry Triguboff of Meriton fame pouring cold water on such view as he describes “the furore over rising residential prices as ’nonsense”. ”The prices are only rising in select areas of Sydney and Melbourne and nowher else, he said”
Interesting also to note that in this weeks My Property Preview issue,leading Sunshine Coast property magazine, an article talking about this happening shows a graph purporting to demonstrate the correlation supporting this lag effect when it shows the Sunshine Coast has over the last few years surpassed Sydney and there is not much in it now.
The statistical illiterate have probably not heard of standard deviation analysis actually linking correlations with some impact rather than vague graph lines having some resemblance to each other – from memory, second year Uni Stat Method–(Melbourne University circa early 1960`s, memories anyone?)depends very much on what statistics are used and how interpreted, which is why advice from the statistical experts is very important.

Note also the very significant difference between use of the basic average figure and the median averages used in most analytical forums. Such use of different definitions, seemingly irrelevant, can lead to for instance, such startling differences in a mundane examination of the rate of increase in the Peregian Springs suburb, Sunshine Coast, 2009 over 2009, from average showing a growth 2009 of 2%, whilst the median average showed a a drop of 10% - Michael Matusik, the Sunshine Coast property guru, even has issues with use of the median as segment skewing distorts even these numbers, he says you really need like for like housing price changes)

To quote an independent professional such as Dr Oliver , Chief Economist from the AMP, a major fund player, in his analysis released March 2010 he suggests pretty much the above factors balance out and will lead to an Australian housing price increase of around 5% during this year. Remember that inflation (CPI is a different, although very similar measure) was 1.82% 2009, well down on the nine year average of 3.026%, although it is heading north to the concern of the RBA, so gains are not actually monumental unless compared to sticking cash under the bed.

Articles quoted here are available for download in full from my website at www.geoffgrover.com.aiu plus a host of other articles re the Sunshine Coast property market.

It does come down to, though, what everybody always recommends, do your homework on the specific area in mind to suit the investment criteria adopted, eg, capital growth or long term “cash positive” yield hold.
Article written by Geoff GROVER – April 2010

New tourism model announced for the Sunshine Coast region

Geoff Grover comments that he is not so sure the recent council announcement for a new destination management organisation (DMO) that will operate from 1 July replacing Tourism Sunshine Coast will be a good thing for the North Shore community.
The plan is to split into four destination desks representing the Hinterland Region, Southern Region, Central Region and Northern Region. All sounds pretty neat geographically, but can you believe they have split the North Shore community by placing Marcoola in the Southern Region with Maroochydore and Mooloolaba.
Pretty hard to imagine two more different tourist and living type standards.
North Shore people as a general rule think south of the river is far too Gold Coasty and we go out of our way to be different.
Coolum is lumped in with Noosa and Eumundi to create another unlikely combination. Shades of 'big brother bureaucracy' that has been running riot on the Federal scene with all the well known repercussions!

Geoff Grover, as one of the leading Coolum area real estate agents thinks none of this is likely to please current or future real estate investors in the Marcoola, Mount Coolum and Coolum Beach areas as the holiday advertising message that these areas would like to send out to attract tourists is far different to those in their region. South of the river regions Maroochydore/Mooloolaba with their high rise, night club appeal and the Noosa up market, international appeal do not resonate with Marcoola and Coolum, the more laid back, family, take it easy beach holiday destinations.

Will this impact holiday occupation rates - one certainly hopes not, but it is difficult to see how the new approach will benefit such disparate regions.

Details of the master plan are on the Sunshine Coast Regional Council website. The full media release is to be found on my website also at www.geoffgrover.com.au

Ask yourself, do I need building approval for that?

Another Geoff Grover report prepared to assist the home-owner through the minefield of owning property today
A building development approval is required before starting construction on most types of domestic building work. So make sure you get all of the relevant paperwork in place to ensure your construction is correctly approved by Council.
These approvals, or permits, can be obtained from either a private building certifier or Sunshine Coast Regional Council (SCRC). Building certifiers are responsible for assessing whether proposed building work complies with all relevant provisions of the Building Act 1975 and associated standards, but regardless of which certifier you use, they must be licensed with the Building Services Authority (BSA). A building certifier will be able to tell you whether the construction work needs a building approval or whether it is self-asessable or exempt.
Some minor building work is self-assessable, meaning the owner is
responsible for ensuring the work complies with the relevant standards such as structural sufficiency, size limits and boundary setbacks. Minor work may require approval under council planning schemes and owners are responsible to comply with this.
Exempt building work does not require a building development permit and the owner doesn't have to meet minimum building standards.
Some exempt building work may still require approval under the council's planning scheme, so it's best to contact the SCRC before starting any work. Some aspects of residential building work such as the maximum height or setback may be controlled under a council planning scheme and a planning permit is therefore required from the council.
Geoff note – in my experience I have found the council to provide excellent service in providing answers – the ladies at the telephone on the frontline are superb, have a huge range of information available at their fingertips, and will put you through to the appropriate department if unable to answer your query.

If you want to know more information about approvals, visit the Department of Infrastructure and Planning atwww.dip.qld.gov.au.

Some examples of self-assessable building work include
• A small tool shed, stable or the like up to 10 square metres in area (other than in tropical cyclone zone)
• Retaining wall that is one metre in height (providing no loads are imposed above it such as a building or driveway)
• Fence not more than two metres high (not including pool fences)

Some examples of exempt building work includes:
• Axing minor attachments to a building such as a sun-hood or visor no more than one metre from the building.
• Repairs and maintenance to existing building.
• The construction of playground equipment not more than three metres high
Source: Department of Infrastructure and Planning (DIP)

The Mount Coolum Real Estate Report Autumn 2010

Prepared by local real estate identity, Geoff Grover, The Buyer Reach Agent.

Mount Coolum is characterised by three distinct geographic areas, each with varying terrain, look and feel. Residents typically harbour strong feelings about the “value” of their area and very much prefer their “area” to the others.
North of the mount
South of the mount, the Mount Coolum golf course area.
Beachside of the David Low Way, east of the mount.
comprises the small section found along and off Tanah Street East, and in recent years includes the new Stockland “Boardwalk” development.

Mount Coolum

Sales history from 2001 to 2009

Single Residential Dwellings—HousesSuburb
Year Period Volume No. Sales Median Sale
2001 Calendar Year $22,606,800 119 $170,000
2002 Calendar Year $28,591,220 118 $225,500
2003 Calendar Year $31,487,977 96 $318,750
2004 Calendar Year $27,380,537 63 $372,500
2005 Calendar Year $35,186,415 78 $387,500
2006 Calendar Year $34,193,049 73 $376,000
2007 Calendar Year $33,361,038 70 $420,000
2008 Calendar Year $19,402,000 41 $455,000
2009 Calendar Year $41,199,548 80 $460,000
Units
Year Period Volume No Sales Median Sale
2001 Calendar Year $6,557,100 55 $116,000
2002 Calendar Year $17,935,399 130 $131,000
2003 Calendar Year $15,134,419 73 $195,000
2004 Calendar Year $21,179,394 67 $300,000
2005 Calendar Year $25,785,219 85 $285,000
2006 Calendar Year $14,222,000 49 $280,000
2007 Calendar Year $16,946,498 55 $285,000
2008 Calendar Year $15,324,000 46 $323,000
2009 Calendar Year $13,188,500 42 $302,500

Values are median averages which do not denote same house sale movements, but the averages of the houses sold, and are subject to some skewing if a particular segment, eg lower end with first home buyers changes significantly.
The development of the Boardwalk with more high end sales will undoubtedly become a significant influencing factor on this price indicator in coming years.
Same house sale prices are the only very accurate indicator, but these are useful for trends

         This report attempts to provide clarity to Mount Coolum price movements over the last few years. We have almost daily reporting in the media of housing statistic sales volumes and prices from all around Australia painting various pictures –in my view  there is no such thing as a useful national trend you can extrapolate to provide detailed  information for your area, you have to drill down to specific locations to assess the impact of the varying pressures on housing supply and demand

It is rather difficult to imagine why a great auction clearance rate in Adelaide and Sydney last weekend will have much bearing on long term property prices in our neck of the woods. Reading some of these articles, particularly in the national and capital city press presented with breathless excitement and making such long term positive pronouncements from such limited data is unfortunately symptomatic of vested interests at work who are quoted prolifically to re-inforce their lobby interest.

DATA HIGHLIGHTS
Property prices in the Coolum precinct
– house and unit price average trends from 2004 to 2009 using median averages  as a guide – indicative trend value of the precinct areas only, not  a measure of actual house prices you could expect

Houses—Single Residential; Dwellings.
The huge growth spurt was from 2001 to 2004
Since then, houses have actually continued to climb in value each year by an average of 4.2% in Mt. Coolum, no major catastrophes along the way, pretty much a solid and safe story year in and year out.
By way of relative measure, Coolum Beach increased by approximately 4.5% over the same time frame.

Units - Building Community Scheme
Again, the huge growth spurt from 2001 to 2004, encompassing a large number of units sold off the plan in 2002 (Coolum Fairways) and 2005 (Coolum Villas) pushing volume numbers up significantly
From 2005, a different picture – virtually no growth at all , with a lot of stock coming on board at the upper end in Mt. Coolum during this year adding to current unsold stock and will present an interesting time ahead.  
The picture for Coolum Beach, and indeed virtually the entire Sunshine Coast depicts a similar static picture for unit median values.

The Real Estate - Sales Pipeline

The 4 Stage Process

You don`t get past Stage 1, no chance to Stage 4i.e., Sale and Settlement


The Sales Pipeline identification in any industry is essential to develop appropriate strategies and the media mix essential to deliver required results to the sellers.

Geoff Grover has an extensive background in sales and marketing management in international companies, Australian Stock Exchange listed companies and in building his own businesses in several industries. He is currently a successful licensed real estate agent on the Sunshine Coast, and has used these experiences to layout the specific real estate industry sales pipeline stages in a way that brings understanding to those seeking to buy or sell a residential property.

The Real Estate industry is identified as a “4 Stage Pipeline” process whereby a skilled agent moves people through the stages to obtain the maximum market price.

The sales process should be clearly identified as not about simply erecting signs, loading to websites, conducting open homes and handling documentation at the cheapest price possible. It is a highly skilled and qualitative process that impacts on the end price and the true cost is the “net return”, not the individual component costs.

Whilst the real estate industry now requires qualifications to perform the functions of a sales person, the disparity of participant skills in terms of life and people qualifications, negotiating ability and business skills remains an important factor.

The sales process outlined below does not change, only the outcome does. So the objective of sellers is to select the agent/agency combination delivering the experience and skillset together with the relationship compatibility to drive through these stages to deliver the best result.


Stage 1 – Exposure
The ability of the agent and the effective resources of the agency to put the property professionally to the maximum number of prospects in all forms of media.

Measures here include
INTERNET - on top of the obligatory realestate.co.au and domain.com.au websites, a global syndication capability to property search engines such as google.base and the disparate comparisons of an Australian/international real estate group as opposed to a local independent who offer differing advantages needs to be considered, as well as agent website capability.
Computer listing is much more than simply posting to websites. Content is most important to capture attention, given the limited time spans consumers allocate to their individual property searches. Quality of photos, e.g., not the garage or fluffy toys on beds, but the key attraction features of the property is required. Working with search engine optimization techniques is also critical to bring to prospects attention when they are “surfing’ the web. Use of floor plans and a crisp, concise headline attracting attention, plus bullet points rather than text have been proven to be effective.

PRESS – leveraging local and relevant press at discussed levels and costs. Innovative agents look to maximise return on expenditure by use of classifieds as well as colour pictorials, and use of recorded property descriptions via free call 1300 or 1800 numbers.

DATA-BASE – the investment and general public community register with appropriate agents/agencies, and dependant on the prevailing economic circumstance and the agent/agency reach, the potential is variable and clearly requires investigation by the seller.
For instance, it is all very well to have a listing of names, but how well have they been qualified and kept current. Innovative agents will again maintain constant contact by means of informative newsletters delivered by e mail, Australia Post or hand delivered.

DIRECT MARKETING – strategies exist here that are utilised to varying levels by different agencies. A strong local agent will maintain constant communication with his local area by regularly “letter box dropping” newsletters/flyers providing information of interest.

The correctness of a choice between alternates and the success of the strategies employed is revealed in the performance of the following stages.


Stage 2 – Inspections
The number of inspections to follow from the initial exposure, or reach to Buyers, reflects the ability of the agent and agency combination to realise their articulated strategies and translate that exposure to interest and subsequent inspections.

The number of inspections can be nothing other than a direct reflection and measure of the quality of the marketing in the exposure stage and a price in the zone to provide interest.

A lack of inspections is cause for concern as to the adequacy of the initial stage of the marketing strategy or the pricing strategy.


Stage 3 - Serious interest
The ability of the agent to overcome objections & generate desire to capitalise on interest flowing from Stages 1 and 2.

Requirement is deep knowledge of local market pricing and developments, council regulations and communication skills to identify real objections and satisfy them.

It goes without saying that people skills to build and develop relationships with a disparate bunch of prospects and the seller are a pre-requisite. Continual communication on at least a weekly basis with all parties is demanded, plus the production of quantitative and qualitative reports as to exposure and results (or lack there-of) in the various media.

Stage 4 – Offer
The ability of the agent to negotiate and deliver.

The really serious stage requiring extensive life and people skills. A critical requirement. For example, you need to be careful if you consider dealing with an agent/agency who has discounted their services or relied on “gimmicks and giveaways” to win your business. How strong do you think they will be in negotiating the best price for the seller if they are forced to offer discounts on their price to win business?

Your agent must have the experience and demonstrable and proven marketing expertise, negotiating and people skills in all stages to get the best buyers to contract stage and deliver a premium result, and the agency to have premium BUYER REACH

These are the measures by which agent/agency selection should be considered.

7 Deadly and Expensive Mistakes Commonly made by Home Sellers

Common and Deadly Mistakes made by Home Sellers
Selling your home is a major event with significant consequences, and should be considered carefully before undertaking the process to avoid heartburn and a sale at less than possible price.
If you want to give yourself that suffering, then
1. Don`t do an Exit Plan
An exit plan is a thorough examination of the probable sale outcome of your property which flows through to your financial options in the next property move, whether that be a downsizing, upsizing or a geographic location change.

Failure to do so can result in placing a property on the market with unrealistic expectations with a “wish” list price allowing purchase of a property with the desired features in the desired location. This may be something that is not possible, and can be very stressful and costly if only found out during a lengthy and protracted sales process.

It can result in refusing what is a very reasonable offer on the basis it doesn`t get you what you want, but what you want and what is feasible may well be very different – be thorough in examining assessments put to you, don`t just accept what you want to hear. If a price put to you seems high and out of kilter with other assesments, it is probably too high – ask how such a figure could be gained given the lack of supporting evidence.

2. Don`t prepare the property for sale
Appearance is critical and it would be foolish to ignore this when selling your home.
You may not be able to change the location or floor plan, but you generally can do a lot to improve the appearance. Allow the buyers to imagine themselves living in your home. The decision to buy is based on emotion not logic.
Try to present as a well cared for home with no glaring problems – first impressions are paramount. The key matters to address are:
(a) De-clutter
This doesn`t mean just tidy up a bit. It means, for instance, clearing all kitchen benches and leaving them that way, thinning out walk in robes and cupboards by boxing little worn clothes and shoes to create space. Furniture is another issue – think back to display homes where there is an illusion of space. Remove bulky items giving the cluttered look.
De-personalise where possible. Put away family photos and knick knacks that mean a lot to you but are really other people`s rubbish. You need to be ruthless.
(b) Tidy up the garden
This is the biggie – get out and weed those gardens, trim branches and plants from rear windows to let more light into the house, mow the lawns and trim the edges. Check that the garden beds do not cover any brick weep holes or cover any timber cladding – Building and Pest inspectors almost have a coronary over such occurrences as it leads to possible termite invasions. Most gardens of older homes will have or have had termite activity, so protection of the house is critical.
Ensure that all pavers are gurnied to clear mould and dirt – this is a clear indication of lack of light and sun or just lack of care, both of which resonate with buyers.
( c) Odd jobs time
Get rid of all those little jobs you were saving for that spare day. This must be done before the buyers start coming through. Fix that broken tile, oil the doors, get a glazier to replace the cracked glass, ensure flywire screens don`t have any tears or holes and all screen doors slide easily.



( d) Paint or not to paint?
Don`t repaint the entire house unless it really needs it, but be prepared to do ceilings or smaller rooms. Get rid of any peeling paint to gutters, doors or window surrounds.
(e) Clean as never before
Clean windows inside and out, have the shower, bath, taps and floors sparkling. Make sure ceiling fans are cleaned, and the house exterior should be checked for a house wash possibility. Scratched floor boards may need to be repolished, and grout cleaning will often bring up a bathroom.
(f) A one off check
Take a backward step and try to view the property through the eyes of a buyer. Maybe some changed light fittings, or light fittings rather than a bare globe at minimal cost would help, painting that orange bedroom where you let the teenager have his/her choice may add benefit at minimal cost.
And lastly, make sure that tidiness is maintained throughout the sale process. Remember, inspections can occur at short notice - people often come up from Brisbane for the weekend to look at a choice, it doesn`t work-out, they need to look at another area, the calls can come to inspect at short notice, a good agent will listen and direct and try to strike “whilst the iron is hot”.

3. Don`t take any notice of a reasonable sale price expectation and “go for broke”
Pricing needs to position the property to obtain a premium price and allow for the inevitable “horse trading” – nobody believes anymore in paying list price, but pushing this to too high levels is asking for trouble. Buyers stay away in droves, and the longer on the market, the lower the price is an all too true maxim.
The first step most sellers take is to call in agent to carry out an appraisal, which should be backed by a Competitive Market Analysis (CMA) comparing your property with similar properties in a recent time frame. Real Estate Agents are not valuers, so base their estimates on market activity and a feel for the prevailing market trends
The quality and experience of the agent are key factors in arriving at a competent and accurate CMA. Whether the agent has a full license or just a sales certificate and the length of time in the industry plus market share are factors when considering the veracity of an appraisal produced by your agent.

Check closely the content of any CMA – how relevant is it, how thorough has the agent been? The outcome should be a reasonably high degree of probability of achievement of the predicted sales price range
Beware that it is known for agents to propose a price to meet the buyers expectations and in effect “buy” a possible listing. This is known in the motor vehicle trade as “high balling” on a trade in to ensure the car sales person has the last negotiating opportunity.
A recommended alternative course of action is to appoint a sworn valuer to carry out a price review. Valuers are professionally accredited and value according to a strict process, but even they will be subject to variation as a valuer only looks at past activity and construction costs, and does not have a feel for possible future trends. This valuation, of course, comes at a not unsubstantial cost.
The true “worth” will only be determined upon the result of an actual sale, so for future planning, a somewhat conservative approach is required.
A list price is usually set with some “reach” and “give” for negotiating, but pitching this too high is fraught with danger as buyers are very aware of pricing, leaving it alone even with the best of marketing campaigns. As a result, the industry often sees the downward spiral of prices with the seller always being pitched just above where the market appears to be.



4. Don`t list exclusively with one agent
There is a school of thought that believes by listing with a range of agencies on an open basis that you are trawling the entire market with a huge number of agents working for you to the best result. In fact, the reverse is the case.

From the sellers point of view, it is important for the execution of marketing strategies that one agency controls the message to buyers. Nothing indicates distress to buyers more than a plethora of signs and different sale messages and considerably weakens your negotiating position. Listing exclusively does not prevent other agents bringing buyers to the property.

Most agents will conjunct”, ie, share commission on an equitable basis, which means an exclusive listing can still have the whole real estate community working for you but with control of strategies by one party to the seller`s benefit. The seller does need to ensure the agent of choice will conjunct on an equitable basis, usually regarded as a 50:50 or 60:40 split. Some agencies do not reciprocate at these percentage levels, or conjunct at all, to the detriment of the seller as other agents find the effort just not worth the reward.
Virtually all the successful agents, successful because they sell more properties than average, which is who you want working for you, don`t normally handle open listings. Most are commission only sales people being paid on success, and time spent can be lost as agents are not aware of the status of the sale and it can be sold through another agent whilst still under negotiation. As time is money, sellers will appreciate why busy and successful agents may bypass the opportunity to open list.
The relationship between the agent and the seller is a partnership, working together to maximize the sale price. It is usually not possible to have a strong relationship with a range of agents to the benefit of the seller with a number of agents involved and conflicting interests.

Under some circumstances, a joint exclusive is a very workable proposition, whereby two agents with different perspectives and buyer reach may bring complementary skills to the process. Most agents will work together on a shared commission basis, but it is critical sellers explore agent/agency relationships to ensure the entire real estate community is working effectively on their behalf.

5. Don`t employ all the marketing tools to reach buyers
There are actually some sellers who say they do not want a For Sale sign erected outside the property, presumably because they don`t want neighbours or friends to know. It is very difficult to sell a secret.

For Sale signs, particularly on the Sunshine Coast, are an important tool as people moving to the area often drive around areas they like and ring up based on signs. Floor plans are also important, and can be drawn up for minimal cost – Melbourne and Sydney buyers in particular are amazed when told that floor plans are not available

The following pie chart depicts where buyers come from according to recent Australian analysis.














Various agencies have different policies according to charges and provided services, and these policies may vary within the one franchise depending on office location. Such matters are for discussion between the seller and the various parties, but assessment should relate to how effectively these may be deployed.
For instance, an agent may say he will provide free press advertising, when it is a minute ad , one of twenty to a page, compared to a quarter page colour pictorial with clearly more buyer reach,and impact – this is particularly so for a classy or prestigious property, as such a small ad possibly right next door to a first home buyer property just does not do the property justice.

6. Don`t Seriously consider an Early First Offer not far off List Price.
The first thought is that ”I have listed it too cheap” and a better offer is just around the corner. The byways of real estate history are littered with tales of sellers who desperately wished they could turn back the clocks of time to take advantage of that offer.

The key to an assessment of any offer is measurement against the original appraisal which should be designed to give a realistic expectation. Without any benchmark, how can any realistic comparison be made? This offer may well be the “dream deal”, but because it was the first, or an early deal and not compared to a realistic outcome, was not considered in the correct light.

This is another example of how critical a realistic assessment is made originally – you do not want to build up three months history to realise the correct selling price range after you have lost all the initial buyers – the most important time is the first 30 days!
This approach is particularly dangerous in a changing market where the end result may be a continually downward spiral chasing receding prices. Alternatively, in a rising market, it may be the best decision. The relationship between the seller and the agent is pivotal here – with an agent who has proven ability to read the market and buyers and has displayed a partnership approach where the seller`s interests are paramount, a decision on such pressing matter can be made so much easier.

7. Don`t take a Commercial Approach to Negotiations

A common failing is for sellers to take all matters personally. Comments such as “they are trying to steal this house at that price”, “what do you mean the bathrooms need renovating”, “my colour scheme is not disaster” and “ I will not pay for that screen door to be fixed as part of the price”

This can lead to personal prejudices and lack of a clear head. Keep in mind the end objective. Who cares if the buyers think they have a great deal, as long as you are satisfied you have met your objectives and received a fair price?

Aim to win the war and lose the occasional battle. If the seller has employed the right agent in the first place, he/she will be an experienced negotiator and be well placed to advise on each twist and turn.