How a real estate agent without a computer uses Facebook and Twitter

A humourous take on social media by Geoff Grover, Coolum Beach and Mount Coolum local real estate expert. Does make you wonder though about the relevance of social media used in this context.

Melbourne and Sydney markets not representative of the Australian property market

Comments by Geoff Grover, Coolum Beach and Mount Coolum real estate property expert based on the Sunshine Coast – www.geoffgrover.com.au – 4TH August 2015 The Australian newspaper recent analysis got it right with several articles about the Melbourne and Sydney markets being in no way representative of the Australian market, let alone other Capital Cities. Prices are indeed ridiculous, and rental gross returns are now a low 3% after a long period of 5% plus, and remember this is gross. Never mind, they are going for capital gains. Trouble is, Melbourne and Sydney are unique in that demand is being driven by exceptional economic growth. Perth has its well recorded history, Adelaide is an absolute basket case and Brisbane has lost all its migrant allure with lack of jobs. Recent article on my website details. A looming problem is oversupply of apartments in particular with so many coming onto the market. Again my website provides articles as to why you should not buy off the plan from well respected market commentators. Putting it all together, troubles loom in these hot spots.

Putting property prices in perspective

Putting property prices in perspective Geoff Grover - Property Talk - March 2015 Local real expert for Coolum Beach and Mount Coolum. Do we have a hot residential market with rising prices? The national commentary relates to inner city Sydney and Melbourne. but this is far from representative of the nation as a whole with Perth, Adelaide and Hobart very quiet. Roundup: * Investment yields in the capital city top ends simply are not adding up anymore, as reported in the Australian March 7-8 9 (p32) by James Kirby. * Despite the prospect of even lower home loan mortgage rates, the national auction clearance rates remain subdued according to national leading auctioneer Jason Andrew 9th March Newsletter. * Brisbane City Council suburbs - despite the hype, 2010 to 2014 shows sales numbers up 26.5%, prices 7.8% * Previous hot spots in coal centres Gladstone and Mackay have collapsed . * The Sunshine Coast Central Region on the other hand has from 2010 to 2014 seen house sales numbers grow by 40%, but with only a 2% median price growth. Totally different factors apply in each of these markets delivering a variety of results, although the over arching economic environment cannot be ignored. Andrew reminds everybody that the fundamental economic drivers behind falling interest rates should not be underestimated. There are no guarantees that future interest rate cuts will have a positive effect on the property market. Even the Reserve Bank Governor has expressed concerns about the effectiveness of this financial lever. Andrew further points to some sellers reaching ahead of the market with their price expectations in anticipation of future price gains. The editor also reports some fanciful list prices on the local scene, simply not supported by any sales history. It is even more important in this market to base price expectations on a like for like model, ie, an exhaustive review of what the particular local market has achieved. Your local area expert is best positioned to provide this data and develop a strategic market plan that will maximise a sellers price, but remember, all sales only come about via a win-win situation.

The Sunshine Coast loses its allure for migrants

The Australian - Sunshine State loses its allure for migrants March 28th 2015 by Geoff Grover, Local Coolum Beach and Mount Coolum real estate expert. Migration inflow has dropped to its lowest level for 30 years according to a report from the University of Qld. The report suggests these huge volume movement days arew done, as Brisban eis now amuch more congested city now than historic levels in the 80`s and 90`s and there is maturity in the Qld economy being reached relative to other parts of Australia. The end of the construction phase for major resource projects has been a factor over the past three years as th eemployment opportunites have declined significantly. Refer Geoff Grover`s Newsroom tab in www.geoffgrover.com.au for the full report

Thinking of Selling Property

THINKING OF SELLING PROPERTY? by Geoff Grover, Mount Coolum and Coolum Beach realestate expert July 2015 “The tide of digital change remakes business models” is the heading of a recent article in the Australian and we have seen this very publicly with major retail outlets and online selling– what is not so visible is the changing face of real estate. We are now seeing a change by consumers in preference from the real estate company`s corner store brand to the personal brand, ie, knowing about the actual agent they will be working with – surveys show that consumers appear to be brand agnostic as it relates to real estate companies due to technology and the internet. A recent study showed what is most important when someone picks an agent to work with. Over 50% of the respondents said they look for an agent who is honest, trustworthy, has a good reputation and is a local area expert Only 3% said they care about the brand the agent is associated with.

Consequential to this trend is the amazing growth of online agencies and personal agent branding as the new business model. Equipped with a back office operation including a creative marketing section and subscribing to all industry major portals, this underpins experienced agents marketing efforts delivering strong results to their clients as: * they are freed from the shackles of office rules as to how they must operate. They can shape strategies and marketing to suit the property and the vendor, not be constrained to, for instance, insisting auctions, expensive For Sale signs, charging for internet listings and expensive press advertising regardless of the target demographic. * @realty have under the one banner over 100 agents nationally based working with Geoff to the benefit of his client, not a small boutique agency or a series of individual franchised agencies working as separate silos – Buyer Reach is maximised. Food for thought for all property owners looking at putting their property on the market. To identify local area property experts, websites such as www.ratemyagent.com.au have surfaced - check out Mount Coolum to see how Geoff rates.

Geoff Grover – Licensed Real Estate Agent

Lies, damned lies and statistics

Lies, damned lies and statistics by Geoff Grover, Coolum Beach and Mount Coolum real estate expert - July 2015 The full quote popularised by Mark Twain is “There are three kinds of lies—lies, damned lies and statistics” There is a lot of truth in this old saying as numbers can be manipulated to suit any argument. Property prices are a classic. We get breathless announcements as to how the market moved so much last week and extrapolating this to make a major pronouncement on trends. In truth, trends can only be identified by a long term view. You will always have short term movements up and down in everything that is measured, just ask any trader of the stock market! Let us look at house sales by year from 2010 to 2015 YTD. We have had an increase from 2012 of 23.2%, but from 2010 only 7.7%, ie, 1.54% average per year, which is less than inflation! This is solid, but no price boom. What is very relevant is the numbers sold, increasing each year. The property cycle used by the serious commentators predicts that price growth always follows volume growth, a simple outcome of supply versus demand. Increase from 2012 is 10.2%, from 2011 nothing, from 2010 0.86%.per annum. Year to year figures are affected bysegmentation, ie more high end sales than last year, so the long term view & like for like analysis is essential.

The Art of Price Positioning

How do you price a property for sale to achieve the best result, or do you not market at a price? The no price proponents, eg by auction, say it is best to let the market decide by getting buyers feedback In certain areas of Australia, notably Melbourne and Sydney, auctioning is the dominant form of marketing, not so accepted elsewhere. The press promote auctions aggressively because it is a press dominant process, relying much more on heavy, widespread newspaper advertising $`s in a short time frame rather than the balance of appropriate press and internet exposure designed for the property, ie strategic management which may be local press only. Qld, for instance, despite the apparent dominance in the press of auctioning due to the major agencies championing it, has far more properties sold by private treaty rather than at auction. In areas where there is a lack of wide auction acceptance, market feedback on likely sell prices can be skewed by savvy bargain hunters who give rock bottom price feedback to agents. The “Make an offer” or similar & “Offers over $x” listings are invariably the result of a vendor not liking the probable sale range price advised by the agent on appraising. These approaches are often suggested by agents on the premise they will attract much higher prices than the appraisal, all to win the listing. This is usually wrong on all counts. *Many buyers will simply not enquire as they fear they will be wasting their time, or * Buyers will sense a bargain with this sort of language and hit a low price. Very rarely do offers over list price marketing result in much more than at best ,a small price above the list price, usually lower. Then we have the very high list prices, on the assumption you can always come down, but you can`t go up. Totally unrealistic. The problem here is that buyers know that & do not come, you have nobody to negotiate. The upshot: * an effective auction is significantly more expensive than private treaty with heavy dominance on mass press advertising. *Selling on a no price basis, eg “Make an offer” limits the opportunity to sell at the right price with fewer buyers inspecting ,with bargain price offers a likely outcome * High list prices attract very few buyers The lesson to be learnt is to work with the experienced & highly knowledgeable local area expert to market at the proven price range using their marketing expertise & contact with local buyers if sellers wish to sell in a realistic time frame & at maximum market value. Many don`t - the average house sale result for P/C 4573 for the 12 months to July 2013 is on the market for 168 days with discount off original list price of 9.4% !!! Surely this tells a tale!! Geoff Grover - Property Talk - November 2013