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
Saturday, April 24, 2010
Thursday, April 8, 2010
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
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
Wednesday, March 24, 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
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
Sunday, March 21, 2010
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)
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)
Thursday, March 18, 2010
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.
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.
Tuesday, March 16, 2010
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.
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.
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.
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