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Buying or selling residential real estate is likely to be one of the most emotionally charged transactions you will do in your life.
Once you decide to sell a property any money that you put into the property should be deemed as an investment. This applies even if you have bought an un-renovated property that you intend to sell.
Once you have finally found a suitable home, you inherit a new challenge.
What to offer the vendor? There are so many variables when it comes to making the owner an offer. Quite simply, there are more questions than answers once you find a property that meets your needs.
During the sales campaign of your property, the agent will more than likely have to make some recommendations.
Whether these recommendations relate to the market, the price or whether to accept or reject an offer, their significance cannot be understated. On average most people sell real estate every 7 or 8 years.
You have found the home you like. You have heard that it’s a ‘buyers market’, so you’re thinking of making an offer.
The booming market of years passed have meant that real estate agents have become facilitators of sales rather than negotiators of them.
Where there is one house and three buyers who desperately want it, an agent does not have to sell the property. They simply facilitate the bidding process to find the highest paying buyer.
One of the most commonly asked questions to a real estate agent is when is a good time to buy or sell?
The answer to this question depends greatly on personal circumstances.
Spring is traditionally referred to as “The Selling Season” and with very good reason.
The arrival of the warmer weather heralds a marked increase in the number of buyers looking for that special property to enable them to move in before Christmas.
Selling your own home is one of life’s most emotional moments for most people and emotions can replace logic.
Calling in agents for advice on what your property is worth often creates more confusion.
Conditioning is one of the real estate industry’s favourite tricks used to get home sellers to lower their price expectations.
If you are aware of it happening, you can protect yourself against it but if you don’t realise that you are being conditioned, you can make decisions that you come to regret.
Some private treaty sales are marketed to “offers over” price tag.
If you use an “offers over” price tag, it is the Office of Fair Trading’s view that it should be the minimum amount the vendor is willing to accept to sell the property.
When a vendor puts their property on the market they more or less work in partnership with their agent to present and market the property for the best price possible.
When the property is occupied by a tenant the sales process may be a little more complicated.
Price Ranges are ‘Bait’ strategies which use a false low price to attract buyers.
The open for inspection method is often the inspection method of choice for the agent too lazy or lacking sufficient training to prequalify buyers.
The reasons for this are varied but if you scratch just a little dirt from the surface it will soon become very apparent why agents are so insistent upon their use.
When it comes time to sell, many people will select the agent on the price they quote and the fee they charge.
How much to you think our property is worth and how much do you charge? And the good news is, if you want an agent that will quote you a high selling price and low commission rate, you will find one.
Buying a home is one of the most important and largest financial decisions that you are likely to make.
Getting it right will result in years of security and happiness from your home. As happy as the right purchase makes you, the wrong purchase can become a painful purchase.
A lot of attention has been dedicated recently to aggrieved buyers who have been bait priced and hooked into bidding on properties they could never afford to buy.
The respective buyer’s anger at this sales tactic is completely understandable.
If you want an above market price for your property, agents have a number of tricks to bring you back down to a more normal market price.
Some of these tactics are subtle while others are more transparent.
A high price, even one that delights sellers, may not be the highest price.
No matter how high a price appears to be, the questions remains “Is this the highest price?”
If more agents asked this question, more sellers would receive higher prices.
Once the decision to sell has been made, a lot of questions suddenly arise that had not required consideration up to that point.
Asking and answering questions that arise prior to acting will ensure a plan emerges to guide you through the process.
Like most people you’re probably confused by the daily bombardment of mixed messages about the state of the market.
Are you finding it difficult to make sense of the conflicting information?
Well don’t – the market is going through a transition period.
While the internet has brought many positives, particularly the way marketing costs have been driven down thanks to web sites lowering the need to rely on print media and the ease of email communication with buyers en masse, there is a downside.
The history of virtually any property that has been bought, sold or withdrawn from the market in the past can be found on the net.
Under-renting the property and failing to keep pace with the increasing market.
When interest rates, strata levies and land tax rise, the landlord is left to carry the extra burden. It is only fair and sensible to ensure that the income the property generates is at the market rate and not significantly below.
The internet has just about killed off newspapers world wide. With it has gone the rivers of gold – the classifieds.
Classified advertising for cars, real estate and jobs all underpinned newspaper’s profits.
The rivers of gold for newspapers also created rivers of gold for estate agents. Agents packaged up expensive and largely needless print campaigns that home sellers were convinced to pay for upfront.
When you first list your property on the market, your greatest desire is also your greatest fear. It’s the early offer. Waiting for the agent to provide feedback after the first inspection is a nerve wracking time. Is the home presented correctly? Is the pricing strategy in line with the market? Will people like it?
If the response to those questions is favourable and a buyer makes an early offer, suddenly the nervous energy shifts. Is it too quick? How long should it stay on the market? It’s only early, we are in no rush.
Why do so many property experts have difficulty predicting the market and why do they keep getting it wrong?
The property market always seems to evoke strong and conflicting opinions.
It wasn’t so long ago, when a homeowner decided to sell their property the agent would advertise it for the agreed price. The price was set by the agent in consultation with the homeowner.
The advertised price was simply the price the owner wanted – it was straightforward, transparent and honest. Why has the advertised price of many properties today become so misleading?
The goal when you list your home for sale is to achieve the highest possible price for it.
This seems like an obvious goal for any home seller, yet it is often lost during the campaign.
Agents will focus on days on market, clearance rates or the reserve price. None of these indicators should ever supersede the vendor’s ultimate goal,
Who is wandering through your home?
Opening your home for public inspection is one of the worst mistakes you can make when selling your home.
It is always a financial mistake, but it can also be your worst emotional mistake.
One of the most commonly asked questions to a real estate agent is when is a good time to buy or sell?
The answer to this question depends greatly on personal circumstances. Is it a financial decision (gain or loss)? Need a bigger or smaller home to live in or start an investment portfolio?
The reasons are as many as they are varied.
You have a much better chance of selling your property quickly and for more if you price it to meet the market in the first weeks of the marketing campaign.
This strategy is much more successful than pricing it high and hoping that someone may pay that ‘premium’ price.
You should always be careful of an unscrupulous agent promising you an unrealistic price.
The best agents keep detailed records of buyers.
Most agents get dozens of enquiries from buyers each month. Some get hundreds. But most don’t keep records of these people – names, enquiry details, email addresses and phone numbers.
Usually these agents do not feel the need because their home sellers pay for advertising.
Interpreting agent’s price guides has become harder than earning enough money to purchase a property for many home buyers.
Each agency takes a different tact on how to position their respective listings to the market.
Some firms price accurately, some throw berley in the water and price well below market price in an attempt to bait prices.
The best agents will always be able to introduce buyers to your property without asking for any money. If an agent claims to have a buyer, as most real estate agents will, that should negate the need for spending money upfront on advertising. Unfortunately, many agents will initially ask a seller to spend money advertising their house (and their agency).
While market conditions are relatively healthy at present, the best buyers will always make themselves known to most of the agents in the area they wish to buy into.
If there is any unfinished work inside the property – such as skirting boards that have been removed – fix these things.
If there are any obvious minor repairs – such as door handles missing or broken hooks – fix these too.
Is it necessary to have a property inspected by a professional when buying and how much does it cost?
For most people, buying a home or an investment property is the biggest investment they will ever make. Yet many enter into a contract to purchase giving little thought to
What would you do if you wanted to find out what your property is worth in today’s market?
Would you ask for an appraisal or do you get a valuation?
They may sound like they are the same but they’re not.
When interviewing agents to sell your home, the more agents you meet, the more you will be confronted with the dilemma on whether to spend money upfront to advertise your home.
The advertising money is spent and gone regardless of the outcome of your campaign.
When selling a property, most people have two conflicting emotions. They desire a quick sale, but if that is achieved, they fear that the property may have been undersold.
To put a property on the market takes effort. there is the effort in selecting the agent and marketing strategy, effort to prepare and present the property and then the effort to keep the presentation A1 throughout the campaign. It is demoralising when you go to this effort and don’t even get an offer.
Buying a home is one of the biggest steps most of us take in life so it’s important to make sure you avoid some of the pitfalls. Here are some tips for those venturing out to buy a property.
Buying What You Want Instead of What You Need
There are two kinds of buyers; those who buy what they want and those who buy what they need. The public world of materialism is often a private world of financial stress. Do you need four or five bedrooms? Do you need to live in the ‘best’ area? You can buy a better home in a less expensive and less prestigious area.
Have you ever wondered why some families are confidently choosing to upgrade their homes in the current market?
Did you know the slowdown in the property market is in fact financially advantageous for homeowners who want to upgrade their homes?
Nearly every buyer asks the question – “Why are the owners selling?” The answer to this seemingly innocent question can have far reaching effects during any negotiation process.
Buyers are always amazed how often an agent will disclose the personal details of their paying client, the homeowner. Innocuous responses such as ‘the owners are going their separate ways’ or ‘they cannot afford to hang onto this investment home anymore’.
You rarely need to spend thousands of dollars to make your home attractive.
Buyers are attracted by the appearance of your property and, when they inspect it, they are influenced by its atmosphere. The right appearance outside, followed by the right mood inside, gives you the best chance to get the highest price.
Quite often when home sellers ask an agent to give them a price estimate on their home, the expectations they have are usually higher than the price the agent is thinking.
Some real estate agents, unlike valuers who are objective, may be tempted to raise their estimate price in order to get the listing.