It would be an understatement to say that home buyers and investors have struggled to secure finance for the past six months or so.
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.
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.
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.
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.
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 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.
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?
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.