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Don't overprice your Property |
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Over pricing your property is the biggest fundamental mistake you can make when trying to sell your property. You may have had a number of Real Estate Agents attend your property all with varying opinions as to what the sale price of your property should be.
Remember Price doesn't always equal Value.
Sellers sell on Emotion, Buyers buy on Price.
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So, what is it really worth? Are you getting varied opinions from Agents? Who do you believe? If you chose an Agent based purely on the price alone you could be making a huge mistake.
Some Agents work on the principle if your motivation for selling is high, then they will inflate the price enough to impress you and effectively outbid the other Agents to secure your listing (buying a listing). Then over the following weeks they will use a technique known as “conditioning the vendor” to bring the price back to a more realistic level before the listing expires.
This technique usually results in a lower sale price as the property remains on the market for an unusually and unnecessary long period of time. Prospective buyers see the property as being stale and use this fact against the vendors to negotiate a lower price.
Some Agents quote lower prices in an attempt to sell the property as quickly as possible, with the least amount of effort and cost to their business. Or they are simply inexperienced or incompetent and do not know the fundamental steps to accurately appraise your property.
Always insist that your Agent provides a Comparative Market Analysis (CMA) of sales in your area. This information will typically consist of:
• Details of comparable properties in your area
• Date of sale
• Final selling price (not listing price, these numbers are normally very different)
In short, you may have ended up with an Agent who was good at selling you, but not good at selling your home and you are going to pay them a commission to do it.
Here’s a typical scenario when an owner decides to add a little buffer on top of the agents recommended asking price.
A Real Estate Agent gives the seller a probable sale price of say $440,000 maybe as high as $450,000 and suggests an asking price of say $469,990.
The seller is happy with this but then instructs the Agent to market the property at say $490,000 to $500,000 just to be safe and allow a bit of room for negotiation.
Now let’s look from the buyer’s side of the equation. You’re ready to buy, looking in an Agents window; you know you have finance approval for approximately $450,000. You notice a particular property and it ticks a lot of the boxes of your criteria sheet and has just hit the market at $499,950. That’s the best part of $50,000 above your budget. Most buyers know that listing prices are negotiable, but generally speaking, most feel that you cannot negotiate $50,000 off the asking price, and consequently, will more than likely move on and not even make an enquiry.
The seller is oblivious to this situation, and as time passes starts to suffer frustration from apparent lack of interest, although buyers are inspecting the property, there are no offers being made. The property becomes stale. Buyers begin to think something is wrong with it because it is not selling.
The seller’s motivation and emotions start to kick in; something has to be done to attract some attention. Even if the price is dropped back to the original level suggested by the Agent, this may not have the desired effect, because buyers have already formed opinions regarding the property. Unfortunately a massive price reduction may be necessary to attract some buyers.
As a result you may end up selling well below the probable range suggested from day one.
So before you ring an Agent to sell your home you must educate yourself as to current market conditions and the price of comparable properties in your area. This doesn’t involve talking to old Mr Jones across the road who thought the house at Number 27 sold for $750,000. You must be confident in the fact that you are getting accurate information.
If you are in any doubt about the price your property would achieve in todays market and require the services of an honest and reliable real estate agent to assist you with your decision making process,contact Property Lovers Real Estate at Burpengary on 3888 2646.
Dont forget Property Lovers Real estate at Burpengary offer a free market report upon request,this report will be emailed to you within 24hrs.
Take advantage of this great offer before listing your home for sale.
Simply go to the "Selling" drop down box on the home page and look for "Free Market Report".
Fill in the details and click the submit button. |
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Here's what you do! |
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• Attend open homes in your area, become familiar with property and prices in your part of the world. Find out how much bang you get for your buck.
• Spend time on the internet investigating sites like Realestate.com and Domain. The internet is a vital source of information.
• Read the property section in newspapers.
• Attend auctions, see what people are prepared to pay, and for what.
• Monitor window cards in Real Estate offices; pick up literature on offer at Agencies.
• If an Agency is selling a home in your street, make contact with the owner, ask how the campaign is going, what is the Agent like, would they recommend the Agent, are they confident of getting an offer at the listed price in today’s market.
The information gained from these simple tips will put you in the driver’s seat and you will be less likely to be bullied or intimidated by unscrupulous Agents. Knowledge is power, and a little preparation and research will quickly help you identify where your property sits in the market place.
I know what you’re thinking, what if I price my property too low. This shouldn’t be a problem; Real Estate is very forgiving and relatively stable. For instance, if your property was priced low there would be a huge amount of buyer interest resulting in multiple offers which in turn pushes the price to the correct level as dictated by the market.
It’s your property and it’s always your choice whether to accept an offer or not, so don’t price yourself out of the market, generate some interest, get an offer on paper, and work with it until you are happy. |
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Presenting Your Property For Sale |
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When a buyer steps out of their car and walks up to the front of your home the first 15 seconds are crucial.
You see, in the first 15 seconds a buyer is developing an opinion about your property.
Does the house look good, are the yard and gardens maintained properly, and is the property clean, these questions are going through the minds of your buyers.
And this is the big question - can I see myself living here? Unless your buyer feels comfortable with the surroundings you have little chance of selling your property.
Another question buyers ask themselves has to do with ego. What will my friends and family think of this property? Every buyer likes a bit of wow factor in any purchase they make, no matter how big or small or how flash the property.
In every family or group of friends there is always the negative, jealous relative who will find bad in every situation. The trick is not to give your buyer an excuse to downgrade your property in the first 15 seconds. |
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Preparing The Outside Of Your Home |
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Here are some things to think about.
Ensure your property is clean, wash down the house if necessary.
Mow the lawns and trim hedges.
Make sure Council Approvals are in place for all structures on the property.
Remove dog turds or any other droppings. Nobody wants to stub their toe on a petrified dog turd in the opening moments.
Remove clutter, garden tools, children’s toys, building material etc must all be stored away.
Have a garage sale, get rid of junk.
Three’s a crowd – don’t hang around when the Agent is showing prospective buyers.
Do a stink test. Make sure the house doesn’t smell, get your neighbour or friend to do a stink test on your house. You may not smell it, but everyone else will. It’s hard to appreciate a home if you’re gasping for air.
Remove excess furniture and belongings from patios and pergolas.
Work out which time of day your home presents the best.
Fix any shabby or flaking paintwork, especially from the front gate to the main entrance.
Add a splash of colour with inexpensive flowers.
Do minor maintenance, leaking taps, broken lights, squeaky doors.
Clear the mail box of flyers, pick up papers.
Clear gutters.
Clean windows.
Clean driveways and footpaths.
Hide the bins, make sure they don’t smell.
Remove spider’s webs and wasps nests.
Make sure there are doormats in place as this indicates that you are conscious of keeping your home clean inside.
These items may seem simple but if overlooked or treated as unimportant, they can greatly influence the decision of the buyer to inspect or not inspect.
Remember it is important to keep the buyer in a buying mood. If the outside looks like a dump the buyer may not even go inside your home.
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Preparing The Inside Of Your Home |
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Preparing the inside of your home is about creating a feeling. Many buyers will only take a few steps into your home when they get the “Vibe” that it’s right. Your home needs to feel welcoming and homely.
Things to remember when creating the right mood.
Remove clutter and excess furniture, clutter makes a home feel smaller than it really is.
Allow natural light into your home.
Open a few windows to allow fresh air inside – weather permitting.
Make sure the home is kept at a comfortable temperature whether summer or winter.
Ensure your bathroom and kitchen are in showroom condition, these areas are deal clinchers.
If the decision maker is not happy in these departments, you will not sell your home (we all know who the decision makers are).
Make sure you do a stink test, particularly if you have pets.
Get rid of pet food containers and litter boxes.
Remove dogs during inspections, some people are afraid of dogs and don’t want a cold nose shoved somewhere unpleasant.
Remove dirty towels, hand towels, cleaning and personal care items from view.
Remove any dirty marks around door handles, light switches etc.
Get a friend to do a pre inspection walk around and compile a list, combine this with a stink test. Make sure you choose someone who will be upfront and honest and not scared to tell you what they think.
Don’t go crazy worrying about every little thing, a potential buyer has not been in your property before and will not notice every imperfection
Remember, your home is not a show home, it has been lived in and that’s it’s appeal.
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Questions to ask your Agent before Listing |
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Will Your Agency…..
1. Guarantee to the sell my property within the price range quoted at the time of appraisal?
BEWARE of Agents who over price your property to gain a listing and then use a technique called conditioning to get you to reduce your price at a later date.
A Professional Agent should be able to appraise your property in most cases, within $10,000 - $15,000 of the selling price.
An honest Agent who is telling the truth regarding the price of your property will have no hesitation giving a written commitment backing his/ her appraisal of your property.
2. Negotiate a lower commission if the minimum quoted price in the range is not achieved.
3. Provide a Comparative Market Analysis (based on Sales in the last 6 months and within a 5km radius)
4. Allow all Salespersons within the Agency to show prospective Buyers your Property (even if the listing is not their own)
5. Employ Deceptive Marketing Techniques including terms such as “price by negotiation”, “offers above”, “price guide” etc. These tactics only attract buyers who want to pay the lowest price possible and do great damage to the sale price of the property. If your Agent is dishonest with buyers, you can guarantee he/she will be dishonest with YOU!
6. Use all Forms of Media to Promote My Property
Internet, newspapers, display signs, window cards at office, flyers and strategic direct mail.
Beware of agents promoting themselves with outrageously expensive advertising packages. Ask your Agent if they upload the maximum number of photos permitted on internet websites.
7. Conjunct with Other Agencies and on what percentage split? (60% / 40% is standard)
It is important that your Agent has a good working relationship with other Agencies, therefore maximising every avenue available to sell your property for the best possible price.
Does your Agent fully understand that he or she works for the Seller NOT the Buyer?
8. Communicate with me on a weekly basis and update me on the progress of the marketing campaign.
9. Provide feedback regarding property inspections as soon as practicable by either phone, email or client communication form left at the property.
10. Use high pressure sale techniques
REMEMBER, do not be intimidated or allow yourself to be pressured into doing anything that doesn’t feel right. It is your home and you are in charge, so take your time when making such an important financial decision. If you are at all in doubt, seek independent legal advice
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Choosing a Salesperson |
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Separate the Professionals from the Pretenders!
1 Is the Salesperson registered with the Office of Fair Trading?
2 Did you feel comfortable with this Salesperson?
3 Were you able to communicate well with the Salesperson?
4 Did you trust this Salesperson and feel confident that he/she could negotiate on your behalf?
(Real Estate Agents with good negotiating skills are worth their weight in gold)
5 Did you trust this Salesperson NOT to disclose private information?
6 Was the Salesperson organised?
7 Did you ask your Salesperson to teach you something about negotiating? (If they went
blank so will your Sale)
8 Was the Salesperson courteous and punctual?
9 How experienced was the Salesperson?
10 Did the Salesperson remove his/ her shoes upon entering your home?
11 Did the Salesperson take the time to listen to your needs, and fully understand your
requirements?
12 Was the Salesperson enthusiastic and confident about selling your property?
13 Was the Salesperson well presented?
14 Did the Salesperson offer any advice regarding the presentation of your property?
15 Was the Salesperson knowledgeable and informed on current market conditions?
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| Why Choose Property Lovers? |
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When you choose Property Lovers, you choose an Agency with a solid reputation for honesty, integrity; reliability and good old fashioned customer service, which are paramount for success in todays Real Estate Industry.
Our Office does not and will not employ deceptive marketing techniques.
All of our Sales staff are focused on selling your property for the maximum price.
The listing Salesperson is not the only person permitted to sell your property. All listings are Office listings.
We are fully aware that we work for the Seller not the Buyer.
Property Lovers Real Estate at Burpengary believes in high visibility marketing, we like to stand out from the crowd,if you have seen our office at Burpengary you will know what I mean.
We are not just a run of the mill boring Real Estate Office doing the same thing day in day out.
Our innovative marketing and advertising campaigns have secured our Clients great results by following our strategies.
From the moment you enter Property Lovers you can tell we are different from other Agencies.
Property Lovers offer a full real estate brokerage service where we take care of everything, from listing your property right through to settlement for the standard commission rate.
Or you may choose an Agency Assisted Sale (capped commission) which has become popular with Home Sellers who wish to have a more hands on approach selling their home.
Which ever method you choose to sell your home, we are here to help, you will never be on your own.
Property Lovers wants your Real Estate experience to be rewarding as well as memorable.
Why not call into our offices at Burpengary and chat with the friendly staff about your Real Estate needs,you will be glad you did.
“The highest compliment we can receive is a referral.”
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