I remember several Federal elections ago, a reporter was talking to people on the street, asking who they thought should be the next PM? It was amazing how so many made comments like “I don’t like him, his eyes are too close together” or ‘I don’t like him, he’s short” or ‘he’s boring”. Forget the fact that the short fellow may be an excellent leader and just what the country needs, let’s vote for the Politician who looks great on TV, but has no substance at all. If you vote for a PM who has nice hair over the candidate who has substance, don’t complain when things go south. This is what is meant when it is said ‘the people get the Politicians they deserve’.
And this leads me to my point about buying listings. If you are looking to sell your home, you undoubtedly have done the research on what you home should fetch. When you are interviewing Agents, your sole purpose should NOT be what price they think, it should be what do they offer, how are they different, how would they market your home to get the sale and WHY they think this is the best way – it should all be justifiable.
Firstly, let me make a point. It is very difficult to use LISTED prices only to get a bearing on what a home should sell for in the market. The actual SELL price should be used primarily as this is the real value. Just because someone lists high, it doesn’t mean it will sell for that, so be cautious using such values as yard sticks.
Unfortunately too many people focus solely on the price and IF the Agent can basically guess the number in their head. The trouble is, as an owner you will usually have a higher expectation of your home than the market and secondly you are encouraging the Agent NOT to give an honest opinion, but to ‘buy the listing’.
What do I mean by buying the listing? Let’s assume a property should achieve $500,000 to $520,000 in the current market. Agent A knows this and suggests this range. The Owners of course feels their home is probably at the high end, but if they have done their research, they’ll generally agree. However Agent B also knows this. So this Agent B adds another $50,000 onto the price opinion. Greed takes over the Owner, and they list for $570,000 and the property sits there.
Eventually the Owner brings the price down over time but most of the Buyers have passed it by as being overpriced. Eventually it will sell, and most likely for less than if they listed it correctly the first time. This is because often when buyers dismiss a home, they don’t look at it again, or if they see a house on the market for a long time wonder what’s wrong with it or if it is on the market a long time, see an opportunity to pressure the owner with low offers as they ‘must be desperate’ as they dropped the price so much.
Hence, when interviewing Agents;
*Don’t get caught up on the price. Ask the Agent to justify with FACTS why they feel that price is appropriate.
*Don’t compare your home to others using listed prices only – use actual sales. All Agents should have access to these databases and should offer such at listing presentations.
*Be cautious of anecdotal ‘evidence’ and urban myths. Work off the facts.
*Selecting an Agent isn’t about them guessing the price you want. YOU set the price, the Agent doesn’t. The Agent’s job is to facilitate the sales process through to completion. This is where you should focus your questions. Ask what they do and WHY they do it – look for REAL reasons behind the actions. How does what they do assist you to help sell your home the best possible way?
*As tempting as it is, don’t get greedy. If you think your home is worth $X, and Agent A says $X but Agent B enthusiastically says $X plus $50,000 because ‘everyone else has undervalued your beautiful home’ – be careful. Overpricing your home will cause more pain in the long run. Remember just like with politics, you get the Agent you deserve.
It has been brought to my attention by jwilliams095 (thanks, appreciate the info), that the Queensland Government has made a revision to the Sustainability Declaration. Its is a simplified format.
Please find the revised Declaration at the below link
Posted in my blog on the 17 November in the article “Sustainability Declaration - New Legislative Rquirement Affecting Sales as of 1st January 2010”, I discussed the proposed Federal Legislation, Mandatory Energy-Efficiency Assessment. The Sustainability Declaration is now mandatory in Queensland. How would this be affected if the Federal Government brought forward a similar legislation.
An article, brought to my attention by http://www.sdqld.com.au/, in the Herald Sun, has proposed the leglislation is on its way sooner than I thought.
This article discusses that all Australian homes will have to undergo a Mandatory Energy-Efficiency Assessment – that could cost up to $1500. This assessment will have to be completed prior to a home being put on the market or, rented under this new law.
The law, currently being drafted by Federal and State Governments, will rate homes by an energy efficiency star system, similar to the rating system for appliances.
It is reported that it will be in place for commercial properties by the end of this year and all residential properties by May 2011.
A spokesman for State Energy Minister Pat Conlon said the ratings would inform prospective owners or tenants of a building ‘s energy use, so they could factor it in to their buying or rental decision.
While Mr Troughton (REISA chief executive) said vendors would bear the cost of having their home rated by a licensed expert, independent SA MLC and former Valuer-General John Darley said landlords would look to pass the costs onto tenants. Will sellers want factor this cost into the price of homes too?
“This will be an extra cost to working families who have to rent because they can’t afford a mortgage,” he said.
“And we need this like a hole in the head unless the governments can convince us there is a definite benefit, like a reduction in household pollution.”
The Council of Australian Government’s National Strategy on Energy Efficiency says Mandatory Disclosure will “help households and businesses prepare for the introduction of the Carbon pollution reduction Scheme.”
It is possible Queenslander’s will now have to complete 2 disclosure statements prior to a house being placed on the market. The paperwork continues!
According to Australian Property Monitors’ (APM) Quarterly Housing report, the property market posted a 12.1 per cent rise in median house prices for the year to December 2009
Although first home buyer demand sustained the market in the early part of the year, it was upgraders and investors that drove the strong overall result, as activity in the more expensive suburbs benefited from the surprisingly resilient jobs market experienced in late 2009 and a strongly rising share market.
“The price growth seen in the more expensive suburbs in 2009 has largely been a recovery of the price falls that have occurred since late 2007 and early 2008. This top-end recovery has been completed in most capitals with median house prices surpassing pre-GFC highs for the first time in the December quarter in Sydney, Brisbane, Adelaide and Perth,” APM economist Matthew Bell said.
Mr Bell said the increase in median house prices in Brisbane was the highest recorded in the city since the end of 2007 and early 2008, just before the global financial crisis hit.
REIQ chief executive Dan Molloy said there had been a “soft landing” in the Brisbane market. “Looking at the performances of Sydney and Melbourne, it is interesting that Brisbane went pretty well in terms of the last cycle. When the southern markets were languishing in 2007, the Brisbane market continued to perform pretty well,” he said.
Hobart was the second strongest market nationally with median house prices rising over 14 per cent in 2009 while prices in Darwin lifted 13.5 per cent and Brisbane’s 7.7 per cent.
This report factualises what some Real Estate agents were reporting in their patch.
In all it looks like the Brisbane market has faired well. The growth should continue into the end of 2010 with confidence growing again.
Shawn Kristofer is a Real Estate Agent servicing the Eastern Suburbs of Brisbane to the Bay. With a passion for marketing, he believes Service should have "No Limits"!
Contact Information
Mobile: 0411 532 333
Phone: 3907 6751
email: shawn.kristofer@raywhite.com click here to email me!
adress: Unit 18 / 1029 Manly Rd Tingalpa 4173
