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OUTSTANDING SUCCESS

This past Saturday Evolution Realty conducted a massive offsite auction showcase at the South of Perth Yacht club.

Over 250 people attended and 15 properties were available for sale.

The results were as follows:

1.       3 sold before the auction during the marketing campaign.

2.       2 sold under the hammer

3.       2 sold later that day

4.       Several other properties are being negotiated at this time

5.       Many had bids on the day and did not meet the reserve

6.       Lots of enquiry this morning as follow ups from buyers

The turnout, the outcome, in any analysis would have to be described as an outstanding result. To generate 7 sales from 15 listings in a month in what is the tightest market we have seen for 20 years, with more offers coming is awesome.

Thank you to Richard Teuchert, Darran Walker and John Woon for their outstanding efforts, as well as Agnes Barnes and Samantha Correia, a join team effort well done. Thank you to all of our sellers, and to members of the public that attended. Thank you to all bidders, and well done to the successful buyers.

Yes it really works!

Recently we have launched a massive "Auction Showcase" and espoused the virtues of a "no price" strategy as to engaging the market.

We are proud to announce two new sales today from our Auction showcase, both which has been previously on the market with a price and did not sell, both now sold within 5 days of being launched into this "Auction Showcase" initiative. 37 Melville Beach Road, Applecross and 57 Mitchell Street Mount Pleasant are SOLD!

Watch this space as to other developments.

Evolution Realty is creating activity and results in a tight market through strong leadership, initiative, creativity and positive action. Obviously our owners are delighted. Well done to the buyers too in securing these outstanding properties.  

See you in the market. …………Ian B (Ed)

SHOWCASE AUCTION REVOLUTION

Auction Revolution by Evolution:

Evolution Realty are proud to present this showcase of outstanding properties, all of which are offered for Auction on Saturday 19 February 2011 from 12pm at the South of Perth Yacht Club in Duncraig Road Applecross. http://www.evolutionrealty.com.au/search.aspx?st=au

 

Buyers and members of the public are welcome to both inspect the properties during the pre auction period, at the open times detailed in this booklet, and also attend on Auction day.

 

Evolution Realty and the Sellers of these properties have committed to this process in order to realign the market.  Recent months have seen “selling constipation” as buyers display their reticence to commit to purchasing and many Sellers have placed their properties on the market at aspirational prices.  We hope that by taking price out of the equation you will be able to concentrate on the property itself and its suitability to your needs.  Buyers can rejoice in the fact that if they are serious about buying, then each of the Sellers in this booklet are serious about selling!

 

It is anticipated that each Auction will take 10 to 15 minutes.  Reserve prices will be set on the day and will not be disclosed.  Each of the properties can be sold prior to the Auction day, so if you are in a position to buy prior to Auction please feel free to make an offer.

 

Generally Auction terms are narrow and restrictive to Buyers. Generally we see deposits in the order of 5 to 10% of the purchase price, settlement terms of 30 days or less and offers being made as cash unconditional.   In order to overcome this seeming unfairness, each of the properties, regardless of price is subject to the same, very liberal, conditions.

 

Deposit is $20,000 payable on fall of hammer

Settlement is on or before 4 April 2011 (7 weeks from the Auction date)

Bids and offers CAN be made subject to finance

Sellers will provide a timber pest and building inspection at their cost

 

We look forward to meeting you during the campaign and perhaps even on Auction day.

 

See you at the opens..............IB (Ed)

New Year Brings a New Wave of Opportunity

Hope you had a brilliant New Year and are relaxed and recharged for the year ahead. 

Since we have been back from the Christmas break….It is busy and people are looking for rental properties to rent.

The New Year does bring a new wave of fresh prospective tenants and if you would like to take advantage of this peak rental market please call Agnes Barnes (Business Development Manager) on 0403 965 364 anytime and we will help you maximize the top market rent of your investment. 

Our property management department is a breath of fresh air in your local area. If you want professional, regular communication with you and your tenant, personal property management service that you deserve, we are looking for new clients to become part of our VIP client family.

Please call us to discuss your options.  Look forward to hearing from you.

Top honours in 2010 in a tight market

Whilst it was very tight in 2010 in Applecross and surrounds, of the some 103 sales in Applecross for the year, we are proud of our standing as the number one selling agency for the year with 15% of the market. Second best was 11% and third best 8%.

Whilst we are by no means satisfied with our sales numbers compared to our targets, or with the listings we are currently representing that are unsold, we are pleased to be leading the pack with results. Evolution's best is in front of us, and we are on an upward climb, which is exciting.

As we continue to streamline and refine systems and technology, with the addition and development of good team members, our successes will be magnified even greater.

Watch this space.........IB (Ed)

Welcome 2011

Welcome 2011.  

After a sluggish end to the last half of 2010, and what we called “listing constipation” we did see a flurry of offers in December and 9 sales in the office.

A lot of interest over the Christmas break from buyers and already the first sales of 2011 on the board, and two other offers yesterday that we are working on.

Lots of new stock is hitting the market, and traditionally New Years signifies a new wave of buyers in the market.

Watch this space as Evolution Realty initiates an exciting new marketing strategy that will be appealing to buyers and sellers alike.

See you in the market place….Ed (IB)

Listing Constipation

As at now, there are 153 properties on the market in Applecross, at 124 days average on market. In November 2010, we counted 2 new sales. Even in the last month, when there were about 120 properties on the market, the stock numbers have jumped about 30, with only a couple of sales.

Encouragingly, we are seeing many sellers get realistic and adjust the asking prices, as we start to see this week offers coming in again.

Something has to give when you have constipation?  Otherwise the inevitable health effect of bloating, unless a market laxative can be found.

Watch with interest, as I expect a sea of sales in a hurry as soon as we have some recent sales evidence and some pragmatic sellers accept the new market reality and choose to sell rather than wait for a market which will in all likelihood not recover in the short term.

See you in the market.....Ian B (Ed)

Evolution Agency leads the way

An often unheralded statistic, and one that is of benefit to sales members of an agency, is the “opportunities given” statistic. Whilst we as business owners would like to believe that all owners will choose our brand, and once given an
opportunity, all will go with us, it is unreasonable to expect any one agency can have 100% market share.

It is said that as much as 50% of all listings are “uncontested” meaning that before any other agent even gets an opportunity, the listing is gone. This can be for a number of reasons, not the least of which the seller has a relationship already with an agent, or a friend etc.

Of the remaining opportunities, agents are interested in how many times an owner will give an opportunity to pitch for their services.

In 2010, of all the sales made Evolution Realty was given an opportunity for 35% of all listings in Applecross (remember 50% are uncontested) and in Mount Pleasant 28.39%.

Really, these numbers are huge, and this means that in almost all cases Evolution Realty is on the shopping list in 70% of all sellers in Applecross and more that 56% of all Mount Pleasant sellers.

Considering our fresh and developing team, we are excited to say to all, “watch this space” as we are just beginning.

See you in the market place………IB (Ed)

STOCKTAKE AND UPDATE IN THE MARKET

In general, I describe the market since June 2010 as possibly the toughest I have seen in the past 8 years. This is measured by number of sales, difficulty getting deals closed, seller and buyer gap in expectations, and general overall market conditions, sentiment and the outside influences that affect market sentiment.

 

Here are the stats. and my thoughts on the market.

1.In Applecross the are 130 properties on the market (Plus a few apartments)

2.They have been on the market 137.2 days **

3.Less than 30 days to sell (Average) sellers market, 30-60 days a balanced market, 60 plus a buyer’s market. This is off the charts at present at 137. **

4.There have been 32 sales in Applecross in June, July, August, September and October 2010. Or 6 per month.

5.Current stock levels mean that there is enough stock levels, that it would take 22 months to clear all stock.

6.In Mount Pleasant the are 96 properties on the market (Plus a few apartments)

7.They have been on the market 130.4 days **

8.Less than 30 days to sell (Average) sellers market, 30-60 days a balances market, 60 plus a buyer’s market. This is off the charts at present at 130. **

9.There have been 59 sales in Mount Pleasant in June, July, August, September and October 2010. Or 12 per month.

10.  Current stock levels mean that there are enough stock levels that it would take 8 months to clear all stock.

RIGHT NOW there are some agents telling sellers in written appraisals that the average days on market is 45, and that it is a balanced market. I believe that this is reckless, gives false hope, and is part of the reason why many sellers believe things are better than what they are. Agents are not meant to hype up and give false reality to get listings at any cost. Whilst I do not believe in being negative, and am well known for being an optimist, being delusional or ill informed is not in the seller’s best interests.

12.  Listings are coming on the market all the time making even greater choice for buyers.

13.  I believe that in the past 3-4 months Applecross values are 5-10% down. This backed up Statewide where the official figures show 5% drop in past 3 months, and that is for cheaper median valued properties. I believe upper end values have dropped more.

14.  If I was appraising homes today, that I did 3 months ago, it is likely in many cases that the appraisal would be 10% less than it was then.

15.  Buyers are cagey, cheeky, in the box seat. I have seen buyers walk rather than counter offer, and then subsequent offers being 10% lower that what was rejected early on. Waiting in this market does not mean more will come later on.

16.  I say in this market, it is the worst time to be “testing and patient” for the market to change.

17.  In all likelihood, in the short term the market will not change. There is so much stock to soak up, it is hard to see any reasonable argument for prices to go up.

18.  The trend is that they are coming down, or at best stagnating.

19.  Best case scenario in the short term is low or no growth.

20.  It takes usually 12-14 by appt. inspections to generate an offer or 40 numbers through home opens. If we are not getting the inspections, then it means price is an issue.

My advice if selling:

a.Go to market with a realistic price

b.Measure the key performance indicators as “feedback” on price

 

  • Little or no inspections is a clue
  • Low or no offers is a clue
  • Few midweek inspections is a clue

 

c.Look at all reasonable offers

d.If on the market now, have an update appraisal (Even if by another agent or a valuer)

e.If that new number is unacceptable, stay put or rent the house out

f.  Adjust the asking price until you get nibbles, offers. If no offers it means that the price is at least 10% plus overpriced.

g.If that number is acceptable, sell now at the highest actual price you can get.

23.  My advice if buying:

a.Sell first

b.Take advantage of good stock levels and buy well. The money is made on the purchase price by buying well.

 MY MOVE FORWARD SUGGESTIONS TO GET AN YOU OFFER/s IN THE NEXT 30- 45 Days and SOLD.

1)    Price at current fair market value

2)    Solicit offers from all potential buyers

3)    Review and look at on merit.

Thank you and see you in the market.....IB (Ed)

 ** We do not cook the books. Industry data is skewed as if a property has been on the market a year, and has had three agents, the real figure is the total time on market. We also do no reset the listing to zero if an owner "rests" a property 3-4 weeks, and then relaunches same listing on net, often with the same company. We call that "cooking the books" or smoke and mirrors.

Why it is a great time to buy?

Some buyers are sitting back waiting for the market to “come down”, yet in many cases, you can buy excellent value properties for circa 2006/ 2007 prices right now. The only way to know when we have hit the bottom is when the market is going up and to reflect in hindsight. No one is clever enough to know when and how markets will react with certainty.

The time to act is now. There is a lot of stock, and buyers that can buy, will find outstanding value.

For sellers, waiting for a better market is madness given the uncertainty of when and if that will occur in the shortterm. If you want to or need to sell, then sell now, and buy in the same market. There is no guarantee that waiting equals price growth in the short to medium term.  Why would a seller stay in a home that does not suit their needs any more, or would make them unhappy, to wait for a 10 or 20% growth, when the one they want to buy will go up by the same amount? It is better to move now, and wait for the one you buy to go up in value.

Anyway, in the office in past weeks we have seen 7 new sales, as well as a lot of offers being written and negotiated.

We see the start of some strong buyer activity. For buyers jump in now and act as value is high. We all know of instances when after the fact, buyers said, “I should have jumped in when…”. There has never been better real value, the time to buy is right now.

See you in the market (IB…Ed)

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