top curve 1 top curve 2 top curve 3

Renewed buoyancy

Just in this last week we have seen a burst of renewed confidence from buyers, with 6 sales in the office and another bunch of offers that are “cooking”.

It appears that with the election out of the way, the AFL grand final behind us and reprieve for the time being with interest rates, some buyers have decided to jump in.

We are seeing what I call ridiculously optimistic, even insulting offers in some cases as some buyers try to capitalize on what they perceive as a golden opportunity, the basics are as I have been saying for some time.

Well presented properties, priced realistically in this market, will and always have done, create strong and positive interest from buyers.

We see a lot of pent up demand as many trade up buyers are considering their options.

Expecting strong months up to Christmas.

See you in the market… IB (Ed)

Tight as tight can be- GRIDLOCK

What an amazing market!

We have buyers for sure, many that need to sell. As Applecross blows out to 145 days on market, and Mount Pleasant 117.3, Ardross 84.3 and Booragoon a low 68.9, we see many of the aspirational trade up buyers in Applecross say, wow, subject to sale is not going to happen, I will have to do a bridging loan or a long settlement.

That has the effect of meaning many buyers come in low factoring in their risk and hold costs.

Some sales are happening at or below 3 years ago values.

Buyers that can buy I say, "jump in now and buy". Value is OUTSTANDING.

Sellers, if the price offered allows you to move, then move. You can grab an outstanding value property at the other end.

I can see as soon as a smidgen of confidence comes back, buyers will be fighting for good properties again. That is not far away. I encourage buyers to jump in while competition from buyers is lower, and take advantage of good stock levels.

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

 

The way to wealth creation

Recently the team and I attended a Michael Sheargold training seminar, and Michael said that according to the experts, of the Rich 200 list in Australia recently, 75% had accumulated their wealth through property.

It tends to put things into perspective as buyers continue to “wait and see” in some cases before they commit.

If you look at property as a medium to long term hold, property will always be an outstanding investment and wealth creating proposition, and is superior to other investments for many reasons, especially to us Aussies that have a love affair with bricks and mortar.

1)   You can see it, touch it, walk past it every day

2)   You can live in it

3)   You can add value to it

4)   You can sell it anytime that you choose to

5)   You can borrow against it as the value increases

6)   You can put a tenant in it

7)   You can demolish and rebuild

8) You can differentiate it to your neighbour, increasing its value if desired.

There is still a undersupply of housing in Australia for our medium term needs, net migration to Australia, a strong economy, relative low interest rates (historical 30 years averages), and low unemployment.

Really for buyers, there is not going to be a better time to “jump in” as the value is high.

Remember buyers, if you buy and sell in the same market, the market is irrelevant in most instances.

See you in the market….. Ian B (Ed)

 

 

 

The start of better times

We are starting to see early signs of a much stronger buyer sentiment. Just recently we have seen many multimillion dollar sales, a Circa $3M plus in Mount Pleasant, a $4M plus sale in Applecross and $5M plus sale in Applecross.

Two of these offers were cash, and all show a willingness of buyers to act on good properties despite what has been a soft sentiment recently.

We are very excited at our office as all of the sales team is working with buyers on offers on several properties at this time. Good things are happening, and we expect this to continue.

We sense an early indication of some "normality" creeping back in the market.

See you in the market place.....IB  (Ed)

 

Market insights- Agents recognised

Market Insights.

As we enter Spring, where stock levels are expected to become even greater, buyers are encouraged to take advantage of good stock levels and therefore choice, and sellers are reminded of the need to be priced and presented in such a way to ensure that their property stands out from the crowd.

It is true that traditionally there are more buyers around in Spring, but equally there is a lot more stock, making competition for sellers even greater, as buyers are currently quite discerning and cautious.

We see a strong Spring through to Christmas selling period in the local property market after the Federal Election is behind us, providing more certainty as to what the future may hold.

On a personal note, recently the annual real estate awards night was held at a gala ball attended by over 1000 real estate agents. At this event all agents are recognised for their performance for the previous 12 months. Congratulations to Richard Teuchert from the office for achieving the $15 to $20 million dollar recognition and John Woon for being ranked in the top 20 Rookies in his first year.

The highest possible sales success level of recognition is that of Grandmaster, for 100 listings sold in a year and/or $50 million dollars worth of listings sold.  Evolution Realty had achieved the only local Grandmaster award in the Applecross area, which is a mighty feat, given the amount of competitors in the area, proving that under the new brand of Evolution Realty I have been fortunate to maintain, even grow what was a very loyal client and market place following. I am thankful to still be selling the most in the local market personally. Thank you to the market place for acceptance of the Evolution brand, and all buyers and sellers that have engaged us. As we continue to expand and strengthen our brand, we will be on the lookout for 2-3 new experienced sales persons in the coming months who wish to advance their own careers and benefit from our considerable momentum and, market share and the opportunities that flow from that. Watch this space for exciting developments, and see you in the market place.

Internet access from mobile devices

Evolution Realty website is now mobile device compatable.

 

With latest stats are showing 5-7% of total internet traffic to real estate sites in WA is already on a mobile device; this was close to 0% last year. It is predicted to be 10%+ by Christmas, and grow from there. By the Year 2013, internet access will be mainly done from mobile devices, more than from normal computers and lap tops.

 

- hence while social media was last year's trend and has already gone mainstream; mobile is this year's trend and next year will go mainstream

- what happens after that is anyone's guess!

 

We hope that this makes our website even more user friendly.   (Ed...IB)

Market update- Stock levels high

 

We are seeing an enormous amount of new stock either come onto the market, or about to come on. I received 5 requests yesterday alone for appraisals, all for sellers in this area.  There are currently over 200 properties all prices in Applecross and Mount Pleasant on the market. During the height of the boom, it was closer to 100.

I am finding that there are a lot of “aspirational” sellers, still unaware of current market conditions and still unaware of the high supply, and relatively low demand.

Buyers are still cautious, even playing “wait and see” with the election, and the market conditions generally.

If there are buyers, they want value, real value. Properties must either be really well presented “perfectly”, land value or outstanding value. Otherwise, buyers are happy to wait.

I caution sellers to look hard at all reasonable offers. This is not a market to be too cute over price if the offer is close.

I have seen buyers dig their heals in and say “that is all I am paying”. If in this market, as a seller you do not need to sell, and do not want to meet the market, my advice is “don’t”. The chance of a magical buyer paying way over the market is rare and occasional stories usually are in unique circumstances.

If however you want to buy and sell, then sell now at highest fair market value, and then be a buyer with a strong negotiating position. It all works itself out in the wash up.

In Applecross and Mount Pleasant in the $1M to $2M range there is currently no fewer than 69 properties for sale on the market. Since 1st January 2010 there have been 46 sales in this segment, or 6.57 per month. That means it will take 10.5 months for all of the current stock to sell, without any new listings coming onto the market. Is that a buyer’s market, yes.

Is it a good time to sell? Yes if you do the following.

1)      Price correctly

2)      Present really well

3)      Choose the right agent

4)      Have a first class marketing campaign

5)      Assess all offers on merit, pragmatically.

Is it a great time to buy? - Probably doesn’t get much better.

1)      Interest rates steady and still low

2)      Good choice/ supply

3)      Buyers market

4)      Value already built into many asking prices

5)      History says property still a good long term buy and hold.

What is my forecast?- Election out of the way soon, Spring here soon, strong sales months ahead until Christmas.

Thank you and see you in the market. 

The 8 risks to buying property privately

Buyers are cautioned to be very careful when buying a property privately, without a real estate agent. Recently, I have seen this happen a couple of times, and my general anecdotal findings are this.

1) Private sellers will often write ineffective, risky clauses that could open the buyer up to difficulties prior to settlement. Unless "subject to's" are succinct, there are risks to both sides.

2) Deposits. Who will hold the deposit, how will it be treated in the event of non-performance of the contract?

3) Incomplete contracts- Agents do this for a living every day and know what to check. I have seen voidable incomplete contracts that could be a "can of worms" for the parties.

4) Advice- Agents can give appropriate advice.

·     Joint tenants or tenants in common?

·     Settlement agents?

·     What annexures/ inspections recommended?

·     How much to offer?

·     How to structure the settlement dates/ details?

5) Agents will follow up better all of the clauses

6) Agents will have "protection" for all parties in the form of professional indemnity insurance, and be obliged to act within the Fair Trading Act, Trade Practices Act, REBA Code of conduct etc. Agents have professional reputations to consider.

7) Agents are objective, and will not be personally offended or affected by the negotiation. They will be able to stay impartial and protect your interests.

8) Agents are better negotiators as they do this day and night, for a living. A good agent may have literally negotiated thousands (or at least hundreds) of transactions.

* Not all agents are of the same standard; this document assumes a competent, ethical and skilled agent.

The 5 Reasons Why a Home Does Not Sell

Reason 1) -The marketing is incomplete or ineffective.
Not all real estate agents are alike and unfortunately, some do a minimal job in marketing the property once they’ve obtained the listing. 

I often research properties as part of my commitment to my craft. I’m frequently surprised by the number of incomplete property descriptions, lack of multiple attractive photos, and many times, just incorrect or incomplete information reported in the listing. In most situations, once a listing is entered onto the internet and the REIWA website it will appear on many sites on the internet, as well as the agents own sites and national real estate sites they may participate in. 

Those properties with limited information, or worse, just a few photos or unflattering photos are eliminated by buyers and their agents without the buyer ever setting foot on the property. There are three groups of people your property must appeal to: agents, local buyers and out-of-town buyers. All three are influenced by the computerized representation of your property. If your property’s online and printed marketing isn’t appealing, you will have no physical showings. 

While a very small percentage of homes are bought "sight unseen," the general rule is if the buyer doesn’t step inside your home, they won’t be buying it.

Reason 2) - The home shows poorly.
Let’s face it; your home has to compete with all the shiny model homes going up in every corner of the city. You are competing with professional decorators and landscapers who are experts at creating emotional appeal. These model homes don’t have real families living in them while being on the market. 

Thankfully, this is one of the easiest things to fix. A good cleaning, de-cluttering and cosmetic facelift is pretty inexpensive compared to the return in a higher sales price and faster sales time. Sparkling windows, kitchens and bathrooms, professionally cleaned carpets and fresh paint make a world of difference. 

Curb appeal from an attractively-maintained yard and an inviting front door doesn’t require a professional or large amounts of money.

Reason 3) - The property is in a bad location.
This is one thing that can’t be changed. A good real estate agent will be able to maximize the positive aspects of your property while trying to minimize the negatives. It may be possible to screen an adjacent property with landscaping either to lessen the visual impact or the sound impact of a busy street.

If your home is located in a less desirable school district or close to perceived nuisances, the best way to compensate is usually to reduce the sales price.

Reason 4) - The market is the market. 

It’s all based on supply and demand. All real estate markets are cyclical, sometimes hot, sometimes cold, and sometimes just in balance. They are affected by any number of things that you have no control over, such as interest rates, the economy, weather, national or local disasters, consumer confidence, and sometimes the time of year, such as the winter holidays.

If there are many buyers for a type of property and there is a limited supply, the market will be faster and sellers won’t need to pay as much attention to condition, marketing and proper pricing. If there is a large supply of inventory, with little buyer interest, homes will languish on the market and buyers will choose the best of the available inventory. 

That’s the time that paying attention to the items mentioned above makes a real difference in terms of how long it will take to sell your property and ultimately the price you’ll receive.

 

Reason 5) The home is overpriced.

 

I’ve seldom met an owner who doesn’t think his/her home is "better." I’ve been told many times about specific features that "should" make the home be worth more money than comparable homes. No matter how much you may appreciate your home and its particular special features, the buyers ultimately set the price by what they are willing to pay for the property. Overpricing, either by you or by an agent willing to suggest a higher price in order to obtain the listing, begins a chain of events that often works against you.

 

Real estate agents and qualified buyers currently in the market will see your listing within the first two to three weeks, and if it’s overpriced they will note that and move on to other properties. After those important first few weeks on the market, the only buyers who will see your property are those that are new to the market, and your property will be labelled as "overpriced." Buyers and their agents always look for "days on market" when searching the REIWA member website listings.  

 

Day-old bread, leftovers, and overstocks are always discounted. The longer your home is on the market, the lower the price you will eventually be offered. Every property will sell, if it is priced properly. I have said it all of my career, the way to get the highest price is to price the property correctly at current fair market value.

 

 

 

The 5 reasons why a home does not sell (Reason 4)

Reason 4)- The market is the market.  It’s all based on supply and demand.  All real estate markets are cyclical, sometimes hot, sometimes cold, and sometimes just in balance.  They are affected by any number of things that you have no control over, such as interest rates, the economy, weather, national or local disasters, consumer confidence, and sometimes the time of year, such as the winter holidays.

If there are many buyers for a type of property and there is a limited supply, the market will be faster and sellers won’t need to pay as much attention to condition, marketing and proper pricing.  If there is a large supply of inventory, with little buyer interest, homes will languish on the market and buyers will choose the best of the available inventory. 

 

That’s the time that paying attention to the items mentioned above makes a real difference in terms of how long it will take to sell your property and ultimately the price you’ll receive.

Blog List

bottom curve 1 bottom curve 2 bottom curve 3
designed & developed by aussiehome.com