top curve 1 top curve 2 top curve 3

The 5 reasons why a home does not sell (Reason 3)

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.

The 5 reasons why a home does not sell (Reason 1)

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.

When does a change to sentiment mean a 10% gap?

Up to a couple of months ago, confidence was high and growing from buyers, creating a upward trend with prices in some price categories, namely lower priced properties up to $1M in Applecross and Mount Pleasant and surrounds.

This can cause up to 5% premium for sellers in this instance.

Recent shivers with the stock markets, Government changes proposed for the mining industry and the associated uncertainty generally, has created in my opinion an instant freeze with some buyers of confidence.

This usually means a 5% drop in the amount of discount a buyer will expect in order to commit.

This has meant we are seeing around 10% gaps between buyer and seller expectations on some deals. Sellers still wanting the upward trend, buyers sensing a downward trend. Corresponding gaps of expectations follows.

This is all part of the normal up and down of cycles, and as soon as things settle down again we hope things revert to a more normal market.

 

 

Market Insights June 2010

As the financial year comes to an end, it is fair to say that the announcements from the Federal Government have had an impact on the sentiment of the market at the present. Certainly, confidence has been shaken with what appears to be an effort by the Government to hit one of the most productive sectors of our strong Western Australian economies.

Most of us would want a speedy resolution to the discussions between Government and the mining sector.  History shows these things always settle down, and before too long it should be business as usual.

For the time being, interest rates are on hold and this is a good thing.

On a happy note, we are celebrating a strong first 6 months of 2010, where Evolution is clear market leaders in numbers of sales made in Applecross and Mount Pleasant having some 20 sales or 21% of the market. This reflects the confidence sellers have in our strategies, our brand and our team. It also proves that our marketing, pricing and ability to find and close sales are strong.

We see a lot of oversupply at present and some overly optimistic aspirational sellers. Our experience is that these properties will not sell, and will in fact create a false illusionary market, making it possible for those sellers that base their sales price expectations on more factual and up to date data, have an competitive advantage in the market place as buyers prefer the correctly priced properties over the others.

Sellers need to consider, that at whatever price they sell in this market, as long as they buy in the same market, changeover is always about the same.

We see some further caution ahead, and encourage sellers to be realistic with expectations, and to work with all genuine offers to try to make the most of the relative shortage of buyer demand in some categories.

Less expensive properties generally continue to attract huge interest and demand.

Is subject to sale a real offer?

At present the market is tight, especially at $1Million and above.

Many sellers perceive subject to sale as a "claytons" or a pretend offer. This is because there are so many variables. Subject to sale really means the buyer is asking the seller to take all of the risks, or for the seller to sit back and wait. Buyers should expect to pay more for this level of uncertainty. Usually sellers will expect the full price. The variables for a seller are;

1) How sellable is the subject property?

2) How realistically will the price be set for it?

3) Which agent is going to handle the sale of the subject property?

The degree of confidence each of those answers is made will affect the enthusiasm of the seller.

Buyers should expect as "the norm" a 48 hour clause being written in the contract giving the seller the right to continue to market their property, and accept subsequent offers that may be presented, subject to 2 working days notice on the first offer.

We suggest that buyers look at other ways to make sure that they get the right home, such as selling first, or looking at what financing can be obtained to make their offer stronger when buying. Sellers need to consider that buyers, in order to take the risk for a bridging loan may want to see consideration for this in the price that is offered on the property they are buying.

What if I want to change/ end my contract to purchase?

Buyers and sellers must be aware that when they enter a contract to purchase or sell a property, there are obligations on all parties, which upon accepting and finalizing the contract becomes binding on all parties. It is accepted that all parties will act in good faith, and do what they have represented they will do as per the contract.

If one party changes their mind or wishes to vary the terms of the contract, it cannot occur on the whim of just one party, but must be agreed by all parties named in the contract. Buyers and sellers need to be cautious as to the consequences of their actions should they not act in good faith or as per their obligations in the contract as it may be adverse to their best interests.

It is worth getting independent legal advice prior to any changes to a contract to make sure you are not prejudicing your rights under the contract.

 

 

Do you want your home advertised or sold?

Often times, owners in an area perceive lots of for sale signs as evidence of market share, or ability to sell properties.

Recently, we at Evolution Realty compiled a list of all sales made in Applecross and Mount Pleasant combined since 1st January 2010, and the results are compelling.

EVOLUTION REALTY SELLS THE MOST.

We have made 17 sales (20.2% of the market) in that period, the second best agent has made 10 sales (11.9% of the market) and the third best agent has made 8 sales (9.5%) of the market. In other words the top 3 agents have made 40% of the sales.

The fourth best through to the 15th best agents have made no more than 3 and as little as one sale in this time.

Therefore the choice of agent can have a MASSIVE impact on the outcome.

After 90 days there are in fact only 3 outcomes:

1)     SOLD- live happy ever after

2)     STILL ON MARKET- unhappy with/ sack agent and start again

3)     MARKET REJECTION- stale property, significant loss of value as perceived rejection by buyers at whatever price is being asked. Usually massive price reduction required.

Our results speak for themselves. We know how to market, price correctly, attract buyers, close and negotiate outcomes that are win/win.

Whether you are a buyer or a seller, you must deal with the agent that is selling almost twice as much as the next best agent in Applecross and Mount Pleasant.

 

Understanding the statistics

It is important to understand that all properties are different, especially in the prestige markets in Applecross, Mount Pleasant, Attadale and surrounds.

When the official REIWA website says that the median price in Perth went up 12%, or Applecross went down 20% etc, really this has no bearing at all on every single house. It measures a particular segment, and helps get an overall trend, but is not a guarantee that a specific house was the same.

Each market has different segments; the market of Applecross for example can have 8 plus segments.

2 bed apartments from $500,000 (approx), to properties below $1 million dollars, to the $1 to $1.5M segment, then $1.5m to $2M, the $2 to $3M, $3 to $4M, $4m plus to $5m, $5 to $8m then the real top end properties $8m plus to $15m.

Clearly, whatever happens in Perth medium priceville has no bearing on all of these segments. Some segments in Applecross can be going up, while others are doing nothing, and some can go down. Each segment is unique, and is always supply and demand driven.

Experts in the local markets will know what is selling, and for what. That is the true indicator of value, the market value or sale price of recent similar properties. If there is strong demand for a particular property and short supply, then that can equate to price growth, irrespective of what the official stats say.

Market Insights- January/ February/ March 2010

What an amazing end to 2009! It appears that for the time being buoyancy and in some cases bullish optimism exists with many buyers, creating a mini boom in some price categories. Properties in Mount Pleasant, below $1 million, have been snapped up and are selling quickly, often close to full price.  We think that in many cases, within this category, we have seen an upwards market correction of 10-15% in the space of 3 short months. The same applies in Applecross, in properties in the mid to high $1M range. Lower priced properties in Ardross and surrounds are also changing hands in rapid fashion.

Buyers, as always, are looking for value. In this market the location is very important. Homes in excellent condition, presented to a high standard and/or in superb locations will attract the most interest and usually sell quickest.

Several top end properties have changed hands in this period, indicating strong demand for the premium end of the market.  All of this is caused by a general lack of stock and the subsequent strong demand causes upward pressure on prices.

Generally we are finding that Buyers have more confidence as they have seen consistency of pricing, albeit at a higher level than last year and sellers have a renewed sense of perspective having seen sufficient recent sales.  As a result the market has established a new equilibrium, based on actual sales evidence, rather than the varied and often erroneous data that existed in the first half of 2009.

Evolution Realty has finished the year strongly, registering many sales in December and has started the year with an amazing record number of appraisals.  Our interpretation of the number of appraisals is that many potential sellers are aspirational buyers, taking stock of the value of their current homes as they consider upgrading. We find that this is often the case in the New Year. Many new listings have hit the market for Evolution Realty and we expect strong selling months in February and March 2010.

On a happy note, we recently celebrated out first Anniversary with a bang, and are well primed to continue the massive success enjoyed in 2009. We look forward to meeting you, at our website www.evolutuonrealty.com.au, at our office at 15 Kearns Crescent Applecross or at many of the homes open that we conduct every weekend though the City of Melville and surrounds.

 

Evolution Realty Applecross Property Trends

Welcome to our blog.

Hi, my name is Ian Barnes from Evolution Realty. Many of you know that I have been successfully selling in the area for many years now, and know the market. But this blog will be all about you, not me, and this lovely part of the world called Applecross, which we are blessed to call home.

I will be regularly providing up to the minute information and trends in the Applecross and surrounding areas, but I also want to hear from you, and what matters to you. I invite your comments, experiences and questions.

Why not tell me what you love about living in the area? How about what you like or hate about the experience of buying or selling a property? We will from time to time have comments from our other team members as well. We look forward to interacting with you via this medium.

 

Blog List

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