Pricing a Property

When selling a property with an advertised price, it's important to get the pricing correct very quickly.  But how to do this?

1. Market Comparison:   Always look to what has sold recently as opposed to what’s on the market.  Quite often properties on the market have been there for a considerable period of time and if they have been that’s because they’re over-priced.  Even some of the new properties to the market are over-priced.
2. What comparable price properties have sold for recently – This is always the best guide as to how to price a property.
3. What a seller needs to make the move – Unfortunately, this is irrelevant. What a seller needs has no bearing on what the market will pay.
4. How much a real estate agent says a property is worth:  Nothing could be further from the truth.  A real estate agent only makes an educated guess.  No-one is ever sure of the value of a property until a motivated buyer is found.

Many people have a fear of under-pricing a property.  Sometimes, this can happen but with the expertise of a good agent, the property attracts great interest from the market and multiple offers are attracted and then a fair market price normally follows.  Quite often, properties sell significantly above the listed price especially if the price is set too low.  It is often better for the outcome to under-price a property than over-price it.

Some people believe that investing in a good marketing programme is a waste of money.  Nothing could be further from the truth!  A good marketing program and correct pricing strategy will ensure that buyers are attracted to the property and a sale can be expected quickly.

A word of caution:  With modern technology and a good marketing campaign, it can be expected that the market will react quickly should a property be priced correctly.  Holding a property on the market for “just the right buyer” can be more detrimental to a good outcome than biting the bullet and adjusting the price very early in the campaign.

It’s important when selling a property to engage a real estate agent who will be able to interpret the market and give you the right advice about advertising, pricing and strategy.  The second element to this is heeding the advice of the expert; bearing in mind it’s not what a seller wants for a property that determines value, it’s the buyer who determines value.

Marilyn Davies is a licensed Real Estate Agent selling residential property in the Northern Suburbs of Brisbane.

To talk to Marilyn about this or any other real estate matter, phone 0407149

or email marilyn.davies@harcourts.com.au

Want to buy a house?

The excitement is building!  You've found that dream property you've been searching for!  Now comes the scary part: going through the motions of buying the property.  It's even more scary if you're a first home buyer.

Some agents will take an offer verbally.  There are traps in that, both for the buyer and the seller.  A good agent will always insist on a written offer.  Should an offer be taken verbally, there is no legal obligation to make that offer formal. And this is the scary part.  I have seen where a property has been lost to a buyer after a verbal negotiation when a seller reneges and, for a seller, I have seen where a buyer has refused to make their offer formal after agreement has been achieved.  In short, there is protection for both the buyer and the seller for the offer to be written.

What does a written offer mean?  

1. A written offer normally is made, in Queensland, on a Contract of Sale form.  Just because the offer is made on a contract of sale form, it isn't a binding contract until full agreement is reached and all parties have initialled and signed where appropriate.
2. All the terms, such as finance and deposit terms, building & pest conditions, price and settlement or other terms are stipulated in the paperwork.

The agent then is able to take the offer to the seller and begin negotiations.  When an offer is presented to a seller they have 3 options:

1. They can accept the offer and sign and initial where appropriate.  Congratulations!  This is where the sale occurs.
2. The can decide to alter the terms - price or conditions.  This is where the negotiation begins. They make a counter-offer by changing the terms and conditions to what they would prefer and initial the changes and sign and initial the paperwork where required.
3. They can reject the offer outright and not negotiate.  This often happens when an offer in monetary terms is too low.

Remember, the paperwork does not become a legally binding contract until all initials and signatures are on the contract in the right places.  Both buyer and seller retain the right, at all times, to run the paperwork by their lawyer to ensure all the terms and conditions are in their interest.

Marilyn is a licensed real estate agent specialising in residential property in the northern suburbs of Brisbane

You can contact her about this or any other real estate matter on 0407 149 309

or email marilyn.davies@harcourts.com.au

What to include in a marketing package

Advertising a property for sale is more than just putting an ad (and a small one at that) up on realestate.com.au or domain.com.au.

First we need to examine why we're advertising a property for sale.

1. To attract significant interest from the market
2. To sell the property; and
3. To achieve the best outcome.

The one thing people don't know when they put their property on the market, is where their buyer is going to come from.  They also don't know (nor does their agent) how much a property will sell for.

A good marketing program will increase the likelihood of a buyer finding the property and subsequently inspecting it.  A good marketing program will ensure that there's competition amongst buyers and achieve a better outcome for the seller.  

That being said, buyers are very astute these days and will not pay over what they believe a property is worth.  So it is important to make sure the asking price is at a level that doesn't scare buyers away.  The longer a property sits on the market, the less it will achieve in dollar terms.  So it's important to get the asking price right at the very start.

In short, to attract the right buyer, an advertising program needs to have reach (over several different types of media) and frequency (available for buyers to see on multiple occasions).

The myth is that regardless of how a property is advertised, any agent can get the same outcome on the property as any other agent.  This is not true!

You need to make sure your agent understands how to market a property effectively and then interpret the effectiveness of the advertising program to ensure you, as a seller can get the best outcome out of the hard work you've put in to get the property ready for sale.

Marilyn is a licensed real estate agent specialising in residential property in the northern suburbs of Brisbane

You can contact her about this or any other real estate matter on 0407 149 309

or email marilyn.davies@harcourts.com.au

Can they hurt you?

I met a valuer on a property the other day and started discussing some of the intricacies of property (buying, selling and financing).
If you've heard of Lenders' Mortgage Insurance before, this can add a completely different dimension to negotiating the outcome for a sale. 
I once had an exceptional offer on a property which was accepted and went to contract.  When the valuer came out to the property, he found that it was 48 metres from power lines.  As the buyer was financing 100% of the purchase price and despite the fact that he had the capacity to service the loan, the finance was declined as the buyer could not obtain mortgage insurance and the sale could not proceed.
To avoid paying mortgage insurance, a buyer needs to have at least 20% of the purchase price in cash to put towards the purchase of the property.
The valuer told me that a property needs to be over 150 metres away from power lines for a lender's mortgage insurer to insure the property.
There are many schools of thought out there as to the health risks of living near power lines.  But the big issue, if you believe they're not a health risk, is to consider the impact of a buyer's finance when it comes to resale.  It is crucially important for your real estate agent to have the right knowledge and the skills to ensure that any buyer they obtain an offer from to purchase the property has the capacity to pay for it.
This, then, highlights the importance of choosing the right agent and not just someone who says we can do it cheaper!

Marilyn is a Licensed Real Estate selling residential property in the Northern Suburbs of Brisbane.

You can contact Marilyn about this or any other real estate matter on 0407 149 309 or

email marilyn.davies@harcourts.com.au

Is selling a unit different to a house?

In short, the answer is - yes!

There are more similarities in selling a unit and selling a free-standing house than one would think.  So most of the discussion here applies to people considering selling a house too.

A friend of mine has a unit in a top spot at the Gold Coast.  The location alone should sell this unit!  But there's more to selling a property than position!

There two basic differences in selling a unit to selling a free-standing home:

1. Understanding the legalities, disclosures and contracts; and
2. working with buyers in giving them the information they need to know about the complex.

Which leads me to the main element my friend should consider - her choice of agent...

Has the agent sold properties with community title previously? And how successful are they?  There are some agents who specialise in community title properties.

Choosing your agent does make a difference in a real estate transaction.  Some sellers believe the choice of agent is decided by who has the lowest fees and who will market the property for free!  This should be used as the criteria for rejecting an agent.  The choice of real estate agent is crucial in achieving a great outcome.  (This will be covered in another "Tips".)

If considering selling her unit, my friend needs to look at these fundamentals:

• Choice of agent
• Method of sale i.e. selling by auction or private treaty
• Presentation of the property - depending on the expected sale price, should a property stylist be consulted?
• Promotion of the property through a comprehensive marketing plan - you can't sell a secret!
• If being sold by Private Treaty, the pricing strategy

Marilyn is a licensed real estate agent working in the Northern Suburbs of Brisbane

To contact Marilyn about this or any other real estate matter, phone 0407 149 309

or email marilyn.davies@harcourts.com.au

There are Traps

Selling a house isn't an easy undertaking!
One of the biggest issues, after a lot of hard work, is getting through a building & pest inspection.
Initially building & pest inspections were designed to report on the structural integrity of a building.  However things have changed!
Building & pest inspectors have become so afraid of litigation, they are now reporting on things like leaky taps, loose door handles and blown light bulbs.  I have also seen where building & pest inspectors warn buyers about the possibility of termite infestation because they can't inspect behind furniture, or boxes in garages.
What does this do?  It cause fear in the hearts of a buyer and quickly upset a sale.  Interestingly, one sale may fall over due to the negativity of one inspector and then pass with flying colours with the next inspector!  It's all a matter of perspective and interpretation.  No-one is infallible!
So, what to do about this!

1. Before putting a property on the market, you may consider engaging your own building & pest inspector.  What this will do is highlight obvious areas that need attention and you can then prepare your property accordingly.
2. Get a plumber to check water in the walls behind showers etc. and possibly leaks in the plumbing.  This is another area which can cause grief for buyers and sellers.

Marilyn is a licensed real estate agent working in Northern Suburbs of Brisbane

To contact Marilyn about this or any other real estate matter, phone 0407 149 309