At a recent Partners Wealth Group / AMP function, economists and advisors gave a brief and broad overview of the state of the global economy and its impact on Australia.
From a property perspective, Australia’s housing market is the most stretched in the world. There is an over-supply issue with apartments, but if interest rates level out or decrease further, this issue should work itself out. It was noted that China central govt is pumping a lot of money into the economy to drive more activity.
From a political perspective, they commented that Donald Trump’s bid for the Republican nomination is producing some uncertainty, however if elected, it appears he will have to play to the interest groups. It’s a line ball game between Trump and Clinton. So not much to worry about.
Global growth is difficult to predict, Europe is tiring but should bounce back. The question asked at the function was “If you had $100 where would you put it?” The panel noted European shares (but wait for growth) or wait for local interest rates to pick up.
In Australia we’re looking at a low interest/lower return for equity markets for some time to come which raises the question about where people will park their money?
Local Property: Right Here, Right Now
Now is a great time to be selling real estate in Sydney. Stock levels are down by 25% and these low stock levels are still driving prices in an upward direction.
regards,
Andrew Bruce, Samia Malouf, and staff.
Riverview Realty is a boutique agency focused on achieving the maximum price, with a client engagement that is above the industry standard. We call it the “Ultimate Experience” which forms part of our unique selling proposition.
Ph. 02 9420 0083, 59 Tambourine Bay Road, Riverview.
You’re welcome to connect with us on social media:
Welcome to 2016! We trust you’ve had an enjoyable break and spent summer with friends and family. To kick-start our blog for 2016, we thought we would share some insight into the property market and the wider economy for the year ahead.
According to leading chief economist Shane Oliver from AMP Capital, the Sydney property market has become so stretched that price growth will be weak in 2016 and prices are likely to fall in 2017.
“I think because the property market has become so stretched, particularly in Sydney, it has been enough to tip the cycle back down again,” he said. “This year we will see weak price growth and then next year we might actually see price declines.”
Mr Oliver believes house price growth has peaked, and that the wealth effect of rising property prices will begin to weigh on consumer spending for the economy.
However, it’s important to remember that we have seen these cycles go up and down for the last decade:
Sydney had a slowdown in 2005 where prices fell between five and 10 per cent in certain areas.
There was an upswing into the run up to the GFC, then a downswing in 2008.
Prices fell in 2009, then we there an upswing in 2010 into early 2011.
2012 saw another downswing and then our most recent upswing.
A downswing in the property cycle is usually triggered by monetary tightening, which has been fairly constrained over the last 12 months. However, Mr Oliver noted that the out-of-cycle rate hikes of the banks towards the end of 2015 dampened sentiment and dramatically shifted expectations.
One of the reasons that investors have backed right off is that sentiment regarding expectations for home prices has completely reversed. It has gone from “we’ve got to get in now otherwise we’ll miss out and prices are up 15 per cent per annum and that will continue”, to a fundamentally dented, more cautious sentiment.
Consequently, auction clearance rates started to fall and house price growth slowed towards the end of 2015. However, as the property market cools down in Sydney and Melbourne, it does provide some scope for first home buyers to get into the market.
In terms of the economy, January is always the month used to predict the share market for the rest of the year. There are a lot of interesting plays influencing sentiment at the moment. Banks are short selling everything which is causing uncertainly. However they capitalise on the bad news by the short sell. China is not heading as far south as the media would lead us to believe – it is easing, but the value of their economy is far stronger than what it was at the height of the GFC.
The current message, perception and sentiment doesn’t always match the numbers. As part of this sentiment, Economist Scott Francis from the Eureka report notes that it’s worth considering whether the “Other January Effect” – the idea that market returns in the month of January predict the overall returns for the year ahead – is a useful idea for investors. He argues that based on past performances, the January Effect holds little weight.
In terms of property, a Chatswood real estate agent shared with me that he had over 41 people through a property’s first open for inspection. If that’s a declining market we will take that any day of the week.
regards,
Andrew Bruce, Samia Malouf, and staff.
Riverview Realty is a boutique agency focused on achieving the maximum price, with a client engagement that is above the industry standard. We call it the “Ultimate Experience” which forms part of our unique selling proposition.
Ph. 02 9420 0083, 59 Tambourine Bay Road, Riverview.
You’re welcome to connect with us on social media:
Two of Sydney’s best-kept secrets? No, it’s not Samia and I, it is of course Lane Cove and Riverview. Last Sunday, our thoughts on the local market were featured in Domain. Please see the story below.
click on the image above for a larger version
Lane Cove and Riverview are perfectly situated to advantage of close proximity to the CBD, Chatswood, North Ryde, and the Macquarie Park business district. Families and young professional couples make up the bulk of the local population, and enjoy a variety of local shopping and dining options, parks and outdoor spaces, and access to excellent private and public schools. Quick access to Chatswood and Macquarie Centre provides residents with greater shopping and entertainment options.
Due to recent development in Lane Cove, Lane Cove North and Linley Point, unit stock is in good supply. Housing stock has been in over supply for the spring season and will tighten up for Christmas and the New Year. Lane Cove house stock consists of three main property types: Original Post War, Original renovated, and new build. The price points for these homes are $1.8-$1.9m, $1.9-$2.5m, $2.7-$3.4m respectively.
Both Andrew and Samia have lived locally for over 20 years and believe Lane Cove and Riverview are Sydney’s best kept secret. There’s good buying at present. Who knows what is ahead for 2016? Recent commentary suggests low single digit growth next year.
regards,
Andrew Bruce, Samia Malouf, and staff.
Riverview Realty is a boutique agency focused on achieving the maximum price, with a client engagement that is above the industry standard. We call it the “Ultimate Experience” which forms part of our unique selling proposition.
Ph. 02 9420 0083, 59 Tambourine Bay Road, Riverview.
You’re welcome to connect with us on social media:
It is absolutely imperative that when discussing your go-to- market strategy with a real estate agent that everything is put on the table – and I mean EVERYTHING.
Lowering your expectations is a form of price CONDITIONING that many real estate agents engage in.
Ask the real estate agent about aspects of your property that may be of concern to buyers. Some agents will promise you blue sky at the start but will then lower your expectations, wear you down, and ultimately convince you that your property is not desired, citing these negative elements.
A great real estate agent will be aware of the limitations of each property and should be up front with you about them BEFORE you go to market.
This will ensure that these issues are not raised DURING the sales campaign as a tool to lower your expectations.
Lowering your expectations is a form of price conditioning that many real estate agents engage in. You don’t want any surprises AFTER you have started your campaign!
The following are examples of surprises used by agents to condition sellers. They are unfortunately all too commonplace:
There is little backyard
No one wants your property
Floor plan does not appeal
Too much work to be done
Wrong aspect
– DANGER SIGNS –
Watch out for sales activity reports from agents that note too many price comments or rejected offers that come in below price or agency agreement expectation. These are the first signs of re-setting a seller’s price expectation. Also watch for too many negative comments as they too can be the catalyst for upcoming bad news.
TOTAL TRANSPARENCY between AGENT AND VENDOR
Make sure you get the relationship off to a good start with total transparency on every aspect of selling your home.
Get an agreement from the agent of the price expectation he will be advising potential buyers (you may want to validate this by sending a friend to an open house to see what the agent is quoting by way of price). You don’t want a situation with the agent telling you one price and the buyers another. These tactics are a recipe for disaster, disappointment and the grounds for lowering price expectations.
Some agents are only focussed on the transaction and their commission…. not your sales result!!
We suggest the agent compile a weekly written activity report on all activity and comments outlining the sales funnel of likely buyers and where they are up to in the sales process. So when the agent brings an offer to the table you can immediately relate to the actual buyer, their drivers and background.
Total transparency and communication lowers the chances of changes to your expectations with regard to selling price.
You do not want ANY surprises on sale or auction day.
Andrew Bruce & Samia Malouf
Riverview Realty is a boutique agency focused on achieving the maximum price, with a client engagement that is above the industry standard. We call it the “Ultimate Experience” which forms part of our unique selling proposition.
Ph. 02 9420 0083, 59 Tambourine Bay Road, Riverview.
You’re welcome to connect with us on social media:
One of the most essential elements in selling your home is getting the property presentation right for the market. If you lower buyer resistance with good pre-sales marketing preparation you can be guaranteed delivery of an above average sale price. But you have to be prepared to spend a little to make your return on investment (ROI) work.
For an example, we recently sold a property that was appraised for sale by a so called reputable “top end” franchise for $1,100,000 to $1,200,000. We sold the property for over $1,350,000 just a few weeks later. A capital outlay of approx $30,000 was spent on pre-sales works such as tiling, painting , carpentry, cleaning, gardening and lawns, styling etc, which we managed as part of our turn key selling solution (included in the selling fee), delivering a good return on their investment.
With the buyer demographic rapidly changing, sellers need to be well-armed with information, advice, strategy and planning from their agents on just how they intend to deliver more than another “vanilla” real estate experience and result.
Selling real estate is a fast changing industry and agents need to be delivering a value added experience to their vendors well-above the industry’s current practice.
Before and After photos
This is what the above vendors said about their pre sales preparation and selling experience with Riverview Realty:
Hi Andrew and Samia, Both John and I would like to extend our appreciation for the friendly and professional way you conducted our sale. Your selling campaign was the result of all your hard work and we are very grateful for all the steps you took personally and professionally to achieve a successful outcome. You went above and beyond our expectations and made us feel like you were really working to achieve the best outcome for us.
The service, personal attention and generosity we received from Riverview Realty was exceptional and unexpected, you are truly a high calibre team. Your knowledge and key contacts with tradespeople made the experience of selling our home less stressful through all your efforts in the tight timeframe to get the house ready to market. We had a deadline to work towards and you led the project down to the exact date and managed all stakeholders with accuracy.
We would highly recommend Andrew and Samia from Riverview Realty to help you with your sale, as you could not ask for better Realtors to assist and guide you through this process.”
Isabella & John
regards,
Andrew Bruce & Samia Malouf
Riverview Realty is a boutique agency focused on achieving the maximum price, with a client engagement that is above the industry standard. We call it the “Ultimate Experience” which forms part of our unique selling proposition.
Ph. 02 9420 0083, 59 Tambourine Bay Road, Riverview.
You’re welcome to connect with us on social media:
Under-quoting a sale price when a property is going to auction is the single biggest issue the buyer has to contend with in their discussions with a “bad agent”.
However, the people who are most affected by this deception and unlawful conduct is the seller. It is no wonder that real estate agents have a bad reputation in the eyes of the public.
By under-quoting price expectations, the bad agent is guilty of confusing the market place by setting the wrong expectations.
Impact on Buyers:
This practice lures in some buyers who may not be able to afford the property.
Buyers in this position leave the auction feeling disenfranchised after investing time and money in property inspections and initial legal/conveyancing fees.
Impact on Sellers:
Confusing buyers who have the right budget and can afford it.
A buyer with the budget may go elsewhere or withdraw from bidding if they feel they are paying above market price once the auction bids escalate past the under-quoted price.
These actions could cost the seller 10%+ of the sale’s value.
In what is a pleasing move for buyers and sellers, a group of real estate agents have launched a campaign to end under-quoting or “price baiting” as it is known. The agents behind the campaign believe the “bad agents” referred to previously are wasting buyers’ time with price estimates that are often well-below the seller’s reserve.
Recently reported on the ABC, the group wants a change in regulation, which would force vendors to publish their reserve price prior to a sales campaign. An extract is below:
The former chairman of the Real Estate Institute of Victoria’s Ethics Committee, John Keating says some agents give price estimates to potential buyers that are up to 20 per cent below the reserve.
He says this results in house hunters wasting time and money on looking at, and often getting building inspections on, properties they cannot afford.
“They’re talking with forked tongues to purchasers and under-quoting in order to get more interest in the properties. Buyers detest the systemic under-quoting that’s going on, so if you can make it an absolutely transparent marketplace, I think more properties would be sold by auction,” Mr Keating said.
If you have been affected by a “bad agent”, the best thing to do is to make a complaint with Fair Trading and let the Department deal with them. Lodge your complaint with the Department of Fair Trading by calling 13 32 20.
Riverview Realty is a boutique agency focused on achieving the maximum price, with a client engagement that is above the industry standard. We call it the “Ultimate Experience” which forms part of our unique selling proposition.
Ph. 02 9420 0083, 59 Tambourine Bay Road, Riverview.
You’re welcome to connect with us on social media:
Around 95% of purchasers seek property via these two websites through different touch points including traditional PCs or laptops, tablets and smart phones.
The other 5% of purchasers are driven to your property come from a variety of sources:
Direct print marketing campaigns to surrounding houses, friends, neighbours etc
Window displays
Social media
Social Media use in real estate is on the increase with most agencies maintaining multiple platforms including Twitter, Facebook, Pinterest, YouTube, Vimeo and LinkedIn. The highly visual nature of property campaigns makes graphic content extremely important across these platforms.
Property writer Jonathan Chancellor recently shared a story on Property Observer about the rise of the use of social media and digital marketing.
In Tweeting over the humble white picket fence @17BanksiaStreet highlights ever expanding digital era, Jonathan brought attention to a house in Melbourne with its own Twitter account. The Twitter account is sharing inspection times and the link to its web listing, and although it only had 11 followers before Jonathon’s article, the Twitter account is now up to 52 followers and climbing since the story was published.
It’s important to realise that Twitter, along with other social media platforms, won’t reach as large an audience as a Domain or RealEstate listing, but it is a growing segment and these platforms complement traditional on and off-line marketing.
Jonathan also noted the increase in digital advertising spend in real estate. “…real estate experienced its strongest result on record for Australian online advertising in the March quarter as the property industry ramped up its digital spending.”
The only two sectors ahead of real estate in digital spending are the Motor Vehicle and Finance industry.
Engagement with the market through social media and digital marketing in real estate is only going to increase. How agencies use these platforms to connect with property sellers, buyers and owners will become the differentiator.
regards,
Andrew Bruce & Samia Malouf
Riverview Realty is a boutique agency focused on achieving the maximum price, with a client engagement that is above the industry standard. We call it the “Ultimate Experience” which forms part of our unique selling proposition.
Ph. 02 9420 0083, 59 Tambourine Bay Road, Riverview.
You’re welcome to connect with us on social media:
When it comes to hiring your agent, remember that just like an employee – past performance dictates future performance. Don’t allow yourself to be drawn to an agent by charm, bullying tactics, telling you what to do, being ultra nice or making promises like: “we are going to deliver the world to you”; “we will get you the best result”; “ I promise to get you the maximum dollars”; “we are the area specialists”; “we turn over the most number of properties” – the list goes on and on…
When selecting your agent, it is paramount that the seller or vendor really understands the selling practices of the agent and the agent’s ability to demonstrate and master the sales and marketing process. A seller has to focus on the facts and not the promises or perceptions.
TIPS ON HIRING AN AGENT
It is a good idea to take notes on each agent covering your selection criteria. Focus on key attributes required of a sales agent and drill into each, as you would as an employer in a job interview.
Probe for real life examples such as:
Can the agent actually sell or is the agent an order taker?
What is the agent’s sales process? Do they have an understanding of the steps in the sales process? (There can be six to ten steps)
How does the agent identify a real buyer? How does the agent reply to buyer enquiries? Written or verbal?
How does the agent market your property? Is it relevant? Does it match the buyer demographic for your area?
Which other people other than the agent will be involved in the sales process/marketing? What skills do they bring to the table?
How many sales is the agent currently working on? Too many can be an area of concern – you don’t want the agent spreading himself too thinly.
What percentage of the agent’s time will you actually receive?
Can the agent demonstrate past sales, show previous agency agreements and provide results against them?
How does the agent arrive at your market appraisal price? Ask for proof.
Can the agent provide past vendors and buyers as a personal reference point? Focus primarily on the sales result and the agent’s ability to engage and negotiate.
Can the agent demonstrate conflict resolution? Ask for examples.
Can the agent demonstrate the ability to manage time and work effectively?
Does the agent display empathy, trust, credibility and flexibility? What is the agent’s interpersonal communication style?
Does the agent have the right negotiation components – understanding issues, assessing power and influence, setting objectives, planning concessions,developing strategies, choosing techniques and tactics, planning and negotiation.
“What are the strengths and weaknesses of our home?”
YOU MUST ASK YOUR AGENT THIS QUESTION TO AVOID CONDITIONING!
It is absolutely imperative that when discussing your go-to- market strategy with the agent that everything is put on the table – and I mean everything.
Ask the agent about aspects of your property that may be of concern to buyers. Some agents will promise you blue sky at the start but will then lower your expectations, wear you down, and ultimately convince you that your property is not desired, citing these negative elements.
A great real estate agent will be aware of the limitations of each property and should be up front with you about them BEFORE you go to market. This will ensure that these issues are not raised DURING the sales campaign as a tool to lower your expectations.
Lowering your expectations is a form of conditioning that many real estate agents engage in. You don’t want any surprises AFTER you have started your campaign!
The following are examples of surprises used by agents to condition sellers. They are unfortunately all too commonplace:
There is little backyard
No one wants your property
Floor plan does not appeal
Too much work to be done
Wrong aspect
TOTAL TRANSPARENCY- AGENT AND VENDOR
Make sure you get the relationship off to a good start with total transparency on every aspect of selling your home.
Get an agreement from the agent of the price expectation he will be advising potential buyers (you may want to validate this by sending a friend to an open house). You don’t want a situation with the agent telling you one price and the buyers another. These tactics are a recipe for disaster, disappointment and the grounds for lowering expectations. Some agents are only focussed on commission and not on your result!!
We suggest the agent compile a weekly written report on all activity and comments outlining the sales funnel of likely buyers and where they are up to in the sales process. So when the agent brings an offer to the table you can immediately relate to actual buyer, their drivers and background.
Total transparency and communication lowers the chances of changes to your expectation with regard to selling price.
You want no surprises on sale or auction day.
regards,
Andrew Bruce & Samia Malouf
Riverview Realty is a boutique agency focused on achieving the maximum price, with a client engagement that is above the industry standard. We call it the “Ultimate Experience” which forms part of our unique selling proposition.
Ph. 02 9420 0083, 59 Tambourine Bay Road, Riverview.
You’re welcome to connect with us on social media:
Under the Hammer’s Matthew Shalhoub/ “Auctioneers orchestrate the work of real estate agents on what is usually the last day of a sales campaign.”
An auctioneer is the most important element of a property selling campaign to achieve an excellent price.
As an auctioneer, I know what a good one looks like. Like every industry and sector, there are good and bad and these tips will help you spot the good ones. A good auctioneer should integrate seamlessly into your sales team. They represent your property and the agency.
Characteristics:
High emotional intelligence
Understanding and empathy skills to connect with buyers in a respectful manner
Are comfortable with the sales team and work on visual and non-visual cues
Not intimidating (these tactics don’t work, people freeze up)
A good auctioneer will:
Allow time for the auction and not be seen as in a hurry
Make the auction easy, somewhat fun, relaxed and ease the tension that may exist
Make the auction a joyous occasion and relax nerves
Work with agents who are working with bidders
Have a proven track-record and strong relationship with the agent.
Tip: Go to an auction to observe an auctioneer in action and how they relate with the agent/s and bidders.
Make sure your auctioneer is someone you and your agent can work with. A good relationship and personal connection is paramount.
Do your research: An auctioneer’s prior performance and how they represent both the real estate agent and vendor is crucial. This is especially so when bidding may be slow at an auction or when selling in a buyer’s market. It’s easy for an auctioneer to be impressive when the bids are flowing in thick and fast!
Choosing an auctioneer based on their knowledge of the real estate industry, legislation and proper processes will ensure that everything goes smoothly on the day.
Watch Matthew in action.
Further to these tips, Matthew notes how an auctioneer can influence the auction result:
“We orchestrate the work of real estate agents on what is usually the last day of a sales campaign,” said Matthew. “A good auctioneer will have a clear idea of what the vendor’s and the agent’s instructions are. A great auctioneer will also have the ability to react to auction conditions spontaneously. This responsiveness, and not simply following a set structure, will have a positive influence on the final result.”
Riverview Realty’s – Auction clients and spectator quotes:
“Fabulous auction and fabulous auctioneer” D. Meakin
“Inspiring, engaging and motivating auctioneer” L. Tremayne
“Great auctioneer, results driven” A. Cope
“Handled auction well, excellent result” J. Bingham
“Interactive auctioneer getting everyone attention and delivering a great result” C. Harris
“Best Auctioneer I have seen. Driving hard for the vendor with excellent engagement with the bidders” K. McBride
An auctioneer is the most critical variable on auction day. A terrible auctioneer can break a sales team’s campaign in a matter of minutes.
Andrew Bruce
Riverview Realty is a boutique agency focused on achieving the maximum price, with a client engagement that is above the industry standard. We call it the “Ultimate Experience” which forms part of our unique selling proposition.
Ph. 02 9420 0083, 59 Tambourine Bay Road, Riverview.
You’re welcome to connect with us on social media:
As your home is one of the most important assets you will own, selling it is one of the most important transactions you are likely to make. You only have one chance to make a first impression. Every seller wants their property to sell quickly and for a maximum price. Your goal is to prepare your house and make it an irresistible and marketable home. To achieve this, it is critical to make sure that you are presenting the most desirable commodity possible in order to send buyers off in a frantic rush to find their cheque books for a deposit to secure the property.
8 easy steps towards transforming your home:
1. Detach yourself
You must be able to emotionally let go of the house you have lived in and try to see it as a commodity to be sold at the highest price possible. Don’t take advice personally – It is strictly business.
2. De –Personalise
Clear away most family items such as photos, books, knickknacks and toys so buyers can visualise their own personal items in the spaces.
3.De-Clutter
We are all guilty of collecting “junk” over the years. My rule of thumb is if you have not used it for over a year, you probably don’t need it. Clutter simply says “no storage space” to buyers. Excessive furniture can also clutter a room. By removing some pieces, rooms may appear larger and brighter.
Areas that can benefit from a good clean-out include:
Bedroom wardrobes and shelves
Bathroom draws and bench tops,
Kitchen cupboards, draws and bench tops,
Linen cupboards and all other storage spaces.
These processes can be viewed as a head-start to packing that will inevitably need to be done once you have sold your property.
4. Remove/replace items that are not being left in the house.
Vendors often say: “I want to take a light fitting or built in appliance with me.” If something is not being offered as part of the sale it should be removed or replaced.
5. Minor repairs
Painting: wall paint can have a great impact on a house’s presentation. Neutral and light colours are what sell a home. Let go of the greens, blues and purples you painted walls 10-15 years ago.
Remove or paint over any dated wallpaper
Replace damaged floor and counter tiles
Patch any holes in walls
Fix leaking taps
Re-grout tiles and refresh shower screen seals
Make sure all doors and draws close properly
Check all light fittings and bulbs are working
Check the function of all windows. Make sure they open and close freely
Oil squeaking doors
Replace or remove shabby curtains or blinds
Replace rotted timbers
Replace broken roof tiles
Steam clean carpets
6. Make the house shine
Clean windows inside and out
Pressure clean footpaths and exterior
Remove cobwebs both inside and out
Clean bathrooms with bleach
Replace any worn rugs
Clean and air any musty smelling areas
Dust all surfaces including ceiling
Wax or polish floors
7. Check street appeal and backyard
Many buyers do a “drive by” before inspecting a property. If they don’t like what they see they will not come back to the open house.
Paint window trims and front door and replace damaged hardware
Mow lawns, prune garden beds, trim hedges
Repair fences and any gates
Clean gutters
Make sure the house number is clearly displayed.
8. Stage/Style your home
This can be done professionally or with advice using your own furniture.
Furniture placement is important to maximise the sense of space, function and flow of each room.
Riverview Realty is a boutique agency focused on achieving the maximum price, with a client engagement that is above the industry standard. We call it the “Ultimate Experience” which forms part of our unique selling proposition.
Ph. 02 9420 0083, 59 Tambourine Bay Road, Riverview.
You’re welcome to connect with us on social media:
At a recent Partners Wealth Group / AMP function, economists and advisors gave a brief and broad overview of the state of the global economy and its impact on Australia.
