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Sydney: Hitting the reset button

Market conditions are showing signs of softening with sales starting to plateau and in some cases falls of between 5 and 10% being seen depending on the geographic area.

In a conversation with Matthew Shalhoub of Sydney auctioneering company Under the Hammer today, Matthew commented that most good agents are now selling property prior to auction. Buyers are thinning out across all sectors – there’s no doubt that the reset button has been pushed and given past performance in a top of market cycle, there is usually a period of about 3-4 months of stabilisation. We then start to see consolidation again.

Given the fact that most buyers are still around, they’re probably just trying to find some direction in the market. If I was buying, I would try and find the seller with the biggest pain level in order to secure a bargain. In saying that, past experience dictates that there’s a magic time for buyers to enter the market before it fully stabilises and firms up.

 

regards,

Andrew Bruce 

For your FREE copy of Select a Winning Agent, email selectawinningagent@riverviewrealty.com.au and we will email you a copy.

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: 

 

 

Sydney property bubble: The harsh reality

Andrew Bruce, Riverview Realty

Real Estate March Madness…

While there’s some talk we are in a property bubble, the harsh reality is that with 100,000 babies being born in Sydney each year, and the inflows of immigration into greater Sydney, it’s hardly any wonder why demand is exceeding supply. As we go into our 5th year of solid growth, what we are seeing is a paradigm shift in both the Sydney and Melbourne markets – Sydney is becoming a true global city and a destination.

Every property listed receives hundreds of email enquiries and there’s no doubt that demand is outstripping supply and will continue to do so in the years ahead. The mere thought of trying to find cheaper housing solutions within the Sydney basin is akin to trying to stop a tidal wave of demand. The banks have tightened their lending criteria for developers, which will have the knock-on effect of tightening supply even more.

We are in the very lucky position to have a number of really interesting properties listed ranging from brand new units in Kensington, to premium properties in Willoughby and Riverview, and mid-range properties in Riverview and Lane Cove.

For those looking for a renovation project or re-build, we have a property coming up in Greenwich very soon. We have more listings that are being prepared for market and encourage you to register your interest and join us on Facebook for real time updates.

The rental market fluctuates with good months and bad months. There’s low stock of houses in Lane Cove at the moment, however there is ample apartment/unit stock within the Lane Cove precinct with rents holding steady.

regards,

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: 

 

Local Property: Right Here, Right Now

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?

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: 

 

Two of Sydney’s best-kept secrets

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: 

 

Effective real estate search?

We market a number of Riverview and Lane Cove properties, so you would think that someone searching for properties in Longueville and surrounding suburbs would see Riverview (the next suburb) when they widen their search to surrounding suburbs using www.RealEstate.com.au correct?

No.  When both us and our vendor tested Real Estate’s surrounding suburbs option, when searching Longueville properties, we saw, Balmain, Rozelle, Hunters Hill, Artarmon properties, but nothing for Riverview! Why is this important? Well you may think we’re just worried about our own listings (which we are of course!) BUT we’re concerned for all potential buyers who aren’t seeing all the possible properties bordering Longueville.  We are responsible to our vendors to ensure the maximum number of potential buyers view their property. RealEstate.com.au isn’t helping our commitment to our customers and is literally wasting the vendor’s valuable marketing dollars.

When we complain  to the REA’s customer service desk they take very little interest, don’t really understand the issue, and don’t want to do anything about it.  We just receive a diatribe of excuses as to why it cannot be fixed.

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: 

 

Lane Cove real estate agents ranked 5th for underquoting in Sydney

This news piece from Domain below just confirms what we have been saying for many months on the subject of underquoting. We look forward to the new underquoting Bill passing through NSW parliament shortly (outlined below).

This will be a game changer for vendors and buyers and will stop dodgy agents overquoting to vendors (to secure a listing) or underquoting t0 sellers to hasten the sale no matter what the result. It will create realistic and evidence-based property pricing for sellers and buyers.

Agents will not be able to quote prices to buyers outside the selling agency agreement know as the “estimated selling price or price range”.

Sydney’s most inaccurate house-price quoting is happening in the city’s north-west, according to data that shows prices in some suburbs have been incorrectly quoted by almost a quarter during the winter period.

But agents have hit back at the data from price predictor tool realAs, saying the suburbs in question are being targeted by an international market and developers who are willing to pay above and beyond a reasonable market value.

RealAs figures, which compare the publicly quoted price to the eventual sold price of a property at auction, show the majority of the city’s worst suburbs for price quoting, including North Ryde, Gladesville, Epping and Lane Cove, lie north-west of the CBD. via www.domain.com.au

 

UNDERQUOTING REFORMS – New laws coming soon

Underquoting describes when an agent understates the estimated selling price of a property. This can cause interested buyers to waste time and money on inspecting properties, getting reports and attending auctions based on misleading estimates of the selling price.

The NSW Government is introducing reforms that address underquoting in the NSW property market and provide clarity for buyers, agents and vendors. The reforms are designed to prevent properties being underquoted – that is, marketed at a price less than the agent’s true estimate of the selling price. The proposed laws would also enable effective enforcement. By setting clear requirements for agents to understand and adhere to, agents will be able to be audited against the new requirements and prosecuted if they breach them.

The reforms will be before the NSW Parliament in the coming weeks and are expected to commence in early 2016. Consumers can refer to this page for updates, while agents should check they are subscribed to our Property Industry News email alerts.

Simply because a property sells for higher than a buyer expects it to does not mean underquoting has occurred. Sometimes competitive buyer behaviour can result in a much higher sale price than what an agent could have reasonably estimated the property to sell for. The reforms will however require an agent to be able to show that their estimate was reasonable, up-to-date and evidence-based.

The underquoting Bill will shortly be available on the NSW Parliament website: www.parliament.nsw.gov.au

regards,

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: 

 

 

A new addition to the Riverview Realty team

Riverview Realty is pleased to welcome Gus Tanudji to the team.

Riverview Realty is pleased to welcome Gus Tanudji to the team.

Throughout a career in IT solutions architecture, which included a stint at Oracle, Gus always kept an eye on the property market. With a keen interest in investing, Gus regularly came across real estate agents (both good and bad) and realised he would like to contribute to the industry with open and honest service.

“I naturally love property, and am always thinking of ways in which a property can be improved from an investment or purchasing point of view. I was attracted to Riverview Realty due to my positive experience as a client. I always found Andrew Bruce to be very straight forward and open,” said Gus.

An Artarmon local, Gus knows the Riverview, Lane Cove, and Longueville areas very well. He brings a high degree of analytical and process-driven experience to Riverview Realty which will benefit the local community.

“I’m most excited about meeting people, helping people through what is often the biggest transaction of their life, and solving issues. Delivering a ‘no hassles’ approach to property is the key to good service and I look forward to working with Andrew and Samia at Riverview Realty,” said Gus.

Samia, Gus, Sue & Andrew – The Riverview Realty Team.

“We’re very pleased to welcome Gus to the team. His appointment comes at a time when our boutique real estate agency is growing on the back of providing authentic service to the local community,” said Andrew Bruce. “Gus’ knowledge of property and local connections will make him a great team member and valuable asset to our clients.”

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: 

 

Real Estate website traffic: The numbers don’t add up

In previous posts we’ve highlighted the differences between boutique agents such as ourselves and  the major franchises.

In Selecting a selling agent: Brand vs Boutique we noted that:

The big agencies are quick to advertise they offer more than what a boutique agency can. “National network, local knowledge” or “tap into our network of buyers” is often used in the sales pitch. The reality is that the majority of the real estate marketing is now beholden to the two large digital advertising sites RealEstate.com.au and Domain.com.au. Both these sites are in the Top 50 Australian websites by traffic*. Many of the traffic rankings for the big franchises are well outside the top 1000 websites.

In The Importance of Digital and Social Media Marketing we revealed:

Digital marketing of a property is nothing new. Websites such as Domain.com.au and RealEstate.com.au have been around for over 10 years and are in the top 50 Australian websites by traffic and can’t be ignored in a real estate campaign. Around 95% of purchasers seek property via these two websites through different touch points including traditional PCs or laptops, tablets and smart phones.

We’ve done a bit more research:

We’ve done a bit more research and can report that all the major branded real estate websites have on average:

• 8 daily page views per visitor
• Visitors spend 2.31 minutes on their site.

Now, I’m not suggesting our web traffic is any better ( it could actually be worse) but what I am suggesting is that as we’ve mentioned previously, Domain.com.au and RealEstate.com.au are the most popular real estate listing websites. I’d much prefer a property we’re marketing be found through either of these sites as opposed to RiverviewRealty.com.au – because that’s what we’re paying for!

Consider those average numbers above. To give you some comparison:

Realestate.com.au is the 17^th most visited website in Australia and has:

• 12 daily page views per visitor
• Visitors spend over 11 minutes on the site

Domain.com.au is the 40^th most visited website in Australia and has:

• 5 daily page views per visitor
• Visitors spend close to 7 and a half minutes on the site.

So next time a selling agent talks about their website and the hits they get, consider these numbers.  I’d bet their numbers don’t add up!

*Website data compiled from www.Alexa.com

regards,

Andrew Bruce and 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: 

Twitter – Facebook – VIMEO – Pinterest –LinkedIn

Avoid Disappointment: Get the price your property deserves!

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: 

Twitter – Facebook – VIMEO – Pinterest –LinkedIn