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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: 

 

You only get one chance to make a first impression

Home Makeovers

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.

Minimise clutter

By pre-packing, you’re killing two birds with one stone by removing excess clutter while preparing for your move.

Living room (Before)

Living Room (After)

Keep your house immaculate

Once you’ve removed the clutter, consider having your home professionally cleaned, or at least the bath and kitchen.  A small repair of damage from water leaks, burns, or other mishaps can “stave off counteroffers for defects.”

It’s crucial to consider the home’s street appeal as buyers often make their decision in the first few minutes of seeing a home.  Landscaping must be in order – if possible, plant flowers near the door, mulch existing plants, trim shrubbery, and remove any dead plants or trees.

Bedroom (Before)

Bedroom After

Paint

Any room that doesn’t get enough sun will benefit from a light wall colour.  It doesn’t have to be painted a harsh, pure white, but a pale neutral colour will help make a room appear to have more light.  A fresh coat of off-white paint gives a property a “lift” when you open the door.

Don’t overdecorate – Less is more

You don’t want your style to take over your home makeover to the point where the buyers can’t imagine the house decorated in their own style.  Many people have a hard time seeing past the design and décor and if the design doesn’t suit the buyer’s tastes, it is often very hard to imagine it differently.   Remove any personal property that does not enhance the style of the home.

Living and Dining (Before)

Living and Dining (After)

Repairs

It’s imperative to repair all the small items onsite.  Leaky taps, chipped paint, a wobbly handrail. Living in a property for a long period of time and desensitise home owners from the issues that visitors may spot immediately.  It’s important that the scratch on the wall, small carpet stain or scuffed tile doesn’t turn a buyer away.

Riverview Realty offers a turnkey solution to our vendors.  We can manage all trade and home maintenance work to ensure your property is ready before a sales campaign commences to maximise your sale price.  Remember, you only get one chance to make a first impression to buyers.

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: 

 

 

 

Scaled Commission: Don’t be mislead

Be wary of a scaled commission approach

Following on from my previous blogs on setting the right expectations, we have heard that some agents, who are over pricing properties to get listings, are also combining a scaled commission approach with the offer.

This may seem reasonable and in some cases scaled commission is normal, but when coupled with over-pricing it becomes a “dodgy” sales technique to mislead the vendor in an attempt to validate the potential for the agent to achieve the highest and most ambitious price promised in their appraisal.

If we peel back the layers of this offer, the difference between the base commission and the higher end commission is only a matter of a few thousand dollars to the agent and structured so that no matter what the property sells for the agent is basically getting close to his full commission anyway.

In the end, the vendors get their expectations reset to the lower sale figure and are “short changed” on the promise of a higher sale price that was never going to materialise in the first place.

Recruit your agent carefully.

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: 

 

VIMEO – LinkedIn

Some real estate agents should go to hell

So you think under quoting only impacts buyers?

We recently sold a property in Riverview. Our clients were advised by their previous selling agent that they would get around $1,600,000 for their property. Not bad, but this price indication was AFTER the agent initially set expectations of a much higher price. It soon became apparent that the owners’ expectations had been reset very quickly by the agent after just a small number of potential buyers had seen the property.

That’s where we come in, not only did we exceed the first agent’s estimate, but we smashed it out of the park with another record price for a 3 bedroom home by delivering $160,000 above the previous agent’s price expectation.

My question is: How do agents get it so wrong when they are supposed to be part of one of the leading agencies in the local area?

In many of my blog postings on under quoting and seller conditioning, I’ve focused on the tail wagging the dog when it comes to who is setting the right expectation and who is the winner out of the transaction.  In this simple case, if you were to put $160,000 on the table how long would it take to save that kind of money?  In comparison, the agent’s commission would only be a difference of $1400 for a quick sale.   Some agents should take the express elevator to hell for this kind of misconduct in their dealings by failing to deliver the best outcome for their clients.

Please read below for what our clients had to say:

14 Yallambee Road Riverview

“We had started our journey with another agent but the total experience consisted of them dampening our expectations.

Upon meeting Andrew and Samia they promised much and not only did they deliver, they exceeded our service and sale price expectations.  They cheerfully undertook many of the small and difficult tasks and offered several excellent referrals for tradespeople to smooth the process.  Their advice was always transparent, consistent and accurate.

Their conduct was always in good spirit and the resulting sale has concluded with our gratitude and friendship. If you are trying to decide which agent to use and have questions, feel free to ask Riverview Realty for our contact details.”  Ian Irwin and Julie Haraksin.

Client Survey Results:

1)      Did your experience with the sales team at Riverview Realty meet your expectations?

Response: Top Score – Much better

2)      In regard to communication, transparency and trust – What was your overall agent engagement like with sales representatives at Riverview Realty?

Response: Top Score – Excellent

3) Overall Agency Rating – Were you satisfied with the team at Riverview Realty?

Response: Top Score – Extremely satisfied

4) How likely are you to recommend Riverview Realty to others?

Response: Top Score – Extremely likely

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: 

 

VIMEO – LinkedIn