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:
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:
If you’re a seller, chances are you are confronted with many different agency types to manage your property sale. But what is driving this choice? The highly advertised franchised “brands”? The state-wide or nation-wide “network” they supposedly are tapping into?
One of the biggest issues I’ve come across is that the larger local agencies are little more than an independent agency trading under the banner of a larger franchise that will happily jostle with other franchisees under similar banners for local business.
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.
The last time you searched to buy or rent property, you more than likely did it through RealEstate.com.au or Domain.com.au where you would have seen listings from the big agencies and smaller boutique agencies.
Most big agency franchises have a cookie cutter approach to property buyers, renters and sellers. Boutique agencies are more dynamic, adaptable and tailor solutions to meet individual customer needs. It’s also clear that boutique agencies are building their reputation on results together with outstanding customer service from pre to post sale engagement and not merely relying on a franchise banner to deliver a result.
The days of the well-known branded franchise are numbered. With the rise of RealEstate.com.au and Domain.com.au, all property agents are on a level marketing playing field when sourcing buyers. Today all agencies use the same style photography, printers, floorplan creators, media and databases to create marketing plans and collateral –
What factors will you be considering when selecting your next agent?
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:
Selecting an agent based on a cheap or lower commission rate could cost you up to 10-20 times the saving value in commission if the sales price is poor.
Too many vendors focus on the commission rather than the sales ability, unique sales proposition and track record of a real estate agent, all of which needs to be put on the table for discussion with the potential seller.
Example:
Agent One sells a property for $1.55M at 1.5%. The sales commission would be $23,250.
Agent Two sells the same house for $1.7M at 1.9%. The sales commission would be $32,300.
Agent Two’s result equates to $9050 more in commission,but with an extra $150,000 to the vendor. The extra sales value equates to 16.5 times the commission difference between the cheaper option and the higher fee.
Which agent would you get to sell your home?
When selling your home, vendors should peel back the onion on each agent’s sales record before they decide to run with a particular agent – perception is not always reality.
Investigate the agent’s ability to deliver an exceptional result. This can be done by comparing their results against other agents and like for like properties.
Ask the agent for hard proof of their past sales as many agents who are transactionally focussed are now not openly reporting sales figures to the market in an open and transparent way such as via domain and realestate.com.au.
Ask your agent to show you past agency agreements of sales and see how their sales resulted against their appraisal prices. What is their evaluation process in assessing a prospective buyer.
Let them demonstrate the entire sales process to you and drill into each element of the sale. A good agent will gladly supply this information without hesitation.
The other important task for a seller is to reference check the agent’s past vendors and to call at least 3-4 of them.
Be aware most agents are full of spin in selling you their services, all they want to do is secure the listing thus guaranteeing them a sales commission no matter what the result.
Remember, selecting an agent is like selecting an employee, a wrong hire could cost you tens of thousands of dollars.
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:
Avoid these property mistakes to ensure your investment property pays dividends.
Samia and Andrew – Riverview Realty
1. DIY Property Management
Not engaging a property manager may be the obvious way to save money, but it can cost you when things start to go wrong.
These are some of the big traps of DIY Property Management:
Not asking for a bond
Not having a lease and not completing a condition report
Misunderstanding the Residential Tenancies Act
Entering a property without giving the correct notice period
2. Treating investment property like a sideline interest
Treat your real estate investment like a business, not a hobby for extra pocket money. Consult an accountant, tradespeople, a financial adviser and a property manager. These costs are tax-deductible!
3. Doing cheap repairs and maintenance
Small maintenance issues that need repair can often become bigger, more expensive problems if they’re ignored. Save money by painting and doing small jobs yourself, but only proceed with big renovation projects with qualified trades people.
4. Not claiming ALL tax deductions
Landlords cost themselves thousands of dollars by not claiming ALL tax deductions available. A depreciation schedule, the inventory of items at a property that can be depreciated at a certain rate to claim a tax deduction, is a must.
5. Doing sloppy critical checks
Reference checking prospective tenants may take time, but will pay-off in the long-term. If you’re working with a property manager, ensure you’re confident with their selection process and ask questions about their process if you’re unsure.
6. Thinking like you’re the owner-occupier
Only buying a property you would live in, or transforming a property into one you would occupy, is a very common mistake. Don’t base your decisions on why wouldn’t live in a certain property. For example: a renter may love that the property is close to public transport despite not having off-street parking.
7. Not enough insurance
Get insurance or risk losing any dividends you’ve accumulated should something go wrong.
Remember: Property management fees are tax deductible.
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:
