Aussie Real Estate Market Looks Up - 203,000 Homes On Market

A real estate agent from Queensland, Australia included these interesting stats in his Sept 2009 newsletter (photo shows houses in the idyllic Kawana Island area on Queensland's Sunshine Coast):

WEEKLY KEY STATISTIC – VENDOR DISCOUNTING

The level of vendor discounting and time it takes to sell a property has improved significantly compared with last year. The average market discount for houses across the country is now 5.4% compared with 6.9% last year. That means for a house listed at $500,000 it will, on average, eventually sell for $27,000 less than the asking price compared with $34,500 less at the same time last year. Homes are taking a shorter period of time to sell, with the average Australian house taking about 40 days to sell (compared with 53 days at the same time last year).

LATEST NATIONAL AUCTION CLEARANCE RATES

Auction numbers were up 22% compared to last week – auction volumes haven’t been this high since May of this year. The weighted average clearance rate across the nation is now 80% with all capitals recording a clearance above 60% last week.

ADVERTISED STOCK ON THE MARKET

New listings to the market remain controlled with 45,475 new residential properties added to the market over the last four weeks – much lower than the same time last year. There are now just over 203,000 homes available for sale across Australia with an estimated value of $120 billion.

Time Pressures Used To Advantage When Buying Or Selling Real Estate

Time pressures can be used by buyer's vendors and agents to their advantage (or disadvantage) in the real estate sales process. This can add up to money gained or money lost.

Time pressure can be used to get a quick sale, and more often than not, it can influence the final sale price.

In a case where you have two keen buyers, you may be able to rush one into making an offer, through fear of missing out. Or if you are in a hurry to sell, you can use words in your advertising like: must sell quickly, owner on transfer etc.

The key is to manipulate time to your advantage and where possible bring time pressure on the other side. Sometimes it’s amazingly easy – you just ask the buyer when it is they need to move.
A good negotiator would probably say that you shouldn’t reveal your deadlines, unless you are prepared to sacrifice something in return for a quick sale.

Remember To Get A Cashiers (Bank) Check

Fail to get a cashiers check is something that has tripped up many unsuspecting buyers and sellers.

Make sure the buyer knows that he/she needs to supply a Cashiers (Bank) check or certified funds at the time of closing. If you need to bring money to closing (the seller sometimes does), then bring a Cashiers check.

Negotiating A Sale FSBO With The Right Attitude

Negotiating the deal is an area where many FSBO home sellers come unstuck. Regardless of whether you are negotiating through an agent, or directly with the buyer, it can prove to be the most costly part of the whole house selling exercise. The wrong attitude or a simple “slip of the tongue” could cost you “big time!”

To negotiate successfully will take patience, skill and most of all, perseverance.

It pays therefore, to start with the right attitude. Some people come unstuck, by what the buyer sees as a “pig-headed”, or “dogmatic” attitude to selling. Sometimes the seller has an inflated opinion of his or her own importance, or of the value of the property, and takes a “take it or leave it” approach. If the buyer is highly motivated, or desperate, they may “take it.” However, there is always the likelihood that the buyer will “leave it” and go on to buy another property instead.

At the other end of the scale is the seller who adopts a rather “laid-back” attitude to the proceedings. Whilst this kind of low-key approach can relax a buyer into believing the seller to be “not a pushy salesperson”, it can work against the seller. Again, the buyer might get the impression that the seller has a “take it or leave it” attitude. Not because the seller is pushy or arrogant (far from it), but because the seller might unwittingly be giving the impression of being disinterested in the sale. No one likes to negotiate with someone who doesn’t seem to care.

First Impressions Impact Drive By Buyers

Does your house make a good first impression?

In good times and in bad, first impressions count when buying or selling a home.

Potential homebuyers will often just want to drive-by and look at the outside of a property. Why? Because, they simply want to make a quick, personal “no-obligations” assessment. They want to save themselves the time, hassles and possible embarrassment of looking through a house that they don’t intend to buy.

So, first impressions do count! A house with poor “street appeal” can get struck-off a homebuyer’s shopping list, without them even stepping a foot in the door. That potential sale could be lost in a matter of seconds!

Needless to say, a home that is visually appealing and in good condition will attract potential buyers driving down the street. Any real estate agent will tell you that strong “street appeal” will lure those potential buyers inside.

Making your house appealing to the eye, when seen from the street, is essential for a quick sale.

Be Aware Of The Problems When Selling Your Home

An overpriced house is a big buyer turn-off particularly in a tight real estate market. The thing to always remember is - your home is worth what someone is prepared to pay for it in the CURRENT MARKET.

The problem is; most of us become attached to our home and believe our home is worth more than it really is.

Pricing your home to sell does not mean giving it away for next to nothing. It just means being realistic and listening to the market. A buyer does not care about how much you might want or need, they only care about what the property is worth to them.

Don’t fall into the trap of overpricing your property. The longer your home is on the market, the weaker your bargaining power.

Major problems (such as structural problems, leaking roofs etc.) could mean either, you invest big dollars resolving them, or you adjust your listing price accordingly.

Major problems can affect the price you get, or how quickly you sell your home. Some of the problems can be fixed (for a price) while others problems you may not be able to do anything to fix.

Remember, no property is perfect but you need to at least be aware of the existence of any of the following problems and decide what, if anything, you are going to do about them prior to putting your home on the market: bad location, bad wiring, subsidence, foundation problems, structural problems, major cracks, poor plumbing, environmental hazards, bad floor plans, a bad roof, or poor parking.

Buyers will be scared off by major problems, so you need to think clearly about your options and seek professional guidance. I wish you every success selling your home.

First impressions Count When Selling Your House

Poor street appeal can stop a house sale in its tracks. That all-important first impression is often the deciding point as to whether a prospective buyer walks through the gate, or drives off never to return.

Many home owners find it difficult to find faults in their own property and the problem is, real estate agents are often reluctant to point out the faults through fear of upsetting the vendor. Unfortunately this approach does no-one any favors.

My recommendation to home sellers is to critically eye your property and be upfront with your agent. Ask them to give you their honest opinion. Ask for a list of positives and negatives about the property and reassure the agent that you want honest and critical feedback. If the agent fails to criticize anything, then challenge the agent to be blatantly honest. However, in saying this you need to be prepared to accept any criticism and not punish or hold grudges against the agent for his/her honesty.

Also, take a stroll and take notes on how your property compares to others and what it would take to make your property stand out. You could take a friend with you to help point out a range of minor changes you could make to add up to a great first impression.

This approach to selling your home serves several purposes:

1. Encourages an honest upfront working relationship with your real estate agent.
2. It helps you identify the strengths and weakness of your property.
3. It helps your compare your property with others in a similar range.
4. It identifies problems that could possibly be remedied.5. It could reveal some positive ideas for improving the street appeal.
5. It prepares you for the likely feedback from buyers.

Remember, any criticism is not necessarily a criticism of you, it is simply an honest appraisal of the current situation. You can either ignore it, or do something about it to help sell your house.

Get The Family Involved When Relocating

Relocation from one home to another can be a stressful time for everyone affected by the move. To help the process go smoothly it is a good idea to get all the family members involved to work together as a team. It often pays to discuss the issues of making new friends and leaving old one's, the changes involved with changing jobs and schools and other common issues. This way everyone in the family realizes they are not the only one affected and that everyone is coping with similar issues.

Even before the house is sold a family team approach can kick in. The family can set a goal of always presenting the house at its best. This is especially important as potential buyers may want to view the property at almost time in the sales process.

Each family member could take responsibility for his or her part of the house as well as sharing responsibility for keeping the rest of the house in good viewing condition.

Beds need to be made, toys put away, the garage being keep tidy, the lawn mowed, leaves raked, dishes washed and put away etc. It will possibly mean some personal sacrifices like getting up a few minutes earlier in the morning, or tidying up before going to bed.

Including rewards can be a great way to motive children into taking part. The reward process could include daily checks on room tidiness with a treat promised for when the the house is sold.
This is often better than reprimanding children and getting them stressed when the house is on the market. A quiet, peaceful, happy household is what a buyer wants to see - not a stressed, angry and noisy environment. You want the buyer to want to live in your house and approach the sale in a positive and relaxed manner.