The New Brand Change is Nearly Here
Ordinary People. Extraordinary Real Estate Abilities!
Changing your brand is never an easy thing.
Just ask Woolworths and the ANZ bank who have recently changed their brands. The new signage is ordered, the painters are standing by ready, new stationery is on its way and everything seems to be slotting right into place.
Keep an eye out as Nerang First National’s e new look will be busting out very very soon!
Feedback From Your Agent Is Important When Selling Real Estate
Feedback from the agent is important when selling property
One of the most overlooked factors in a successful property sale is the quality of the relationship between the real estate agent and the seller. First time sellers often think is exaggerated and overstated but experienced property sellers realise that the relationship they have with their agent is vital to a positive selling experience and achieving a successful sale.
An agents role can be broken down into two main areas: marketing and negotiating.
Within those two areas fall a whole host of skills and nearly all of them rely on the agents ability to communicate with buyers and sellers. If trust and rapport are non-existent or fizzle out during the course of the marketing, opportunities are missed, sometimes with costly outcomes.
Professional Quality Feedback is Important
Real estate agents providing professional feedback to property sellers is crucial to this relationship and sellers have a right to know what is going on at every step of the marketing and sale process. After all, knowledge is power and understanding reduces stress.
Importantly sellers cannot make an informed decision or distinguish a good offer from a poor offer if they are not in tune with the market, response to marketing or the reaction of inspecting buyer relating to price, condition, presentation or other matters which the seller may be in a position to rectify.
One of the reasons inexperienced agents fail to provide adequate feedback is that good news often speaks for itself, while bad news is likely to produce a negative or hostile reaction from the seller. This means many agents just report the good feedback or even worse, will adjust any negative feedback to be less confronting to the seller. It is vitally important that sellers understand that the agent is just that: an agent or go-between, a conduit of information between the two halves of the sale process.
A good agent should never withhold any facts or feedback that the seller should know, whether it is what the owner would want to hear or not. In fact, it is their fiduciary duty by law to do so even when that feedback prejudices their own position. An example of this is by providing the owner feedback on the buyers opinion of price it may result in the seller withdrawing their property from the market.
It is important that the seller not let the relationship break down by “shooting the messenger” when things don’t go smoothly or the feedback is negative sellers should ask themselves the following question:
Is the problem one of the agent’s creation or are they simply acting in their capacity as the go between and conveying information?
Remember, the real estate agent is working for you as your representative and with good two way communication, the selling process will be a more positive experience for you both.
At Nerang First National we understand this process better than most. In fact our seller feedback system has been developed into a commercial product called InspectionReporter and is now offered to the Australian real estate industry. We are proud of the fact that InspectionReporter is being used right around Australia to provide sellers with a professional communication and feedback.
How to Increase the Value of your Home with Government Rebates
Many home owners are still unaware of the amazing Government rebates and subsidies available for them, many of which will have a positive effect on the value of their home. Nerang First National is always focused on achieving the highest possible price possible for homeowners and because many of these rebate are only available for a limited time we suggest that if you think you may be able to take advantage of them you investigate them further now.
A range of rebate and subsidies are in place to act as a financial stimulus and to influence Australians to go green. Australian Governements at local, state and federal levels are providing a range of rebates that is allowing homeowners to improve their property values with minimal or in some cases no outlay our of their own pocket.
There are currently a number of these rebates can be accessed by home owners for a range of household improvements including these five examples.
Water Tanks and Other Water Wise Initiatives
Nerang First National and other real estate agents around the country are noticing a significant rise in buyers looking for water wise property. Many local councils are offering significant rebates for property owners who install water tanks. Buyers have become conscious about water-saving devices in homes such as rainwater tanks, drought tolerant gardens and low flow taps.
With the trend to smaller residential blocks there are water tanks that can suit every property including underground tanks and slimline water tanks. Refer to your local city council if they are currently offering a water tank rebate you can take advantage of.
Here on the Gold Coast the Gold Coast Home Watersaver Rebate Scheme has now finished but you can still access the Federal Governments National Rainwater and Greywater Initiative which allows for up to $500 rebate for applicable water tank installations.
Home Insulation Package
The Australian Government is currently offering up to $1,600 to install ceiling insulation. The assistance is available to eligible owner-occupiers, landlords and tenants. The Energy Efficient Homes Package aims to install ceiling insulation in Australian homes making them more energy efficient; to boost the economy and to create jobs.
The Home Insulation Package helps households reduce their energy use, cut their power bills by around $200 a year, and increase the comfort and value of their homes. For many home owners the rebate will cover all or the vast majority of their total insulation cost. You must use a registered installed to take advantage of this rebate.
Solar Hot Water Rebate
The Solar Hot Water Rebate is another key part of the Australian Government’s Energy Efficient Homes Package, under the Nation Building – Economic Stimulus Plan.
Under the Solar Hot Water Rebate the Australian Government is offering a rebate of $1,600 to install a solar hot water system or $1,000 to install a heat pump hot water system. The new hot water systems must replace an electric storage hot water systems which can save a family up to $700 in energy costs each year.
The Government rebates don’t stop at just these three detailed above. In fact the Australian Government will cover your interest.
Green Loans – Home Sustainability Assessment and the Green Loans Subsidy
Home owners now have access to a low interest or interest free ‘Green Loan’ to improve energy and water efficiency in their home. Under the scheme hundreds of thousands of working families will be eligible for loans of up to $10,000 specifically for the installation of solar, water and energy efficient products in their homes.
Examples of what could be purchased using these scheme includes solar power or solar hot water, updating your old fridge to a new energy efficient one, even window tinting or natural lighting (skylights) just to name a few.
The first step in the Green Loans program is to undertake a free Home Sustainability Assessment. Through the Green Loans Program, householders are able to access a free, comprehensive Home Sustainability Assessment to reduce their energy and water bills, increase the comfort of their home and help reduce damaging carbon pollution.
The assessment involves the physical inspection of major energy and water systems relating to thermal comfort, water heating, lighting, refrigeration, cooking, entertainment, water efficiency and outdoor consumption, and waste management.
Household that take up the Home Sustainability Assessment may be eligible to take out a loan to undertake the home improvements suggested in the assessment report. To assist these households, the Australian Government has lowered the cost of finance by providing a Green Loan Subsidy to participating financial institutions.
This subsidy covers the interest on borrowing of up to $10,000 for a period of up to four years.
ClimateSmart Home Service
The ClimateSmart Home Service is a Queensland Government Initiative.
During your ClimateSmart Home Service, a licensed electrician will visit your home, install a wireless energy monitor for you to keep and conduct an energy audit of your home. A
Where suitable, the electrician will supply and install a free water and energy efficient showerhead, and supply and install up to 15 free energy efficient light globes – all in less than an hour and for just $50.
You’ll also receive a customised Energy and Water Efficiency Plan for your home and access to My ClimateSmart Home, a customised online resource for more energy and water savings.
Selling Your Home and Flooded With Calls From Other Agents?
It’s oh so common for sellers to find that once they appoint a real estate agent to sell their property and a For Sale sign is erected the flood gates are opened with calls from other agents chasing the listing.
Is this ethical or even legal for that matter?
A typical phone call will concentrate on extracting information about your current agency, usually suggesting that they have a buyer or buyers that the home will suit.
Virtually every time these sort of claims of having a buyer for your home are made they are fabricated. In fact you should always be asking yoruself the question that if they are contacting you specifically on behalf of just one buyer, who are they working for, you or that buyer?
Any respectable agent should have hundreds of buyers registered on their books to be notified of any matching properties when they are listed. In fact at Nerang First National we even let you search our database to just how many buyers we have in our database right now that could suit your home.
If they did genuinely have a buyer for the property then they know they can contact the listing agent for a shared commission sale (conjunction). All local REIQ agents have an agreed conjunction policy between them so no owner should be disadvantaged in that regard.
Whether they do or don’t have buyers is not really the point, the key objective is to interfere with the relationship between the seller and their selected agent. Sew the seeds of doubt in a sellers mind about their choice of agent, and then it doesn’t take much to entice the seller to change.
It is unfortunate but occasionally there is an element of salespeople out there that are quite prepared to pursue business opportunities by deception. Some will even knock on the door requesting an immediate inspection with buyers that are in their car.
These agents show little regard to sellers, putting them at risk of being liable for payment of two commissions.
What can you do about it?
The Department of Fair Trading which oversees and enforces the PAMD Act (Property Agents and Motor Dealers) has strict rules governing this type of activity as does the REIQ (Real Estate Institute of Queensland).
Essentially, if you have never met this salesperson or agent before and the agent is contacting you about the sale of your home they are breaching sections of the PAMD Code of Conduct and the REIQ Standards of Business Practice. It is illegal to interfere with the business relationship between a seller and their appointed agent.
Here is our advice:
- Ask them if they are members of the REIQ as we strongly suggest that you never deal with an agent that isn’t
- If you wish them to stop calling, politely ask for the contacts to stop. Most agents will respect your wishes.
- Let them know that your listing agent is prepared to work in conjunction and will be happy to arrange an inspection for their buyer
- Ask for the buyers name, the salesperson and their agency name and number, then advise your listing agency. Don’t allow buyers or agents to inspect your property without your listing agent present.
- If the contact continues, advise them you will contact your listing agent about the matter, as well as lodging a formal complaint with the REIQ. We find it rare for the problem to recur thereafter but your listing agent will assist if the problem continues.
- You may also be interested to know that if an agent uses particular database service is to get your name, address and contact phone numbers, then it is likely to be a breach of the terms of agreement with their data provider, which requires data to be handled in accordance with their privacy regulations.
Does Nerang First National contact other agent’s listings to interfere with their sale?
No!
At no time does any of our staff or salespeople contact any sellers to discuss the sale of the property. We fully respect the decision of sellers in selecting their agent.
We do however have a responsibility on behalf of all of our sellers to market their properties to every potential buyer possible. When you consider that around 65% of sellers repurchase within the same district they sell in, then logically every local seller is also a potential buyer and we will promote the properties we represent to all local sellers.
If you list your property with Nerang First National we proudly market your home directly to all current sellers in the district so that we capture every sale opportunity for you but we do not try and poach the listing from another agent.
Is The First Offer the Best Offer When Selling Your Home?
There seems to be an unwritten rule in selling real estate: Your first offer is usually your best offer.
No seller wants to take forever to sell their home. The uncertainty is too stressful, and timelines are sabotaged. But many think that selling early in the marketing period is inevitably selling cheap.
Is this true?
Most agents say that the hardest sale to make is the one that comes along in the first days of marketing, especially if the sellers are inexperienced.
Lets be clear about this, we are not recommending blanket acceptance by sellers of their first offers but experience has shown that during its first few days or week on the market, a property is likely to draw the highest offer simply because real estate agents are primed to show the home during this period to their most serious or “hottest” current buyers.
Also, those who are unaware of the mechanics of the marketing process reason that if Buyer One is prepared to pay $x in the first week of marketing, then Buyer Two will pay $x+ next week.
They say things like – If the first ad brings in this sort of response, what will the second one bring? – as if price increases with time and exposure.
Highest Interest in First Few Weeks
Many sellers don’t realize that a property attracts the greatest amount of attention when it is first presented and on the market. All the buyers that have been looking for their ideal home for weeks and months converge eagerly on a new listing.
New listings attract numbers and numbers mean competition. Competition creates the climate that generates the highest offers. It creates a sense of urgency in any buyer who has fallen in love with a property and makes them act quickly in the fear that someone else will snap it up before they do. The longer a property is on the market at a given price, the more the sense of competition fizzles out and the more likely subsequent buyers are to feel they have plenty of time to make up their minds.
But many sellers have trouble accepting their first offer, especially if it comes within a few days or weeks after the property is listed. If the offer comes too quickly, some sellers believe they have undervalued their property and should hold out for an offer that is closer to the asking price.
How Do You Treat An Early Offer
Sellers should never treat the first offer made on their property casually, or take the view that it’s only the first of many, as it more often than not proves in time to be the highest offer they receive.
Generally, the longer a home is listed on the market the less likely it is to attract its best selling price. A common mistake by sellers is; believing they can always revert to the first offer if nothing better materialises. But this is seldom the case as by then that person has purchased elsewhere or becomes suspicious of the seller’s change or heart so reduces his original offered price.
Accepting the first offer can mean a psychological readjustment for the seller. Every seller naturally hopes that dozens of prospective buyers will jump at the chance to purchase his or her home. When the first offer comes, sellers should readjust their thinking and concentrate on making the first offer the “right” offer.
How should you know if the first offer is the best offer?
Sometimes it’s a matter of trusting your instincts. If you’ve priced your property well, and an offer comes in below your asking price but within reason, find a way to negotiate to a comfortable middle ground. Best of all seek the guidance and experience of your real estate sales professional. The team at Nerang First National Real Estate are experienced professional negotiators ready to assist with your sale and help you along the way.
Is Your List Price Outside the Reaction Zone?
There are only two types of property on the market right now those that are correctly prices and those that will never sell. This is one of the most profound truisms in real estate.
Over ambitious sellers often parrot the phrase “There’s a buyer for every home”, which is true enough if it meets the market. The “market” that everyone talks about is literally the prospective buyers looking to buy property at that very moment. Market Value is the price that a buyer is prepared to pay – no more, no less.
Sellers have every right to expect and get the highest possible price. So how does a seller truly identify their property’s real maximum market value and the right price to offer it to the market?
Ignore and beware of any agent that quotes you a set price, because nobody living on the planet can pick the exact price a property will sell for (unless it’ a lucky guess)
Ensure you receive an up to date Competitive Market Analysis (CMA) or Property Appraisal from your agent, detailing compatible properties in your neighborhood that have sold within the last six months, for what price and how long it took them to sell along with comparable properties on the market which will be competing with you for the same buyers. At best, agents should only offer a qualified price range estimate.
Keep in mind that the asking price of comparable properties for sale is no indication of value – it’s the ultimate selling price that counts. So be careful not to set your price based on the asking price of the odd over ambitious seller – don’t go any higher than the average asking prices for comparable properties on the market.
Stay in tune with your competing sellers by monitoring the internet, property magazines and the newspaper to ensure you are competitive
MOST IMPORTANTLY, listen to the buyer feedback. Insist your agent asks all buyers inspecting your property for their opinion of price, whether they are interested in buying or not. They are out there looking at everything that’s available in their specific price range or budget so nobody is a better gauge of competitive value than active buyers.
Whilst buyer feedback is the ultimate measure of market value, many sellers complain that they can’t listen to buyer feedback because the agent doesn’t bring enough buyers through their property.
There are only 2 reasons why this occurs :
The property is overpriced and/or under marketed.
Even if a property is well marketed, overpricing sets in motion a process that often works against you and may even devalue it. Buyers generally ignore or reject inspecting overpriced properties. Here’s why:
The first 30 days is the most important selling period. When a new listing hits the market, it will be noticed by almost all active buyers in the marketplace at that time, with their attention attracted from agency contact, advertising, signage, window display, magazine etc. If that first impression is negative, it will be overlooked even if overpriced by as little as 5%.
If the price is adjusted later, buyer reaction may improve, but the best selling opportunity will have past, because most of the initial big pool of ready buyers is likely to have purchased. Whilst there is always a trickle of new buyers entering the market, older unsold listings now have to compete against fresh new listings on the market.
Overexposure is every seller’s nightmare!
90% of buyers ask ‘how long has it been for sale?’ when viewing a home for the first time. The longer a home is on the market, the greater the risk to its market value. Often the achievable price when first listed can be seriously reduced; because the property is seen by buyers to be one that’s been rejected by everyone else, indicating that there must be something wrong with it.
Sellers often say “but we are negotiable” or “just get them to make an offer”. The simple answer is that motivated buyers are reluctant to waste their time because, unrealistic prices signal unrealistic sellers.
It also attracts the wrong buyers. If a home worth $350,000 is listed for $400,000 then $400,000 buyers reject it because there are better homes for $400,000 to choose from. Conversely, $350,000 buyers don’t get to see it because they are not looking for homes priced at $400,000. Hence, the wrong buyers reject it and the right buyers don’t see it.
There is another major point to beware.
Up to 85% of sales are conditional upon finance approval. This means the purchase price must represent a realistic market value as it will be subjected to an independent bank valuation. By chance, if a sale is secured at an inflated price and subject to finance, it is unlikely to proceed; meaning time, money and other selling opportunities will be lost anyway.
When setting or adjusting a list price, it may be prudent to consider the way in which buyers search for properties, particularly on the internet. A $390,000 buyer will view properties within a price block of $350,000 to $400,000 for example. So if you were considering offering your property at say $405,000 negotiable to $390,000, you may be better to choose to increase buyer appeal by listing at $399,000
Every home has a buyer reaction zone that will attract attention, generate enquiries, inspections and offers. If your asking price is outside of this buyer reaction zone they will simply not respond and will move on to something else.
At Nerang First National, our experience and records show that once we commence marketing and advertising a property, if we go two weeks without an offer; or we go more than a week without an inspection outside Open Home times; or we have less than two inspection groups at an Open home then an URGENT discussion should be held between our agency and client to review where the property sits in the market.
As a seller, the secret is to LISTEN TO THE MARKET.
To achieve a sale and at the best possible price we must market the property and meet the market. If the market does not meet your expectations then you have a choice to withdraw from sale and wait until market conditions change.
Nerang Fire Station Construction Underway
CONSTRUCTION of a brand new $3.75 million fire station at Nerang has started by the Department of Emergency Services at Beaudesert-Nerang Road recently and here is the proof!
The station is expected to be open for operations by a single fire engine by February 2010.
Nerang’s last fire station was closed in 1973 and local residents who have campaigned heavily for the station to return, including a 5000+ signature petition, can finally breathe a sigh of relief with some action underway.
This new Nerang fire station will service the whole district and provide much needed peace of mind to local residents.
Real Estate Negotiating Tips For Sellers When Selling Property
Nerang First National has led thousands of property negotiations over just the past few years so we know a thing or two about the subject. We would like to share with you a few negotiating tips for sellers when you are selling your next property.
Negotiating on the sale of a property can be one of the most difficult aspects of home buying and selling, particularly as both parties will want the best possible deal, and to walk away with the feeling of winning.
Successful negotiation is not about luck. Rather, it is based on the ability to use certain specialised skills and techniques to bring two opposing parties to agreement. While real estate professionals are trained in negotiation, there are some simple tips that home sellers can follow to help the process.
Price it right
Naturally, the most important aspect of successful negotiation is price. If the property is overpriced to begin with, it can deter home buyers from making an offer. Ask a reputable and trusted agent in your area like Nerang First National to do an up-to-date Comparable Market Analysis (CMA) or Property Appraisal on your home to reveal what’s happening in your market area today.
If you overprice your property, you are probably just helping your competition sell! Remember that often as much as 80% of your buyer interest will come through during your first 30 days on the market. After that, the buyer traffic will slow significantly.
You only get the one chance to make a good first impression and when 80% of those ”first impressions” happen during the first few weeks on the market it’s important to get it right the first time.
Treat that first offer with care
The first offer may not start out as where you want it but that is what negotiating is all about. It’s not where they start but where they end up that counts and the old adage of “the first offer is your best offer” is too often forgotten.
Don’t be too quick to dismiss the first offer out of hand as that first buyer is normally the most interested person in your property and you should negotiate with them till you are exhausted. Far too many people have have heeded this advice to look back longingly as they spend months and months on the market chasing a sale.
Respect the other side
Remember that the prospective buyers making an offer on your property are not your competitors. They are trying to find a home they love for the best price they can just as you will when you are looking to purchase again. In fact understanding and empathising with the other side can be a very powerful tool in negotiating. For example, a buyer who has an urgent moving date could be willing to pay a little bit more of the property.
Winning may mean compromise
A win-win negotiation may not mean the buyer and seller get everything they want. More often, it means give-and-take on both sides, so focus on your top priorities and don’t let emotions overrule sensible judgment. If a buyer insists on settling before you can move into your next place then spending a week in a hotel might be worth it financially instead of turning down that offer.
Meet in the middle
If the buyer and vendor cannot agree on the settlement date, price or inclusions in the sale, it can pay to simply meet in the middle. Meeting halfway is a time-honored negotiation strategy, usually beneficial to both parties.
Ask for advice
If you’re totally confused, or simply unsure about the process of negotiation, contact us. As real estate professionals, we are experienced in negotiation, and know what works and what doesn’t.
Once you sell your home you are probably going to be in the market to purchase another property so check out our negotiating tips for buyers.
Real Estate Negotiating Tips For Buyers When Purchasing Property
Nerang First National has led thousands of property negotiations over just the past few years so we know a thing or two about the subject. We would like to share with you a few tips when buying your next property.
Selling or buying a property represents one of the biggest financial transactions a person will undertake, and achieving the right price can be one of the hardest and most stressful things to do.
Do it Quickly
The number one tip when negotiating is to do it quickly. Whether you are buying or selling a property, a protracted, drawn out negotiation process can cost thousands in the wash up.
Put the offer in writing
Negotiating a Successful Property Sale
For buyers, a successful negotiation starts with an offer in writing first. Written offers are a sign of a stronger commitment by the purchaser to the property, and are harder for the vendor to disregard.
This commitment, evidenced by an actual contract, may be more attractive to the seller than other more lucrative offers. Talk is certainly cheap and sellers do not verbal offers very seriously a written offer and deposit cheque speaks volumes.
Minimise the conditions of the offer
Every condition you place on an offer is another hurdle to cross which causes the seller to doubt that settlement will ever actually happen.
Contract conditions like finance, building and pest inspections are expected by every seller but other conditions like subject to the sale of your existing property, early possession with rent prior to settlement or any of a myriad of other conditions are a potential negative to the seller and can spoil the negotiations.
Don’t ask the seller to do anything
If you are not happy with the lime green paint or shag pile carpet in a room then change it yourself once you own the place. Requesting the owner to repaint the room, or recarpet can only lead to disappointment as you may not be satisfied with the results.
Will the seller use high quality or the cheapest he can find? Will the seller employ a professional painter or just paint it himself? If work needs to be don’t to the property pay less for the property and get the work completed the way you want it done and be satisfied with the job.
Make offers as realistic as possible
If a property is priced correctly there is not always a lot of room for movement on price so unrealistic offers may only discredit your intentions and start negotiations off on the wrong foot.
Sure, there are some homes where sellers are unrealistic and are well overpriced to the market but if you have educated yourself on the prices for similar property just sold nearby you will only be negotiating on better valued homes. If you make an offer as realistic as possible from the start you will increase your chance at a successful outcome.
Don’t claim an offer is your final or best offer
Drawing a line in the sand about your offer only creates confrontations. If your best offer is not accepted and you are not prepared to pay any more then simply offer it again. The seller will quickly realise that this is all you can or are willing to pay for their property and they may give it further consideration.
Don’t ask for any extras
You may like some of the sellers personal items but don’t include it in your offer. Pool tables, outdoor furniture, ride on lawnmowers, bbq’s, furniture, fridges and many other personal items when added to an offer is another point the negotiations can fall over.
If you love something of the sellers, ask them they purchased it. If they are willing to sell it, they will often say so but keep any discussions on personal items outside of the real estate transaction and after the negotiations are finished.
Include a good deposit
Purchasing a half million dollar property on just a $100 deposit does not fill the seller with a sense of confidence about the offer. Offers should be as high as possible, ideally between 5 and 10% of the offer price can help tip the scales in your favour.
Come back and try again later
If negotiations falter and you don’t purchase the property but time has passed then give it another try. A period of time can often melt away barriers to negotiations that existed before.
We will discuss negotiating tips for sellers a little later but what are some of your tips for buying property?
Please leave a comment below to share what’s worked for you.
Times are Changing – The New First National Brand
First National is changing its corporate branding and Nerang First National will be one of the first in the new colours. The First National group is Australia’s largest independent real estate network and the third largest real estate brand in the country. First National has changed a great deal in its 26 year history, having grown from having 30 members in 1983 to 450+ plus member offices employing in excess of 5000 people today.
Nerang First National is in the middle of changing over to the new First National brand and be one of the first agencies in the country to have made the switch and the painters and signwriters should be starting very soon. We thought we would give you a sneak peek of what the office will look like through this mockup.
(click on the photo to enlarge)
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