HOW TO GET INTO THE PROPERTY MARKET:
ARE YOU SELLING?:
BE REALISTIC TO ENTICE BUYERS - Saturday 7 March 2015 - By REIQ Chairman Rob Honeycombe:
Selling a home comes with plenty of challenges but one of the biggest is this: How do I set my asking price? Getting great advice from a trusted local agent is important but it is good to have some simple guidelines you can fall back on too.
1. NO INSPECTIONS: If you are on the market but receiving no enquiry and no inspections (and therefore not a nibble of an offer) you're probably at least 10 per cent over the market price. Yes, there are some exceptions to this rule. But provided you haven't kept the sale a secret, and have done at least the basics of promoting it, you should be getting inspections. Why won't buyers take a look anyway, even if they think the price is well over the odds? Buyers are like the rest of us are time poor. They have a world of choice and your place only gets them off the couch on a Saturday morning if it's at s at least a bit compelling with its appeal. This 10 per cent guide isn't something we've dreamed up, but a common industry guideline that has proven its validity over many years. If you can only hear the sound of crickets at your open home there is a good chance you need a 10 per cent price adjustment.
2. SOME INSPECTIONS: So maybe you are getting inspections. There is the occasional promising nod or comment about bringing a partner back. But nothing eventuates, no offers and despite a positive approach you are left feeling unloved by an uncaring marketplace. The guidelines suggest you may be 5-10 per cent overpriced. Consider this: very few buyers who come to an inspection are really a tyre kicker. The good news is it that it doesn't take a big change in price to get some action.
3. REGULAR INSPECTIONS: Offers will come with good regularity once you are within 5 per cent of that elusive market value. This is the sweet spot when you are often able to create some competition through multiple offers at the one time. Often better than an auction for the seller, this sees buyers asked to submit their best offer without knowing the details of the others.
Buyer interest is highest when you are fresh to the market so it is no surprise that the best sales prices we ever see are when a client puts their place on the market from the start in that 5 per cent range
ONLINE CONVEYANCING TAKES A LEAP FORWARD:
The first full online property transfer of land titles, including automatic lodgement and settlement through Australian e-Conveyancing platform Property Exchange Australia (PEXA) occurred recently in NSW. Is this is the way property will be transacted in the future? PEXA CEO Marcus Price said, "With change of this magnitude, it takes pioneers to lead the way." The introduction of electronic settlements is singularly the most significant advancement in technology to benefit the conveyancing profession. Clients only need to submit an authorisation form, then all documents are digitally signed by the conveyancer on their behalf. What do about think about this? Keen or cautious? Marcus Price said a national e-conveyancing platform would place Australia years ahead of other countries in terms of efficiency, security and customer service. He told Real Estate Business that e-conveyancing was the biggest change to the property industry since the land title system was introduced 120 years ago. Queensland is expected to be fully functional by mid-year.