Archive for category: Selling

How Property Market Trends Affect Pricing

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property market trends

In a depressed property market where nothing is selling, the biggest frustration for owners who need their property sold is that unless they are prepared to take huge losses and sell at any price, there is little they can do to change the situation. However, once the market starts to move in either direction, it is essential to monitor the trends before making any decisions about altering the pricing.

Check Market Trends Before Changing Pricing

It is the same situation in the rental market. Most lessors look to the end of any tenancy as an opportunity for a rent increase, but if the rental market is depressed and vacancy rates are high, then good tenants are hard to find. Again, monitoring the market is vital before tinkering with rental prices.

Does Supply and Demand Really Rule?

Like most sectors of the economy, movements in real estate are driven by supply and demand. According to market economic theory, as a commodity becomes scarce prices rise, prompting more suppliers to enter the market to satisfy demand, which in this instance is real estate. As prices continue to rise beyond the capacity of the market to pay, demand becomes less, suppliers leave the market and prices fall.

Swings and Roundabouts

Some markets are much more volatile than others, with large swings back and forth depending on trading conditions. Some parts of our agriculture industry, for example, can have trends that range from high to low in one or two growing seasons. Thankfully, the trends in the real estate industry are more long term, but this does not mean that we can ignore the market.

As both selling and letting agents, our ability to respond to property market trends is part of our service to our clients. The staff at Bunbury Real Estate keep in touch with property market statistics so they can advise both our lessors and sellers if they need to adjust their rents or sale prices either up or down.

Additional Advice to Keep Everyone Informed

We also like to clarify to clients that there is no Australia-wide property market, and that even within the same state, there are differences between regions. For example, the market in a capital city will be different from an inland market with corresponding differences in pricing. It would be unrealistic for a seller in a regional town to expect the same price for a comparable property selling a street away from the beach.

The current overall market trend in all states shows strong buyer activity and low levels of quality housing stock. Along with low interest rates, improving business and consumer confidence, a growing economy and COVID vaccinations being rolled out, our industry should be stable for some time.

Communication the Key to an Accurate Property Appraisal

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mangnifying glass on notebook

If you have been thinking about selling your property, you will most likely have an amount in mind that you would like to achieve. You should also remember that your preferred asking price and what the market will pay may be a long way apart. To get a realistic figure, what you need now is a property appraisal by an experienced real estate agent.

How Does an Agent Perform a Property Appraisal?

A property appraisal is an estimate of the price you could expect to get in the current market. To do this the agent does a market analysis of properties that have sold in the area within the past 90 days. An accurate appraisal will match your property against properties that are similar to yours in location, style, and features.

An Inspection is a Must

During an appraisal, the agent will look objectively at your property and take note of the location, land size, the floor area of the home, room sizes, outdoor spaces and features, vehicle accommodation and gardens. The number of bedrooms with en-suites and built-in wardrobes, and additional outdoor storage, such as sheds, are all included.

Be Ready to Answer Questions

Most real estate companies will do a property appraisal on request at no cost to the seller. Simply make an appointment with a local agent who will inspect the property and ask questions. For example, the agent may ask for details about any renovations that have been done and what fittings are being sold with the property. This is your opportunity to point out the best features, and to also answer the questions with honesty.

Our advice to sellers is to always use a local agent for a property appraisal. Here at Bunbury Real Estate our sales staff are out and about every day in our area, observing the market, keeping tabs on properties that are changing hands and gathering local information about items such as planning approvals, infrastructure improvements and other changes that may affect property values.

Now It Is Your Turn

The appraisal inspection is also the perfect time for you as the seller to ask questions of the agents. Ask about the market in your area, and what the agents think of it. Also, ask what method will be used to sell your property, and why they think a particular approach, for example an auction, would be the best.

You need to know about advertising and how long they expect your property to be on the market. Ask for an interim selling price to give you some idea of where the property sits in the current market. Just remember the old saying that if the price is too good to be true, then it probably is.

Should The Seasons Dictate When To List Your Home For Sale?

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It has long been real estate wisdom that the best month to put your home on the market is the beginning of spring and in Australia, that means September. The thinking is that gardens emerging lush and colourful from the bleakness of winter, plus extra light flooding living spaces, combine to present the dwelling at its best.

Study the market during holidays – get ready for autumn

People generally become more active outdoors once winter is over as the days are longer and the weather more accommodating. It’s an excellent time for buyers to plan a weekend of open house inspections. However, this is not the end of the story as some people prefer autumn, that is, March to May, to house hunt. Cooler than summer and not as busy as spring, it’s the perfect time for buyers who have spent their summer holidays checking market prices.

There are some traps, nevertheless, in following this accepted logic. At Bunbury Real Estate we also see spring as a time for increased market activity, but this should not be the only consideration if you are getting ready to sell. We recommend that our clients consider other aspects of the market when deciding to list their properties.

Always respond to market information

Our selling agents, for example, regularly check market activity to see which areas are popular with buyers, which are oversupplied or undersupplied with housing stock, the types of properties that have recently sold and the prices being achieved. Often, none of these aspects have anything to do with the passing of the seasons.

Life issues trump seasons if selling is a must

Other examples that affect when someone decides to sell their home are more personal. Life circumstances such as a property settlement following a divorce, a career move to interstate or overseas, upsizing or downsizing, financial stress or any number of other personal issues can occur at any time of the year.

Don’t write off a slow and lazy summer

For sellers still keen on sticking with the seasonal approach, summer may work for houses that are bright and breezy, or are close to water, whether it be the beach, a river, a canal or a lake. Once the Christmas rush is over, January is holiday time for many people, and they may like to squeeze in some open-home inspections. Also, the slower market at this time of year is usually short of good properties, so it’s the ideal opportunity for advertising to grab buyers.

Listen to the experts

The most important thing, regardless of seasons, is to have your property well-presented and priced to meet the market. Follow the advice of your selling agent and you will have a sale that will allow you to move onto the next phase of your life.

Key Attributes Of A Good Tenant

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Many people are now making a conscious choice to rent rather than buy, so it is more important than ever for prospective tenants to have a good reputation. The competition for desirable properties is intense, with renters reporting that there are many others putting in applications to secure the same property.

How to Stand Out from the Crowd

With owners and property managers being able to pick and choose, what are the attributes that a tenant needs to secure the property of their dreams? While paying your rent on time is the obvious and most important one, there are others that will identify you as an ideal tenant when you present your landlord reference to the next property manager.

Did you know, for example, that the relationship you build with your property manager is one of the most important you can foster? How do we know this? At Bunbury Real Estate, our property managers go out of their way to make life easy for both tenants and owners, so when a tenant returns the favour, they don’t forget.

Take Care of Your Rental and Keep it Tidy

It really is as easy as taking the same care with your rental as you would if you owned it. If you live in a free-standing home, keep the yard and footpath mowed and the gardens tidy. In a unit or apartment complex, help to keep the common areas tidy and other people who live there will appreciate your efforts, whilst you will make some great friends.

Report Breakages Truthfully

Don’t intentionally damage the property, and if you break something accidentally, report the damage and the circumstances immediately. This helps the property manager to arrange better repairs and services and gives the owner the chance to claim on insurance.

Don’t Authorise Repairs – Leave it to Your Property Manager

If there is a Repairs Policy at your agency, make sure you know what it entails. Report any breakdowns or needed repairs, then follow the process in the policy. You should not spend your own money or authorise repairs or alterations without approval. Sometimes things may seem to take too long but be patient and keep in touch with your property manager.

Enjoy your Rental While Respecting the Rights of Others

Respect the rights of your neighbours to peace and quiet, especially if you have parties or regular guests who may create excessive noise or cause parking problems. These days, many people work irregular hours. Check in with others to make sure you are not imposing on their rights.

Protect Your Hard-Won Reputation

If you abide by all the terms of your rental agreement, you will soon be the most desired tenant at your agency. Also, when you want to move on, that good reputation will be your best friend.

Helpful Hints To Getting The Right Agent For Your Property

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When you are looking for an agent to sell your property, or to find you a suitable place to buy or rent, choosing the right agent for your needs can be a bit like buying a lottery ticket. There is usually more than one real estate agency with an office in the local area, as well as multiple agencies dipping their toes in the market via the internet. How can you possibly sort through all the possibilities and choose the right one for you?

Professional Industry Body Generates Confidence

Fortunately, there is a solution. The Real Estate Institute of Western Australia (REIWA) is the peak body for all real estate professionals in the state. This member-owned organisation was established in 1918 and today it represents over 90% of the agencies operating in Western Australia. When you choose a member agency, there are protections and benefits that come with that choice.

As a member organisation of REIWA, we offer our clients a superlative level of service, specialist employees who work together as a team and in-depth knowledge of the local market. When you choose Bunbury Real Estate, you get the benefit of our membership and all that it entails.

Member Benefits – Access to Latest Market Information

Firstly, we have access to the latest market information and sales statistics. You can be confident that when we do an appraisal of your property and suggest a pricing structure, we are using up-to-date figures. This allows you to get the best possible price for your property relative to its style, condition and location.

Standardised Contract and Settlement Documentation

Secondly, the contracts and other documentation we use when we act for a client are all owned and controlled by the REIWA. This means your transaction is being conducted using industry-standard documents that have been thoroughly checked by legal experts, so there should be no complications during the sales process.

Ongoing Staff Training Keeps Agents Up-to-Date

Further benefits to clients are that our staff members are required to update their education continually through various training programs, so that we can provide you with better advice and service. For example, our agents would be expected to ask questions about things such as easements, access to private lanes, the existence of resumption notices and other issues. They are also up-to-date with legislative changes.

Maximum Exposure on the Web

We also list properties on the REIWA website as well as our own, giving our clients maximum exposure to interested buyers. To get the best possible result for your property, choose an agent that is an REIWA member and also who also has a presence in your area of interest. The combination of professional knowledge and ethics, as well as local detail, gives you the best chance for a top result.

Real Estate Stories – Fact or Fiction

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Whether you are a buyer, seller or renter, it seems that everyone has an opinion about real estate. As a result, there are more myths attached to the real estate industry than Stonehenge or the Great Pyramid of Giza. Are they doorways to an alternative universe or evidence of alien visitations? We can’t answer those questions, but we do know that many real estate myths are easily busted with some reliable information.

I Don’t Need an Agent – I Have the Internet

One myth created by the internet is that you don’t need an agent to sell your home. Listing your property on the internet is easy, but the agent’s role is more complex than uploading a photo of your house. The agent is the property market expert for your location. Agents know which properties have changed hands for what price, how long each property was on the market before it sold, and what buyers are looking for in the area.

This information is critical for the seller, especially one who has an inflated price expectation. At Bunbury Real Estate, our agents advise clients on realistic prices that will attract buyers so their properties will sell in the average time for that location. We also supervise inspections, keep contact details of who attended and they negotiate the best price and settlement terms for our client, the seller.

Why Pay for Print Advertising? It’s all Online These Days

Online advertising costs little and reaches a huge audience, but in real estate, this is not as effective as it first seems. Firstly, online searches are very specific, so if buyers don’t filter searches correctly, your property will be competing against thousands of irrelevant searches. Secondly, in most housing markets, the majority of buyers are locals. Advertising in the local newspaper is worth the cost. In fact, only 27% of buyers look exclusively online, while 59% of buyers use both print and online to find their perfect property.

Before-sale Renovations Will Make our Property More Valuable

This is a very common misconception. Renovations may increase the value, but only if the seller does some research first. Get a realistic value of the property as it is, then work out what renovations will cost. Add the two together and then ask your agent if the new price is within market expectations.

Things like tidying, rubbish removal and maintenance will not usually get you any more money but they improve the presentation. Electrical, plumbing and structural changes must be done by experts and many buyers will expect to see the paperwork, so do-it-yourself could cost you a sale.

These are just a few of the common myths we regularly face as selling agents. There are many more, so if you are unsure about anything you have heard, just ask us.

How Sellers Can Botch the Outcome of Their Own Auction

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You have spent several weeks getting your property ready for auction. Every inch of it has been washed, cleaned, polished and renovated where needed. The fences are straight and true, paths and driveways swept, there are no weeds hiding in the garden beds and the lawn is immaculate.

Is Everything Really Under Control?

After putting in this effort, what could go wrong? Quite a lot, especially if you, the owner, interfere in the auction process itself. Most people don’t do this deliberately, but they can easily upset the process and make the job of the agent much harder than it needs to be.

As selling agents ourselves, we have seen otherwise promising auctions undermined by owners with just a few careless words or actions. Our agency, Bunbury Real Estate, works with sellers to get the best price for their property in the current market. We give our sellers accurate appraisals of the value of their properties, using the most up-to-date information.

A Well-Prepared Property with a Realistic Reserve Should Sell

This brings us to the first issue that can cause problems. While sellers should approach auction day with positive expectations, they must also be realistic. A well-prepared property backed by a professional marketing campaign and reasonable buyer interest could be expected to sell at an auction.

The pre-auction buying market will already have indicated a price point, and it is this figure that the seller should be considering when setting a reserve. Agents generally ask for feedback from inspections, including asking people what they think is a fair price for the property. We certainly do, and we take this information back to the sellers so they can consider the comments before deciding on their reserve price.

Keep Your Cards Close to Your Chest

We all like a chat between friends and family, but in this instance, the one piece of information sellers should not be disclosing is the price they want. Nothing spreads faster than a rumour, and the last thing we want is genuine buyers deciding not to attend the auction because they heard the price was too high.

No Sale at Auction? Stay Cool

What if the seller has done everything right and the auction was a dud? Maybe it was a football grand final day or the weather was terrible and kept the buyers away. We tell our clients to remain calm as often; the properties sell a couple of weeks later for a good price. It is just the next phase of the sales campaign.

It All Comes Down to Money

The top reason for a property not to sell is the price. Whether you choose an auction or sale by private treaty, the wise old saying still rings true for every commodity. An item is only worth what the market will pay for it, so follow your agent’s advice and spare yourself the anxiety.

Serious Buyers Are Like Gold – Make Their Decision An Easy One

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Deciding to sell your property is always difficult, but if you are serious about attracting buyers, you must do several things to keep them interested in what you are offering. A serious seller must view everything from a buyer’s point of view and identify what is most likely to put them off a property and go elsewhere. This requires sellers to treat the event as a business transaction and keep their emotions in check.

We Know What Will Turn Buyers off an Inspection

Fortunately, we can help with this. After years of experience in handling property transactions, our staff members at Bunbury Real Estate have seen and heard almost everything to do with buying and selling real estate. We can spot what buyers will not like almost immediately, so we offer a few suggestions for sellers who are having trouble with the process.

Exterior Appearance Must be Attractive

The first thing that will keep buyers away is the overall appearance of the property. Everything must be clean and tidy, so make sure the lawns and gardens are well maintained. Wash the outside of the dwelling and paint anything that looks shabby. Remove any rubbish and clean out garages and sheds.

Clean and Tidy Inside with Everything Working

The inside must also be clean and tidy, and everything should be in working order. That means that air-conditioning units, ceiling fans, heaters, kitchen fixtures such as cooktops, ovens, range hoods, dishwashers, et cetera, must work if a curious buyer turns them on. There must be no leaking taps, toilets that don’t flush properly or other annoyances a seller may ignore that a buyer will not accept.

Get Rid of Those Awful Smells

Are there any unpleasant smells inside the dwelling? A seller who is also the occupant may not notice pet smells in the carpets or cigarette smoke in the curtains, but buyers will. Get them professionally cleaned, and make sure your pets are not present during an inspection.

Buyers Dislike Clutter – Clean it Out

It’s alright to be untidy and clutter up a dwelling when you are living there, but buyers want to see how much space is available and this is impossible to show if rooms are filled with your stuff. De-clutter down to the essentials, and if you don’t know how to do this, find someone to help you. It will be worth the effort.

Buyers Have a Budget – Don’t Annoy Them by Keeping the Price a Secret

Finally, listen to the advice of your agent about pricing the property. It is our job to know the market in the area, and we will recommend either a fixed price or a range to attract the right buyer. Properties that are listed on line without a price will be quickly scrolled through to get to the next desirable property.

Our role is to get you the best possible price for your property in the current market. Help us to help you by following these few simple instructions.

A Quick Sale Needs a Logical Strategy

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Every property owner listing a home for sale wants to get the best price possible in the shortest time frame. Having made the decision to sell, most vendors just want to finalise everything and move on. Often however, the price they want is way above market value for the location and type of property, and it languishes on the market for months.

Overpricing a Property is Just Wasting Time and Money

Buyers looking in the area see this property regularly advertised and assume there is something wrong with it, otherwise it would have been sold. Once a seller is trapped into this cycle, it is difficult to change it. Usually, the only way is to take the property off the market, wait for a few weeks and relaunch it. This wastes time and money, and most vendors realise they should have listened to their agent’s advice.
We have experienced this scenario many times. Our agency, Bunbury Real Estate, has assisted many owners to sell their properties and those who hold out for an unachievable price usually end up regretting it. If you are a vendor who needs to sell quickly in any market you need to take decisive action.

A Quick Sale Needs Kerb Appeal

To get buyers out of the car and into your house, it must have kerb appeal. Tidy up the lawns and gardens, trim overhanging trees, paint and clean where needed. Repair anything broken so it looks inviting. Make sure the inside is as tidy and clean as the outside. Clear out clutter and personal items so buyers can see themselves living here.
Simple Upgrades Makes Tired Areas Look Like New

Upgrade taps, sinks or shower screens and put modern handles on the kitchen cupboards to make these tired areas look like new. Make repairs and paint entire rooms if necessary. Get rid of faded or torn curtains and blinds; put up new ones. Arrange a building and pest inspection, and fix anything in the report needing attention. Buyers love having official confirmation that the property is in good order.

List with a Local Agent

List with an agent like us who knows the area and who has an effective marketing strategy. Their advice about pricing in the current market is based on comparable properties in the area that have sold recently. You are not expected to give it away, but if it is overpriced, it will sit on the market, costing you money in advertising and holding costs.
If your goal is to sell quickly, these strategies will set the agenda and our sales staff members are there to help you find a buyer and get a reasonable price for the property.

What Would Make You Sell Your House?

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For previous generations, buying a home was a once-in-a-lifetime event, and selling it a reluctant response to something that left no other choice. As the workforce became more mobile, and social changes redefined the family unit, the notion of a “forever” home was challenged. Home owners are now willing to sell their properties for a range of reasons as diverse as they are practical.

Moving up to Something Bigger

Up-sizing and downsizing are the opposite sides of the same coin, that is, the desire to have just the right amount of space for current needs. The typical home owner who sells a property to move to a bigger one will usually have a growing family who need their own bedrooms, or be caring for elderly parents or perhaps running an expanding home-based business.

Free up Cash by Downsizing

Downsizing is usually a lifestyle decision by older people whose families have grown up and left the family home. They no longer need the extra space or the work involved in keeping a large property clean and well-maintained. Selling up and buying something smaller also frees up much needed cash, which is useful in later life.

We have helped clients to both up-size and downsize, but these are not the only reasons people decide to sell their homes. Real estate is very much a people-centred industry, and here at Bunbury Real Estate experience has shown us that almost every decision to sell is driven by some change in personal circumstances.

Changes in Work Circumstances Trigger Sales

Work, for example, is a major part of our lives and very important to our financial and personal wellbeing. Many sales are a result of changes in work circumstances. We have worked with clients who needed to sell because they were moving interstate to a new job, which is always exciting. Sadly, we have also helped clients who needed to sell because they had lost their job and could not manage the mortgage repayments.

Relationships and Family

A change in relationship status that triggers a property settlement is another personal circumstance that will cause homeowners to sell. A separation or divorce is a common reason for contacting our agency to list a property. So, too, is the need to be closer to family during such a difficult time.

Not the Old Neighbourhood?

Sometimes the change is just one of personal preference. This typically happens when a neighbourhood that has been home for many years, changes to a completely different demographic. For some long-term residents, it just doesn’t feel like home anymore, and they sell their property and move to somewhere that better suits them.

Whatever the reasons, we are always available to help people find their perfect place, whether it is an apartment, a duplex, a free-standing house or semi-rural property.