Enjoyed meeting & hearing speak, Kevin Green from Wales. Personable investor out here speaking. Says he is the biggest private residential landlord in UK ( excluding funds & housing associations). Worth listening to. Here is his web; http://www.kevingreen.co.uk/
Archive for the 'Selling Tips' Category
The technology is pretty advanced,” she said, “although I’m waiting for the day when you click on a picture of a house and actually smell the cookies baking in the oven.”
From New York times. Feb 24th. See article here.
Thanks to Phil at Open2View for pointing it out
Other brokers, like Claire Civetta, an associate broker for Coldwell Banker Residential Brokerage in Scarsdale, are using the latest technology to build single-page property Web sites for clients, complete with slide shows, videos, mood music and their own URL links. For example, www.53fayetteroad.com takes a client to a site with a slide show on a welcoming five-bedroom colonial-style house in the Heathcote section of Scarsdale, complete with gentle guitar music in the background.
“I try to match the music to the mood of the house,” Ms. Civetta explained. “I wouldn’t put ‘Carmen’ on for this property. It wouldn’t fit.”
“The technology is pretty advanced,” she said, “although I’m waiting for the day when you click on a picture of a house and actually smell the cookies baking in the oven.”
We always like it when others agree with us!
Quotable Value, in their monthly press release, have reiterated what I said recently in this blog. That is, tenders are changinging the face of the market, while stock is short.
Here I quote them:
“The continued shortage of properties is leading to a continued
imbalance in the market with more buyers than available properties.
As a result our Valuers are seeing many properties sell for well above
their expected values. These demand-based price increases are likely
to continue until the balance in the market changes. This will happen
either when more properties come onto the market, or when buyers
consider prices to be beyond their affordability and as a result consider
other parts of the market, or resolve to continue their current living
arrangements” said QV Valuation Manager Glenda Whitehead. “The
lack of strong spring activity could be due to several factors. Many
owners will have locked in to lower long term interest rates at the
beginning of the year and will be concerned about losing those rates if
they sell. Having made the decision some months ago to stay put, they
may now be extending or renovating and no longer be considering
selling” said Whitehead.
Tenders effective in current market
Pieter Geill of QV Valuations said: “The shortage of listings in Wellington
continues. The traditional spring resurgence which we would normally
see at this time of year is still holding off and is putting upward pressure
on prices. Good homes are attracting competition amongst buyers,
especially at tender which seems to be an effective sales method in this market”
Yes folks…another bunch of people to look after you.
I am just checking that , as everything I do must comply with a few simple things ( to save you from me, I believe) that my blogs now carry a legal requirment. Lets see if I have added it correctly after my name. You are now warned!
Really annoying to all except the company that bank the fee.
Now, every salesperson occasionally get over enthused. And they need to be optomistic. But sometimes its clear a high price…very improbable…is suggested ( always when several companies are involved!)
Highest gets it. …The listing has been “bought!”
Dosnt sell at first, evidence of real value feedback is given…. (wheeling in the hearse is the term) Vendors expectation reduced & motivation is higher….sold for what the other companies said.
Just heard one yesterday…”winners” minimum $100 000 higher than others “market value”…be interesting, but dont think they will get it!
This is based on thoughts coming from some surveying I did, a while ago.
In Wellington, about 7% of ads were private sale. At that time only 4% of sales were private, & that included non market transactions. (That is, selling to the friend that had always wanted it, selling within families etc.) So probably more than 50% of all private sales attempts ended up concluded by a realtor. I don’t know if web sales have increased. Anecdotal indications are it doesn’t seem to be very widespread
Why do they try? To save a fee, I think. And/or because no agent will take it on at “Their Price”.
I think a lot believe their house has only one value to all purchasers, like a car of a certain year and mileage. They think that all that has to happen is put the property in front of the market, and pocket the fee an agent would charge.
They think it is a rational transaction, and that selling is not a skill. Selling is actually the most highly paid skill in the world. Look at Donald Trump and Richard Branston.
So what seems to happen?
There are several flaws to sellers pocketing $10 to $20 000.
Firstly the buyer usually deducts the real estate fee before they offer…and 50% of sellers do the same, in their minds too! So the buyer saves the fee, and the seller does the work for nothing!
Security issues, or being unable or willing to show the house at requested times cause some to falter.
Personalities kill the deal. remember this is 15 rounds of the sellers greed vs the buyers fear…a potent battle!
A real estate adage, often true is “to kill a deal, put the seller and buyer in the same room”. One reason real estate salespeople are accused of bad conduct, or outcomes, is because one party or the other has been a total pillock, and demanded a totally unreasonable thing be conveyed to the other party! So shoot the messenger! A big part of sales success is keeping the two parties reasonable to each other!
Clever buyers con weak sellers. Self explanatory. I hear these buyers boasts all the time. Of course they try it through agents too!
Private sellers pay very high rates to advertise in newspapers, and cant get into the Real Estate magazines. Trade Me offers more than it delivers, for real estate, in my opinion. The owner doesn’t have a pool of existing buyers, or a team of salespeople. So private sales usually get only a small number of inspections. Less inspections, less offers.
Very occasionally sellers underprice. I heard someone recently who claimed to buy a property they said was worth$1.4 million in Oriental Bay privately.They bought it off the first ad, paying the full asking of $1.1m.
Joho Lomu’s house in Mirimar was sold privately ( I saw through it at the time) and resold for huge profit soon after. I was told how his manager allegedly handled the sale, by the private buyers. I wont comment on the story!
So my Stats…total guess:
10% of private sales attempts do as well as the best agents could. Often these sellers have sales skills
10% sell for a “normal” price, & save the fee.
20% sell for “normal” less commission..IE do it for nothing.
5% sell for a poor price.
55% attempt, then give it to a professional.
Thats the way I see it.
Tenders May Be Changing The Wellington Sales Landscape.
The old idea was once a salesperson got an offer of about what a residential property was “worth”, the vendor got worked over to be reasonable & take it. Especially with a general agency…where heaven forbid, another company might come along with a higher offer. And it still happens in some companies.
Leaders started tendering , and it has become widespread.
Looking today, on the Leaders website, and searching for 4 plus bedroom houses over $500k, and under$750k found the following for all of Wellington city: 4 under offer or for sale by price. 13 for sale by fixed tender.
Some buyers complain they “keep missing out” or that they “want the chance to negotiate”
Investors say everything is “too dear”. What do they mean, & what is happening to sales outcomes?
Wellington continues to be a sellers market. Houses are not an easily duplicated or substituted comodity. There is too much variety & not a big enough pool of stock.
A normal sale is where “a buyer, knowledgeable in the market, motivated, but not under duress to buy, purchases from a vendor, motivated, knowledgebale but not under duress to sell.”
But the tender enables the vendor to sell, in every case, to the most highly motivated buyer. So often a half dozen, or dozen, or as in Weka st or Rongatai road this year, two dozen “normally motivated” buyers miss out.
So what does it say that these buyers rely on purchasinig “non tender” listings? Probably that they get them for less than the vendor could have got. Why would owners choose to sell this way, other than ignorance or convenience? I often suggest to these buyers they go troll through private sales for bargains, poor negotiators and the uninformed vendor.
There is a concequence of selling for top prices. all the neighbours of course immediatly expect the same. This sets a line in the sand.
So is the Wellington market, particularly, being underpinned by a strong sellers market combined with a selling system evolved to favour the sellers ( as it should in my opinion?)
Note…the buyers, who most complain about tenders, & the impartial realocation of houses to they who want them most, seem to change their story dramatically when after buying, that they themselves decide to sell!
Heres advice for photographing houses for sale…From The Wall Street Journal http://bit.ly/15CMUf