Daily Archives: October 29, 2008

Had an Appraisal lately……..

Now, were they all consistent?

Your last appraisal…..

Last time you had an Appraisal conducted on your property did you find;

  1. the various agents had different views on what price / price range to sell it for?
  2. that they all recommended different methods of sale? (eg: Auction for Agent 1, Fixed Price for Agent 2, Offers over for Agent 3.)
  3. their ideas on advertising / marketing maybe were not consistent?
  4. their fees / high profile marketing campaign contributions were all different?
  5. they recommended different strategies re media / internet / signage / etc?
  6. they way they targeted overseas buyers was “assorted?”
  7. some emailed it back, some mailed it back, some just dropped it in the letterbox, some even made an appointment to visit personally and explain?
  8. some were there 10 minutes, while others you couldn’t get to leave after 2 hours?
  9. some called you back that week, some a month later, and some every day for the next 3 weeks because they had a buyer?

Well guess what?

Most kiwis only hear just one thing.

...after he\'s gone...After the agents have gone, most kiwi’s remember only the one who told them the highest figure he/she they would get for their property.

It is called “buying the listing”, and in light of the present climate for home buying and selling it is something you need to be aware of.

Ask yourself just this one question?

Do you know an agent who was so accurate; their “listing price to selling price ratio” was 100%. In other words they SOLD every property for exactly the price they said it would at the appraisal.

Now if that did happen….don’t you think that your town would only need just that one agent. That one agent can then employ dozens of helpers to conduct his Open Homes, drop flyers, call buyers, do follow calls and reports, merchandisers if you like, etc, because he/she is so good that they get it right every time.

There’s as many agents like this in NZ as Norwegian Blues.

Norweigian BlueI admit there might be some who get it right some, or the better ones more than some of the time, but I’ve yet to hear of one that has a 100% ratio track record spread over many years of sales.

Certainly you will find agents informing you of their SOLD’s, just as much as you’ll hear others talk about their SOLD’s at auction results. In most of these cases the detail that is lacking is the one you’d like to know. Namely, did it sell for what they said it would?

You should be asking those agents to present this info to you when returning your appraisal.

To ensure you get the highest price for your property you need to do a little “reverse engineering” of your own?

Most people have a dream price of what they want for biggest asset.

So here’s what you do.

With that dream figure in mind, and before you call any agents for an appraisal, use realestate.co.nz and search your location for the price range that covers your dream price band along with the same number of bedrooms as your home. Don’t forget to consult the weekly property news and circle those that would sell at a similar figure to your dream price too. You’ll also need to drive around the neighourhood just to make sure you have all your bases covered, and that you haven’t missed any local “For Sales.”

on a mission

Now armed with this info, visit these properties at their open homes and then compare them to your place. In fact it might even be a good idea to take along a friend or work-mate. Certainly any workmate in the building or associated trades would be a grand idea.

If you were a buyer how does the competition stack up?

This is not easy for many because most people have quite an emotional attachment to their own home, and the “rose coloured glasses” syndrome is over powering in these circumstances.

You need to be very objective when visiting these homes, BECAUSE that is exactly what a buyer will be doing when they are comparing your home with others.

So pay particular attention to all those other reasons, NOT just the price that’s suggested you go to market with.

You should be seriously considering these things……

…the size of the company, how many agents, how many offices, do they sell across many different towns / suburbs or are limited to their own stock / franchise area, what is the quality of their advertising / photography like, have you noticed any of their previous advertising as standout, has the For Sale sign down the road been knocked over for 3 days now, does the flyer you get in your mailbox advertising the latest new listing look like a child put it together….but badly? etc, etc?

I would guess a few years ago many people were shopping around for what interest rate a finance company would pay them for their investment. Yes the banks weren’t offering a higher rate, but it’s like everything in life, there are pluses and minuses to every decision.

Finally if I can implore you to do one thing, that would be tread very carefully if you are going to make a decision to list your home with a particular agent just because out of the three who visited & appraised it, he/she was $10,000 higher in his listing figure.

I say listing figure because you must remember that’s all it is at this stage, it’s not the final best price you are going to get/sell for.

9 times out of 10 (more like 10 out of 10 in the current market) that highest agents price will put you ON the market, with any agent.

The $64,000 question is……wouldn’t you rather be IN the market with the right team to give yourself the best chance of selling?