Daily Archives: February 12, 2010

Real Estate Search can it get better Part I

On behalf of a friend looking for a Sydney property, this week I found myself checking out the website of McGraths Real Estate in Sydney.

I suggest, one of Australia’s most recent forward thinking, successful and invigorating agencies – principal John McGrath has also penned written a book, or two in his time as well as being an inspirational speaker.

Usually when I click on these sites, it’s within 15 seconds that I click “off them” to run on to something else.

What stopped me in my tracks this last week on browsing was something I hadn’t seen before.

The above screenshot is what I saw.

What Kiwi or Aussie can’t be empathetic to that photo – we all know what it represents don’t we?

………..Emotion.

You know I’ve offered up the following question many times before………..

Do people buy houses emotionally or logically?

So what was next?

I was curious, so I clicked.

And I thought to myself, quite a novel approach.

Here’s the homepage at McGraths so you see for yourself.

That word again…..emotion.

And smartly enough the rotation of these photos like shown in the above screenshots seem to change quite quickly.

You know what……….it doesn’t always seem to me that people buy logically…  from experience, so many times I have been in a situation where after the buyer has told me what they want/desire in a property…….I’ve made the appt to visit them in their own “prior to purchase” residence (which I like to do because more than anything this should give you insights into the type of new property they are looking for……and even more so….…will tell you things that differ from what they have even told you they want/must have) that I have recognized parts of their living environment that seem to be “at odds” with what  they have mentioned to be desirous in their new residence.

Obviously then, as a professional I would be remiss if I didn’t take that into the equation.

Must admit here though, that the one and only most important time when this is not true……well that’s when two people are moving apart…..even I’ll admit it’s a bit hard to judge at that stage.

Obviously at the end of the day you, as a Real Estate Marketer …….you are there to facilitate……..you show a buyer what they have told you they want………..hmmm and then your intuition kicks in…………and says, why don’t you show them this & this because you know they won’t be unhappy with it.

More than likely that’s when you hear the “…but they showed me this place and it wasn’t anything like what I told them…….” comment.

Let me tell you from past experience in 75% of cases…….emotion kicks in……and people buy a particular property for something that doesn’t appear logical at all.

Frankly that’s where buyers of For Sale By Owners can miss out.

They just don’t understand that as an agent who has seen hundreds / thousands of homes …….you actually are in the box seat to direct/find them the home of their dreams.

But as they are intent on saving $2-3-4,000 for their “future” that they will probably never ever know what they missed out on……..or that their dream home was just 1-2-3 home inspections away.

In other words because they brought privately to save $$$, bypassing contact with an agent, they have possibly missed out on something that logically wasn’t on their list for inspecting, but with an agents experience, could have been shown a property that was “just off their centre line” and moreover “exactly what they wanted.”

This is especially the case when the homes haven’t even been advertised to the whole market/general public…..a situation that has presented itself twice this past week, just to our own Stoke office alone. Sorry what I meant to say twice this week those homes have had multi-offers…….and have already sold..….so the first notice that most buyers will have is showing up to the Open for Inspection (Open Home in NZ) on Sunday to see a SOLD sticker across the sign.

So many times Real Estate portals/search interfaces attempt to be “everything to everybody”….after all I guess in appealing to the masses, which is what they have todo today in a fiscal sense, they probably don’t have a lot of choice other than to do exactly that.

This website was…..refreshing.

And interestingly enough there are a couple of “gotch ya’s” here that no Kiwi or Aussie can deny.

Why Kiwis and Aussies?

Part II will continue soon…..

Nelson Home Sales Report for January 2010

12th February 2010

Well it can be said we didn’t start 2010 off with a bang, house sales wise.

I only sold 2 for the month.

Today REINZ (Real Estate Institute of NZ) released the official figures for Jan 2010 sales.

I guess a couple of take outs from their press release were;

Total residential dwelling sales plummeted last month to their lowest level in nearly two decades

and….according to Peter McDonald, Real Estate Institute of New Zealand President …….

“Activity in the residential property market was quiet last month on the back of uncertainty over what actions the Government intended to take on the recently announced tax working group recommendations”

A severe lack of new stock hitting the market played “yo/yo” with the market figures.

After being up 14% last month it will be interesting to see what the official Real Estate Institute figures reveal about Jan 2010.

Lots of red this month and no green at all.

During January the local Nelson Property market saw just 62 residential sales, compared to 68 residential sales in Jan 2009.

The above chart would seem to indicate a reduction of the difference between valuation and sell price, with a slight gap showing between asking price and selling price. My thoughts on this are this – we’ve just had our 3 yearly update by QV on local CV’s – and when that happens, and quite a few home owners find their property has been valued quite favourable, may just use that as the trigger they have been waiting for to go to market. That said, a touch of reality usually sets in some time later, and I forward to you, that is certainly what the above shart shows.

After being up last month, the median price for a Nelson Council zone house dropped to $315,000 in Jan 2010.  (December 2009: $355,000; Jan 2009: $320,000).

“Days taken to Sell” ramped up to an unusual, for Nelson, 62 days, in comparison to 59 days last January, and just 28 days in Dec 2009.

CHART – click on above for larger version

Sections tapered off, but 8 sold in Jan 2010 for a median price of $187,500, and with a median size of 718m2.

The national sales trends don’t really point in a decisive direction.

In todays release, the REINZ said officially of Nelson;

61 houses sold in Nelson City in January (December 2009: 81; January 2009: 68). The median price decreased to $315,000 (December 2009: $355,000; January 2009: $320,000).
The median price for a Nelson Council zone house was down at $342,000 in January (December 2009: $367,500; January 2009: $316,500). 111 houses sold (December 2009: 128; January 2009: 114).

Again like last month, and illustrating our predominantly family market, 38 x 3 bedroom homes sold, near on 56% of the units by percentage for the month.

Full report here.

Full statistics here.

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