How to achieve real estate success in 2019

There is one piece of advice everyone will give you when buying or selling a property: DO YOUR RESEARCH!

We’ve put together some helpful tips on reviewing and understanding the relevant data and information available.

Price indicators:

There are a few different price indicators which can help your research, because every property is different and many factors impact the price.A good starting point is to look at the median price for the type of property (i.e. house or unit and number of bedrooms) in your suburb.

Simply stated, the median price means that half of properties sold for below that price and the other half sold for above that price, during the period.

You should also consider the median price trend when deciding to buy or sell. This will give you a longer-term view of the market. Median prices are calculated from sales during the relevant period, as such it is influenced by the property types that sell during that time. It is important to not use median price as the sole indicator of price trends.The REIV property price index, the RMX, considers all properties (not just the ones sold) and gives you a fresh, weekly insight into real price trends. Check it out here: www.reiv.com.au/rmx

While statistics and data can give you great perspective, talk to your local REIV Member as they will have access to the most relevant information on the area.

Auction clearance rates:

Weekend auction results are a good indicator of your local market, but make sure you discuss the method of sale with your agent. Clearance rates only tell you the outcomes for the properties that were sold by auction. Remember, that on average, just over 20% of residential properties in metro Melbourne are sold by auction, whereas private sales account for nearly 80%.

The ratio of properties sold by auction can change significantly across suburbs. Talk to your agent about which selling method is right for your property and your circumstances.

Days on market:

This is the median number of days a property takes to sell by private sale in the area. This can give you an insight into the level of buyer demand in the area.

What is rental yield? If you are looking to buy an investment property, consider the weekly rent you can expect in the area. The Rental Yield indicates the expected rental income as compared to the sale price of the property. The higher the rental yield, the higher your ongoing return on investment.

What role do vacancy rates play?

The vacancy rate is the proportion of rental properties that are available for rent, but not currently rented in an area. A low vacancy rate can mean that there is good demand for rental properties in the area, on the other hand it can also be a leading indicator for the likelihood of rent increases in the area.

What are my options if I can’t afford my preferred suburb?

Consider suburbs adjacent to where you’d like to buy; you may be surprised at the bargains to be had. Recent REIV analysis found median price differences of over $600,000 between adjacent suburbs which were on the same train line.

How do I choose the right agent to help me?

There is likely to be more than one agent in your area to choose from, so how do you decide which one will represent you best?

STEP 1: CHOOSE A MEMBER The REIV offers a simple online tool to find a Member with the right experience and expertise to suit your needs. Try it for yourself at

www.reiv.com.au/choose-a-member

An objective and transparent way to Choose a Member with no referral fees, priority listings or other incentives to prioritise one agent over another. You’ll find all real estate professionals because REIV members are not limited to selling agents only.

REIV Members include auctioneers, property managers, owners corporation managers, buyers agents, valuers and business brokers; across residential, commercial and industrial real estate.

STEP 2: USE YOUR OWN NETWORK Talk to family and friends about their experiences and ask if they have any recommendations or otherwise.

STEP 3: PERSONAL INTERACTION Drop in and say ‘hi’ – call in to the agencies on your shortlist and get a feel for their environment, attitude and professionalism. These are the same people who will be dealing with your prospective buyers.

THE DIFFERENCE ™ WITH REIV MEMBERS

REIV, the peak professional association for the Victorian Real Estate industry. We understand the significance of property in your life, which is why we focus on developing and supporting real estate professionals who can help make these decisions easier for you.

reiv.com.au/thedifference