welcome
Hobart
Hobart
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Rick Abbott - An Introduction
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General market conditions
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Marketing strategies
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- By negotiation - For sale by set price - Expressions of interest - Auction
Marketing & Services
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Fees
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Why list with me?
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Why an exclusive agency?
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General presentation hints
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- Who doesn’t the buyer want to meet? - Buyers most common dislikes
The sale process
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contents
Raine & Horne - The Company
Hobart
the company Raine & Horne was originally founded in Sydney in 1883 by Tom Raine and Joseph Horne and operates under a recognised code of ethics. We provide proven and successful systems of service established over the years meaning you will be looked after at all times. Nationally, Raine & Horne is one of the biggest marketers of residential real estate with over 450 offices, most of these across the nation and some around the world with an annual turnover amongst the highest real estate companies in Australia.
company
This huge network provides a large pool of knowledge and experience for us to draw on and also offers a trusted brand to the many interstate and international buyers who frequent our market, amongst a sea of unknown names and faces. Statewide, Raine & Horne has four offices servicing the greater Hobart area as well as offices in Launceston and Devonport. It has ever increasing strength in the Tasmanian marketplace and provides access to a client referral and customer base of over 178,000 people. In the Hobart and Northern suburbs office staff collectively have over 150 years of Real Estate experience and undertake regular ongoing training to further develop the skills required to achieve the best possible outcome for you with the least amount of fuss. We have embraced technology with a fully networked in-office computer system. • Individual email and internet access for each consultant provides ease of contact with clients and quick access to necessary information. • A web based database second to none raises our capacity to service our clients at the highest level. Raine & Horne is a member of the Real Estate Institute of Tasmania. As a separately owned franchise office, Raine & Horne Hobart is proud and fiercely protective of its reputation in the marketplace and determined that you receive the very best service and advice possible at all times.
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Hobart
Rick was born in Hobart in 1960 where he has continued to reside and has been involved in many aspects of the local community. Rick and his partner Pia have two healthy boys; David and William aged 15 and 12 respectively, and most of Rick’s immediate family also reside in Hobart. Rick is the product of a varied background including attending Mount Stuart Primary School, New Town High School, Murray High in Queenstown and The Hutchins School where he lived in the boarding house. Post school, various labouring jobs, four years in the fishing industry and two years involved in the sale and supply of domestic insulation with a local firm provided many experiences. These experiences, along with 20 years in real estate have given Rick a good insight into many walks of life, valuable experience in what is essentially a people industry. Beginning his Real Estate career in 1987 Rick quickly established himself in the Hobart market as a successful and trusted agent. Since that time he has worked long, hard, consistently and successfully, spending six years with his initial employer before becoming a joint founding owner of Macquarie Real Estate in 1993. In October 2006 Rick and his business partner Barry Monk took another step forward and purchased the ‘Hobart’ franchise of Raine & Horne. In conjunction with his twenty years of hands-on experience Rick has completed numerous development and training courses both locally and interstate giving him a broad understanding of the sale process and the Real Estate Industry in general. As an owner Rick has experienced all facets of the industry from sales and property management through to management of the sales team and the company but still enjoys the involvement with clients during the listing and selling of property. After more than 20 years of learning Rick still believes that the most important aspect of the business hasn’t changed, ‘clear and open communication’.
an introduction
rick abbott
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Hobart
general market conditions Hobart, and the state as a whole, experienced unprecedented growth from the early 2000s. This was mirrored nationally with prices increasing rapidly from the beginning of 2000 up until late 2005. Prices have continued to climb since this period, albeit at a slower rate. Much of this activity can be traced back initially to the first homebuyer scheme combined with significant superannuation investment, low interest rates and high rental returns (which enticed investors back into the marketplace). Combining these factors with strong real-estate markets in other states, the relative affordability of our properties compared to other capital cities and the shortage of properties available for sale, resulted in the perfect scenario for an extremely buoyant property market.
market
The subsequent global financial turmoil has certainly softened demand in the top end of the market. Chaos on the stockmarket has been countered by continuing the decrease in official interest rates and increases to the first home buyers subsidy. First home buyers remain as active market participants which has created high demand for entry level homes and a resultant flow on effect to mid-priced properties. There has certainly been a decrease in activity from those heady times of the early - mid 2000s with properties generally taking longer to sell. In spite of this, Real Estate Institute of Tasmania figures show that prices have held up well.
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marketing strategies There is no doubting the power and benefit of effective and broad-reaching marketing of property to ensure the best possible price is achieved, not just ‘a price’. It is also important to adopt a marketing strategy that is not only appropriate for your property and the prevailing conditions but also one that feels right for you. There are four main marketing strategies that are prevalent in the current market. These are listed and outlined below in no particular order for your consideration. The first three all come under the general umbrella of a ”Private Treaty” sale.
marketing
1. By negotiation 2. For sale by set price
3. Expressions of interest 4. Auction
Regardless of the method of sale you select you can rest assured that Raine & Horne, with its huge network of successful agents and vast experience in the field will achieve an excellent result for you.
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1. By negotiation From a buyer’s viewpoint, a set price on a property is rather like the recommended retail price. It is the point at which a negotiation starts; the point from which a buyer expects to negotiate down. Sellers adopt a similar philosophy but in reverse. They expect buyers to offer less than the asking price, so they inflate the price to take the negotiating factor into account.
marketing
Negotiation coming from this position tends to disadvantage both parties with some buyers being put off by the asking price and not looking at the property at all. ‘By negotiation’ • Allows us to promote properties with a “floating” price expectation. Price indicators such as “Over $420,000”, “$400,000 - $440,000”, “Early - Mid $400,000s”, “Mid High $400,000s” etc or indeed presenting no price indication at all are effective ways of employing the ‘private treaty’ sale while avoiding the pitfalls of a fixed or set price. • Encourages a broader range of potential buyers to inspect the property which provides a more accurate reflection of the market reaction to the property. • Creates more competition ensuring the very best price is achieved. A key element in this strategy, which is often misunderstood or not considered is that, like when buying a car, many people end up spending more than they set out to, hence we also need to attract the buyers who are hoping to spend a little less than we are hoping to achieve. One of these may end up being our ultimate purchaser. In summary, the overall objective of marketing “By Negotiation” is to avoid the risk of over or underpricing and to attract a broader pool of buyers to the property without capping the price and without deterring potential buyers from looking in the first place. With more buyers there are more offers, which in turn increases the likelihood of competition at the point of sale. This competition will ultimately result in a sale at the best possible price.
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2. For sale by set price With marketing at a Set Price we tend to aspire for the ultimate, but need to be prepared (more often than not) to negotiate. Some residential buyers prefer the Set Price as it allows them to make a decision to buy without pressure or fear of the unknown. They have ample time to make necessary financial arrangements and are able to make their offers conditional.
marketing
This method is ideally suited to a property which can be readily identified as being within a particular price range, as opposed to homes that may have more emotional appeal and having a value which cannot be determined with great certainty. The risk with this method is that given the personal nature of Real Estate values, the figure chosen in the all-important early stages can prove to be an ‘above market’ or indeed ‘below market’ price. This will generally have the following repercussions: Above market • Although occasionally an uninformed purchaser unwittingly pays the price, generally the wrong buyers inspect the property. The property does not live up to their expectations; they are seeking, can afford and are comparing to homes with a higher true market value. This is at a time when the property is most visible – those crucial early weeks. - Experience tells us that these buyers seldom return even when the price is subsequently adjusted. • As time goes on, over-exposure becomes a factor even if the price has been reduced in the meantime. Word spreads and prospective purchasers assume there is “something wrong” with the property. It becomes a “stale” listing, when in reality, the only thing wrong with it was the price. • After months of frustration the vendor often sells at a price lower than that which may have been achieved in the first instance. Below Market • The property is sold quickly but at a figure below that which may have been achievable. - Often this is at the asking price. The vendor will always wonder but will never know whether a higher price was achievable.
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3. Expressions of interest
marketing
“Expressions Of Interest” is really a mix between “By Negotiation” and “Auction” and is also known as an informal tender. ‘Expressions of Interest’ • Has a time component (eg. offers close at a specific time). This means buyers feel the need to get organised and make a decision on or prior to the closing date. • May or may not include a price indication • Does not preclude the purchaser from having preconditions (finance, etc). This means that all potential buyers can participate possibly giving the vendor more offers, options and maybe a better price. • Encourages the purchaser to put in their best offer. - The purchaser is in a situation of having to make their very best offer because they are not aware of the level of competition. - With no capacity to see what their competition is doing, the fear of loss means that emotionally attached buyers will not hold back.
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4. Auction
marketing
This is an exceptionally positive method of marketing Real Estate. The purpose of an auction is to find the true market value of a property within a given time frame by: • Exposure through high profile advertising to the market place. • Not attempting to force a particular preconceived price on to the market. - Buyers with all different perceptions of the property and different spending capabilities are pooled together to compete. • Setting a fixed date of sale. - Buyers must immediately mobilise their resources to inspect the property, arrange finance and make a decision to purchase. We should emphasise the auction process is yet another marketing strategy, which, contrary to popular belief, does not necessarily rely upon the property selling “under the hammer” on the day of auction. The Auction system provides three selling opportunities: • Before auction - If an offer is made you will be advised of any other interest that has been shown in order to help you to make the decision to sell or to continue the campaign • On the day of auction - A sale under the hammer is usually at an excellent price - A sale under the hammer is unconditional and on your terms and conditions - The reserve price is always determined by you, the vendor, often on the day or the day before the auction, with the benefit of the market feedback obtained during the campaign. • After auction - Many unconditional sales are negotiated immediately after auction with buyers who may not have bid but were drawn out by the fixed date of sale. - This is also the time that the “subject to finance” and “subject to sale” buyers have their opportunity to forward offers.
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marketing and services Below is an outline of the marketing and service options we offer and implement. These will be explained to you in more detail at the appropriate time. Should you require something that is not listed here please let us know. Newspaper Advertising
marketing
By Agreement
The Mercury Real Estate Guide is the prominent marketing tool employed in the Hobart Real Estate market. Attractive, high impact advertisements will be professionally prepared for The Mercury Real Estate Guide, which is distributed each Friday. Arrangements can be made for interstate and intrastate newspapers if required.
Internet Display
You have the opportunity to list your home on the national Raine & Horne internet site along with the major national site of realestate.com.au The internet provides access to not only local and national markets but to international markets as well. You can visit our sites at www.rhtas.com.au, www.realestate.com.au, www.homehound.com.au and www.realtyonline.com.au Properties are upgraded to “feature properties” dependent upon availability.
Virtual Tours
All properties listed with Raine & Horne Hobart will be featured in a virtual tour series of interactive photos on all associated web sites. Recent research has established virtual tours as the most popular form of viewing property on the Internet. The technology provides a virtual walk through on a room-by-room basis and allows the viewer to navigate around each featured room individually.
RH Compass
Another technological advancement in Real Estate practice within the Raine & Hone Group has been the introduction of our “Web based” data base system, Nationally known as RH Compass. The system provides the capacity to keep in touch with both buyers and sellers via email, text messaging, mail and telephone in an organized and effective way not previously possible. RH Compass completes the loop by also linking your property into the system, giving your agent all the information he or she needs to keep you up to date at their fingertips day and night along with buyer matching facilities.
RH Mobi
An Internet site designed for people on the move. This specially modified Raine & Horne website allows potential purchasers to access the site and view your property on their web enabled mobile phone anywhere, anytime. A real must in today’s world where the mobile phone is fast becoming the computer of choice.
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Signage works 24-hours a day, 7 days a week. People wanting to buy in a particular area often drive around searching for properties for sale. Raine & Horne Hobart signs are highly visible and could STANDARD very well find “The” buyer for your property. PHOTOBOARDS Our high quality photo boards are also available and are the most appropriate for some properties.
marketing
Signage
Banner
An important part of the overall signage, banners help to draw attention to your property.
Brochures
Quality A4 brochures with colour photographs and an outline of the property are produced and distributed at Open Homes and throughout our Raine & Horne office network as well as in other target markets.
Photographic Window Display
Colour photographs of your property, along with its selling features will be displayed in the window of our centrally-located offices at 175 Collins Street, Hobart.
Photography
We will take high quality photographs of your property to be used in various stages of the marketing campaign. Should you have a preferred or favourite angle, please let us know.
Aerial Photography
We can arrange for professional aerial photographs to be taken anywhere within Tasmania to be used in marketing material to highlight your property.
Floor Plan
We can arrange for a qualified draftsman to inspect and measure your property and produce professional floor plans and layouts to assist prospective purchasers.
Editorial – Real Estate Guide
Subject to the availability of editorial space (a matter outside the control of all estate agents), a request will be made to include the property as an editorial feature in an appropriate issue of the 'Mercury Real Estate Guide'.
Current Clientele
Our clientele is drawn from a large base – locally, nationally and internationally. Many qualified buyers have registered their interest with us for certain types of property and we will endeavour to match these buyers with your property.
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Open Homes
Many purchasers prefer the ease and relative anonymity of “shopping� at open homes and the market, to a degree, has become used to this form of inspection. We like to conduct open homes (subject to your approval) to ensure that your property receives maximum exposure. This gives you the opportunity to present your property at its very best and buyers time to inspect without the feeling of intrusion. Having potential buyers inspect your property at the one time can also help in creating a sense of urgency to buy. Visitors to your property will be followed up and their comments relayed on to you.
marketing
Neighbourhood A friend or relative of your neighbour may be the ultimate purchaser of your property. Neighbourhood Awareness circulars will be delivered around your property to let those in your vicinity know that your home is for sale. Referral Network
We have an extensive referral network system operating within Tasmania, throughout Australia and across the world.
Sales Team Inspection
Our full sales team is provided with a detailed information sheet on your property, which includes inspection arrangements and all will inspect the property as a group once instructions for sale are received.
Individual Sales Inspections
The members of our sales team are all likely to conduct individual inspections during the course of the marketing programme with prospective purchasers from their existing client base or from new enquiries.
Sales Reporting
Our sales team meets weekly to discuss the marketing of all properties listed with our firm and you will receive constant feedback and progress reports advising of inquiry, inspections and interest in your property.
Contract Preparation
When an offer is made on your property we will prepare an official Law Society contract to be signed initially by both the vendor and the purchaser upon agreement of terms. Once the sale is finalised a certified copy of the agreement will be forwarded to the vendor, the purchaser and both parties’ solicitors so the transaction can be carried through to settlement.
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fees Our fee structure is designed to be fair and to provide you with a clear understanding of all Real Estate Agency costs associated with selling your property. It is our policy to assist our clients by sharing the not inconsiderable expenditure involved in the effective marketing of their property. A copy of our standard scale of fees is attached. This scale encompasses all real estate agency costs associated with the sale, including marketing up to $1,900.00. Assuming we sell the property within our agency period • We will absorb all marketing and promotional costs, up to $1,900.00, within the appropriate scale fee provided. or, If your property is not sold, • We will share the expense with you. You will be invoiced for only one half of the actual marketing expenses incurred within the allocated maximum of $1,900.00. Marketing campaigns exceeding the above amount are common and we are happy to customise a programme to your requirements under a separate agreement. Other costs you may encounter during the process include solicitor’s and removalist’s fees and perhaps some costs associated with maximising the presentation of your property. Stamp duty on the sale of Real Estate is the responsibility of the purchaser.
fees
N.B - All our fees are GST inclusive.
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why list with me? As an experienced and successful Real Estate specialist: • I understand my obligation to communicate to you the market feedback on your property, be it good, bad or indifferent and to provide frank and sound advice that will enable me to achieve the best possible outcome for you. - I will keep you well informed of progress and up to date with feedback from inspections and open homes enabling you to make informed decisions as required. - If you have a preferred method and frequency of communication be sure to let me know. • I am a full-time Real Estate professional, dedicated to providing service and achieving the best results for my clients. • I am backed and supported by the expertise and enthusiasm of a professional and energetic sales team with a reputation for high standards and results.
why list
• I can be contacted by you, and by buyers, seven days a week meaning opportunities will not be missed. • I am a skilled negotiator committed to achieving the best possible price. I will not compromise myself, or the sale of your property. Nothing a salesperson can do can compare with ensuring that a buyer’s final offer is the absolute best they can make.
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why an exclusive agency? The relationship between agent and vendor is a reciprocal one. The vendor is dependent upon the agent giving their best while the agent requires the confidence and support of the vendor to enable them to give their best. Under an exclusive agency agreement: • The vendors’ commitment to the agent makes it a viable business decision for the agent to fully mobilise their time and resources toward the success of the sale. • Agents are able to design, place, coordinate and control the delivery of the adopted marketing strategy with the appropriate time frame in mind, to the best advantage of the property and the vendor.
exclusive
• One sign, one newspaper ad and one internet listing give your property an exclusive profile and do not risk giving the impression of desperation or that the property has been difficult to sell. • Your agent is able to give you the consistent, unbiased and honest feedback that you need to enable you to make the right decisions as required. - Unfortunately in many open agency situations selling the property before the others can become a priority, rather than achieving the best possible price. Agents can be more concerned with promoting the offer of their own buyer to the detriment of the ultimate price for your home. • Vital negotiations and some orchestration, particularly when one or more offers are involved (we encourage multiple offers), can be managed more effectively towards maximising the final sales price.
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general presentation hints A property that shows well, sells well. Remember that first impressions are important. If a prospective buyer finds minor faults, he often goes looking for major ones.
presentation
Check for leaking taps, grouting missing around bathroom and kitchen tiles, torn screen doors, sticking doors and windows, loose cupboard handles, as well as other highly visible items that need attention. Keep the place tidy. This doesn’t mean that you have to turn your property into a show home but a few considerations will help: - Keep the lawn and garden tidy. - Neat cupboards look much bigger. - Remove all unnecessary items from the garage and other storage areas. If you have been meaning to take a trip to the tip, do it now. - Remember the bathroom. Bright and clean bathrooms add greatly to the attractiveness of your home. - Kitchens are important. This is the focal area of your home. Bright, airy, organised kitchens can assist greatly in the sale. Put away all appliances for the time being. - Turn down the television set and the radio. - Replace any item not included in the sale. If you intend to take the chandelier in the hallway, or the drapes that match the bedspread in the bedroom, it is a good idea to replace them before the property is shown. Many sales are lost over arguments about inclusions. - It makes sense to keep the walkways of the house clear to enable easy access for the prospective buyers. - Let there be light! Open the drapes during the day and in the evening turn on the lights. - Let the summer breezes through on hot days and have the house warm in winter.
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presentation
Who doesn’t the buyer want to meet? • Keep pets out of the way (particularly dogs). Not only is “Fido” jumping and barking not a big help, but some people just don’t like pets. So why risk it? • Don’t lose your own sale. Where possible, the home should be vacant during an inspection. Having the owner present may make the buyer feel like an intruder. He will be reluctant to reveal his true thoughts and probably be anxious to move on. - If you really are unable to leave the house, after introductions it would be wise to busy yourself somewhere else in the house. - If you are home, don’t apologise for the property’s appearance. Buyers understand that the home must be lived in and apologies draw attention to any faults. The art of salesmanship involves knowing what to say and when. Don’t expect a ‘hard-sell’ approach. An experienced salesperson knows this is not the way property is sold, understands the psychology of real estate and will identify the ‘right’ buyer for your property. Buyers’ Most Common Dislikes • The smell of cigarettes - If you or family members do smoke, we suggest that for the marketing period and as long as possible beforehand you make a point of smoking outside and airing the property as often as possible • Pet Litter Trays - Not always possible to remove, but if not, place them in the least intrusive place.
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how it works
the sale process Appraisal
Photography
List For Sale
Brochure & Window Cards
Finalise Property Presentation
Sales Team Inspection
Commence Marketing
Database Notified
Sign & Banner
Internet Display
Enquiries
First Inspections
Real Estate Guide Adverts
Open Homes
Feedback
Second & Third Inspections
Unconditional Contract of Sale
Negotiation
Conditional Contract of Sale
Solicitors Notified
Conditions Approved
SETTLEMENT
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