11 ways to sell your home for more…
11 WAYS TO SELL YOUR HOME FOR MORE
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ontents
Introduction
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How to select the right agent to sell your home
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Don’t assume that bigger or older is best
6
Achieving an accurate market appraisal
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Agents who over price to win a listing
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Why is pricing my home so difficult?
10
Agents who discount their commission
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Presenting your home to attract the right buyers
12
Why the current marketing of your home is ineffective
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Is your agent utilizing all forms of media to sell your home
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Does your agent understand the buyers well enough?
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In conclusions
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Your next step
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11 WAYS TO SELL YOUR HOME FOR MORE
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This book is intended for the property owners whose:
1 2 3
Most urgent needs is choosing the right agent/agency to list their property to sell with Who wish to sell for market value or more Who value an “insiders” viewpoint of the traps to avoid when selling their homes
In a hot market it is easy to sell a property for a premium, buyers are literally queuing at the door, and whoever is prepared to pay the most for a home ends up buying it. Frequently buyers will purchase a property without undertaking a building and pest inspection or having done much research on it. In a slower market a buyer has more time to make decisions and can often deliberate over several properties for a period of time. It is in this type of market that a good agent with strong negotiating skills can make the difference in achieving thousands of dollars more for your home. An agent’s job is to negotiate with buyers, encourage them to make decisions and most importantly to present your home in its best light. The book will provide you with a closer look at the areas where sellers come unstuck, “lose” money or waste time. The strategies I recommend have been refined over time and thoroughly tested. They work – experience has proven this. It is my hope that the following information will save consumers thousands of dollars, whoever they sell their home with.
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HOW TO SELECT THE RIGHT AGENT TO SELL YOUR HOME These days there are so many Real Estate Agents, that it is difficult to know where to start, In order to narrow the selection process some venders use the phone in an attempt to short list 2 or 3 potential agencies. Usually the aim of this process is to ascertain what fees agencies charges and if they are flexible on their fees. Below I have outlined an alternative strategy that you may want to consider….
• “How will you promote my property and how will you get me the highest price?” • “What value adding services do you offer?” (e.g. property styling) • “Do you offer a Service Pledge or Guarantee? What is your undertaking if I need to enact them?” • “Tell me about your experience and success selling similar property to mine”
D O N ’ T A S S U M E T H AT B I G G E R OR OLDER IS BEST Some Real Estate offices proudly promote
In the case of SIZE, take a national franchise
themselves as being the biggest or having
brand.
been in the area for the longest.
There are many of them. It’s true that they may offer a good all round level of service
in fact independently owned?
Start interviewing 2 or 3 different agencies,
Finally, ask them to give you an appraisal in
just like you would a new employee. I
writing by way of a “Comparative Market
recommend that you shop around, but not
Analysis” (CMA). This document includes
on price.
similar properties that have recently sold
Rather, you need to ask some key questions
and is an indication of how well the agent
“List with us, we’ve been around for 30 years”
understands the market.
That advertising is okay. But to assume that
Try not to compare home’s value against
means they are the best choice could be a
that will reveal much about their business practices and commitment to you before proceeding any further.
(but so will a well run boutique agency). But did you know that most of these offices are Different offices in a franchise chain are
what other home’s value against what other
costly mistake.
homes in your neighbourhood are being
This form of self –promotion is designed to
another. Certainly this can be true in the case
advertised for. Instead understand what
engender a feeling of security. Size=Success
of the same franchise branded offices in
prices homes are actually selling for.
or does it?
neighboring suburbs.
often, in reality, in competition with one
THE KEY It’s important that you feel 100% comfortable with the agent you choose. Choosing an agent to sell your property will have a lasting impact on your future. You owe it to yourself to undertake sound research and choose wisely. 6
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For example, a national brand located in
Longevity and age counts – if you’re the
Graceville, views the same national located
vendor, but what about the buyer?
in Cairns City, views the same national brand in the Northern Beaches as a genuine competitor. They don’t help each other to sell the other agency’s listings. For all intent and purposes they are entirely independent agencies fighting for market share.
“Age/size means “safe” – or does it?
The problem with choosing an agency simply
There’s no doubt an agency or individual agent who has been operating in the local area the longest has certain appeal to local home sellers. There’s a degree of comfort when it comes to dealing with the familiar. But does that appeal and comfort automatically extend to your buyer? From the buyer’s viewpoint, age of agent/ agency is simply irrelevant. They’re more
due to their BIG size is that they often have
interested in how they are going to find their
a numbers game culture. Selling real estate
next home.
can be for them little more than a game of
With the advent of the internet, buyers are
volume sales. Customer satisfaction levels come a distance second to volume. If you want quality advice, exceptional marketing and the peace of mind that comes from knowing that the agent views you as something more than a number, then consider the more boutique agencies. It’ll be the agency building their business on reputation and customer satisfaction – and not just fat profits from a mass market, high volume approach, works with fewer clients and therefore has the luxury of working
no longer reliant on an agent’s help. They can easily find property(anywhere) using the internet. They long on anonymous, provide their search criteria and sit back and wait for regular email notifications of newly listed properties that match their criteria.
A C H I E V I N G A N A C C U R AT E M A R K E T APPRAISAL Once you have decided on 2 to 3 agents to
don’t know what they’re talking about and
interview, they will present a market appraisal
won’t try hard enough for you!
of your property or market opinion.
So you’re told that the agent “in the
Market opinions can vary significantly,
middle” is the best bet.
dependent on the experience of the agent
However this strategy also assumes all three
and the market of the time of selling.
agencies offer a comparable service and are
Often I’ve heard friends and neighbours
similarly placed in the crucial skill set areas of
recommending that the best way to choose
marketing and negotiating.
an agent is to obtain 3 “Marketing Appraisal”
Of course, nothing could be further from
The lesson here is to choose an agent who
with the aim of choosing the agency that
understands the habits of today’s buyer.
offers you the middle price!
Sometimes the older agents/agencies are
This theory suggests the ‘middle price’ is
to the “under selling” or “over selling” of
supposedly more on the mark’ than the other
your property and the loss of thousands of
two agents. This is because, according to
dollars.
stuck in the past. They haven’t updated their
harder for you to deliver the results you
skills or systems to service the needs of our
expect and deserve.
modern buyers.
the truth! Choosing an agency using this strategy is potentially fatal. It could easily lead
their thinking, the agent who quoted the highest price is “buying your listing”; and the
THE KEY
Biggest isn’t always best. “BIG name” real estate offices are actually individually owned. On the other hand a customer care focus agency must generate consistently high levels of customer satisfaction as they live or die on referrals and repeat business. Agencies of the “new school” style will be technologically savvy for today’s online 8
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lowest priced quote is given by someone buyer. And have the luxury of being able to treat every client and every property with the individual attention they deserve. And that translates into these types of agencies going the extra mile to ensure you, as a seller, achieve the highest possible price for your property.
who simply doesn’t know what they are doing or are lazy! In other words, the agent with the highest quote has told you that your property is worth a price they hope you’ll find irresistible. What about the agent who quoted the lowest
THE KEY
Choosing any agent based on purely the basis of obtaining three quotes and then going with the ‘middle ground’ quote can cost you dearly- in time and money. There are other, more important criteria to consider when choosing an agent.
figure? Well, the theory goes that they simply 11 WAYS TO SELL YOUR HOME FOR MORE
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WHY IS PRICING MY HOME S O D I F F I C U LT ? Similar properties don’t often sell for similar
If this happens an agent will have each buyer
prices.
sign a “multiple offer acknowledgement’. This
That’s because there are 5 key factors that have an effect on the sale price of a
AGENTS WHO OVER PRICE TO WIN A LISTING It’s often a mistake to list your home with an
If your home is correctly priced it will make
agent on the basis that they’re the highest
buyers feel they need to snap it up before
bidder. While it’s true that you can always “come down”, there are many factors to take into account. Firstly, the market is always looking for new listings. This means that for the first few weeks your home is on the market, it will generate more inspections than at any other time. All the buyers in your price range will rush to see your home. Those that have been looking for some time are the ones who have done their homework and are ready to buy now. But they will also be the
someone else does. However if the price is too high, they feel no such sense of urgency. Just as sellers take the attitude “we can always come down” buyers think they will wait until the price drops. You’ll often find
property. They are:
1 2 3 4 5
Motivation of the seller Motivation of the buyer The market at a micro level Quality of the marketing The agents negotiating skills
In the early weeks of marketing, competition
your property stays on the market, the more
property.
that buyers feel they have negotiating power.
sold in Mooroobool, within 4 weeks of listing the property, we had that much interest we actually changed the price strategy and increased it. I had two conditional offers and one unconditional offer on the table. The property went unconditional after being on the market for only 28 days. The price valuation and all the other buyer feedback.
offers on your property, as they won’t want
Interestingly enough the house further down
to miss out on it, owing to competition from When price for a property is set reasonably
most aware of the true market value of your
This was the case recently with a property I
is when genuine buyers will make the highest
$400,000 when first placed on the market,
or more months. That’s because the longer
chance.
achieved for the home was above the market
other buyers.
$380,000 after being on the market for three
offer first as they may not receive a second
for your property is at its most intense. This
that a property that could have achieved may become ‘stale’ and sell for only
encourages the buyers to make their best
close to market value motivated buyers tend to act more swiftly are in fact less likely to submit low offers as they feel the threat of missing out on the property. When a property is overpriced the reverse
the road was for sale at the same time, but with another agent. It had been on the market for 35 days prior to this house being listed and remained on the market for a number of weeks after my property had sold. Even though it was in better condition it had an extra bedroom it sold less than my property.
happens – you’ll either receive no offers at
THE KEY
all, or they will be very, very low offers.
The key to selling sooner and for more, is
can actually push up the price of your home
pricing to market which attracts early offers when interest is high.
Pricing your property close to market value and create an auction like effect - which helps you sell your home faster. This is the result of two or more buyers vying for your property.
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THE KEY Before you can make an informed decision about what price you can list or sell at, you need to understand that motivation, marketing and your agent can have a positive or negative effect on the outcome of a sale. 11 WAYS TO SELL YOUR HOME FOR MORE
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A G E N T S W H O O F F E R T O PAY F O R YOUR ADVERTISING The idea that a real estate agency will cover
ad campaign is, the greater is the agent’s
the cost of your advertising and marketing
motivation to get the property sold – but only
expenses sounds great. However, there are
so that they can recoup their investment.
a few key things to carefully consider before
As long as they get the property sold (after
you jump with this ‘offer’.
all, who cares what the price is!) the agent’s
There are the obvious questions
investment is repaid.
Who’s taking the photos of your property
Their advice to the seller to accept an offer
when advertising is ‘free’? Will they provide a
– almost any offer – may well be tainted by
virtual video tour and a floor plan, which can
their vested interest?
have the effect of quadrupling your number
The other subtle but insidious ploy of the
of buyers clicking to view your property on the internet and? If advertising, photography, brochures and websites are ‘free’, how can they ever hope to realistically do your property justice in order to sell your home?
agent that offers free marketing is the use of “GUILT”. In the highly likely chance they have not sold your home in the 60 days they are exclusive with you, they will leverage the fact they paid for the advertising to get you to extend the agency for another 60 days.
ASK YOURSELF THESE QUESTIONS • Would you like to achieve the very highest price for your property? • Do you want several buyers competing against each other to buy, or just one offer? • Which is more important – saving a few thousand dollars in the short term or investing in advertising with the potential of selling for many thousands of dollars more? • Do you want your agent to be concerned about recovering their advertising money – or about getting the highest price? • Would you be prepared to invest, say $1,000 now to gain, say $5,000 in two months? • Do you Really thing that a real estate agency can honestly afford to give your property the exposure IT DESERVES at their expense?
A more serious and sinister effect of ‘free’
By using guilt they make you feel obliged
advertising is the vested interest the agency
to extend for another 60 days. You have
will have in the sale of your property.
effectively lost control of the sale of your
WARNING: AGENTS WHO OFFER SO-
An agency investing their own money to
home. This is a tactic that comes into play
CALLED ‘FREE’ ADVERTISIGN ARE
sell a client’s property will be motivated
later in the program that you would never
HIGHLY LIKELY TO BE UNDER-SELLING
to recover its costs. The larger the ‘free’
think of.
YOUR PROPERTY!
THE KEY
Pay for an agent and agency based on their level of service, advice and commitment to getting you maximum results, and not on them effectively ‘buying’ your business by offering to place your ads supposedly ‘no charge’. The level of service you receive is far too important to your future. 12
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AGENTS WHO
PRESENTING YOUR HOME TO AT T R A C T T H E RIGHT BUYERS
DISCOUNT THEIR COMMISSION Choosing an agency based on whether
World class property photographs and virtual video tours will make buyers of your
they discount their commission is fraught
property salivate at the prospect of owning
with danger because there are so many
it, but the accompanying words are the
other important considerations to take into
herbs and spices that flavor it exactly to their liking.
account when selling your property.
A picture is worth a 1,000 words, a video
Do you know what the single, most
tour is like being there in person and can
dangerous thing is about choosing an agent
make the difference of rushing to view the
who’ll discount their commission?
property or putting it in list with the rest of the properties to view this weekend or not
What do you want your agent to do when it
even viewing the property. Virtual Video Tours make it possible for overseas buyers,
comes to negotiating the sale price of your
interstate buyers and mining buyers to
property with a potential buyer?
purchase a house sight unseen. It helps to
Frankly, you want them to hold their ground
draw you into the home and makes you feel
– to sell your property on its features and
like you’re actually experiencing it.
benefits and get the maximum price they
Can you afford not to make your property stand out and appear more desirable then
can.
other competing properties on the market?
Do you really think an agent who’s prepared to negotiate their commission before they’ve even listed your property is going to be able to negotiate strongly with a potential buyer? What you save in commission may cost you in sale price of your home. 14
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THE KEY
The agents who are quick to discount their commission are often quick to discount the sale price of your home.
THE KEY
SHOW great images, USE the virtual video tour and TELL a compelling story. Make it easy for your prospects and you’ll SELL your property sooner and for more. One of the best and least expensive investments you can make is investing in professional photos and virtual video tours. 11 WAYS TO SELL YOUR HOME FOR MORE
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WHY THE CURRENT MARKETING OF YOUR HOME IS INEFFECTIVE When it comes to selling your home, it is
Strong visual imagery may be the difference
essential that your agent makes the best use
between a prospective buyer deciding to
of all the marketing resources available.
look at your home or the one down the road.
A good agent will develop an integrated
If you are promoting your home on the
marketing strategy for your property, to target
internet it doesn’t cost any extra to have 2 or
as many potential buyers as possible. Be aware that the strategy is slightly different depending on whether you are going to auction your home or sell it as “private treaty”. A well run auction campaign has a higher level of intensity. As it is run over a 4 week period it is essential that an intense marketing campaign kicks off with the first week of your property being on the market.
10 images featured. It does however make a difference to a potential buyer, it they can see the layout of the bedrooms, bathrooms and kitchen etc. Good photography also sends a message about your home – great imagery creates a greater sense of desirability which has the potential to add perceptive value to your home.
Newspaper advertising
them in a different way than the internet. Newspapers offer the opportunity to browse ‘the marketplace” over a coffee often on a Saturday morning before attending your open home. What is important with newspaper advertising is to ensure that it promotes your home, and does not become a billboard for an agent/agency wanting to promote their
Photography
Newspaper advertising is very effective. While
brand.
many buyers like to browse the internet,
Don’t under estimate the importance of good
there are still a large number of potential
Your advertising budget will also be
photography in promoting the benefits of
buyers who sees the greatest value in your
your home. Like it or not, first impressions
property (and therefore will pay the most) and
count they get of your home.
newspaper advertising allows us to target
dependent on the speed in which you need a sale. If you need to sell in 30 days consider a greater advertising budget which will have a larger reach in a shorter period of time.
The key Choose an agency that has a well rounded advertising campaign. Ask them how they have promoted similar properties. Get them to show you examples of their photography and advertisements so you can get a true sense of how an overall campaign will work. 16
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IS YOUR AGENT UTILIZING ALL FORMS OF MEDIA TO SELL YOUR HOME? Queensland is one of the fastest growing
Strong visual imagery may be the difference
states, and has grown by 11.5% in the
between a prospective buyer deciding to
last 5 years (2011 census data). Many
look at your home or the one down the road.
potential buyers are moving from overseas
Buyers want to gather as much information
or interstate and are therefore looking to alternative sources such as property video’s, virtual tours, floor plans, photos’ etc to gather as much information as possible about your home.
on your property as they can. They want to see images of kitchens, bathrooms, backyards, swimming pools etc…remember they are buying a lifestyle, not just the front of a house. However there is also a fine
Choose an agent who totally understands
balance-you want fewer, high quality photos
how to position your property in front of
which entice buyers to want to see the
buyers by using a variety of resources to
property so they get a feel for the lifestyle
ensure it’s seen by the maximum number of
opportunities it offers.
the right people.
Signage
Photography
Signage outside your home works very well,
Good photography is one of the greatest
providing it promotes your home, and all the
investments you can make when selling
lifestyle benefits it offers. Buyers who enquire
your home. Buyers are savvy, and first
about properties after they discover them
impressions count. Buyers will make a
from For Sale signs are very strong prospects
decision on whether to click on your home
indeed. This is one of the reasons why it is so
or move to the next one very quickly.
important to have signage that promotes all
the benefits of your home. Be wary of agents
property. A detailed plan shows the layout
who use the sign outside your home to
of your home and also where your home
promote themselves and their business, this
is positioned on the block. Immediately
will not sell your home or attract buyers.
buyers can see the flow of a property, how
Open Homes?
they might fit their furniture into it, and what
A well-run Open home that’s held with security measures in place and professional
changes they may make immediately and in the future.
agency personnel on site is often a great
Additional Media Opportunities
way to introduce buyers to your property is
In this media savvy world there are many
available for prospects to see it. When well
other ways of promoting your home, all
promoted, potential buyers can see that
which add reach for minimal cost-look
your home is in demand from a competitive
at your agent’s website. Do they use
marketplace too.
Face book, QR codes where buyers can
Videos
experience a virtual tour of your property
A 75 second video captures a buyer’s attention and draws them into your home. It allows them to “experience” your home. It allows them to “experience” your home and visualize many of the specific details, especially the flow of the house and some
immediately? Some agents have a newsletter where they promote properties to their local area. These are all additional services that your agent should provide to maximize exposure to buyers.
of the features of the local area. For buyers who are unable to visit your home it is a very powerful selling tool.
Floor plans An indepth floor plan provides a potential buyer with very useful information on your
The Key You can’t sell a secret. So if you want to sell your property successfully – you can’t afford to whisper. You need to shout from the rooftops! 18
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D O E S Y O U R A G E N T U N D E R S TA N D THE BUYERS WELL ENOUGH? In the negotiation process, an agent’s
negotiation process because it is easier that
objective is to control the pace and set the
way.
The key
duration. So its vitally important that they have
These agents feel they have a better chance
Choose an agent who you can trust to build a natural
information such as:
of earning a commission if they support the
rapport with potential buyer, so that they’ll learn their
• What is your buyer’s motivation?
buyer’s view of the price. We call this “Vendor
• Does he/she need to move quickly?
Bashing”.
• Does he/she have enough money to pay
Only an agent who is acting in your best
You should feel comfortable that they are strong
interest as the property’s seller will be able to
enough to use their understanding of buyer’s
your asking price? • Is the buyer educated to the market? How many properties have they inspected and how long have they been looking. Knowing this kind of information gives the agent the upper hand in the negotiation because you know how far you can push to get what you want. Unfortunately, many inexperienced agents just don’t understand that knowledge of your buyer’s circumstances provides more
negotiate successfully without compromising the best possible outcome for you. Ask a prospective agent how they would deal with any offers below your expectations and listen carefully to how they answer you. It’ll speak volumes for how they’ll be dealing with potential buyers of your property.
motivations for buying.
intentions to negotiate the sale on your behalf for a premium price. That way, in even difficult circumstances, for example the sale of a vacant property, the agent who understands buyer’s motivations can literally make you thousands of dollars more than an agent who doesn’t because they’ll have control of the negotiating process.
negotiation power. Also, I think often the inexperienced agent will tend to gravitate to the buyer’s side during
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IN CONCLUSIONS No surprise. Finding the right agent to sell
needs of modern buyers and sellers; a buyer
your home is fraught with danger, and has
who surfs the internet and newspapers and
potential for costly mistakes. The truth is that
is market savvy, and a seller who is tired of
all professions have mediocre practitioners. As you’ve read, in this regard real estate is no different.
The good news is that there
are agents and agencies that are ethical and
ineffective advertising and complacent agents who promise the world and in reality deliver very little.
the information within the pages of this book
“Selling your home is fraught with danger”
you’ll be well equipped to now separate the
Our modern media rich world has changed
provide a professional service. Armed with
good from the bad. By following a logical selection criterion and thoroughly interviewing an agent’s claims, you’ll find discovering the right agent isn’t as difficult as it seems. As you will have noticed after reading the
the landscape of the real estate market. The internet has changed the way that buyers find their next home. It has opened the door to agents to service much larger territories than ever before. If you can choose an agent that has embraced
notes, We have a bias toward cost effective,
all of these changes then I guarantee you will
quality innovative marketing. It is nothing new,
be taking a step in the right direction in finding
but comes out of our desire to service the
a brilliant agent to sell your home.
YOUR NEXT STEP Grab a complimentary Agent Selection Questionnaire
You are putting what is likely to be your single biggest asset in the hands of an agent. Don’t risk losing thousands – use our detailed questionnaire to help in the selection process. The questionnaire will help you ask important ‘must know” questions, that will help you properly “interview” the agents. Don’t feel embarrassed or intimidated to ask these questions. An agent who is confident of their abilities will only be to happy to answer all of you concerns.
hat the questionnaire will help W you do…
• How to ask the right “need to know” questions • Determine how skilled your agent is at negotiation • Find out the depth of your agent’s marketing abilities • Assess how your agent performs under pressure • What strategy your agent will use to handle buyers • How your agent will communicate with you
Simply email “Send Questionnaire” You will receive a copy within 24 hours Note: If you want it posted please text/email postal address M : 0428 338 828 or 0412 962 546 e : info@onestopproperty.net.au f : 07 4051 4111 22
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Cathy Obersky M : 0412 962 546 E : cathy@onestopproperty.net.au Nickoli Obersky M : 0428 338 828 E : nickoli@onestopproperty.net.au 24
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Office Location Ground Floor Suite 11, 19 Aplin Street, Cairns QLD 4870 Postal Address PO BOX 5550, Cairns QLD 4870 P : (07) 40 513 111 F : (07) 40 514 111 www.onestopproperty.net.au