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How to Choose the Right Listing Agent to Sell Your Home

Home sellers commit the biggest mistake in choosing their listing agent when they base their decision on just two criteria: the highest list price for the home and the lowest commission.

On the surface, those two are good criteria because any home seller would want to aim for those things. However, they have very little to do with hiring a listing agent and is irrelevant in many ways. Here’s why:

 

The Highest Recommended Selling Price

The truth is agents can’t tell you the amount your home will sell for. They can provide you with data on comparable sales, pending sales and active sales. However you decide on  the sales price and whether it’s the right price is up to the buyer. An agent can give a suggested listing price, among other things,  that will attract buyers. How it moves forward is up to the buyer and how well your agent negotiates with them.

Choosing a listing price may sound frightening but it is possible for you to choose the right listing price. You have to do your research and work with a reliable listing agent.

Here are some things you may consider when looking for a listing agent:

  • Agents don’t have crystal balls but can provide you with a realistic price where your home may sell.  Beware of the agent who suggests the highest listing price …. Ask the agent to provide you with data supporting the recommended listing price – they must provide you with evidence. If they can’t or if the home sales are in a different suburb you probably should be aware.
  • You can trust a listing agent that provides you with a range of prices. This range cannot be greater than 10%. This number is determined by several factors, including location, the features of the property, the temperature of the market, the condition of the property and upgrades in the property.
  • There is an art to pricing. A home that is priced right will get multiple offers if the buyers are active in the market. If the price is a little high then the offers that come in may be lower than your expectations. If the price is too high, then you run the risk of no one showing up to inspect and you’ll then be forced to lower the price, leaving buyers thinking what flaws your house may be hiding.

Choosing a Listing Agent Based on Commission

Despite what you may think, each real estate agent is unique. Each has their own marketing and advertising methods. By hiring a listing agent and selecting an advertising budget your home will be seen by a large number of buyers. This is good, because the greater the number of potential buyers reached, the higher the chances of your house getting a better offer.

There is always a reason why a listing agent would work for a cheap fee. It might be they’re desperate for business, they may be inexperienced, lacking confidence or they may be pressured from their employer so they can hit their KPI’s keep their job. Find out why they are willing to be cheap before committing to hire an agent.

 

Why is Marketing Important?

The property marketing of a home is the most important thing to consider when selling your home.  If you don’t get the buyers there then in the first place, then it won’t matter how good or experienced your agent is when it’s time to negotiate.  Make a request to take a look at the agent’s marketing strategy. Make a point to ask what the agent’s strategy is for selling your home.

Here are a few marketing techniques you should expect:

  • Professional signage – including the agent’s contact number
  • Digital targeted marketing
  • Ads in local magazine
  • Multiple listing service
  • High definition video presentation (not slides to music)
  • Distribution to major websites
  • Full-colour brochures
  • Floor plans with dimensions
  • As many open homes as needed (not limited to two)
  • Directional signs for open homes
  • Direct mail to nearby suburbs & out-of-area buyers
  • Feedback phone call to sellers on every buyer inspection
  • Follow-up reports on buyers inspections detailing feedback in writing
  • Email feeds of new listings that compete
  • Updates on neighbourhood facts, trends and recent sales
  • Note that no single marketing technique works; it’s a combination of these techniques that sells properties.

Good Listing Agent Characteristics

It’s important to have a good working relationship with your listing agent. Here are some of the qualities you should look for in an agent:

  • Relevant education – Are they a Licensed Agent or an Assistant Real Estate Agent (who hold a certificate of registration only)?
  • Experience in marketing homes – Having a diploma in marketing is a huge advantage
  • Excellent negotiating skills
  • Results – What is the average days on market?
  • Results – What is the average percentage over the asking price obtained?
  • Transparency
  • Wide network; contacts with other agents
  • Excellent communication skills

Lastly, request for a personal guarantee. Look elsewhere if the agent refuses to provide a guarantee of performance letter.

 

Here Are 7 Tips for Finding the Right Property Manager

 

When you have spent practically all your life savings to buy an investment property, you’d want to make sure it will be professionally managed to maximise returns and minimise stress. You have the choice of managing your rental property yourself, but a lot of investors choose to hire a professional property manager.

How do you find the right property manager? Here are some important things to keep in mind during your search.

  1. Search locally

Local knowledge is essential in the property market. Hiring a local property manager gives you numerous advantages, including knowing how to attract tenants, setting the rent at the right price, and having contacts with reliable tradespeople.

  1. Find information

The worldwide web can give you plenty of information about local property managers. Check out online customer reviews of property managers to get honest opinions from other investors. You can do your research using these resources: Google, real estate websites, productreview.com.au and rent.com.au.

  1. Trust word of mouth

The best way to find the right property manager is by word of mouth and feedback from past customers instead of through marketing or ad campaigns.

  1. Make enquiries

You may find a property management company to be excellent on brochures or on their website, but you still have to ask some questions to see the company beyond the PR spin. Here are some of the questions you can ask your prospective property manager:

  • What are your qualifications?
  • How many properties does your company manage at present?
  • How many properties are assigned to every manager within the company?
  • What is your commitment to best practice?
  1. Ask what services they offer

Each property manager is different, and not all will offer similar services, so you need to know what services you will be getting from the company.

  1. Compare communication

Your property manager should communicate with you at all times, whether to tell you of necessary repairs, provide you with a shortlist of prospective tenants, or simply to touch base with you. The property manager you should choose is one whom you can easily reach and keeps you updated all the time.

  1. Consider the expenses

Any cost related to an investment is always going to be a major factor, but it should not be the only thing you should consider. The old saying “you get what you pay for” is relevant when it comes to property management, so don’t prioritise cost too much over other considerations.

Make sure you’re getting your money’s worth

The calculations for the overall success of your investment should include how much you’re paying in property management fees. Depending on the state or territory where your property is located, a property manager’s fee is typically a percentage of the rent, such as 8% or 10%.

It will benefit you to regularly check your property management services to make sure your investment property is receiving the care and attention it deserves. Getting in touch with your property manager regularly for updates will help you determine whether your investment is being prioritised or not and ensure that your property manager remains focused on helping you make the most of your property.

If you’re looking for a professional to look after your property, do your research and shop around. Your investment could fail if you choose the wrong property manager. But if you make the effort to find a good property manager, you can watch your wealth grow without lifting a finger.

 

 

Why the Real Estate Franchise Model is Broken

Breaking away from considering the big real estate franchise model is one of the smartest decisions you can make when thinking about who to sell your home!

Since the invention of the internet, long-established real estate franchise groups are no longer the be-all and end-all they once were.  In fact, some might say they are actually becoming dinosaurs within the industry!  Due for extinction!

Years ago working with a franchise meant that your agent was provided with the tools and resources to help make successful sales. Agents received in house training, business marketing to strengthen the brand attracting more buyers and technological resources to help sell your home.

But the internet has now reshaped the whole property market and it’s because everything is now online.

Even the smaller independent agencies now have access to the same information that franchises used to hold. Boutique agencies also have access to all the technology, systems, forms and documents needed to run their business and sell your home successfully.

So why is the traditional franchise model broken?  Because it hasn’t changed with the times.

When I worked for a franchise, less than 10 years ago, I received no in house training even though the business received training grants.  I had to take annual leave days to attend outside training which I paid myself.  Though I had many great marketing ideas, largely due to having an associate diploma in marketing and experience in working in radio, television and the newspaper industries, my ideas were never adopted.  This was because my ideas were not within the constrains of the franchise.

Another reason franchisees are going backwards is because they still need to pay their fees to the Franchisor even though they are no longer receiving the tools and support like the good old days.   Plus, they don’t have the freedom to run their businesses the way they want without the need for approvals.

As an agent working within a franchise we were subjected to the weekly sales meeting about how to condition the seller, a term used often – and still being used,  to get the price reduction to sell the homes that were lagging on the market and not selling.  It was more about volume and turning over the houses so the business could pay their franchise fees and overheads.  It was also about where the agents next listing is coming from.  It was never about creating a strategy or brainstorming new ideas on how to help sell the property.

This pressure from management turns agents into chasers for the next listing and often when agents have too many listings, they then begin to cut corners, provide a sub level of service to the sellers and buyers and often undersell property!

Since leaving the franchise and starting my own business, I couldn’t be happier with how it’s all turned out.  I’m grateful to all my repeat clients and for all the referrals I receive.

If you think I could be of service to you, your family or friends by offering my real estate knowledge and expertise, then call and make an appointment.

 

 

 

 

One Agency Annette Pinkerton

What are the Expert Qualities that Make a Good Real Estate Agent?

A good real estate agent knows that a house is more than a structure, it also includes people. They know that while the sales process can be complicated and sometimes challenging, they also have to be a support, an independent expert and always striving to achieve the best results for both parties.

 

The best agents are comfortable talking to different kinds of people, have an extensive knowledge of the area where they operate, and a solid sales record to support their claims.

 

Given all these, here are the eight qualities that you should remember when looking for the best real estate agent.

  1. They talk well and regularly with their clients

Dealing with a real estate agent with poor communication skills can be stressful. Time is of the essence when it comes to real estate, so you need an agent who regularly keeps you updated about your present buying or selling situation.

If not, you end up squandering valuable time when opportunities with a limited chance of success come up.

 

  1. Proactive with the sales process

A good agent should be proactive in calling prospective buyers, talking to existing clients and regularly going after new leads. Keeping the client well informed is one of the most important elements of being proactive.

Hint: If you are constantly calling your agent for updates, then they are not giving you adequate information.

 

  1. Good listener

Be wary of agents who talk too much. When you have trouble getting in a word when talking to your agent, that’s a red flag.

As the client, you are the one who should be doing most of the talking and making sure your agent understands your special requests and needs. Your agent should be asking you questions, not you.

A good agent will also be able to determine the client’s preferred method of communication to ensure the client doesn’t feel disregarded by silence, or pressured by excessive communication.

 

  1. They are client-motivated

If a client wins a good deal, then the agent does as well. This is the reason it’s crucial to pick an agent who puts their vendors first.

A great agent will work for your interest and that means putting your needs as a top priority.

 

  1. Have knowledge of the local area

More than a house, real estate agents are also selling a life that comes with that house. This requires an agent’s local understanding of the area where you’re considering to buy.

So before deciding on a real estate agent, make sure to ask prospective agents various questions, including train and bus routes, nearby activities for children, local planning regulations, etc. This will allow you to determine which ones can sell the local lifestyle and those who can’t.

 

  1. They understand their clients’ time frame

One of the foundations of a good client-agent relationship is understanding urgency.

A good client knows if the client is in a rush to sell. If they have to settle quickly, the agent should be aware of this, and should be working to meet the client’s time frame. If the client is not in any hurry, the agent can look around more and recommend that the client wait for a more ideal market to get the best possible price for their property.

 

  1. They understand their client’s purpose for selling 

A good agent will find out what is motivating their clients to sell, and will ask themselves these questions:

Is my client selling to buy?
Are they aiming to buy an investment property?
Will they reside in the home and knock it down later on?

A good agent should also know any emotional attachment the client may have on their property. The motivation of a client who is selling one of multiple investment properties will be different from a client who is selling their family home. A good agent understands the difference and will change strategy accordingly.

 

  1. They are willing to provide you their last 20 clients as references

The simplest way to find a good agent is to use their previous clients as references. If you want to make sure that a prospective agent is right for you, request for the testimonials of their last 20 clients.  Not clients that they’ve chosen, but literally the last 20. A good agent should have no trouble providing positive feedback from any of their previous clients.

 

 

 

One Agency Annette Pinkerton

Selling Your Property: What You Need to Ask Your Real Estate Agent

One Agency Annette Pinkerton

Selling your home is no different from the home-buying process in that you need to ask a lot of questions from your real estate agent. Selling your home is not something that you do often and with frequent changes in the property market, so ask as many questions as you like to help you prepare and arm yourself with knowledge about the process.

The key is knowing what questions to ask. Here are five of the most frequently asked questions to get your started.

A reliable agent is likely to deal with these issues before you can enquire about them.

When is the right time to sell my home?

It seems like spring is the perfect time to sell a home but it might not be advantageous for all. One home seller has a different situation from another seller, and you should talk about the timing of your home sale with your agent and see what they recommend.

What is the present situation in the property market?

You might think that the best person to help you know the current situation, of the local property market your in, is your local agent. This may not be the case.  These days, agents have so much information at their fingertips so being a local agent doesn’t necessarily mean they are the best choice.  Any agent can tell you the average days on the market for properties for sale in your location and know how fast homes are selling but not every agent knows how best to sell your home.

What can I do to prepare my home for sale?

Making a positive first impression on potential buyers is an effective way to get the price you want for your home. Your agent can help you pinpoint the best spaces in your home to fix and tidy up increasing its maximum value.

What things should I tell prospective buyers?

When selling a home, you should repair anything that is damaged or not woking before putting it on the market. If you’re aware of anything that is a material fact, it will need to be disclosed to your buyer.  By providing this information, you  will prevent potential problems like damages being revealed in building inspection and the buyer withdrawing at the last minute which could also result in you missing out on your second buyer too!

Should I put a high price on my home to allow for negotiations?

Even if you’re tempted, don’t!  Majority of buyers can distinguish value and an overpriced home will turn off prospective buyers who may ignore your home and purchase another one. The wasted opportunities could impede the sale of your property and place you in a bad position.

In home selling, your agent should be your best partner. You should be a team, working together to achieve the best possible results.  

To find out more about Annette Pinkerton and how she attracts the best buyer to your home, visit her about page or call her and book a time to find how she can help you!

Tips to Find the Right Agent to Sell Your Home

When you are selling your home, you need to have a real estate agent to help you get the highest possible sale price, in the best possible way.

Q: Why is it important to choose the right agent to sell your home?
A: It is important on several levels, especially when the market is slightly calm or it’s difficult. When the market is booming, nearly every one can sell property, so in a weaker market you have to hire the right person who has the know-how and experience. It all boils down to how you relate to them, how comfortable you are with them, how they intend on marketing your home and how they negotiate with buyers. In short, you need an agent who is going to do the right job for you and one that you have complete confidence in.

Q: How do you find the right one?
A: In real estate, recommendations by word of mouth is important. Instead of an agent telling you what they have done, it is far better to hear the good they have done from other people. It doesn’t matter whether you choose an agent with 25 years of experience or one who has been in the industry for just a year. Quite frequently, newer agents are more eager and not as complacent as some that have been around for years. They will go the extra mile because they’re working to make a name for themselves and build a brand.  Likewise is the agent who works alone in their owns the business.  This agent has their reputation at stake here and the ‘buck stops with them’.  Also important is not to choose your agent using online rating sites as the agents pay for this service and the ranking only takes into consideration the volume of properties sold (which might have been heavily discounted) and the highest value in the suburb.  It does not take into consideration the number of days it took to sell the home or if the property was sold for more than the asking price.  Nor does it consider the agent who sells in multiple areas!

Q: What are the biggest misconceptions when it comes to picking a real estate agent?
A: There are two misconceptions. First, you save money by hiring the cheapest agent. Second, people view real estate agents as rich people driving in nice cars and wearing black suits.  In the first one, it could end up costing you money. You wouldn’t go to a cut-price dentist or surgeon, so it doesn’t make sense for you to hire a cheap real estate agent to sell your home, which is probably your biggest asset.  As for the second misconception, there are many agents who don’t fit that stereotype. Real estate agents come in all shapes and sizes, so an agent who wears the best suit isn’t necessarily the best one to sell your property.

Q: After getting a few quotes to compare, what are the factors that you need to consider?
A: The most important thing is the word of mouth recommendation. If you’re hiring an agent and don’t have any recommendation, act carefully. You also need an agent who will work after hours, and not all agents are willing to do that. Give preference to agents who are up to date with the latest technology because there are many tools available today. From a marketing perspective, choose an agent who doesn’t place their eggs in one basket. So, use a combination of photography, different websites, different print media and social media, too!

Q: Does a higher commission normally effective in a price premium on a sale?
A: The more commission that you are paying, the more encouragement you’re giving the agent to get the best possible. This is how it works in real estate. Usually, the agents who charge a low commission are after a quick sale. For every property that an agent might sell at a higher commission, an agent charging a lower commission would have to sell two or three properties to get a similar amount.

Q: How does an exclusivity normally works?
A: When a seller signs an agency contract, they’re usually signing up with only one agent, and that is how it should work. When you begin multiple listings with various agencies then nobody will take accountability. There should be only one agent to take ownership and responsibility for bringing your results. The exclusivity period is usually 90 days and ins negotiable.  Watch out and be very wary of agreements that have no end date and the small print hidden within the agreement saying you must give 30 or even 60 days notice to cancel.

Q: What agent “promises” should you consider a red flag?
A: An agent that promises anything should be a red flag. Go by track record. Look deep into what an agent means when they promise to provide feedback. Look for concrete proof of the ways the agent gives feedback. How do they make follow up calls to prospective buyers after an open house? What kind of weekly reports will be given to you, both from follow-up calls and the different website analytics they utilise?

Q: Do I need to pay for “extras” like home styling and rental furniture when you’re selling?
A: You don’t need it if your home is already furnished, but there is nothing wrong with considering it, depending on the type of property. Styling can cost you, but it can also help you get the highest possible price and even help to sell the home in a shorter period.  There are properties that appear hollow, empty and cold with no furniture and styling and there are also incidents where styling can make your property look and feel fake. The nature of the property determines your decision and your agent should be able to provide the best advise for your property.

Q: My final tip for picking the right agent for your property?
A: Those middle road, really nice, honest-style people who have been working as agents for a long time and have established a good reputation within the community make the best real estate agents. They may not be flashy or known, but they get down and get on with business. Those people are most likely better alternative to agents who are always propping up their status as being the best in their area.

It is important to use word of mouth recommendations. Avoid websites that compare and recommend agents because almost all of the websites are there with an agenda and that is to make a profit. In exchange for being recommended, these sites might get a slice of the commission. The best agents don’t have to use such websites.

Major takeaways:
Be smart in choosing your agent – you could lose a lot of money if you choose wrong.
Always be guided by word of mouth recommendations.
Don’t avoid agents who have been in the business for a short time or who work alone in their own agency – they could be more driven and will go above and beyond.
Pick an agent who will work after hours – especially if you are working full-time.
A bigger share of commission can motivate agents to aim for a higher price.
Don’t automatically believe the agent who calls themselves as “the best” is truly the best. Agents who “fly under the radar” are the smarter choice.
Be careful of comparison websites that endorse certain agents – they may be getting paid to do so.

What to avoid when choosing your Real Estate Agent

 

Most of you will need a real estate agent when it’s time to sell your home.

There is definitely no problem in finding a real estate agent near you as their signs are everywhere. However, identifying which real estate agent is the right one is not quite easy. You have to ask yourself: Will this person be successful in selling my property for the best possible price, in the fastest time possible, and the least amount of hassle for you?

For most of us, dealing with real estate matters is not a normal occurrence. Hence, deciding which real estate agent to choose is not quite a straightforward process.

If you choose the wrong real estate agent, you are in for some financial and emotional woes.  So, when choosing a real estate agent, remember to avoid making these mistakes:

 

1. Hiring an agent with the lowest commission rate

Many agents will try to win over their competition by offering the lowest possible commission.  You’re probably thinking “I am saving. Why is that a bad thing?” Well, here are some other ways of looking at it.

Bargain commissions means the agent is skimping in other areas.  They simply are not offering  a full service.

If the listing agents decides to heavily discount the commission rate, buyer agents are likely to be turned off by how small a commission they would be getting. Therefore, it would be in the buyer agent’s best interest to take his client elsewhere and get the standard commission rate.

You have to question how come the agent is willing to cut his commission to get your business? If he can easily give up a huge portion of his commission thereby hurting him financially, you have to doubt his ability to negotiate a good price on your behalf!

Before choosing a real estate agent who is offering lowest commission, read the reasons above again. Try to compare his listing presentation with what other agents are offering to market your property.

 

2. Hiring an agent who gives you the highest listing price

When you have decided to put your property up for sale (and it’s carrying a hefty price tag), chances are that in the end you will sell at a price below the market average.

It is again important to reiterate to begin your marketing process with the right asking price. The first three weeks of marketing are critical and if your home has a high asking price, prospective buyers could simply skip over the property. Why? Because it’s a waste of their time to look at a property that is out of their price range.

Even worse, many real estate agents might use your overpriced home to steer their educated home buyers towards correctly priced properties.

What will happen is that your property will sit on the market for a long time and you will eventually be forced to sell at a much lower price than you would have received had you put the correct price on your home from the start.

 

3. Picking the real estate agent with the highest number of properties sold

You might be tempted to use the total of homes sold by an agent as the No.1 criteria when choosing a real estate agent.

While the agent who was only able to sell two properties in a month may not be your immediate pick, the agent selling three times as many properties in a given year should not be your first pick either.

Why?  Because of this thing called “sales-to-listing ratio.”

Picture this: the real estate agent who gives the highest listing price is likely to secure more listings. However, those overpriced properties will probably remain unsold for quite some time adding to the ‘days on market’. This means the number of homes that agent finally sells compared with the properties that remain on his books will be quite low.

Who is the better agent now?  The one who sells 10 out of 12 listings (80%) or the one who sells 30 out of 60 listings (50%)?  Remembering too that the length of time that your home is on the market for will also likely reduce the sale price as well…!!!

Instead of looking at agents who sold the most number of properties, look at how well the agent priced the home, what were the number of days on market, what the contents are of his marketing presentation, what his reactions were when you tried to cut his commission (to test his bargaining skills), how his general presentation and communication report went and if the final sale price was within or above the original appraisal price.

You will find these skills very helpful when it comes to negotiation time.

 

4. Interviewing only one real estate agent

It is recommended that you interview real estate agents from various agencies, as each agency offers unique strengths in marketing and servicing. The individual agents will have their own tools and talents to offer when presenting their marketing strategy for your property. If you interview only one agent, you will miss the chance of finding out what others have to offer.

Just like in other business, the 80/20 rule is also applicable in real estate. (Truth be told, the numbers is close to 90/10 in certain real estate markets.)

This means the rest of the 80-90% of agents will do what is necessary to secure those quite a few remaining listings, even going to the lengths of inflating “a little bit” the listing price. This is not uncommon in real estate.

So, if you’re only interviewing one listing agent, you should remember that there is an 80-90% chance that you will get one of the latter ones.

Do you want to hire an agent who will tell you whatever you want to hear in order to get your business?

 

5. Not checking references

Many people will spend more time reading the latest reviews on the internet before making a purchase than researching the background of a real estate agent before hiring him.  This, despite the fact, that the financial impact is 100 times bigger and will affect you for the next 20 years.

When choosing a real estate agent, spend time not only on looking at his listings, but also researching his information and looking him up on social media like LinkedIn or Facebook.

And you should expect each real estate agent you interview to provide you with references. However, bypass the references that were handpicked and put on the list, for obvious reasons.  Instead, ask for information on the current listings on his book and ask for permission to email or call a few of his current clients.  These latest clients can tell you how the agent rates in terms of professionalism and services during the home selling process.

 

For more tips on how to choose your next real estate agent in Newcastle, call Annette Pinkerton directly on 0418447856.

Important Things to Know About the Psychology of Purchasing a House

The decision to purchase a home is obviously an important one but it might surprise you to know that many buyers are swayed by considerations other than price, resale value and location. From the house number to the colour of the paint, it seems home buyers decide based on emotion and aesthetic instead of logic.

Here are seven psychological factors potential buyers take into account when buying a new home:

  1. Emotion
    Whether it is a house or an apartment buyers are purchasing a home. It is where they will make memories and for many, there is a heavy feeling of emotional connection. It is not a shock to learn that home-purchasing decision involves plenty of emotions. A 2013 Commonwealth Bank survey of Australian buyers showed that 44% paid a higher sales price as they “really liked it.”Here is how to tap into buyers emotions. Prior to your first open for inspection, ask yourself – Where is the best room or space?  Where do you love to live and spend most of your time and why? By doing this, you can potentially heighten the emotions of your buyers by enhancing and focusing on that room, deck or space in the garden.  Buyer will purchase with emotion and justify with logic.  This often take the buyer outside of their budget because they really like your home.  It makes them pay more for your property due to its “feel good” factor.  Try to find out the emotion driving your feelings and enhance them for your buyers.
  1. Cultural superstitions
    What is the issue with numbers that some home buyers are influenced by them? For the superstitious, they believe that the numbers of a home can reveal whether a property is suitable. In certain cultures, certain numbers are thought to be more auspicious than others. The number 13 is normally believed to be unlucky but in some Asian cultures, the number 4 is believed to bring bad luck as how it’s pronounced sounds like “shi” which means “death” in Mandarin.
  1. Perceived value
    It may have cost you $100 – $200 and a few hours of your time to give your house a fresh coat of paint, but to a potential buyer a freshly painted home is seen as added value. Similarly, a room painted with an ugly colour can make people less likely to buy – even though it wouldn’t cost much to fix such problem.
  1. First impressions
    First impression counts, always! A first look at a property will leave the buyer either impressed or not. According to a study of 63 un-staged homes, the average selling time of a house dropped significantly after undergoing a complete “facelift.”A good first impression begins on the approach to the home so a good idea is to get in your car, drive towards your home and see what your buyers will see.
  1. A Home with a Story to Tell
    A powerful medium in sales and rockstar marketing is storytelling. The rational part of a buyer’s brain tend to look at numbers, technical specs history, possible resale value, etc. but their emotional side react to idealized account of the past owner.Not all stories will impact buyers and more than likely a home will have many stories. Be sure to share the history of your home, gather a few stories for reference so you can tailor your story to different prospective buyers.
  1. Social proof
    Social proof is important in a business founded on relationships and trusts. Social proof is the secret to shape most purchasing decisions, and purchasing a home is no exception.To create social proof, share your home on as many platforms as possible but in particular the more local, the better.
  1. The ideal lifestyle
    Home buyers are not purchasing a home, they are also buying a lifestyle. If they are looking at properties in Merewether, they are likely to be into an active lifestyle with decent cafes. It could also be about morning walks along the beach before going to work, surfing in the afternoon or Saturday brunch at their favourite café with friends.It’s important to sell a lifestyle not just a home, gain an understanding outside of the technical aspects of a home. Buyers like to find out about the history of a suburb, its local restaurants and schools, etc. Is there a highly-rated bakery near the home? Is the home close to the topnotch walks like the Fernleigh Track? These little details are important when people are buying into a lifestyle and why using a video is very important.

Getting an insight into the psychology of a home buyer can help your agent find the right future owner for your property.

The first step towards selling your home for more, is finding an agent who understands the psychology of purchasers.  An agent who understands how to help you present your home and market to your targeted buyers using psychology.  An agent who can entice the buyer to view your home and then negotiate using these same techniques.

To find out more abut how buyers will perceive your home and how to add value, call Annette Pinkerton directly on 0418447856.

Are You Struggling to Pay Rent?

People will almost always choose to live in inner-city suburbs, because they want to be near all the amenities that a city has to offer. But there is usually a hefty price tag attach to being in close proximity to nightlife, food, entertainment and work.

The inner-suburbs is where rental stress is common, with the lion share of a tenant’s income allotted to be able to live where they do. What’s more, property managers will usually consider more kindly rental applications in which the prospective tenant is allotting no more than 30% of their income on rent.

Property managers and landlords alike don’t want tenants experiencing rental stress, so they must be sure that tenants are earning enough to afford essentials, etc.

If you are frequently experiencing difficulty in paying rent and living comfortably every month, you should talk with your current property manager and ask if they have another property a little further out of the city where it may be more affordable.  Ask yourself whether you really have the financial capability to live where you are.

No matter if you are a tenant or a landlord and you are seeking more information in todays market, call Annette Pinkerton.

Which Mistakes Sellers Need to Avoid When Picking a Real Estate Agent?

Most of you will need a real estate agent when it’s time to sell your home.

There is definitely no problem in finding a real estate agent near you as their signs are everywhere. However, identifying which real estate agent is the right one is not quite easy. You have to ask yourself: Will this person be successful in selling my property for the best possible price, in the fastest time possible, and the least amount of hassle for you?

For most of us, dealing with real estate matters is not a normal occurrence. Hence, deciding which real estate agent to choose is not quite a straightforward process.

If you choose the wrong real estate agent, you are in for some financial and emotional woes.  So, when choosing a real estate agent, remember to avoid making these mistakes:

 

1. Hiring an agent with the lowest commission rate

Many agents will try to win over their competition by offering the lowest possible commission.  You’re probably thinking “I am saving. Why is that a bad thing?” Well, here are some other ways of looking at it.

Bargain commissions means the agent is skimping in other areas.  They simply are not offering  a full service.

If the listing agents decides to heavily discount the commission rate, buyer agents are likely to be turned off by how small a commission they would be getting. Therefore, it would be in the buyer agent’s best interest to take his client elsewhere and get the standard commission rate.

You have to question how come the agent is willing to cut his commission to get your business? If he can easily give up a huge portion of his commission thereby hurting him financially, you have to doubt his ability to negotiate a good price on your behalf!

Before choosing a real estate agent who is offering lowest commission, read the reasons above again. Try to compare his listing presentation with what other agents are offering to market your property.

 

2. Hiring an agent who gives you the highest listing price

When you have decided to put your property up for sale (and it’s carrying a hefty price tag), chances are that in the end you will sell at a price below the market average.

It is again important to reiterate to begin your marketing process with the right asking price. The first three weeks of marketing are critical and if your home has a high asking price, prospective buyers could simply skip over the property. Why? Because it’s a waste of their time to look at a property that is out of their price range.

Even worse, many real estate agents might use your overpriced home to steer their educated home buyers towards correctly priced properties.

What will happen is that your property will sit on the market for a long time and you will eventually be forced to sell at a much lower price than you would have received had you put the correct price on your home from the start.

 

3. Picking the real estate agent with the highest number of properties sold

You might be tempted to use the total of homes sold by an agent as the No.1 criteria when choosing a real estate agent.

While the agent who was only able to sell two properties in a month may not be your immediate pick, the agent selling three times as many properties in a given year should not be your first pick either.

Why?  Because of this thing called “sales-to-listing ratio.”

Picture this: the real estate agent who gives the highest listing price is likely to secure more listings. However, those overpriced properties will probably remain unsold for quite some time adding to the ‘days on market’. This means the number of homes that agent finally sells compared with the properties that remain on his books will be quite low.

Who is the better agent now?  The one who sells 10 out of 12 listings (80%) or the one who sells 30 out of 60 listings (50%)?  Remembering too that the length of time that your home is on the market for will also likely reduce the sale price as well…!!!

Instead of looking at agents who sold the most number of properties, look at how well the agent priced the home, what were the number of days on market, what the contents are of his marketing presentation, what his reactions were when you tried to cut his commission (to test his bargaining skills), how his general presentation and communication report went and if the final sale price was within or above the original appraisal price.

You will find these skills very helpful when it comes to negotiation time.

 

4. Interviewing only one real estate agent

It is recommended that you interview real estate agents from various agencies, as each agency offers unique strengths in marketing and servicing. The individual agents will have their own tools and talents to offer when presenting their marketing strategy for your property. If you interview only one agent, you will miss the chance of finding out what others have to offer.

Just like in other business, the 80/20 rule is also applicable in real estate. (Truth be told, the numbers is close to 90/10 in certain real estate markets.)

This means the rest of the 80-90% of agents will do what is necessary to secure those quite a few remaining listings, even going to the lengths of inflating “a little bit” the listing price. This is not uncommon in real estate.

So, if you’re only interviewing one listing agent, you should remember that there is an 80-90% chance that you will get one of the latter ones.

Do you want to hire an agent who will tell you whatever you want to hear in order to get your business?

 

5. Not checking references

Many people will spend more time reading the latest reviews on the internet before making a purchase than researching the background of a real estate agent before hiring him.  This, despite the fact, that the financial impact is 100 times bigger and will affect you for the next 20 years.

When choosing a real estate agent, spend time not only on looking at his listings, but also researching his information and looking him up on social media like LinkedIn or Facebook.

And you should expect each real estate agent you interview to provide you with references. However, bypass the references that were handpicked and put on the list, for obvious reasons.  Instead, ask for information on the current listings on his book and ask for permission to email or call a few of his current clients.  These latest clients can tell you how the agent rates in terms of professionalism and services during the home selling process.

 

For more tips on how to choose your next real estate agent in Newcastle, call Annette Pinkerton directly on 0418447856.