4 Major considerations you must make before listing your property
Before taking a property to the market there are 4 major considerations.
1 The presentation of your property ( you only get one chance to make a first impression)
2 The marketing campaign for your property (how do you want your property to look, who do you want looking at it, and what tools do you want to use)
3 How to price your property to get the maximum result
4 Which Agent do you use and why did you pick them (do they have strong Auction result and what’s their point of difference)
Let’s walk through each one of these considerations
The Presentation of your property.
Some of the basic questions you should be asking yourself are; are the grounds neat and tidy? Do any of the trees need pruning? Are the pathways clean of moss? Is the roof clean and in good condition? Do the external walls need cleaning or painting?
Before starting any work prior to going to market with your property first speak with your real estate agent to make sure you are adding value and that the work would be a good investment.
You would also want to ask yourself the same questions about the interior, how are the floor coverings? Does the kitchen need any work? Are the bathrooms in good condition? Do the bedrooms need work? Are the walls and roof clean or do they need re-painting?
Once again you should check with your agent before improving any of these aspects, as any money spent must add value to the sale and you must be able to make a profit from any works that you do.
So you now have your property looking it’s best, now it’s time to look at Marketing your property and what the options are available.
Marketing & Campaign
Most buyers fall into the following demographics:
First home owners
Location buyers (City living, Suburb living, Beach lifestyle, Acreage lifestyle)
Now simply ask yourself “How will my property appeal to these demographics?” This will now give you some guidelines on who you will want to target to be the next owner of your property.
At Belle Property Newcastle we would promptly have our professional photographer take photos, we only take 6–8 photos as this is enough to drive the public to come through the property and get emotionally connected. We work with a wonderful professional copywriter, to write copy that will promote the best aspects of the property. Once this has been fully approved by you the owner we then look into marketing material we will use during the campaign.
Advertising we recommend to our vendors are;
Internet advertising (realestate.com.au, domain.com.au, and belleproperty.com)
A Photo Signboard
and Advertising in Belle Magazine
By using these advertising avenues Belle Property Newcastle has around 50% of our inspections from out of area buyers and with a large percentage of these buyers coming from Sydney we are finding a top dollar for our owners.
The next step is to book in our open for inspections which we run twice a week, usually one mid week and one on Saturday. This brings all the buyers together at the same time creating competition between the buyers and creating urgency. The agent will inform all the interested party’s that the property will be sold on or before Auction day again creating urgency.
The agent will then call all the buyers that have inspected your property through the open for inspection and get their feedback. Do they want a building & pest report sent to them, would they like a contract sent to them, would they like to make an offer. This is then put into a written report for the owner and the agent to go through on a weekly basis to make sure the campaign is going according to plan. What’s happened after week 1,2,3 and 4 who do we have pre-registered and who do we think the buyer will be, is the campaign online or do we need to make so changes.
Pricing your property
When valuing a property there are 3 prices that need to be considered.
The price that the buyers are wanting to spend. Remember that it’s the buyer’s responsibility to get the best price for them. Some agents will tell you that the first offer is 99% of the time the best offer. This is not true, the only reasons to say that is they can move onto their next sale or they don’t currently have any other interested parties in the property. (these agents I call buyers agents they are working on the buyer’s behalf to put a quick deal together).
The second price is what the agent will value the property at. This price will usually be a range of where your property sits. It’s not always possible, it’s heavily based on what the owner may have done to their property prior to sale. The owner could have performed a complete re-build which leaves no comparables.
The agent that values the property at the highest price is usually trying to buy your listing. Then will spend the rest of the campaign working to reduce your price rather than working with the buyers to get you the highest price possible.
The third price is all that really matters. It’s the price you will sell for if I had a red hot buyer for you today that just had to have your property what would you sell it to them for by the end of? Your agent should be able to tell you at this point whether or not you are in the game. This would then be your minimum figure. If that price isn’t out there your agent should tell you that you will need to wait until the market catches up to your price.
The Agent and Agency
There are two types of business plans for Agency’s, the traditional volume base and the newer Result based. Let’s look at both.
This is when the agency lists as many properties as it’s agents can with no plan of how they will provide all the properties with the same service. Some properties don’t even get opened for inspections on the weekend. However, a number of these properties sell because buyers find them by chance. Real Estate has been done this way for a long time, great for the Agency but not so great for the clients. The clearance rate for these agencies is normally 60% with much longer days on the market. This is because the agents have too many properties to provide each with a professional service.
This process is to provide each owner and property with a professional campaign. This puts the buyers into a competition and drives the price to the highest point. Agents provide the owners with day to day feedback and a weekly written report so they continue to make informed decisions. Agents using this process can only handle up to 6 properties at any one time. Agents spend more time with each owner and in the end get better results.
When hiring an Agent there are a few questions that you should ask, especially if going through an auction campaign. When embarking on an auction campaign you will need to look for an auction specialist.
You need to ask an agent these questions before hiring them:
1 When did you hold your last Auction?
2 Did the property sell under the hammer?
3 How many registered bidders did you have?
4 What was the reserve price?
5 What did the property sell for?
6 How many Auctions have you run in the last 12 months?
7 What is your Auction clearance rate on or before Auction?
8 Have you any past clients that I can talk to about their Auction experience with you?
Belle Property Newcastle City
We have run 49 Auctions for our clients over the last 12 months with an Auction clearance rate of 89% selling on or before Auction. We have sold all of the properties we’ve listed giving us a 100% list to sell ratio.
Our properties spend (on average) only 28 days on market.
We’re a partner of the Newcastle Property Hub and highly encourage you to read our previous articles for the full back story of this property. The Newcastle Property Hub creates a “one stop shop” that sets the standard for property renovators, investors, buyers and sellers in Newcastle. Check out our website, and don’t forget to follow us on facebook to keep updated.
If you would like to see us in action we have a property going to Auction this Saturday the 25th February at 9:45 am
Love to see you there.