Avoid the dodgy Real Estate tricks when it comes to selling your home!
The Rockhampton Real Estate market is changing! Fewer properties are being listed For Sale and there are more buyers around than ever before. This has resulted in a few agents around town giving inflated prices to potential Sellers to lure them in to listing with them. However, this is something that you need to be aware of as it could potentially cost you tens of thousands $$$ should you fall for this shady tactic!
One thing I’ve been noticing is the alarming trend happening in the Rocky market that is clogging up my newsfeed;
“MASSIVE price reduction! HUGE price drop! Price SLASHED!”
Sadly, I have spoken to frustrated owners who are on the receiving end of this; feeling they may not have had the relevant information presented to them when pricing their home in the very beginning.
I wish I could say this is a new thing, but the classic over-promise, under-deliver is rife in the Rockhampton property market right now!
In the industry, we call this ‘buying the listing’. It’s a tactic commonly used by agents to win over a potential seller by giving an inflated price or a promise of more money than what the market will pay based on comparable sale history.
The relationship often starts well. Paperwork gets signed, the photos get done, and the property is looking fantastic on Realestate.com.au. FAST FORWARD >> It’s now been a couple of weeks and nothing has really been happening. Next minute, you’ve got your agent calling for a price drop by $15,000. Ouch! Especially when they’ve said in the pre-listing appointment; “Yeah, you’ll get that, or close to it!”
Now the owner is left feeling deflated and frustrated from false expectations. To make things worse, they’re stuck in an exclusive agreement for another couple of months!
Heartbreaking… the Honeymoon period is over!
So what went wrong?
There are a few factors that could be at play. Were the Sellers given the right information to make an informed pricing decision in the beginning? Granted, some owners might choose to start a little higher with the mindset of ‘I can always come down’. Yes, this is true – after all it is ultimately their decision. Just as long as the agent has explained the repercussions that can be associated with this.
Or have they just been groomed into listing higher with the agent being fully aware they will need a price reduction a few weeks in? All because the agent didn’t want to miss out on losing the listing to their competitor?
Buying a house is different to buying something off Rocky Buy, Swap & Sell — don’t overinflate the price expecting the buyer to come in rock bottom and then meeting them halfway.
Those days are well and truly over and this is why you appoint an EXPERT agent skilled in negotiation (after all that’s what you are paying them for).
Don’t get me wrong; please don’t think I’m saying ALL price reductions are calculated! As we know the market is constantly moving & it is essential to be aware of this– As properties sell and new information/ data comes to light, it is essential to take this into account and sometimes it may mean having to adjust accordingly. BUT what I don’t like to see is owners coming on $40,000 more than they should, just because the agent doesn’t want to lose the listing to a competitor – So instead they have just given false hope and empty promises to the person who is entrusting them with sale of their home.
Pricing your property for success!
There is a fine line in pricing a property. If you price too high, you won’t get the response you want or need from the market, and you will be missing the opportunity to capitalise on the buyer pool.
When you launch your home to market, you want to be as BIG and BOLD as you can possibly be. Your most significant impact is going to happen in the first 2-3 weeks of your marketing campaign.
Buyers are more informed than ever before, and market information is only a click away. They know the history of the property before even picking up the phone!
We find Buyers shop on three key things;
- Looks and location
- Suitability to their needs
- PRICE!
If all these things don’t align …NEXT! The buyers will keep scrolling. So, don’t give buyers a reason to ignore you!
The more people through your property helps keep buyer competition high, which in turn protects your price, gives owners more choice and often leads to a multiple offer situation. To achieve the best possible result, you need to ensure every buyer knows your home exists!
So what can I do to avoid this happening to me?
To make an informed decision, you need all the facts – regardless of anyone’s expectations.
As an industry expert, my job is to be upfront and honest so you can be confident in your decision.
Ultimately, it’s the client’s decision & we will support them 100%, however they are making important financial decisions based on the information we provide. What we supply needs to be accurate, comparable & completely relevant.
When you look at listing your property for sale, here are some key statistics to be aware of;
- What has Sold in your area in the last six months?
- How much did they list for vs. what was the sale price?
- How long did it take to sell (days-on-market)?
- How do they compare to your home on a feature-to-feature basis?
- Be aware of everything that is currently for sale on the market in your area. This is your competition, and you don’t want to help agents sell the other homes around you!
Questions to ask your agent before you sign on the dotted line;
- Can you tell me your List-to-Sell ratio?
How many properties is the agent selling compared to what they list? It’s always good to know these statistics as you may become one of them! - What is your ‘Days-on-market’ average?
The lower the number, the more likely your agent possesses solid market knowledge, and consistent results speak for themselves. - What is your average List Price to Sale Price?
Are there signs of serial price-reductions in their sale history. If so, you’ve just caught out an over-pricer! - What kind of guarantee do you offer?
If you feel your agent isn’t delivering on what they promised, are they going to hold you ransom to the 90-day exclusive period?
I am a firm believer that anyone can sell a house. The real question is at what price?! Anyone can give advice, but is it accurate and relevant in today’s market?
I always love this quote; “If you think hiring a professional is expensive, wait until you hire an amateur!”
If you’d like to have a friendly chat about your property, I’m just a phone call away!
Jacinta 🙂
