Real Estate Devonport

Don't Go Cheap

2011-09-20T16:17:00.000-07:00

Don't go cheap....

What I mean is don't choose your agent based on which one is the cheapest. This is probably the single most dangerous thing you could do.

Why?

Well, like the old saying goes.... "If you pay peanuts you'll get monkeys"

Would you hire the cheapest lawyer in town to defend you if losing that case could land you in jail?

No.. of course you wouldn't. You'd be looking for the best lawyer you could afford wouldn't you. That's because you would be paying for skill, experience, knowledge and results. You'd want to make sure that lawyer could get you out of jail!!

Well employing a real estate agent should be considered in a similar light. Why would you pay a low fee for average results?

Agent fees should not be over the top, they should be fair. Fair for the home seller and fair for the work the agent is doing.

If an agent isn't a skilled negotiator then they don't deserve a higher fee. If they are then they do.

How do you know if an agent is a skilled negotiator? A great way is to see how they negotiate their fee. If they are offering the cheapest fees in town then they have weak negotiation skills.

An agent who instantly offers the lowest fee does not beleive in negotiation, rather they beleive in giving money away. It naturally follows that if you employ an agent who has no problem giving their own money away they won't mind giving your money away either. I.e. they will be more likely to negotiate your price down.

An agent who negotiates a fair fee with you knowing that there are other agents out there offering less actually demonstrates their ability to negotiate. This agent will be more likely to save you money by not giving your money away during the negotiation for the sale of your house. This agent has more to gain from negotiating up.

The morale is always employ a strong negotiator who has a decent fee to work towards.

Alan Halliwell
Director

Halliwell Property Agents

Your now is our now... now is the time!

Stop Listening to the Negativity

2011-06-30T18:08:00.000-07:00

Greetings.

Recently in the press there has been plenty of negativity regarding the Tasmanian ecconomy and the Tasmanian real estate market.

Plenty of people have had their fair share to say about things, especially the press. Unfortunately the press has a habit of quoting people out of context and sensationalising anything they think might be bad news.

Why?

Because that sells newspapers, gets people to watch TV and makes the press more money!

The reality of the Tasmanian real estate market is that there are still buyers and there are still sellers. There always have been and there always will be.

Lets not forget that Tasmania has experienced the largest growth in property prices it has seen in many years, if ever. In addition to this there have been higher than usual sales for periods in the last 10 to 12 years.

In fact, the number of sales in the Devonport over the last few years has remained steady. Devonport remains a solid real estate market-place and often places in the the top 3 areas in Tasmania for activity.

What we need to remember is that Tasmanian prices are affected less by market trends than the rest of the nation. We tend not to see the huge drops that the markets in Sydney, Melbourne and Brisbane see.

Yes, some property is selling for less than what the home owners expected. But this is the market telling us the truth about what people are prepared to pay. Due to the "boom" and healthy sales at higher prices many home owners have had a perception that their property is worth more than it is.

In reality the conditions that created the "boom" and the busy periods of the last decade happen occasionally... not all the time.

If you are selling in todays market you will sell because there are still plenty of buyers looking to buy. For example: the inquiry rate at Halliwell Property Agents has not dropped off at all.

The main determining factor in selling in todays market is price. Home owners must price competitively and with a strategy that works.

Visit Halliwell Property Agents to see how our unique pricing strategy works in today's market.

Alan Halliwell

Beware of the "Bike Pump"

2011-03-09T16:54:00.000-08:00

Beware of the bike pump.....

what does that mean?

many agents in our industry are reliable, honest and hard working but there a some who I like to call the "Bike Pumpers".

Who are these agents?

Well, they're pretty easy to spot. These guys are the agents who walk into your front door with their pants around their ankles and a bike pump in their hand. You know, the agents who charge price cut fees and over-price your house.

This guy will say something like this "Yeah, I can get get you $30,000 more than what the other agent said they could get you and I'll only charge half of what they do!".

Don't fall for this blatant nonsense.

The bike-pump agent is actually doing you a dis-service by inflating your property price and he's hoping you fall for this trick just so he can get your listing.

You see, bike-pump agents over-price property and undercut their fees because they're not skilled enough to compete. quite literally it's the only way they can compete. If the bike-pump agent were to price property fairly and charge what the other agents charge he wouldn't last because he cannot NEGOTIATE.

An agent should be paid a fair fee for the services they provide. I am not suggesting that agents should take too much, what I am saying is that if an agent can't defend his own money how can he defend yours?

Furthermore, if an agent can't demonstrate their NEGOTIATION skills with you by discussing things like price, fees and marketing how can they ever NEGOTIATE on behalf of you?

THE BIKE-PUMP AGENT CANNOT NEGOTIATE!

It takes no negotiation skills to undercut your opposition.
It takes no negotiation skills to over-price a home.

Agents that do this prove that they are poorly skilled and unable to work hard for their client.

A GOOD agent will negotiate with their client before the home is listed.
A GOOD agent will prove to their client that they can negotiate.
A GOOD agent will stand by their pricing and fees

Agents that do this prove that they are highly skilled and are the right choice for their client.

Don't fall for the bike-pump agent.

make sure you scrutinise the way your agent communicates with you. make sure you check that your agent defends their fee. Make sure your agent prices you home properly and make sure that your agent is prepared to tell you things that sometimes you may not want to hear.

Why?

Because an agent who does these things is a great negotiator and will do the same things when dealing with a buyer for your house.

Buying, Selling or Renting...

There is only one choice, Halliwell Property Agents. Your now is our now.

Strategic Pricing

2011-02-23T20:21:00.000-08:00

What's that? you may ask.

Don't you just put a price on a house and work to sell it? you might say.

well no, not really.

Strategic pricing involves an understanding of the real estate market and where your property fits into that market. A skilled agent will take the time to explain this to you and help you understand.

An unskilled agent will make no mention of current market conditions and simply put a price on your home (usually one that's too high).

And no, simply providing you with a few comparative sales in the area is not enough. Yes, all good agents will provide this information but only the best agents truly educate you on the market with relative facts and figures.

Strategic pricing involves the following:

Identifying the current market conditions
Discussing expectations with you the home owner
Determining what the "market value" of your home is
Accepting that buyers will try to negotiate
Setting a price accordingly
Being prepared to meet the market if necessary

Strategic pricing is an understanding of the relationship between your property and the current market. Without understanding this you reduce your opportunity of selling at the optimal price in an acceptable amount of time.

A skilled agent will take the time to discuss the market and strategic pricing with you. A skilled agent will have an honest and up-front converstaion with you about where you sit in relation to the market and a skillled agent will educate you in pricing and give you an understanding of how strategic pricing works.

Strategic pricing is not setting one price and sticking to it.

Strategic pricing is a process of assessing the market on a weekly basis and relating it back to the current price you have on your property. If your current price has not been sucessful then it needs to be adjusted.

Plain and simple this is how it works.

Some old-fashioned agents will say "Don't say that! They won't list with you. Just price it higher".

Nonesense. In our experience the more up front and fair dinkum we are about the market and pricing the more willing people are to listen to us because they can tell we are trying to work with them and help them.

This approach has helped Halliwell Property Agents become one of the most prominent and sucessful real estate agencies on the North West Coast of Tasmania.

When you're ready to talk real estate your now is our now. Now is the time!

Halliwell Property Agents

www.halliwell.net.au

Back to Normal

2011-02-18T21:18:00.000-08:00

Greetings,

We can safely say that things are all back to normal. Christmas is over, school holidays are finished and most of us are back at work.

For the real estate industry and anyone thinking of buying or selling this is good news. Over the Christmas and holiday period many people choose not to sell or wait to buy until the holidays are over and done with.

This means that sometimes the real estate market can slow which means there's less activity. Those trying to sell may not get as much inquiry because buyers may be waiting till after Christmas. Those who are looking to buy may have less property to choose from because those thinking of selling may be waiting till after the holiday season.

Now that we are all back in the swing of things the real estate market should return to pre christmas activity. This will mean more buyers and more sellers.

From our point of view at Halliwell Property Agents the market has been very good. Our 6 month figures for this financial year are up on last year. We have been steadily growing our market share and intend to continue to do so.

If you're thinking of selling make sure you choose an agent that has prominence. Choose an agent that markets well and helps to promote your home as best as possible.

A good agent should be able to offer the following:

At least one full page of advertising in the Advocate "Domain" every week.
Professional photography
Professional videography
A dedicated home website, not just a link to real estate dot com
Lots of listings (around 90+ properties for sale)
A dedicated property management team
A large rental department (a large rental department can help you sell)
Highly visible office with large window display
Technology especially the internet
Presence on at least 4 different websites
An informative & descriptive presentation
The ability to negotiate (you'll know if they can when they present to you)
No "cut-price" deals (an agent that does this cannot negotiate and will not fight for your money because they can't even fight for their own)

If an agent you visit doesn't have these things or is cut-pricing you need to be asking why. More importantly you need to be asking yourself...

"why am I talking to this person?"

Buying, Renting or Selling - Halliwell Property Agents 6424 1496 http://www.halliwell.net.au/

Now is the time!

Isn't Selling Real Estate Easy?

2011-01-19T03:09:00.000-08:00

Isn't selling real estate easy?

A question I'm sure many people outside the industry ask and in reality nothing could be further from the truth.

Some people think it's so easy that they attempt to sell their homes without the help of an agent.

Big Mistake!

I could write pages and pages of "stuff" to explain why it's important to employ a real estate agent to sell your home but instead I'll sum it up quite simply to save boring you to death.

Basically sellers always want more for their home and buyers always want less. It's the agents job to bring these two parties together and make sure that a deal happens and that both parties are happy.

It's called negotiation.

Selling and buying property is a negotiating mine-field and involves lots of number crunching, communicating and plenty of emotion.

Above all emotion is the the single most destructive thing in a real estate negotiation. People can become upset, angry, stubborn or can simply give up because things get too hard.

All these are quite normal emotions to go through when selling property and it's important that you have a circut-breaker in the middle to make sure that there's not an unintentional break down in communication.

This circut-breaker is the real estate agent. The real estate agent works to keep both corners of the ring in check like a referee in a boxing match!

Just like boxing there are rules and regulations in real estate that must be adhered to. Some of these rules are made by the law but others are the rules of negotiating. A skilled, experienced and well trained real estate agent understands the rules of negotiating and understands how to use them to make both parties happy.

This is what we call "bringing a deal together". There are many examples of real estate deals going sour because the parties involved are dealing with each other directly and emotions, stubborness and pride can get in the way. An agent can help to keep this to a minimum.

An agent is worth every cent because they more often than not bring deals together where an inexperienced real estate negotiator (basically anyone whose not doing real estate deals every day) may not.

Make sure that when you choose an agent you find out about their negotiation skills. Make sure you feel comfortable with them and make sure that they instill confidence in you.

A good way to see if they are a skilled negotiator is to see if the agent takes you through a process, listens to your point of view and puts good arguments forward for their point of view. At the end of the day a skilled negotiator will arrive at an outcome agreeable to all parties.

Most imprtantly make sure they have a great reputation and a strong brand.

If now is the time for you to be selling then your now is our now.

Halliwell Property Agents - Now is the time!

2010-12-20T02:51:00.000-08:00

Greetings,

Merry Christmas to all our clients and everyone who we have had the pleasure to serve at Halliwell Property Agents during 2010.

This is the time of year where we look back on what we have acheived and plan for the future.

Halliwell Property Agents has been very active during 2010 and this is entirely due to the effort, sacrifice and hard work that all of our staff have put in. It's no secret that our business has grown strongly this year & without such a great team Halliwell Property Agents wouldn't be what it is today.

So a big thank you to the team. Well done.

To our valued clients and customers thank you also. We are always pleased to see people come back to us and it gives us a great sense of pride and acheivement when they do. We hope that you have all had a great experience with us and want to let you know we appreciate your custom.

Now is the time to talk about 2011.

Halliwell Property Agents has some fantastic initiatives in place for 2011. After the super successful launch of our new brand we plan to build on the already impressive reputation it has. This will include various marketing strategies not only for our company but also all the property we list, which means extra exposure for our clients.

Our philisophy at Halliwell Property Agents is to "never compare, never compete".

We never compare ourselves to other businesses in our industry - we feel it's better to spend our energy focusing on our clients and what we can do for them and how we can do it better. Our aim is to lead our market in customer service and innovation.

We choose not to compete with other busniesses in our industry - rather, we compete with ourselves. We compete to acheive the highest standards possible and to set ourselves apart from the crowd.

Halliwell Property Agents uses the word "Now" in marketing. We feel that this word embodies action, results and drive. This is what we stand for.

Our motto is "Now is the time!" When you're ready so are we, your now is our now.

At Halliwell Property Agents we have a purposeful growth agenda planned for 2011. This encompasses all aspects of our business. Following is a list of the areas we plan to grow:

Growth of industry knowledge
Growth of our already sucessful brand
Growth of our outstanding team
Growth in customer service
Growth of marketing and promotion
Growth in technology

Halliwell property Agents is different. We do not sit with the pack and we are not your ordinary real estate agency. We are bold, modern and energetic.

When you choose Halliwell Property Agents you are choosing a company that is service & satisfaction oriented. You are choosing an experience that is quality and a brand that works for you.

If you're thinking real estate, now is the time to be thinking Halliwell Property Agents.

Now is the time!

Interest Rates Stay Put

2010-10-10T20:27:00.000-07:00

Greetings

It was with a sigh of releif that the Reserve Bank of Australia kept interest rates on hold last week. This has meant that property owners accross the North West Coast don't have to worry about another rate rise for at least another month. It also means that we have a more stable borrowing environment for anyone looking to buy property.

This is great news for the real estate market in Tasmania and anyone who owns property should be happy. Obviously we can't tell when the RBA may increase rates again but the important thing is that rate rises are happening less frequently than 6 to 12 months ago. This means that the finance world is becoming a friendlier place to be borrowing money in.

Most importantly, the cash rate is still only at 4.5% which may be cold comfort for some considering that the banks move independently of the RBA but what it does mean is that our rates are still low.

What we really need to consider is that most banks are still lending at rates between 7% & 8%. Whilst this is not as low as rates were say three years ago when they were 6% or lower they are still lower than 10% and relatively a long way from this figure which is good news.

For example: if you currently have a home loan at 7.5%, based on the current RBA rate rise trend of .25% you have to wait for another 10 rate rises before your rates reached 10%. That's a long way to go before reaching panic stations and considering we have already had 5 rate rises in a row it's highly unlikely that we will have another 10. If that were to happen we would have had around 15 rate rises in a row! Not likely.

Rates are going to go up and down, it's what they do. The baby boombers take great delight in reminding younger people of the 17.5% interest rates under Labor's Paul Keating in the early 90's but nobody seems to talk about the good times when rates got as low as 5.5% in the early 2000's. The fact of the matter is that people remember bad times more than they do the good times, at least when it comes to money.

What we have to do today is remember that when we borrow money we elect to ride on the interest rate roller-coaster and we accept that over the life-time of our loan we'll have good times and bad, and that's ok.

The most important thing to do is to figure out if you can afford your loan based on an interest rate that's around 2% higher than what the current rate is. If you can manage that repayment then you should go ahead and borrow. if you can't maybe you need to wait and build your deposit or buy cheaper. What you shouldn't be doing is borrowing to your maximum limit based on the interest rates of the day. You should ALWAYS allow room in your budget for interest rate movement.

For real estate advice - Halliwell Property Agents 6424 1496

What's in a Commission

2010-06-14T20:23:00.000-07:00

Commission Fees....

One of the most important things for people who are thinking of selling their home is what the agent will charge.

Of course everyone is looking to save as much money as they can when they sell their home. There are so many charges that can apply when selling property so it's important to know what moving home is going to cost.

It's also important to consider many other things apart from fees when employing an agent. Things such as the following:

What's the agent's advertising like?
How many people work for the agency?
How long has the agency been operating?
How professional does the agency look (i.e. office, signs, profile)
How much experience has the agency got?
How many homes does the agency currently have for sale?
How many homes has the agency sold?
What's the agency reputation like?
How professional is the sales consultant you're dealing with from that agency?
Does the agency have a strong brand and profile?
What does the agency do for you regarding marketing?

The list goes on but I think you get the idea.

What does this have to do with commission??

EVERYTHING

A real estate agency that is successful has more chance of helping you sell your home. Let me ask you a few questions:

Would you list your home for sale with an unsucessful agent?
Would you list your home for sale with an agent who hasn't sold anything for months?
Would you list your property with an agent who can't afford every marketing tool available?
Would you list your home for sale with an agent who doesn't promote itself?
Would you list your home for sale with an agent who has no market presence?

I really hope that your answer to all of these questions was no because the reality is that successful real estate agencies with high profiles sell more property. End of story.

The thing is that in order to access all the marketing tools required for promoting your home for sale, to stay up-to-date with technology, to keep staff members well trained and to keep the business running real estate offices need to charge a commission.

Simple isn't it, and of course you knew that anyway but here's the question...

Why do some agencies manage to charge a bit less than others?

Generally the agencies that charge a bit less are usually cutting corners on promotion costs, marketing costs, staff costs & profile costs.

What does this mean for you the consumer?

It means that you run the risk of not getting full exposure to the marketplace. It means you may miss out on that little bit "extra" that may help you sell, it means that your salesperson may not be as well trained, it means that the agency may not have the biggest exposure.

In the end it means that you always get what you pay for.

Now, at the end of the day is the difference between selling and not selling worth a "bit" more commission. Yes, of course it is.

When you choose an agency that doesn't skimp on promotion, marketing, training and profile you choose an agent that's dedicated to sell your property and an agent that's giving you every single chance possible to sell by exposing your property in every single place possible.

And you know what....... we actually don't cost that much!

So when you're thinking of selling make sure you speak to us to find out how we can help you for a very reasonable price.

Halliwell Property Agents - Now is the time!

Rental Departments Help You sell

2010-04-25T17:40:00.000-07:00

Rental Departments help you sell... What does this mean?

Well, it stands to reason that investors who already own investment properties could possibly be looking to buy more investments.

It also stands to reason that an office that manages a large rental department is also dealing with a large number of investors.

Finally, people who rent property do become buyers.

So what does this mean for someone selling a house?

Basically, it means you should be looking to employ an agent that has a large rental department to help you sell your property. Especially if your property is likely to sell for under $400,000.

An agency with a large rental department will already be dealing with hundreds of investors and renters who may be looking for a home/investment to buy.

Halliwell Property Agents has a rental department that manages approximately 450 rental properties. to put this into perspective our rental department is one of the largest on the coast.

We keep in contact with over 200 property investors and over 400 tenants on a monthly basis.
We ensure that we send these tenants and landlords lists of our properties for sale in case they're looking to buy.

This is a powerful tool that we have ready for all our clients we are helping to sell.

Before the sign is up, before the marketing campaign has started we have a captive audience that we're already dealing with.

Can you afford to list your home for sale with an agent who doesn't have this kind of presence?

If you're looking to sell make sure you find out about the rental department of the agency your thinking of employing. It could mean the difference between selling and not selling.

For all your property needs - Halliwell Property Agents

Alan Halliwell
Director.

Now is the Time!

2010-02-18T17:21:00.000-08:00

Now is the Time!

This is our catch-line - why?

One of the most common questions asked of real estate agents by the general public is "when is the best time to buy?" or "When is the best time to sell?"

There is only one answer to both of the questions...... Now!

Now is always the best time to be buying because no matter what time it is you'll never get property cheaper than "right now".

Think of your own home - when was the best time to buy that home? Would you like to pay the amount your home may be worth today? Would it have been better to buy your home earlier than the time you did?

You see, property prices are generally always on the up so the best time to be buying is always as soon as you can afford to do so...hence now is the time!

Now is also the best time to be selling for similar reasons. Obviously the longer we hold our property the more it increases in value so based on this theory we'd all just live in the same place forever and never sell. Unfortunately life has a way of getting in the way doesn't it. Sometimes we need or want to move house.

If you have made the decision to sell the best time to do it is "now". There's no point holding off from making your life happen because you're worried about when the best time is to sell. The best time will always be now! when you're ready make your move and pick a quality agent to help you.

So there you have it.

Now is the Time!

Alan Halliwell
Director

Halliwell Property Agents

A new Brand

2010-02-18T17:12:00.000-08:00

Greetings,

You may have noticed that our brand has changed.

We have left the First National group and are now a truly local & independant real estate agency. Our new name is Halliwell Property Agents.

We are still the same team of dedicated people and we are still owned by the same family. The only difference is now we have our own unique look.

This change signals the birth of a new era for our business and gives us the freedom to focus on the most important thing - providing the best service possible to people like you.

We look forward to helping you with your real estate needs in the future.

Now is the time!

Alan Halliwell
Director

Halliwell Property Agents

It's Over!

2009-10-16T13:41:00.000-07:00

The reign of the GFC is over, and I don't mean the Geelong Football Club.

The Global Financial Crisis is over.

Real estate has remained strong during 2009 bouyed by the first home buyers grant & Australia'a strong economy. The financial issues overseas have not affected us greatly, especialy here in Tasmania.

Now the market is poised to take off this spring and summer. The timing is perfect, our economy is recovering, the weather is warming and people are becoming positive.

Buying or selling this is the time to get involved and we at Halliwell First National can help.

For any advice call Halliwell First National

64 241 496

Alan Halliwell - Director

Employ a Strong Negotiator

2009-04-27T20:33:00.000-07:00

Negotiation

It's so important.
So so important.
Too important to overlook.

It can mean the difference between selling and not selling and the difference between gaining or losing thousands of dollars.

When we choose real estate agents we sometimes forget why we should be picking one over the other. We can get wrapped up in cheap commissions, flashy presentations or the fact that he seems like a "good bloke".

Alot of the time we don't even stop to consider how good the agents we talk to are at negotiating.

Watch your agent negotiate with you when they're trying to convince you to list your home for sale with them. Sure, most agents offer the same stuff but only a few can negotiate well.

For example: is an agent who has the lowest commission really negotiating with you? Initially you may say yes because their fee is lowest, but look at it a bit closer.
The cheapest agent isn't really negotiating with you on fees... they are just buying you with the lowest fee because they're frightened of confrontation. They don't want the hassle of negotiating for your business, they just want your listing.

Do you really want an agent who is too timid to negotiate with you? At the very least you know that if they can't negotiate with you on fees there's no way on earth they're going to negotiate with any buyers who come to see your home.
The most frightening thing is that if one of their buyers does put in a low-ball offer the agent isn't really going to try too hard to negotiate on getting them up are they. Hell, they didn't even try very hard to negotiate their own fee with you.

If the cheapest agent in town doesn't fight hard for his/her own money what chance do you think you have of them fighting hard for yours??? Somewhere between buckleys and none I'd say.

Make sure you employ a skilled negotiator. Sure, they may cost a little more but they'll save you in the end on the sale price. And you never know, you may even be able to negotiate a deal on the fee anyway.

There's a couple of old sayings out there that illustrate this messasge beautifully:

"Pay peanuts, get monkeys" or the classic "You get what you pay for"

For real estate advice - Halliwell First National real Estate

Alan Halliwell - Director

The market is great! Stay positive!

2009-02-04T14:16:00.002-08:00

Hello to everyone.

The first month of 2009 has been a very active one for the real estate world.

For those of you buying it's a great time because there's plenty of property out there to choose from.

For those of you selling it's terrific because there are plenty of people out there looking to buy and many of them are ready to use their first home buyers grant.

As a community we need to make sure we stay positive in these times. Sometimes that's difficult to do when government leaders and the media are constantly telling us how awful everything is.
I urge everybody to take a closer look before deciding to panic about the economy.

The Government
Unfortunately governments of all persuasions sometimes tend to put politics before economics when things are tough. Today's government is no different.
Our government is currently building up the global financial crisis into the greatest doomsday story in history. The reason they're doing this is to create a fall back position for themselves so when the outcome is half as bad as what they said it was going to be they'll come out smelling like roses.
This is a simple political tactic that we must try to ignore. We must stay positive.

The Media
Print, T.V. & radio press love crisis. They love disaster, misfortune and sorrow. Why? because we as a population watch it, read it and listen to it, therefore the large media companies make money. It's in the best interests of the media to inflate the doom & gloom because it's profitable.
We need to try and filter out the information we get from the press. A good rule of thumb is to "have it and halve it".

The Reality
We as a nation are still in great shape. Australia is in the best position in the world to tackle this so called crisis. Out of every problem comes a solution and there are always positives out there. For example, the real estate market is great at the moment.

Take a drive around Devonport this weekend and see how many people are out eating at places like the Elimatta & Molly Malones. Take a look down the Rooke St. Mall in Devonport to see how many people are out shopping. I assure you the numbers are still good. If you don't live in Devonport check out your own home town.
These things are often the best indicators of how the economy is travelling, not what Govt. and the media have to say. The simple day to day things are the best indicators.

Stay positive everyone!

Buying or Selling Real Estate - Halliwell First National Real Estate.

Alan Halliwell - Director.

Whatever you do, Employ a Negotiator

2008-12-12T13:02:00.000-08:00

Real estate agents are negotiators

Some are great negotiators - some aren't so great.

There are many areas that agents negotiate in but following are the two most important ways:

1. They negotiate with buyers on your behalf in order to get you the best possible price.
2. They negotiate their commission fee with you before they list your home for sale.

When your thinking of selling and you have a choice of agents keep these points in mind.

Q. Who's the better negotiator?

An agent who arrives at your door with a pre-arranged discounted fee below all other agents?
or
An agent who arrives at your door with the intention of negotiating with you on that fee?

Lets look at the discounting agent first

The agent who has a pre-arranged discounted fee does not have to negotiate at all with you about fees. This agent probably doesn't get much training on how to negotiate and probably feels relieved about not having to negotiate with you about the amount of commission they charge. Negotiation truly frightens these people.

Is this person really demonstrating an ability to negotiate?
Is this person really going to negotiate hard on buyers if they can't even do it with you?
Is it really worth saving a couple of thousand dollars by employing this person if it means losing $10,000 on sale because they can't negotiate successfully?

Of course all the answers to these questions are no.

Now lets look at the negotiating agent

This person arrives at your door knowing full well that there is a discounting agent out there charging less than him/her up front. This person is prepared to negotiate with you and most importantly demonstrate to you that they can negotiate. This agent does not try to buy you by simply dropping the fee below everyone else. This agent shows you how they work.

Is this person demonstrating true skill in negotiation?
will this person work harder because they're getting paid more?
will this person work to get a higer price for you?

Of course the answer to all of these questions is yes.

The most important point here is that you get what you pay for.

There are many agents out there who simply undercut on fee because they're too lazy, poorly trained or complacent. These people do not truly understand the art of negotiation. Do you really want to employ someone like this to sell your home?

Make sure you're employing someone who is a seasoned campaigner. Someone who knows how to fight and knows how to cut a deal. These are the agents who can truly negotiate.

The "instant cut-price agent" is just watching from the sidelines & taking the easy route. They must be very envious of their skilled, negotiating peers.

When employing an agent to sell your home make sure you get to see first hand how they negotiate. Often this will be demonstrated in how they negotiate their fee.

Agents who fail to negotiate with you will fail to negotiate with buyers.

For advice buying or selling - Halliwell First National Real Estate

http://www.halliwellfn.com.au/

Director - Alan Halliwell

Price Price Price Price & Price!

2008-12-12T12:43:00.000-08:00

In today's buyers market it is extremely important for home sellers to price correctly.

Failing to do so will leave them sitting on the market, un-sold and un-happy.

There are 2 very important points here:

Pricing too high will put you out of the game. Buyers have so much choice that they can pick and choose. Putting yourself in an unrealistic price range will kill your chances of selling.
Buyers always try to negotiate. They always offer lower than the asking price to cut a good deal. You can't blame them, you would do the same.

The Key Ingredient is: PRICE

It is important to set an asking price which is in touch with the current market but still leaves enough room for the enevitable negotiation process that all buyers will want to engage in.

Price too high and buyer will not even try to negotiate - and you won't sell.

You need the help of a skilled real estate agent when it comes to pricing your home, especially in this market. A good agent should be putting all the market facts in front of you and should be having the discussion about price with you. A good agent will talk about the negotiation process with you and help you set a price that is not only in touch with the market but also allows for negotiation. And a good agent will be able to handle the negotiation process with prospective buyers.

Poor agents just agree with everything you say and don't talk business. Poor agents shy away from the difficult jobs like having frank discussions about price. Poor agents will tell you they can get big prices for you and then let you down. And poor agents never stay in touch with you.

Sack anyone like this immediately and come talk to us.

Sure, promises of big prices may sound great on day one but by day 100 I guarantee you'll be angry, upset, annoyed, frustrated and desperate to sell.

DON'T fall into the trap. Listen to the advice of good agents. As the old saying goes: "If it sounds too good to be true, it probably is".

For advice buying or selling - Halliwell First National Real Estate

www.halliwellfn.com.au

Alan Halliwell - Director

Old Soldiers never Die

2008-12-01T18:45:00.000-08:00

I'm sure Donald Trump won't mind me using one of his quotes. It's a ripper and really describes the kind of market we are currently experiencing.

This quote should get you thinking about pricing.

"Over priced properties are just like old soldiers....... They never die, they just fade away.

Donald. J. Trump

That really hit's home for me.... If this quote is good enough for one of the greatest real estate tycoons in the world it's good enough for me.

It can be read as this:
Over priced homes never sell, they just sit there and get forgotten about.

Who forgets about them?

Buyers forget about them because they know what is good value and what isn't. In a buyers market, like the one we are currently experiencing, buyers have the power. Buyers determine who sells and who doesn't because they are spoilt for choice.
Buyers will always choose the property that represents the best value to them; in a sellers market when there's a shortage of homes for sale they take what they can get and paying high prices represents good value. In a buyers market they have plenty of choice so they can pay less and once again buy what represents good value.
Over pricing, especially in a buyers market will cause you more trouble than it's worth and by doing so you run the risk of becoming "that place with something wrong with it" amongst buyers.

Agents forget about them because after weeks, months & possibly years (it happens) agents get tired of trying to convince over pricing home owners to reduce. Over priced homes often do the "merry-go-round" of every agent in town and become known as "that listing".

You may ask, why does an agent take a home on in the first place if it's over priced? Good question, I ask it all the time!
It could be said that agents cause this trouble by encouraging over pricing in the first place... I agree!

Unfortunately there are some agents out there who over price property intentionally so they can get the listing. This is not acceptable to me or to the majority of agents in my industry.

Unfortunately there is a minority of agents that try this on.

ALWAYS list with an agent who takes the time to give you evidence of the market. Make sure they don't just agree with you without going through a proper presentation. A presentation should include a pricing strategy and reasons for that strategy. It should also include a candid discussion about what the market is doing and what realistc price you could expect. If an agent suggests or agrees to a higher price, that agent should be giving solid evidence as to why and what strategy they have in mind.

If they don't do this or they can't justify anything they say simply ask them to leave.

The over pricing home owner forgets about it because they become frustrated with waiting. Over pricing home owners tend to lose hope after a period of time. They feel convinced that their property won't sell (it wont either unless they drop their price) but at the same time they remain convinced that they can get their asking price.
These owners usually say things like "someone will come along" or "We're prepared to wait". The truth is that often they want too much because they have already spent the money elsewhere. That is they want to do something with the proceeds of the sale so they need that high price. Don't fall into this trap, a home is only worth what someone is prepared to pay for it.

Summary
A good pricing strategy should take 4 things into account:
1. The current market and what it is doing
2. What sort of price the home may attract in the current market
3. What the home owner would like to acheive
4. Allowance for negotiation from buyers

It's a fine line to determine, especially in a buyers market. It is important that you employ an agent to help you through this process. You need a price that is not only competitive but also allows for the negotiation "game" that buyers play.

For advice buying or selling - Halliwell First National Real Estate
http://www.halliwellfn.com.au/
(03) 6424 1496

Alan Halliwell - Director

New Investors - The Basics

2008-11-28T14:51:00.000-08:00

New property investors need to be aware of certain things when they become landlords. the following topics are important to consider.

What do investors mean when they talk about "rate of return"?

Rate of return is a measure of profitability; it measures the annual income that an investment property will generate vs. the total cost of purchasing that property.

This is measured as a percentage figure.

For example:
If you purchased a property for $200,000 and rented it out for $200 p.w. you would be looking at an annual gross rate of return of 5.2% of your original purchase price.

Purchase cost - $200,000
Rental Income - $10,400 p.a. ($10,400 / 52 weeks = $200 p.w. rent)

$10,400 / $200,000 x 100 = 5.2%

Your annual gross income from the property is therefore 5.2% of what you have invested.

Things to keep in mind

You should always keep the following things in mind when determining your rate of return. These extra expenses should be subtracted from your gross rental income & they will effect the size of your return.

Vacancy rate - your property could be vacant for a number of weeks if a tenant leaves and you need to find another one. Be conservative and allow 2-4 weeks for this.
Maintenance - plumbing, electrics, roofs etc will all need repair from time to time. It's a good ideda to allow a certain amount of money for this each year.
Management fees - it's a good idea to employ an agent to manage your property. Agents will arrange maintenance, find suitable tenants, reveiw rents and conduct inspections. There will be a fee for this service. Remember, you always get what you pay for.
Insurance - insurance against damage, loss of rent and injury to tenants is a must. Talk to your solcitor and/or your chosen agent.
Possible legal costs
Annual council rates and land tax expenses

Special things to remember

Have a good lease drawn up - your agent and/or your solicitor will ensure this is done properly.
Make sure your lease protects you, your property and your income. It should also specify any extra "rules" you would like your tenant/s to abide by. Agents will advise you on this.
Rent reveiws - these are rental increases over time. Increases in rent are necessary as inflation erodes the value of the dollar. You'll want to protect your income against this.
Pick a property manager with experience and results. Your investment is too big to be mis-managed. Make sure you're comfortable with your chosen agent.
If an agent is charging more than another there is usually a very good reason for it - they're worth it and have a very good track record.

Some of these tasks seem daunting and complicated. In reality a good property management agent will take all the stress out of being a landlord. The most important thing for you to do is consider all of your possible costs when buying a rental property. If you factor these expenses in from the start you won't have any surprises down the track.

Property is one of the most popular investment strategies in Australia and can help you create wealth. Immediate income whilst important isn't everything. Remember, as the years go by your investment property should increase in capital value. This capital value will be worth a great deal to you in the future, it will give you the option to borrow more or sell for an immediate cash return.

If you're looking to invest don't worry. Do your sums, get good advice and go for it!

For advice buying or selling - Halliwell First National Real Estate

http://www.halliwellfn.com.au/

Alan Halliwell - Director

So You Want to Try Selling at a Very High Price to See What Happens?

2008-11-26T17:30:00.000-08:00

No Need to wait and see what happens, I can tell you what will happen right now!

YOU WON'T SELL!

That's right, you won't sell.

Why?

Because by over-pricing your home you help every other home on the market in the same category as yours sell. Period. (see buyers market explained)

Ok ok it sounds harsh but it has to.
The price you set on your property must be flexible enough to enter into bargaining but realistic enough to entice buyers to look. Over-pricing is the single biggest scare tactic you can unwittingly use against buyers. Buyers run a mile from over priced homes and trust me, they know what over-priced is. They study the market well before buying and recognise good value when they see it.

Good Value. There's a funny thing about good value. People are happy to pay for good value, most people don't try to negotiate below what is perceived as market "good value". Why? because they know the owner knows good value too and they don't wan't to push their luck.

Generally people are fair and decent & don't try you on. Remember, a good pricing strategy allows for negotiation anyway.

If you've been trying to sell and haven't maybe your pricing strategy needs to be looked at.

We at Halliwell First National are happy to help you with your pricing strategy. Come in a have a chat. You may hear things about your price that you don't want to but that's our job, It's also our job to be up front with you and talk to you about today's market and how we can help you sell.

For advice selling or buying - Halliwell First National Real Estate

http://www.halliwellfn.com.au/
(03) 6424 1496

Alan Halliwell - Director

Buyers Market Explained

2008-11-26T16:35:00.000-08:00

Hello Again.

Devonport is in a "buyers" market. In fact most of the country is.
What exactly is a buyers market?

Basically a buyers market means that the market conditions favour the buyer. Sellers must be aware of this situation when setting an asking price for their home.

During a buyers markert the amount of homes on the market increases, this means that buyers have the luxury of picking and choosing between a wide selection of property.

Example:

Say a buyer is looking at 6 different homes. All of these homes are are very similar and would probably bring similar prices in any market at any time. Homes 1 to 5 are priced at around $250,000 but the owner of home 6 has decided to ask $280,000 hoping to get a higher price.

The buyer will go through a process of elimination until he/she singles one home out. Things like size, kitchen, bathroom, yard, location will come into play and so will price. In fact price is often the first thing buyers look at.

Why would our buyer even consider house no. 6 if the price is $30,000 higher than everybody else?
You may say that the buyer would make an offer... the fact is buyers get scared off by prices that are too high and as a result don't even bother simply because they have other options.

In these conditions buyers have the negotiating power and there is nothing we can do about it except be aware of it and price accordingly.

A skilled real estate agent should be bringing this point to the attention of their client.

A skilled real estate agent will also develop a pricing strategy that not only considers this situation but also allows space for negotiation.

It is a fine line but with the help of a skilled agent you should be able to determine a price that will work in today's market. If you're thinking of selling call for a chat today.

I'll leave you with a pearl of wisdom from Donald J. Trump:

"Over-priced homes are like old soldiers, they never die... they just fade away"

For advice selling or buying - Halliwell First National Real Estate

http://www.halliwellfn.com.au/

(03) 6424 1496

Alan Halliwell - Director

Sellers - First Impressions Are Everything

2008-11-21T11:59:00.000-08:00

Make a good impression early

Sometimes I'll drive by a home for sale and think "I wouldn't even step foot inside that place" or "That looks like WAY too much work"

Whether these kind of thoughts are warranted or not is beside the point. The fact is that buyers will feel this way about some homes, especially if they don't make a good first impression.

Let me tell you, some homes sell for alot less simply because there were some maintenance jobs that needed doing. At the end of the day the maintenance work would have cost less than what got shaved off the asking price in the long run.

First impressions are so important when selling. You must have your home in A1 condition before going to market.

Buyers look for every reason possible not to buy "before" they sign a contract & look for every reason possible to confirm their purchase "after" they sign a contract.

With this simple rule in mind as a seller it is important to do everything possible to give buyers as few reasons as possible not to buy.

Basic Tips

If the front of the house needs a paint get it done
Front doors, gates & fences must be in order
Keep the lawn mown and the garden in check
The front of the house is it's "face" make sure it's smiling
Angry dogs don't help, keep them out the back if possible
Is your letter-box falling apart? If so get a new one
Keep blinds open - sunlight sells
Air fresheners, buyers love nice smells
Keep pets locked up - puppies are cute, dirty paws aren't
3 rooms should always be clean and tidy - Bathroom - Kitchen - lounge. These 3 rooms are where life happes
Fix any dodgy plumbing or electrics
Wash down the walls with sugar soap
Get a paint job if necessary

You need to make your home an empty canvas so the buyer can "paint" their own lives onto it. The buyer needs to be able to imagine living in your home. It will be easier for them to do that when the place is looking, smelling and feeling great.

For advice selling or buying - Halliwell First National real Estate

Director - Alan Halliwell

Haven't sold yet?

2008-11-19T11:19:00.001-08:00

Are you getting frustrated?

Unfortunately many people, through no fault of their own don't receive the right advice in the first place. This can happen for various reasons but the end result is always the same, a home that hasn't sold with owners left feeling angry and frustrated.

It doesn't have to be this way.

It is extremely important for an agent to keep the people who have employed them (the home owner) informed on a regular basis. It is just as important for an agent to have an open discussion about current market conditions, promotion & strategies from day one.

Too often this is not done properly and unfortunately all parties concerned end up getting frustrated and become dis-heartened.

If you have been trying to sell but haven't been successful maybe it's time for a change.

I am more than happy to sit down with you and talk about what your options are with no obligtions to you whatsoever. At the end of the day isn't it better to have a second opinion if nothing else?

Call to make an appointment today.

For any advice about selling or buying - Halliwell First National Real Estate

www.halliwellfn.com.au
(03) 6424 1496

Alan Halliwell - Director

The Forgotten First Home "Sellers"

2008-11-19T01:44:00.001-08:00

First Home "Sellers" - What this market means for you and all sellers

There has been lots of hype surounding first home buyers and what the current market conditions mean for them. Often we tend to forget the first home sellers and all sellers in general, what does all this mean for them?

This message really is for anyone thinking of selling or trying to sell.

Definition
Basically, first home sellers are the first home buyers of around 5 - 7 years ago. Since these people bought their first home they have had job promotions, had children, bought pets, have an extra car etc. Often they need more space and just generally feel that they want to "graduate" to the next level of home ownership. In order to do this they usually sell their current home.

A message to all the First Home Sellers
First home buyers are out there with massive Govt. assistance and they're just itching to buy, and they want to buy your home. Why? because it's probably going to fit into their budget. You probably bought your first home from a first home seller 6 or 7 years ago. This is a natural property cycle and can be seen as a "property ladder", everybody jumps to the next rung at some stage.

So what's all this got to do with anything?

Well, if you're thinking of selling this is a great time to do so because there are so many first home buyers out there looking to buy. So in effect the Govt. assistance for first home buyers is not only helping them, it's helping you first home sellers too. If you own a home that's in a low to mid level price bracket and you're thinking of selling now is a great time to do so, the buyers are out there.

What about second, third & fourth time home sellers?
This is great for you too. Just like the rungs of a ladder everybody wants to jump up a rung. So when first home buyers get into the market they actually "kick start" a domino effect where people sell in order to jump up to the next rung. Those who sold to the first home buyers will want to buy up a rung and so on... am I making sense? I hope so.

Simply put it is a great time for anyone who is thinking of sellng. If the first home buyers are active the market in general will be active.

Guess what, every first home buyer in Australia has been offered a $14,000 incentive to buy. You can't get more active than that.

For any advice selling or buying - Halliwell First National Real Estate

www.halliwellfn.com.au
(03) 6424 1496

Alan Halliwell - Director

First Home Buyers "Perfect Storm"

2008-11-19T01:07:00.000-08:00

Without a doubt this is a great time to be buying your first home.

If you're buying your first home there are 3 main things working in your favour.

1. Govt. Grant
As we all know the Federal Government has doubled the first home buyers grant to a whopping $14,000. In addition to this, if first home buyers build a new home and live in it they will receive an amazing $21,000!

2. Interest Rates
Since mid 2008 interest rates have been on a steady decline. The main reason for this is that the Government and Reserve bank want to keep the economy moving. One way to acheive this is by reducing the "cost" to the individual of borrowing money in order to do things like buying a home. In a nutshell the Govt. & Reserve Bank is trying to make it easier for yo to buy a home.

3. Steady Property Prices
The majority of the country is experiencing a soft market where prices are not increasing. Property prices in some areas have reduced but Tasmania has managed to remain steady. The main point to remember here is that "property prices are not increasing". This means that it's still a great time to buy.

The Perfect Storm

This is the best opportunity first home buyers of any generation have ever had. The amount of Govt. support on offer coupled with the current market conditions really has created what I like to call the first home buyers perfect storm. If you're thinking of buying your first home the only thing left to do is act. You may never again have a better opportunity to buy than right now. Get out there and start looking for your home today.

P.S. If you're a seller, great. Look at all of these people out there who are facing the best opportunity in their lives to buy.

For any advice selling or buying - Halliwell First National Real Estate

www.halliwellfn.com.au
(03) 6424 1496

Alan Halliwell - Director

Advertising Works!

2008-11-17T18:33:00.000-08:00

How important is advertising?

Advertising is one of the most important things we as real estate agents can do for our home sellers. It stands to reason that if people search for property it will be in the Newspaper and on the internet. Why wouldn’t we target these two methods of marketing?

Approx. 35% of our inquiry comes from the newspaper

Approx. 40% of our inquiry comes from the internet

Any agent denying you of the opportunity to advertise in the Newspaper is denying you of choice and exposure. Some agents in Tasmania feel that advertising doesn't work, quite frankly I just don't see how that is possible.

Isn't it better for your property to be exposed to as many buyers as possible?

Isn't it better for your agent of choice to have as much exposure to the public as possible?

"In the past some agents have suggested that advertising doesn't work.

I think the main point here is in the past.

All of these agents are now advertising in the newspaper.

It's quite facinating - these agents, who spent alot of time and energy dis-crediting advertising, are now using advertising themselves!

I wouldn't sign anything with an agent like that"

In the old days it was common for buyers to walk into an agency with a price range in their head and that’s all. The agent would then show them a list of suitable properties and take them for a drive around the homes. Today buyers research the properties they’re interested in by studying the real estate guide and by searching the web. They then make a short-list and know what they want to see by the time they come into the office.

It is an absoloute priority to be exposed to them before they walk in the office door!

It is important to choose an agent that not only advertises but one who has a constant presence in the newspaper. It's no longer adequate for an agent to have small ads or to only advertise now and then. I noticed a marked rise of inquiry from our ads in the paper when I decided to double their size.

It is also important to choose an agent who has a modern, easy to navigate website. It should be easy to find and it should only take a few easy clicks to find properties for sale. Our website is updated quarterly and kept to a state of the art level by the First National Group.

When choosing an agent to list your property for sale, always check these things:

1. Amount of advertising in the real estate guide, is it every week?

2. Size of each individual property ad in the real estate guide

3. Do a google search to check where the company name appears

4. Visit the company website to check how easy it is to navigate

This is where buyers are looking for property today. It is important to list with an agent who is not only utilizing these methods of marketing but excelling at it.

At First National Real Estate we make sure we do

For any advice on selling or buying - Halliwell First National Real Estate

www.halliwellfn.com.au
(03) 6424 1496

Alan Halliwell - Director

Open Homes - Do They Work?

2008-11-17T18:20:00.000-08:00

Do open homes really work?

Yes! But not always in the way you thought

An open home is an excellent way to showcase your home to the market. It offers people the opportunity to get a true feel for the home and have a look around.

The best part about agents who conduct open homes is that no matter which home they are “opening” they are getting in touch with buyers. Every buyer at every open home is recorded. If a buyer didn’t like the home they looked at they are still in the market and may be interested in your home. A sale for you may come from a buyer found at a different open home.

Yes, this can and will happen to you if you hold an open home, isn’t it better to be exposed to more buyers rather than less?

Open Home Positives

Open homes help create awareness, allow interested parties to inspect the home and help agents collect important feedback about the property condition, price and popularity.

Feedback collected is very important and can help home owners understand what the market is saying about their property. Sticky beaks aren’t such a waste of time, often they have a lot to say and can be a wealth of valid feedback.

Buyers don’t just look at one home, they look at many homes. If your home is listed with an agent who conducts open homes your chances of being exposed to more buyers increases simply because buyers do visit open homes.

Open Home Facts

· An open home at your home may find a buyer and help you sell

· An open home at somebody else’s home may find a buyer and still help you sell

· An open home will help your agent collect important feedback both positive and negative

· Agencies that hold open homes expose themselves and your property to more buyers

Open homes are a tried and true marketing method used by agencies world wide.

At Halliwell First National open homes are recommended but not enforced. We give you the opportunity of having one, if you don't want one for whatever reason that's fine. It's your choice and giving you what you want is what we're all about.

Any agent who tells you that they don't do open homes isn't giving you choice. They are taking choices away from you. You should ask yourself why an agent would want to do this... is it really because they think open homes don't work?

For any advice about selling or buying - Halliwell First National Real Estate

http://www.halliwellfn.com.au/
(03) 6424 1496

Alan Halliwell - Director

A note for the first home buyer

2008-11-16T22:28:00.000-08:00

Time spent in the market is always better than timing the market

This phrase simply relates to the time it takes property value to mature from the day you purchase it to that day you choose to liquidate (sell) it. There are 2 questions to ask.

1. How many people do you know who have sold a property for twice its price 12 months after buying it? I’m guessing not many. Ok, Ok, I’m sure there’s someone out there who has done it (Donald Trump maybe) but it’s not very common.

This is because property takes time to grow in value.

2. How many people do you know who know exactly when the stock & property markets are going to hit the very bottom and when they’re going to hit the very top? This time I know it’s no-one because no-one can. Plenty of people are very good at “forecasting” and “predicting” and this can really help narrow things down and I recommend that everyone does this in some way but no-one really knows exactly when things are going to happen.

Back to the opening statement “time spent in the market is always better than timing the market”.
This statement relies on the fact that the property market takes time to mature and that prices through all their ups and downs over 10, 15, 20 yr periods still generally increase.

There is no “get rich quick” scheme. When it comes to property the majority of us need to have a long-term approach. Some lucky people buy very low and sell very high and most of them are just that… lucky. And then there’s the Donald Trumps of the world who devote their lives to forecasting markets and took huge risks to get started too. For most of us that just isn’t practical.

So as you can see, if you choose property as a place to invest there is no real “bad” time to buy as long as you are prepared to wait and treat it as a long-term investment. Sure, if you buy when prices are at their peak you will have to wait longer to realize capital growth but your property will probably still increase in value if you hold onto it long enough. Most of us live in our homes for around 7 – 10 yrs.

For first home buyers this is a great time to be buying. The Govt. grant has been doubled to $14,000, the market is soft (prices aren't increasing) and interest rates are dropping. This is a first home buyers "perfect storm".

This is exactly the reason why buying as early as you can (as long as you can afford It and have considered your finances) is always a good thing to do. The longer you can hold property the better chance you have of selling it for a profit in the future.

A good idea would be to visit a financial planner who can help you make informed decisions about your individual financial situation in relation to buying property.

Time spent in the market is better than timing the market… when you’re ready go for it.

For any advice about selling or buying – Halliwell First National Real Estate

(03) 6424 1496
www.halliwellfn.com.au

Alan Halliwell
Director – Halliwell First National

The Property Clock

2008-11-16T21:01:00.000-08:00

When is the best time to buy?

Real estate travels in a cycle with higher prices at the top of the cycle and lower prices at the bottom. This cycle can last from 5 to 20 years and can be thought of as a clock with 12 o’clock representing the top and 6 o’clock representing the bottom. The interesting part is that on average, every ten years since 1900 property prices have doubled regardless of the ups and downs of the cycle, so in theory every time the clock hits 12, property prices peak. That is why real estate has been one of the most popular investment strategies in Australia, because given time property should increase in value.

Ask yourself this... would any property on Earth sell for the same price it sold for in 1990 in today's market? Would any property sell for less today than what it did in 1990?

Highly highly unlikely.

This is the power of the proprty clock, even when the clock does strike 6 & the market bottoms out you can feel safe in the knowledge that prices probably aren't going to be as low as they were the last time the clock struck 6.

No-one can perfectly judge when the clock will strike 12 or 6 o’clock, it is a matter of watching the market and paying attention to economic trends. One can judge where the market roughly sits on the clock but no-one knows exactly when the clock will hit its peak and when it will hit its trough. If we knew that I wouldn't be writing this blog and you wouldn't be reading it... we'd probably be on the golf course laughing all the way to the bank!

At the moment we are nearing the bottom of the cycle where buyers may not be willing to pay as much for the same property that they may have paid 12 - 24 months ago. You could say that we are around 4 or 5 o’clock on the property clock. I would like to make one thing clear before going any further. This does not mean that property prices are plummeting. It simply means that certain things in our economic environment are affecting the market so in turn property prices and buyers ability to purchase can be affected. It is not the first time this has happened and certainly won’t be the last, hence the cycle of the market.

The most important thing to remember here is that buying at 6 o’clock on the property clock means you stand to wait for less time to realize an increase in the capital value of your home because the top of the market where property prices are highest is closer. If you are one of the many people who bought at 12 o’clock, don’t panic, the clock is always ticking. You will just have to wait a little longer for the clock to reach 12 again to see an increase in the capital value of your home.

So, the trick is to try and buy at 6 o’clock not 12 o’clock. Luckily, for today’s buyers the best time to enter the market is now because of where we’re at on the property clock. As I said, in my opinion I believe we are somewhere around 4 or 5 o’clock. Buying in the next 6 to 12 months will give you a greater opportunity to increase capital growth (the value of your home) faster simply because you will be buying property closer to the bottom of the market rather than at the top of the market.

Once again, for those who may have bought at 12 o’clock, and there’s plenty of us, don’t panic because that home you bought is still building equity. In fact, the equity in that home could even help you buy your first investment property.

So what's the verdict. Realising capital growth is a long-term process regardless of when you buy. If you buy when prices are lowest your "long-term" strategy is just shorter than that of someone who bought when prices were at their peak.

Become a student of the real estate market, the information is out there and easy to get. Enjoy the process and when you're ready and can afford it don't be afraid to buy, whatever the market is doing. The best time to buy is always now because the property clock is always ticking.

For any advice about selling or buying - Halliwell First National Real Estate
(03) 6424 1496
http://www.halliwellfn.com.au/

Alan Halliwell
Director – Halliwell First National

Selling in a tough "buyers" Market

2008-11-16T17:15:00.000-08:00

What is a buyers market & how do you sell in one?

A buyers market does not always mean there are lots of buyers, but it does always favour buyers.

Currently Devonport is experiencing a buyers market. Generally speaking a buyers market happens when there is a large supply of property for sale and a lower demand for those properties. A lower demand doesn’t always mean less buyers, it can mean the same number of buyers with less money to spend.

The main point to remember here is that sellers aren’t necessarily asking any more for their homes, it’s just that the gap between what sellers want and what buyers are prepared to pay increases a little. If you can recognize this as a seller in this type of market you will stand more chance of selling and selling is what you want to achieve.

For those looking to sell in a buyers market it is very important to get the pricing right on the very first day. If the price is too high buyers will ignore the property and you will actually end up driving buyers toward everybody else’s homes for sale. You definitely don’t want that because you WILL end up staying on the market for far too long.

Here is a list of tips to consider when selling in a buyers market:

Study the real estate guide and watch how often prices drop on properties before they sell.

Try to find out sale prices and then compare them to what the original asking price was.

Listen to agent’s who give you a snap-shot of the market. They deal with the market daily.

Don't listen to agents who don't give any market analysis.

Remember, if an agent gives you a price that sounds too good to be true, it probably is.

Listen to the market. Often all the answers you need come from feedback sourced at open homes, inspections & from buyer opinion. A good agent should be keeping you up to date.

Avoid allowing emotion to influence your price expectations. Sometimes it’s hard but you need to be honest with yourself.

Remember that the first 3 weeks of marketing your home are the most important. That is when the most buyers will look at your home so it’s important to be realistically priced from the start.

Understand that buyers on average look at 14 homes before buying. If you’re over priced they have 13 other homes they can buy instead of yours.

Don’t over price. This only helps everyone else selling in your market sell their property.

Some of this advice may seem confronting, but I can assure you that as a real estate agent it is my duty to make you aware of the importance of pricing correctly in a buyers market. It truly is a painful process when sellers realize that they have priced too high 6-8 weeks into their marketing campaign. Imagine an agent trying to explain my points at that stage! I can guarantee you it’s best to let sellers know what market conditions they’re dealing with on day one rather than on day 51.

For any advice about selling or buying - Halliwell First National Real estate

(03) 6424 1496

www.halliwellfn.com.au

Alan Halliwell
Director – Halliwell First National