Last time I told you about a property in East Fremantle that went under offer after attracting 30 groups of people to the home open. That was clearly an extraordinary result, but it’s important to note that excellent outcomes can still be achieved without a crowd of buyers necessarily busting down the door.
The quality of potential buyers is just as important as the quantity. And this was highlighted with the recent sale of a Bicton property. As a rear-strata property, it was difficult to predict how buyers would respond to this property despite it being beautifully-designed, offering great privacy and having excellent solar orientation.
A “sneak preview” was held prior to the property’s address and price being advertised and 4 groups attended the inspection, 2 of which had come from the Caporn Young database and the other 2 from the Internet. All buyers were qualified, well-informed about the property and had already established good rapport with our team. These factors helped to ensure that there was considerable interest in the property, which resulted in a strong offer being received and accepted.
The seller was delighted to have sold the property after being on the market for less than a week and was particularly impressed at how Caporn Young’s unique strategy, which is designed to attract the strongest buyers early in the campaign, did exactly that.
Friday, July 1, 2011
Friday, June 24, 2011
BURSTING AT THE SEAMS
That’s what happened with a delightful character cottage in East Fremantle over the weekend. This lovingly-restored turn-of-the-century property clearly charmed the pants of a lot of people because the place was bursting at the seams! I’ve been to weddings with fewer people.
What was particularly interesting was finding out where all of these potential buyers had come from. There were key buyers from our data base; some had seen the property on the Internet; others noticed it in the local newspaper; and, others still had seen it advertised in The West Australian. This shows, among other things, just how important it is to cast a wide net when marketing a property and why you shouldn’t only target local buyers.
What happened after the home open? Well, the property went under offer after being on the market for only 12 days and both seller and buyer were thrilled with the outcome.
Across the board, our team has definitely noticed improved attendance at home opens in recent weeks and consequently we have negotiated a number of great sales from the weekend activity. While not every property will sell quickly, it’s encouraging to know that even in the current market our strategy is achieving outstanding results.
Monday, June 20, 2011
A BUYER'S MARKET TO A SELLER'S MARKET
The weather may only be kind to farmers and ducks at the moment but we have some hot spots in our market. Our team reported a definite spike in activity over the past week, which was one of the best in recent months. It’s very encouraging to see some of our quality properties go under offer, though the market continues to lack direction overall.
One of the highlights of the week was a beautifully-presented Federation-style home in Ardross. Despite being meticulously maintained both inside and out and set in a quality location, this property had remained on the market longer than planned. Re-aligning and persistence paid off, however, and a full asking price offer was received to the delight of the seller.
When a property sits on the market for an extended period of time, buyers often have the upper-hand in negotiations. However, this is when it is apparent that not all agents are the same and the skill is transforming a buyer’s market into a seller’s market despite the underlying market conditions.
Interestingly, the eventual buyer of this Ardross property had been looking for a property on the other side of the river. This shows just how important it is for sellers to showcase their properties in widely-read publications such as the CY Magazine which is distributed broadly from Subiaco around the river to Applecross as well as beachside suburbs. You need an agent that can demonstrate a strategy not only to capture local buyers but which will also capture non-local buyers equally.
Thursday, May 19, 2011
KEEPING CLOSE CONTACT WITH BUYERS
If you attended a home open that was scheduled during last Sunday’s Western Derby, you would have been quickly reminded about how much West Australians love their football.
Buyer activity as a whole over the past 7 days was weak, though there was a slight improvement over previous weeks. There are definitely new buyers entering the market but many are still in the research stage of their property hunt. In situations such as this, it is critical for agents to keep in close contact with buyers, understand what they are looking for and suggest property that they might not have considered.
Keeping track of buyers is such a critical task that Caporn Young has recently introduced a new state of the art database management system that can be accessed by our staff anywhere in the world via the internet. This means we can now connect with buyers and sellers even more quickly and efficiently.
Our team achieved a number of strong sales recently, including a beautiful Applecross home that went under offer for above the asking price after only the second home open. When buyers and sellers are both realistic about current market values, deals can be achieved in any market.
Looking ahead, I wouldn't be surprised if investment sellers show a greater willingness to negotiate in the coming weeks, given many will want to dispose of their asset before June 30 and therefore avoid another year of Land Tax.
Buyer activity as a whole over the past 7 days was weak, though there was a slight improvement over previous weeks. There are definitely new buyers entering the market but many are still in the research stage of their property hunt. In situations such as this, it is critical for agents to keep in close contact with buyers, understand what they are looking for and suggest property that they might not have considered.
Keeping track of buyers is such a critical task that Caporn Young has recently introduced a new state of the art database management system that can be accessed by our staff anywhere in the world via the internet. This means we can now connect with buyers and sellers even more quickly and efficiently.
Our team achieved a number of strong sales recently, including a beautiful Applecross home that went under offer for above the asking price after only the second home open. When buyers and sellers are both realistic about current market values, deals can be achieved in any market.
Looking ahead, I wouldn't be surprised if investment sellers show a greater willingness to negotiate in the coming weeks, given many will want to dispose of their asset before June 30 and therefore avoid another year of Land Tax.
Monday, May 16, 2011
WEEKLY PROPERTY MARKET UPDATE
The Federal Budget has been announced and, with its mix of “tough-love” measures, the response has understandably been divided. Despite a number of cutbacks, the overall picture is for a strengthening Australian economy, which according to Treasurer Swan is the envy of the developed world.
For followers of the real estate market, one of the key questions will be how various budget initiatives affect sentiment amongst buyers and sellers, and perhaps only time will tell.
On a more local level, reports from our team show that activity in the last week was somewhat subdued, with Mother’s Day a key focus for many over the weekend. With signs of pent-up demand, however, we do expect to see increased sales activity during May.
A particularly encouraging sign is the wave of new buyers entering the market, evidenced by an upsurge in enquiries to our office. Typically, new buyers need to view a selection of properties before making a decision and so our team is looking forward to negotiating sales over the coming weeks.
One of the interesting sales in the last week was for a brand new apartment in West Perth, which sold to an astute first homebuyer, who secured the property after noticing it in the newspaper and viewing only a handful of properties. This confident buyer is part of growing band of first home buyers who are choosing inner-city properties that are close to employment and lifestyle opportunities rather than traditional house and land packages on the outskirts of town.
For followers of the real estate market, one of the key questions will be how various budget initiatives affect sentiment amongst buyers and sellers, and perhaps only time will tell.
On a more local level, reports from our team show that activity in the last week was somewhat subdued, with Mother’s Day a key focus for many over the weekend. With signs of pent-up demand, however, we do expect to see increased sales activity during May.
A particularly encouraging sign is the wave of new buyers entering the market, evidenced by an upsurge in enquiries to our office. Typically, new buyers need to view a selection of properties before making a decision and so our team is looking forward to negotiating sales over the coming weeks.
One of the interesting sales in the last week was for a brand new apartment in West Perth, which sold to an astute first homebuyer, who secured the property after noticing it in the newspaper and viewing only a handful of properties. This confident buyer is part of growing band of first home buyers who are choosing inner-city properties that are close to employment and lifestyle opportunities rather than traditional house and land packages on the outskirts of town.
Tuesday, May 3, 2011
COMPETITION IS THE KEY
REIWA´s latest vacancy data has revealed that the vacancy rate across Perth was 50% higher a year ago than it is today. Demand for some rental homes in Perth is now rising to such a level that renters are prepared to pay above the listed rental price to secure a property.
But even with such strong tenant demand, landlords can´t afford to cut corners with the marketing of their property. Uploading the property to real estate websites is of course extremely important but it needs to be supported with print advertising and signboards.
Professional photography is also critical given that the majority of potential tenants will be viewing your property online and making their shortlist based on photos alone.
Overall, the key to achieving the best possible rental price is to attract the highest number of potential tenants and put them in competition with one another. A skilled agent will be able to make the most of this situation and negotiate strongly on your behalf.
Competition doesn´t need to be a group of 30 people waiting at the front of your property for a viewing. A recent executive property we leased went for above the asking price with only two people interested. As the leasing team say ‘it only takes two to tango!´.
But even with such strong tenant demand, landlords can´t afford to cut corners with the marketing of their property. Uploading the property to real estate websites is of course extremely important but it needs to be supported with print advertising and signboards.
Professional photography is also critical given that the majority of potential tenants will be viewing your property online and making their shortlist based on photos alone.
Overall, the key to achieving the best possible rental price is to attract the highest number of potential tenants and put them in competition with one another. A skilled agent will be able to make the most of this situation and negotiate strongly on your behalf.
Competition doesn´t need to be a group of 30 people waiting at the front of your property for a viewing. A recent executive property we leased went for above the asking price with only two people interested. As the leasing team say ‘it only takes two to tango!´.
PENT-UP DEMAND COULD CATCH SELLERS UNAWARE
Although monitoring by the Real Estate Institute of Western Australia (REIWA) shows that the number of properties for sale across Perth remains above the long term average, there are hints that stock levels are dropping in certain areas. This is either due to a boost in the number of sales or from owners taking their properties off the market, perhaps placing them onto the rental market where vacancies have been low for some time.
Sales executives at Caporn Young are reporting a shortage of stock in key areas within the Western Suburbs and in and around Fremantle, which is causing frustration amongst buyers unable to find what they are looking for.
There are also signs that there is considerable pent-up demand from buyers, both homebuyers and investors, who have been previously dormant because of uncertainty in the market. Now that the interest rate environment has stabilised and the growth prospects for the market are positive if not unspectacular, many are now preparing to make a purchase.
The shortage in rental accommodation across the market, which seems to be getting more severe, may see disgruntled renters become buyers, further adding to the demand.
Caporn Young is expecting a busy period ahead and given the demand for quality property and the company´s reducing stock levels, there is currently a perfect opportunity for sellers to bring their properties to the market.
Sales executives at Caporn Young are reporting a shortage of stock in key areas within the Western Suburbs and in and around Fremantle, which is causing frustration amongst buyers unable to find what they are looking for.
There are also signs that there is considerable pent-up demand from buyers, both homebuyers and investors, who have been previously dormant because of uncertainty in the market. Now that the interest rate environment has stabilised and the growth prospects for the market are positive if not unspectacular, many are now preparing to make a purchase.
The shortage in rental accommodation across the market, which seems to be getting more severe, may see disgruntled renters become buyers, further adding to the demand.
Caporn Young is expecting a busy period ahead and given the demand for quality property and the company´s reducing stock levels, there is currently a perfect opportunity for sellers to bring their properties to the market.
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