THERE'S NO PLACE LIKE HOME

I think it was Dorothy from The Wizard of Oz who said it best: there’s no place like home.
For most of us, a home is much more than a dwelling. It’s a place of memories and shared family experiences. It offers security and familiarity, and for the homeowner, there’s just no place like it.

But this emotional connection we have with our homes can create challenges when it comes time to sell up. As much as we might consider our homes to be one of a kind, the fact of the matter is that no property exists in isolation. Buyers will always compare a property with others.

While some properties have unique features, on the sales market every property has its competition. Competing properties may include similar properties in the area, but also those in other areas offering a comparable lifestyle.

Buyers will assess the value of a property not just based on what the property offers, but what other properties offer. It’s the market that determines value, not the seller or agent. While an owner may think their property is well-priced, the market could easily say otherwise.

So, while it’s important to analyse recent sales when determining a price for a property, it’s equally important to understand what is on the market – in competition with the property.

For buyers, there will always be more than one place they can call home.

POWER IS A FOUR LETTER WORD

There’s a four letter word that has immense power in all sorts of situations, but particularly when it comes to buying real estate.

C-A-S-H.

A cash offer is the ultimate sign of buyer strength and can be difficult for sellers to ignore. It shows a confident buyer who is willing and, importantly, able to secure the property. And we saw a perfect example of this over the weekend with a beautiful Mosman Park property.

This property hadn’t yet been launched to the market but our unique selling strategy ensured 6 groups attended the exclusive Sneak Preview. With 2 offers received and after a fair amount of negotiation, the seller couldn’t go past a cash offer of over $2million, which left the unsuccessful buyer disappointed.

While not everyone is in a position to make a cash offer, there’s definitely something to be said about putting your best foot forward.

This Mosman Park sale was one of the highlights of a weekend which saw good numbers through most of our properties. Our team continues to achieve excellent results for our clients, particularly above the $1million mark, including a recent sale of over $1.8million in Swanbourne and several other cash sales.

Time will tell how the recent drop in interest rates affects the market, but if you are looking for a good value property, we have some excellent options currently available - visit our website today.

RENOVATOR'S EYES

Can you see it?

It’s not obvious but it’s definitely there. You’ll have to look beyond the out-dated kitchen and worn out carpets. I am talking about potential.
Some people can see it easily; they’re the ones who walk into a home open with tape-measure in hand and instantly declare “this place has massive potential”. Others struggle to see it.

If you’re one of those buyers with renovator’s eyes, you’re in luck because now is a particularly great time for buying a renovator. There are many properties around in blue chip locations that are being sold for near land value.

These properties aren’t dumps; they are solid, well built homes that simply have out-dated features. With the right vision and a little hard work (or in some instances, a lot of hard work), these properties can be transformed into spectacular homes – either as an addition to your investment portfolio or a home to move into.

Given that prices are at their lowest level in years and we’re seeing early signs of market improvement, buying a renovator could prove extremely rewarding in the future. But it’s not only about building equity; renovating also gives you the opportunity to finish the property to your exact requirements, which in itself is extremely valuable.

And when the market recovers and you eventually decide to sell the property, rest assured there will be plenty of buyers out there who will be happy to pay a premium for a renovated property… but only after they see it first.

WELCOME TO NOVEMBER

It’s an age old cliché, but time really does fly. November has crept up on us, which perhaps isn’t surprising given the eventful year that has past.


Key parts of the world have experienced, and continue to experience, significant economic woes and our own sharemarket has reflected the widespread nervousness felt by many investors and consumers. It’s not surprising that our real estate markets have largely underperformed, even with strong employment conditions and a booming local resources sector.

On a positive note, for anyone planning to sell their home, we are in the midst of a prime selling period. The summer months typically coincide with an influx of visitors to Perth as many expats return for a well-earned holiday and this can throw up some excellent opportunities.

At Caporn Young, we have developed a sales strategy that specifically targets the expat market, many of whom are keen to settle back in Perth. These buyers typically don’t view many properties and are in a position to make strong cash offers.

Our unique strategy provides a very cost-effective way to expose property to this market, which gives sellers the opportunity to achieve a quick sale without investing in a full market launch. However, to be most effective this strategy needs to be commenced within the next few weeks.

DO YOU LIKE IT SWEET?

When it comes to hearing feedback about your property, do you have a sweet tooth? Would you rather your agent passed on the buyer feedback exactly as it was received, or would you rather hear the sugar-coated version?

One of the challenges of selling a property is hearing constructive and sometimes negative feedback about your property. How dare buyers criticise your beloved home or insinuate that it is overpriced.

It can also be difficult hearing about the actual state of the market, especially in slower times when prices may be dropping.

The situation isn’t helped by agents who would rather be liked than fulfil their professional obligations. They tell owners what the owners want to hear, perhaps out of a fear of rejection.

But this isn’t helping anyone. How can sellers make informed decisions about the sale of their property if they don’t know what’s really happening in the market or what buyers are really saying about their property? Anything other than the truth will compromise the communication between agent and seller.

Marketing a property is a dynamic process and buyer feedback is critical in steering the campaign towards a successful outcome. Any distortion of the truth, either intentional or unintentional, will be detrimental to the sale of the property, extending its sale time and risking overexposure.

For sellers in any market, clearly a strong dose of reality is almost always the best medicine. Even if a spoon full of sugar helps to make it go down.

HOW MUCH IS THAT WATCH?

You’re shopping for a new watch with a strict $500 budget. Despite your better intuition, you stroll into an expensive boutique filled with high-end luxuries. There is an alluring glass case in front of you and within it sits a beautiful timepiece that you simple must have.


Your retail dreams evaporate, however, when you notice the $30,000 price tag. But wait! There is another watch of the same brand for only $1,500! You instantly draw the credit card and make the purchase satisfied you scored a bargain.

Clever retailers have used this strategy for years; include some exorbitantly-priced items in your store to make others look better value. And many vendors in today’s real estate market are inadvertently doing the same thing. Overpricing a property not only severely hinders its sale, but it also helps competing properties to sell. Buyers see the overpriced property as proof that the lower-priced property offers great value for money and then feel confident purchasing it. The vendor of the overpriced property not only misses out on the sale but also helps to remove a buyer from the market.

As charitable as it might sound, no vendor would willingly help other sellers to achieve a sale at the expense of their own. This is why our recommendation to vendors in this situation is to withdraw the property from the market, rent the property or realign the price according to current market expectations.

It may sound a little harsh, but this is a reality of the current market where many buyers are lacking urgency and will quickly walk away from a property that doesn’t offer good value.

PLAYING NICE IS BETTER

You’re in a room of pre-schoolers and two energetic children are in the middle of an almighty tug-of-war with a worried-looking teddy bear at the centre. Over the shouts of “Mine!” you hear an unmistakable ripping sound and teddy’s fate is sealed (or is that unsealed?).

Now, nobody gets to play.

Although sharing is a lesson most of us learn at a young age, within many real estate offices around Perth, this important lesson has been largely forgotten. And in this case, the “toys” are the buyers.

At Caporn Young, we have an open database policy which means that our comprehensive buyer database is shared amongst our entire sales team. When we list a property to sell, we can easily power-up the database and search for potential buyers. Then, we contact the best buyers to tell them about the property, even ones that may not be specifically looking in the area.

In other agencies, individual agents are very protective over their buyers and are reluctant to share them with others. This, in my mind, is very short-sighted and does not consider the interests of the seller.

Our goal is always to get the best possible outcome for our sellers and in order for this to occur we need to introduce as many qualified buyers as possible. Buyers who register with us also benefit as they often get to inspect quality properties before the general market does. I think it was Covey who coined the term ‘Win Win’!

With 1,829 hot buyers currently in our database (changing daily), you can easily see why sharing and team work is the best policy.