Hi folks,

The market is moving nicely as we enter the busy season.

I have been meeting more rental investors looking for property so I thought this week I would address some property management issues and offer some questions that a good property manager will know the answers to. Note the way a property manager answers the following seven questions... it will definitely help investors decide whether the prospective manager is up to the job.

1. How much notice must a tenant give to a landlord when they are going to vacate?
2. How much notice must a landlord give to a tenant that they require vacant possession?
3. How much notice must a landlord give a tenant that they are going to vary the rent?
4. What is the difference between fair wear and tear and negligence?
5. What is the maximum security deposit / bond a landlord can charge a tenant?
6. What is the minimum period a tenant needs to be in arrears before the landlord may commence formal eviction proceedings?
7. Can you briefly explain the steps involved in a formal eviction?

The answers to these questions will vary depending on local legislation governing residential rental arrangements in the area.

But if you are thinking about signing up with an agent who does not answer these questions with confidence, think about choosing another agent.

Finally, investors shouldn’t expect their property manager to have a detailed knowledge of the tenancy legislation – as long as they know where to go for the information when they need it.

Posted in Tenants, Rentals, Working With An Agent;

Hi folks,

Most vendors would choose the agent who they think will get them the highest price for their property. But do they know what qualities and skills are most likely to bring this about, especially in a market where properties for sale outnumber buyers?

When the market gets tougher, communication is an agent’s most important skill. In order to attract the interest of purchasers who have many properties to choose from, an agent must excel at communicating the benefits and features of your home in a way that makes it stand out to intending purchasers.

In boom times when there are more purchasers than properties for sale, many houses sell themselves for prices beyond vendors’ or agents’ expectations; in a slower market however, agents may have to use all their communication and negotiation skills to achieve looked-for prices.

Communication is the key to a successful sale, but it breaks down when trust is lost. Conversely, trust is often lost because of poor communication during the selling process! Many agents start out by ringing their vendors regularly, but fail to keep this up, especially if the news is not good or the action on the property is slow. This is the very time, however, that they need to keep anxious vendors in touch with the process so that they don’t become alienated.

It is not always easy to judge an agent’s communication skills from the first meeting, but remember that fast talk is not communication. Look for an agent who is willing to enter into genuine dialogue taking your needs into account rather than launching into a high pressure sales monologue.

Posted in Tips on Selling, Working With An Agent;

Hi folks,

Real estate agents have a strong motivation to quote high when assessing the value of a house for sale, they want the listing! (In fact, the more professional agents don’t do this because it wastes everyone’s time and often leads to a no-sale stalemate.) Sadly, the more unrealistic vendors are about their own property, the more likely it is that agents will feel the need to up the potential selling price. But there are things home sellers can do to encourage frank dealings and make sure agents don’t over-quote to get your house for sale.

Firstly, don’t put words into their mouth. Don’t tell agents you’re after a certain figure and that you won’t sell for less. Unless your house is seriously unusual, experienced and professional agents can assess the potential selling price very accurately to within a few per cent of what a property will sell for. It is important to encourage them to tell you what they think, not parrot back your own wishful thinking, wishful thinking that isn’t based on any real research into property values in the area. After all, agents base their appraisals on the experience of years of selling similar properties under various market conditions and they have statistical data bases at their fingertips. If you go with the agent who parrots back your wishful thinking, you may be in for months of buyer apathy.

Secondly, listen carefully to their lowest figure and don’t try to push them up, it stands to reason they will go as high as they can because they know they’re in competition with other agents for the listing. If you’ve done your homework and you are truly objective you will know in your heart that they are right. Resist the temptation to place a dollar value on the emotional attachment you have to that deciduous tree in full autumn glory (because you planted it 10 years ago and watched it grow and don’t want to leave it behind, especially since the family cat is also buried there) or those paved areas while at the same time overlooking the inconvenience of the steep driveway (youput up with it all these years).

Most home owners don’t realise the emotional weight they expect their home to translate into dollar terms, just as they think their own children are the most beautiful, the smartest, the best at sport. But they need to remember that if they appear emotional and unrealistic, agents will simply reflect back to them what they want to hear. It’s ironic that when the reality check of buyer indifference comes along, many home owners ultimately blame agents for overpricing their homes when they themselves created the competitive environment that caused the asking price to be set so high.

Posted in Tips on Selling, Working With An Agent;

Hi folks,

Many experts say that the best selling price is often achieved in the first few weeks of marketing, when the listing is fresh and exciting and all the unsatisfied purchasers converge eagerly on a new possibility. Often vendors think they have little impact on the sales outcome but their input can be crucial and the quality of the relationship between agent and client can make all the difference.

The first two weeks of marketing can set the scene for a positive relationship and sale or its opposite and vendors can contribute to keeping an open line of communication with their agent from the outset. If the relationship breaks down, the sale outcome is usually affected and at this stage vendors often blame agents for a host of small things that could have been remedied early in the relationship. Some people find it hard to speak frankly, especially if issues that arise seem at the time too small to mention (for example, the signboard is in the wrong spot or is crooked, the agent keeps bringing purchasers in through the side balcony door instead of the front door, or perhaps s/he turns up with a purchaser with only sixty minutes’ notice instead of several hours.) These issues may not seem worth worrying about when they arise, but often add up to a general dissatisfaction with the quality of the agent’s service, especially if the market is quiet and there aren’t many inspections.

Many people prefer to grumble amongst themselves rather than quibble over small things, but professional agents will want to get it right and will appreciate vendor input, knowing that a good rapport will make the negotiation process more successful too. They understand that although they sell houses every day, most of their clients will do it only a few times in a lifetime and that they find it very stressful. Many people find it hard to be critical until something happens that is serious enough to make them lose their temper – and by then the relationship is hard to salvage. While it’s up to the agent to check whether the vendor is happy with the way the inspections are progressing, vendors can help by speaking frankly from the outset, giving the agent a chance to get it right in the long term interests of a successful sale.

Posted in Tips on Selling, Working With An Agent;

Hi folks,

So you are getting ready to put your home on the market but how do you choose which agent to use? Do you think we are all the same?

If you do then there’s not a lot I can do for you and you should go with the cheapest and stop reading this now.

If however you are more insightful, like the majority of people out there, then you want the agent who is going to sell your single greatest asset to have experience, expertise, professionalism and a fantastic track record. But how can you tell just from looking at them? Simply put you can’t, so I’m going to give you some pertinent questions that will help you ‘interview’ the agents who come through your door.

1. How long have you been selling real estate?
2. How many properties have you sold in the last 12 months?
3. From what advertising sources do the majority of local home buyers come?
4. Approximately how many purchasers do you have listed on your books who might be interested in inspecting my property for sale?
5. Answer these:
   1. Do you recommend advertising on the internet?
   2. If yes, what sites do you use?
   3. Do you use virtual tours?
6. Are Open Homes a good idea?
7. What is your agency’s attitude to auction?
8. Over the last 6 months, what has been the percentage variation in a local property from asking price to sold price?
9. What is your agency’s average length of time from the first marketing activity to offer and acceptance?
10. What is the length of your agency period?
11. Do you provide a Service Guarantee? If yes, can I see it?
12. If I am not happy with your service what remedies do I have?
13. What is the average cost of a marketing programme?
14. Why should I appoint you as my selling agent?

Posted in Tips on Selling, Working With An Agent;

Many professional agents are so ready to stand behind their services that they offer vendors the option of cancelling the original agency agreement if they have a problem with the way the agent is handling the marketing.

This offer is called a Service or Performance Guarantee. It doesn’t mean a vendor can decide to cancel the agency agreement just because they don’t like the colour of the agent’s car or the suit they’re wearing! The offer usually involves the vendor giving the agent time to remedy any problem they might have and at the end of that time if the vendor is still unsatisfied, the agent will release the vendor from the agreement. The vendor is then free to sell their house with someone else without waiting out the period of the agency agreement.

I have my own service guarantee, I call it Steve’s SPOD (Significant Points Of Difference). Real Estate agents are not all the same, let me show you why, simply fill in the form, call me on the numbers below or email me.

Posted in Tips on Selling, Working With An Agent;