10 Most Recent Articles

LEARN TO LOVE EARLY BUYERS

Thu, 03 May 2012 17:19:05 +1000

High prices often come early. The only problem with buyers who make good offers early in the marketing campaign is that their offers do not look so good when compared with the first, and current, asking price-which is always higher than the true market price.

American sales trainer, David Knox, said "Sellers do not come down FROM market price; sellers come down TO market price."

Ask your agent to tell you about the Endowment Effect, which was discovered by Harvard University Professor, Dr Max Bazerman. The Endowment Effect, explains why sellers often expect more than their properties are worth, but this expectation should not stop you from getting the highest price.

Your agent should give you an accurate estimate of the likely selling price of your property. Although this figure is likely to be less than you expected, the agent's likely selling price range should be the TRUTH.

ALL negotiation experts say that if you want to get a high price you should start high.

We agree with this, but this creates a problem with early offers which, as was previously said, are often the highest.

The problem with early offers is that, although they are often the highest offers, they...

LOOK terrible when compared with a high first starting price.

Low prices often come late, so be careful-the buyers you reject when your property is first placed for sale may be the buyers prepared to pay the best price.

The longer your property stays on the market, the number of buyers for it usually gets lower, not higher. And your price will often get lower too.

So treat early offers with respect.

QUOTE THE PRICE YOU WANT, NOT A 'BAIT' PRICE

Wed, 02 May 2012 15:46:11 +1000

It sounds good in theory-quote a low price to 'lure' purchasers in, and then work to get the price up from there.

Then why do NO negotation EXPERTS favour this method?

Bait prices trap sellers as well as buyers.

Never allow an agent to use a low false price to 'bait' buyers. If you use a price range or guide or a 'by negotiation' strategy, you are encouraging buyers to offer you less. Your 'bait' price will 'hook' you more than the buyers!

Sure, a lower 'bait' price may attract more buyers but it attracts the wrong buyers. The lowest price the buyers see will become the highest price they want to pay.

And never tell anyone-including your agent-the lowest price you will accept because that too can quickly become the highest price you will get.

'OPEN FOR BUYERS' MEANS AN OPEN AGENCY

Wed, 02 May 2012 15:33:47 +1000

Closed offices lose buyers. Make sure the agency you choose is open seven days.

Many agents work 'nine to five' and close on Saturday afternoons and all day on Sundays.

While this may be acceptable for a bank, you need an agent who is available to buyers when they want to go looking.

Weekends are especially important. This is when most buyers have the time for home searching.

You never know when the perfect buyer will come along. And that buyer will buy from the agent who is open. The best agents offer a 7 day service. They are always prepared to work on your behalf.

SHOULD WE HAVE A SIGN?

Sat, 28 Apr 2012 12:31:44 +1000

The buyers who are most likely to pay the highest price will specifically want your location. No sign can mean no sale.

A sign attracts these buyers. It is your 24 hour salesperson. It is often your best salesperson.

Be careful, however. Some people will knock on your door. Insist they call your agent. Trying to negotiate yourself could cost you thousands of dollars.

For Sale Signs also attract other agents, those who are too lazy to find their own properties for sale, and those who are unscrupulous.

If other agents approch you, send them packing no matter how many times they tell you they have a great buyer.

These agents are the worst in the industry. If they will "steal" other agents clients they will almost certainly deceive you. Do not speak to sleazy buyers or agents who approach you without being first introduced by your listing agent.

TO OPEN OR NOT TO OPEN?

Sat, 28 Apr 2012 11:57:05 +1000

Open inspections can make a property look smaller. They also leave you exposed to the risk of "games" being played by prospective purchasers. There have been cases where a purchaser, who was interested in a property, spoke loudly and negatively about it during the open inspection in the hope of discouraging other purchasers.

Whether this tactic succeeded or not is irrelevant-why risk exposure to such tactics?

There have been cases of theft during open inspections and opinion is divided as to whether the home owner is covered by insurance in such circumstances-after all, the thief was invited into the home.

From a professional selling perspective, only people who are qualified to purchase should should have the right to inspect a property, and they should be allowed to do so at a time most suitable to them and to the home sellers, not the agent.

Although open inspections are more convenient for the agent, who only has to serve each seller for one hour per week, some agents believe in an old-fashioned concept called SERVICE.

If your agent is happy to offer you, and your potential purchasers, better service by taking buyers through one at a time, you may find this service leads to a higher price for you.

HOW TO GET THE HIGHEST PRICE FOR YOUR PROPERTY

Sat, 17 Mar 2012 15:01:36 +1100

WEEKLY PRICE REVIEW

Price is a major factor in marketing and it is important that you and your agent get it right.

Since all negotiation experts say that if you want to get the highest price you should start high andd then come down until the right buyer is found, it stands to reason that price is a very important factor in effective marketing.

Every week you and your agent should meet to discuss:

*The week's marketing-what has been done, and what enquiry did it generate?

*Discuss individual enquirers and what they had to say about the property. This includes those who talked with the agent about the property even if the discusssion did not result in an inspection

*Weekly Price Review-is the current price attracting interest? Have any offers been made? At what price should the property be offered in the coming week?

Try not to get too "hung up" on price. In marketing, price is like bait is to fishermen-if one type of bait isn't working, change the "bait".

IS THERE ANYTHING BETTER THAN AUCTION?

Wed, 07 Mar 2012 15:41:29 +1100

Many agents will say, "No!" but then again, they're trained to say that. There can be no doubt that auctions often get a high price, but can they guarantee to get the highest price?

Buyers agents represent purchasers, and not home sellers. A Buyers Agent assists purchasers to buy cheaply. This is what one Buyers Agent** had to say about auctions:

"I attend many auctions and bid for properties on behalf of my clients. At the majority of the auctions where we were successful, we had "money left on the table"-that is, we spent less than our authorised limits."**

**Patrick Bright-Buyers Agent and Author of "The Insider's Guide to Saving Thousands at Auction"

No negotiation expert favours allowing competing parties in a negotiation to hear what another party has offered, yet this is what auction does.

A better alternative to auction is to negotiate privately using the Buyers' Price Declaration.

Based upon an idea developed by economist the late William Vickery-one of several ideas that earned him the Nobel Prize for Economics-this negotiation tool is demonstrably better than auction for sellers, buyers and agents.

With the Buyers' Price Declaration, no competing party, is privy to another party's offer. This means that each buyer must offer his or her highest price without being influenced by what somebody else may have offered.

LIST EXCLUSIVELY

Sun, 26 Feb 2012 13:59:16 +1100

The more agents you employ the greater your chances of getting a lower price.

Do not place your property for sale with several agents. You may think this will increase your chance of finding a buyer, but it decreases your chance of getting the highest price.

All of these agents will be in a hurry to sell your property before someone else sells it. The sale will be most important. The price will be forgotten.

Buyers shop around. They will use the agent who can obtain your property for the lowest price.

Test this yourself. When you see one property with several agents, call them all and ask this question:"What is the lowest price I can get this for?"

You will be told different prices.

The saying goes that a chain is only as stong as its weakest link.

It is hard enough when buyers shop around for properties, but do you also want them shopping around for the weakest agent too?

CHOOSE AN AGENT THAT HAS BUYERS WAITING

Sun, 26 Feb 2012 13:18:49 +1100

The best agents keep detailed records of buyers. Most agents get dozens of enquiries from buyers each month. Some get hundreds. But most don't keep records of these people-names, enquiry details, email addresses and phone numbers.

Usually these agents do not feel the need because their home sellers pay for the advertising. When agents keep records of genuine buyers, there is less need for advertising.

Insist on an agent who keeps detailed and accurate records of genuine buyers.

One of these buyers may be perfect for your property.

CHOOSE NEGOTIATION SKILL!

Wed, 25 Jan 2012 12:45:25 +1100

If you have spent a lot of time interviewing real estate agents, you may have noticed that they talk endlessly about the advertising they do, but few talk

about the one thing that is most important to you-their negotiation skill.

POOR NEGOTIATORS CAN COST YOU A LOT OF MONEY.

Negotiation skills are vital to ensuring you get the highest possible price.

A good negotiator can achieve up to an extra ten percent on your selling price. This can mean thousands of dollars.

If you have an attractive property you don't need a salesperson as much as you need a negotiator.

Ask you agent to PROVE his or her negotiation ability to you. Most won't be able to do so. these are the agents you should avoid.