New blog at http://askmadeleinerealestate.com

Moving Goal Posts

The goal posts in real estate continually move. One month to the next, one week to the next.

September was the busiest month in sales with over 39 sales achieved in my office alone. Come the first of October the phone stopped. The enquiry level was greatly reduced. One week later interest rates rose by 0.25%. The phone is silent.

The combined reduction in the first home owners grant plus the interest rate rise has certainly cause a short term hiatus in the market. I believe that this will not effect the market place in the long term. Already as I (one week later) write this the phone is ringing. Buyer enquiry is returning to record levels.

Stock levels (i.e. houses on the market) are low, and demand is high.

Busy busy week! find my updated list of properties under contract and OPEN FOR INSPECTIONS for Saturday 5.09.09.

http://www.askmadeleine.com/id14.html

The Truth About Auctions

Recently I was at the Elders National Elite Retreat where the elite of the elite met to discuss the current market trends. 

In the changing market it was a consensus amongst the group that auctions were the best marketing strategy.  This is not my view.

I only auction unique properties or when I am instructed to auction e.g. mortgagee in possession.

Auctions are a seller’s worst nightmare.  The seller losses control. Notoriously buyers come in low and if there are only one or two buyers on the day the seller is pressured into making a decision there and then.  The buyer is expecting an answer, the auctioneer is waiting, the agent is waiting, the crowd is waiting, the neighbours are waiting, and the seller is panicked – forced into making decisions.   

Recently I went with a friend to another agent’s in room auctions to help them through the auction process.  My friends were keen to buy.  I gave them some auction tips, we were one of two interested parties, and we were able to slow the auction right down.  The auction stalled the agent came across and asked them to increase their offer.  I advised them to hold fast. 

The agent then went and spoke to the seller.  Reading the non-verbals I could see the pressure mounting around the poor seller.  The agent came back to us.  We said nothing. 

Finally, the auctioneer asked for more bids from the floor. Silence.

Going once, Going twice, Sold!

 My friends bought the property of their dreams for $20,000 under what they were prepared to pay.

Before you enter into an auction campaign just …ask Madeleine for a second opinion.

A Day is a Long Time in Real Estate

 

On Saturday 8th of August I was lucky enough to be awarded the number one metropolitan Sales Person within the Elders Franchise for 2008/2009 for New South Wales and Queensland.  Its the second year I have achieved this.

With this in mind you’d think that I’d know my stuff.  Yeah! I’m the expert!  No way. With the goal posts moving every day I am reminded how much this industry is motivated by emotions rather than pure business rules of supply and demand.   

“Madeleine the property is over priced” … ”I want 4 bed 2 bath 2 car etc and I don’t want to pay any more than $$$ and I want it now!” …  “Madeleine my property is worth $$$$ because I’ve loved it for so many years and lots of sweat and tears went into this home”…  In the middle of all this emotion is reality and my day consists of wading through the quagmire and finding this elusive reality. 

Today I have a truck load of quagmire to get through!!! Wish me luck.

Basic Economics – Supply v’s Demand

 

The market place at the moment is experiencing a lack of stock, as we say it in the industry, more buyers than sellers.  Sellers  are awaiting the warmer months prior to putting their homes on the market.  This seasonal shortage is typical in comparison with previous years. 

The one changing force this year is that  the first home owners grant halves on the first of October.  This is putting pressure on buyers to find the right home now before they lose the $7000.00 hand out from the Fedreal Government.

Once again we are seeing multiple offers on properties under the $500,000 bracket. Basic economic high demand low supply prices rise, even in the midst of the current economy.

If your thinking of putting your home on the market, do it now take advantage of these pressure cooker conditions.

For more information …ask Madeleine 0413 733 617

Bank Valuations are going down down down!!

 

The latest figures out show that the property prices have remained stoicaly steady and that confidence within the market place is improving.  After a turbulent year this is good news for many sellers, buyers and agents. 

Only today I received a call from an investor, looking to purchase property in McDowall, he is withdrawing monies from the banks as the returns are negligable.  To quote him directly  ”putting it in bricks and morter something I can touch and feel and won’t disappear into the big balck hole”. 

Having said this the bank valuers are being still very very cautious when carrying out valuations.  Only yesterday a contract crashed due to valuation i.e. the valuation was less than the contract price.  Within two hours we had a second contract on the same property for the same price. 

Don’t the buyers set the value?  Interesting times!

Herd Mentality.

 

When the Federal Government extended the first home grant in May till September 30th the pressure was taken off first home buyers.  This has resulted in a wait and see philosophy for many. 

 This approach was adopted late last year when many buyers just didn’t commit to buying because they had “lots of time to find the perfect home”.  As a result March and April saw a flurry of activity in the market place the grant was running out on June 30th.  Many homes were having multiple offers and again we were seeing inflated prices due to demand.  Time lines cause pressure, pressure causes demand.  Demand out strips supply prices inflate.  Its SIMPLE.

Last week-end I was at the cold face of real estate as normal open homes and private inspections and this wait and see mentality was expressed to me once again by several first home buyers.  “We have three months to find the perfect home, we are not in a rush.” 

If history is anything to go by once again we can expect to see a last minute rush and inflated market. 

My advise to buyers is don’t be one of the herd, make business decisions and you may be able to buy exceptionally well prior to the last minute rush. 

Sellers, herd mentality by buyers will work in your favour.  If you are thinking of selling take the opportunity to meet the last minute first home owners rush.

For more information on buying and seller comment on this blog or phone Madeleine direct 0413733617.

A Guide to Surviving Your Move

Below are some helpful hints on everything you need to do berfore you move:

• Plan your move from as early as possible. Consider also that the first and last days of the month are extra busy.
• Consider having a garage sale to remove unwanted and unnecessary items.
• Begin using up large supplies of frozen and canned goods
• Have you moving company conduct a household goods survey in orcder to provide you with a written estimate as to cost.
• Pre-arrange for the telephone and utilities to be connected at your new home for the day you move in. .
• Have rugs and drapes that you are taking cleaned and arrange any alterations that may be required for them to fit into your new home. If you intend on doing your own packing, start collecting suitable containers around four to six weeks prior to your moving date. You can purchase specialised containers from most moving companies.
• It can also be handy to collect packing materials such as: tissue paper, paper towels, newspaper, tape, scissors or a sharp knife, felt marker, notebook and pencil.
• Set goals and deadlines to ensure that all packing is completed by moving day. You may want to pack one room per week. Attach a list of contents to each carton.
• Pack a box for instant needs on arrival. Such as; cleaning equipment, dish towel, crockery, cutlery, coffee and tea, desired food and drinks, saucepans, toilet paper, toiletries, garbage bags, torch, tool kit.
• Be on hand when the movers arrive or arrange for somebody to be there on your behalf. They will need to direct the movers and may need to sign documents on you behalf pertaining to costs.
• When you arrive at the new house, ensure that the house is ready for occupancy prior to the removal van arriving.
• Check all goods ask they are unloaded.

New Homes in Everton Park and McDowall

If I had a dollar for everytime I was asked by a buyer to find them a new lowset home in Everton Park McDowall area with four bedrooms two bath and two garages plus a yard I would be a rich woman.

These areas feature homes that are 30 years plus highset brick or post war.  Many have been renovated and many more still need work as the old guard moves out and young families move in. 

My frustration is that unrealistic expectations are often stopping young buyers from starting their property  portfolio.  When the time is right look at location, amenities, proximity to the cbd versus all the bells and whistles and if  you simply cannot live without that extra bathroom than look a little further out from the cbd and just make a decision. 

Months and Months of visiting open houses with clip board and check list and never making a decision can cost you thousands in an ever changing market place.