Feb
17

Political Correctness. I’ve Had A *#%$!&@ Gutful!

What constitutes bad taste? What constitutes inappropriate dialogue? If the keepers of all things Politically Correct had their way, Australia’s larrikin spirit and self depreciating sense of humour would be locked away, never again to be unleashed upon the world and forgotten forever. We are one of the only nations that seem to be very comfortable poking fun at themselves and others at the same time, and in harmony.

I burred up when I heard the airwaves chattering recently about the Federal Opposition Leader, Tony Abbott’s exchange on ABC Radio early one morning. Before jumping on his bike for a race, Abbott said that the chair he was in was more comfortable than a bike seat. The radio host replied, “It’s a lot easier on your nuts isn’t it?” Abbott shot back, keeping within the spirit, “Just let go of them will you.” Funny on all counts in my book – many journalists crave for the opportunity to control a politician and what better way than to metaphorically have the opposition leader by the you-know-whats.

From that moment on the media went into tattle-tale mode, but not before Mr. Abbott had commented on the capsizing of the Italian Cruise Liner (I have so many visuals of the Italian Captain ‘entertaining’ in his cabin whilst all hell was breaking loose) and then stating, “Well that’s one boat that did get stopped, didn’t it.” Almost a ‘bahahahaha’ moment. Pity it was only on the ABC and a few pensioners along with some academics and those with political aspirations were listening. But I’m sure they would have spat out their Earl Grey as Mr. Abbott’s ‘distasteful’ asides melted the airwaves like the latest Coles ad featuring Normie Rowe.

screen shot 2012 01 20 at 12 32 25 pm 266x300 Political Correctness. Ive Had A *#%$!&@ Gutful!

Now the media had the big one. Abbott has a set of genitals and hoped that the Italian ship’s Captain might be hired to take the helm of one of the next larger floating ‘free loader’ flotillas to our shores. “How dare he?  He’s not fit to be a Prime Minister’s joke writer, let alone have designs on the tenancy at the Lodge.” We’re no doubt in the thoughts of the keepers of the PC chalice. Ms Gillard is obviously still looking for one – a sense of humour or a joke writer that is.

We are Australian. Not American. I am sure these poor simples invented PC. We can poke fun at ourselves and others because we don’t take ourselves seriously. That’s why we can still tell Irish jokes without being put on trial at a War Crimes tribunal – many of us come from Irish stock, as well as English, Italian, Greek, Yugoslavian etc etc. These immigrants assimilated so well because they knew that to survive they had to be as self-depreciating as we Australians and learn to laugh at themselves which opened the door to allow them to laugh at others.

I remember when, sadly, the Challenger space shuttle disintegrated before our very eyes on take- off in 1986. A female school teacher was on board, one of, if not the first, civilian to travel in such a machine and she tragically perished along with all the crew. However within days an account of the moments leading up to the explosion came to notice and apparently the last recorded conversation on board was the school teacher asking the pilot, “What’s this button for?” Those of you who don’t giggle are probably listening to the ABC as we speak.

Americans, they don’t get it. Watch Ricky Gervias carve up the ‘cream’ of American entertainment at the Golden Globes and the biggest laugh comes from the cameras spot filming the celebrity reactions to Gervias’ jibes. Priceless. So many just don’t get it or believe it is beneath them to laugh. You are actors. You are paid to be someone else for our entertainment so we can be distracted for two hours about the shifties and shoofties being pulled on the entire population by shadowy corporate thieves and corrupt ineffective politicians…..sorry, heading off on another tangent there.

Anyway, Americans might be firmly PC, when it suits, but the Australian DNA does not contain it. If Mr. Abbott’s genitals get an airing or some drug f*#&ed Italian Ship’s Captain stuffs up while he is exploring the possibilities of an Eastern Block incursion (or insertion to more to the point) – there is always a laugh in there somewhere, if delivered without malice and with the desire to amuse the humour seeking, even-minded majority.

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Feb
08

Keeping It Real

Feedback. The word itself can strike terror into the heart of even the most seasoned Real Estate Agent because the reaction from a home seller, when the information is delivered, can vary wildly, as emotions can run high. Yet it is the most vital component of any residential property marketing strategy in assisting a home seller to make the best informed decisions.
Feedback is where the agent relays to the seller what the buyers have had to say about the property. It is critical to inform the seller how the market is reacting to the property.

It is this supply (or lack) of market information that generally leads to the biggest break-down IN THE SELLER/AGENT RELATIONSHIP.
Not enough and the seller feels unloved and under-serviced.
Too much without a result and after a while the seller can feel like they are not getting the true story.

Agents walk a tightrope when it comes to feedback. Unfortunately, some feedback is usually bad news for the seller, so many agents tend to fluff and flower up what buyers have had to say, to protect the seller, and in the end the seller builds up a false impression of what buyers actually think.

Quite a sizeable proportion of my listings come from sellers who have fallen out of love with their agent and they are looking for the ‘magic potion’ from another.

When I am talking to a seller in this situation, I ask a very simple, yet revealing question that tells me how the previous agent delivered buyer (market) feedback; “What did the buyers have to say about your property?”

Nine times out of ten, the seller answers, “Oh, the buyers really liked it, one lady in particular loved it.”

You know what my next question is………, “Why then do you think it hasn’t sold?”

The answers I get to this question range from, “Oh the agent didn’t tell the buyers about our big pink lattice with the choko vine growing over it,” to “He didn’t tell us what was happening?”

It all boils down to one fact. The answer should be -  The agent failed to ask THE most important question of any and all buyers who inspected the property, “What do you believe this home is worth?” THEN relaying the feedback in simple terms, “This buyer has seen X homes, has an interest/does not have an interest in your home and believes it will sell around $x.”

Now this is where the men stand out from the boys. The many agents I have known and know of:
1. Fail to ask the value/price question of the buyers
2. Are too shit scared to tell the sellers the buyer’s opinion of value/price even if they did ask the buyer.

Whispering City Alpha DVD 04413 300x225 Keeping It Real

Some agents are not serious about finding out what the market REALLY thinks a seller’s home is worth. AND sellers can turn into evil fire breathing monsters if they are informed that the buyer (or buyers) thought it was worth less (or much less) than the price the seller was hoping for. 
Agents are scared of being yelled at, burned, hit or sacked if they tell the truth. Herein lies the reason why so many homes fail to sell. Scared agents are unwilling to impart the market truth upon their emotional sellers.

More than ever before in the history of real estate sales, buyers know what properties are worth and are willing to pay reasonable market value. Some sellers, unfortunately, still cling to a false hope price either derived by emotional research, or by an agent who inflated the list price to win the business.

In my vast experience, and almost without exception, the feedback from buyers on a home’s true value is bang on. Buyers are individuals but collectively act as a single beast.

Here is one example out of hundreds of properties I have marketed.

A young couple approached me to sell their almost new home in a very nice estate. Pre-market research showed that the home was likely to fetch somewhere around $470-$480 thousand. The sellers were adamant it was worth $500 thousand. We agreed to take the home to auction.
In four weeks, in a falling market, with buyers becoming scarce, we had over twenty inspections and the feedback on value came in at $472,000 (averaged out from the buyer opinions). Based on that direct information from the market, the vendors placed a reserve of $490,000 on the home, but there were no bids at auction. Nothing lost there – within a week I had received an offer on the property for $460,000, and I knew the buyer had more money to throw in.

When presented with the offer, the seller rejected the offer and would not negotiate, despite informing them that I believed the buyer had ‘more in them’. The sellers took the home off the market and sold it 12 months later for $445,000.
The feedback was delivered directly from the mouths of the buyers, and was deadly accurate. In this case the sellers ignored the feedback to their own detriment. Fortunately, there are other sellers who listen, and those who do, sell their homes quicker and for better prices. If a home is priced correctly, feedback will generally come in the form of an early offer.

Accurate feedback to sellers is based around one very simple question to be asked of buyers, “What is it worth, today?”

So my message is this:  Sellers – demand that the feedback from your agent is based almost entirely around value. What is the market willing to pay?
Agents – Ask the buyers their opinion on price and relay that to the sellers without any fluff, no matter how much you fear for you well being. You are doing your clients a massive favour and allowing them to make informed decisions.

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Jan
20

Let The Buyers Go!

Prior to commencing a career in real estate, I bought and sold about thirteen properties, but, believe me that did not make me an expert in my current chosen field. What it did show me was, how I was made to feel comfortable, as a buyer, by the more professional agents I came into contact with.

In my experience as a home buyer and seller and now as a very successful agent, I have developed a simple system to conduct buyer inspections that makes buyers comfortable, enabling them to take in the property I am showing, and keeping sellers happy should they park themselves on the back porch or watch from across the road through the newspaper with eyes holes cut out.  But as I said, sellers – please don’t be there.

Newspaper1 Let The Buyers Go!

There are two types of buyer inspections: By appointment or Open for Inspection. And I conduct each of these in exactly the same pattern at every home I show – I never deviate from the plan. I take every inspection very seriously and on many occasions buyers have said to me, “Thank you for making us feel comfortable and letting us have a good look. You are different from many agents we have seen houses with.” Or something similar.

The key to my whole buyer inspection system is that buyers want to be left alone. I don’t mean shoving them through the front door and saying, “Go for it” while I wait out the front and light up a Winnie Blue.

Leaving them alone means staying a reasonable distance from them. I have seen agents conduct close-quarters ‘guided tours’ with buyers, hanging over the buyer’s shoulder saying important stuff like, “This is a bedroom.”

I get a real kick out of watching some of the many Property Shows on TV and the presenter/property expert crams themself and the buyers into what appears to be a broom cupboard and says, almost nose to nose, “This has the potential to be a fantastic 4th bedroom.”

Don’t worry, there are some real life agents conducting these intimate inspections.

My inspection by appointment method is without fault.

Walk with the buyers, slowly, to the front door so they can soak up the street appeal. Would you believe that many buyers have either bought or rejected the property in that first few seconds? It’s true.

I allow them to enter the front door first and once inside I give them a ‘synopsis’ of the property. (The old cop is still in there somewhere). I point out the general layout of the property, “Bedrooms up the hall, with main bathroom, and you’ll see the ensuite off the main bed. We are standing in the main lounge area, you can see the kitchen and the family room is just beyond that. Any questions, please ask?” With that the buyers happily toddle off and take a look. If they are a couple – some stick together like glue whilst others split up and call to each other from opposite ends of the house or take note and meet in the lounge to discuss the property. Every- one is different. But one thing is for sure, my buyers appreciate being left alone and discovering for themselves.

I remember once, I showed some buyers through a house that had been listed by one of my colleagues. The seller, a young mum, stayed at home and watched my every move. I conducted the inspection as per every other inspection I done and after the inspection the buyers informed me that home did not suit because of the slope of the land and access to the yard for the buyer’s truck. I reported this to my colleague so he could inform his client, the home seller.

I was informed by my colleague, via an unhappy owner, that I did not follow the buyers during the inspection and did not talk to them enough. It is very hard to listen to a buyer thinking out loud and reading their body language if I am flapping my gums trying to sell rather than allowing a buyer to buy.

During an inspection, I watch, listen, note comments and observe body language – from a tactful distance. Then I encourage open dialogue and opinions from the buyer. They will tell me more if they are relaxed. Also I can negate any unwarranted objections when they are relaxed. I can then inform my client, the seller, whether the buyer is likely to make an offer and or what believe the home is worth. I’ll delve deeper in to what constitutes relevant and helpful feed back in another video.

As for open homes, once again, I have a proven system which has served my clients very well. I know within ten seconds whether an attendee (potential buyer) is actually a buyer or just a tyre-kicker. It is one of the many skills I brought from my time as a Detective of Police. I know exactly who has attended an Open home, why they are there and if they are likely to buy this or any home within the next decade.

Conducting inspections is not just about showing someone a house. It’s about knowing who the buyer is, asking the right questions, watching and listening and above all, finding out a buyer’s intentions and needs.

So in short, when your agent shows a buyer your home – Let em go! I am yet to see a buyer walk out of a home with a 52 inch flat screen in their pocket and by allowing them to look at their leisure it provides a better opportunity for them to relax and feel comfortable in sealing a deal.

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Jan
13

Will the real house for sale please stand up?

One of the more interesting practices in the Real Estate industry is the office inspection or ‘Caravan’.

This weekly jaunt, usually carried out on either a  Monday, Tuesday or Wednesday morning, is where an entire office – and by office I mean a sales team, not the building, inspect all the new house listings that have been procured by the individual sales members in the past week or so.  There were a number of reasons put forward to me in my early days of real estate as to why this practice, ‘The Caravan’, was such an important component to the success of an intended home sale.

The reason I first swallowed was that it was a way in which we could all inspect a colleague’s listing and give our opinions on price to assist the vendor (seller) in understanding what the most buyer attractive listing price was likely to be.  But very quickly I saw that this practice had a major flaw.  The agent who had listed the property had already discussed and recommended a listing price, which back in the early 2000’s (a hot and rising market) was usually music to a vendor’s ears.  The listing agent in arranging the caravan with the vendor would say something like, “Next Tuesday I’ll get my sales team through so they know the property and I’ll let you know what they think about the home and its price.”

For most vendors, this was an epic occurrence, up there with such productions as Ben Hur or more recently Avatar.  They would prepare their home with more gusto for a bunch of agents, who’s demeanours ranged from young and enthusiastic to mature and cynical, than they would for a buyer who may be willing to write the cheque.

Some of the offices I worked for in my early days had up to ten agents, so caravans would be a convoy of vehicles stuffed with suited and immaculately made up male and female agents, all of them ready to either impress their own clients with the posse of experts they had with them or impart their professional opinion on the market competitiveness of a colleague’s listing.

Without fail, when the convoy pulled up out the front of the house to dissect, sorry I meant inspect, I would have a massive dejavou, because it felt like a return to every raid or execution of a search warrant that I carried out as a Detective in my Police days.  “Bill and Joe, round the back.  Harry side door, you two search the car in the drive, Hepps, Phil and I will go through the front.  Don’t take any shit from these clowns – let’s go.”  My fellow real estate agents finally got used me standing to the side of any front door I knocked at in case someone inside took a pot-shot through the door.  Old habits die hard.  Luckily I had been out of the cops long enough not to tackle the owner to the ground and scream in their ear, with my knee resting ‘gently’ on their neck, “Where’s the dope dickhead?”  Once inside the vendor’s home introductions would be made and a flurry of door opening and ‘oohs’ and ‘aahs’ would commence, with the vendor trying to scurry along following every agent after the group had dispersed like a mob of cats.

 “Mate,” a visiting agent would sidle up to the listing agent at the kitchen bench and ask, “How much you got on this one?” “Three ninety nine?” the listing agent would reply in the form of a half question, looking desperately for a hint of approval from his more ‘experienced’ colleague. A shake of the head and turn toward the dining room with a “you’re dreaming” from the visiting agent would see knees buckle and brows breaking into an instant sweat.  The vendor would be waiting in almost pants wetting anticipation for the collective verdict from the ‘the office’ which would be delivered by the listing agent after a meeting was conducted back at the office to discuss the morning’s viewings. 

Herein lies the flaw.  The enthusiastic listing agent would ring his or her vendor about the result of the caravan and the opinions offered by the band of merry agents.  Call me twisted, but eavesdropping on these calls was a highlight for me. Watching some agents hang up the phone visibly trembling, some almost crying from indignant and sometimes terrifying responses from their vendors.  “But, Mr Smith, that’s the price the team thought, about $350,000 (which nine times out of ten was the true market price).  Ok, Ok, don’t worry. I’ll get you $400,000.”  Famous last words in some cases.

The one caravan that will always stick in my mind was when I was working with a newly formed Real Estate business.  Two young hotshots who had ridden the wave of success brought on by a bull property market on the Sunshine Coast, decided to venture out on their own and their first order of business was to buy matching BMW’s – one black, one white.  Mind you, this method of prioritisation led to the business’s demise in just eighteen months.

On this particular day, one of the properties to be inspected was a potential listing of one of the partners.  An owner had come into the office, had some initial discussion about selling and left the keys with the partner, the vendor asking for an appraisal based on the opinions gleaned from the next office caravan.

We all cram into the shiny BM’s, the partners proudly at the wheel, three largish male agents in the back of one, two of them ex-cops (one being me), blotting out any hope of using the rear view mirror for the driver.

We arrive in a quiet cul-de-sac dotted with stylish, mid range family homes. The partner, who had not previously inspected or assessed the property, marched proudly up the drive-way and gave us all instruction, “Nice place, this.  Great listing for the office.  Go in and let me know what you think.” He then attempted to plunge the most likely key into the front door lock and it would not go in.  He tried the two other keys without luck. “He’s given me the wrong keys”.  Myself and the other ex-cop in the sales team firmly took charge of the keys and we too failed to engage the lock.  In years gone by the 14 pound key (a sledge hammer) would have been utilised, but this was highly unlikely to be a justified means of entry in the real estate world.

My ex-cop mate and I immediately, without even speaking, broke left and right.  Instinct kicked in.  I shimmied over a side fence, up onto a rear deck and found the laundry door was unlocked.  I opened up, walked to the front door and greeted my colleagues with a hero’s nod.

No vendor at home, so opinions and comments flew freely and ten minutes later, the home was secured and we drove off to our next inspection.  Back at the office the property was discussed and a likely sale price range was arrived at.  The listing partner was assured of the listing.  Efficient and timely service was displayed and sure to be rewarded with the business. 

forsalesign 300x224 Will the real house for sale please stand up?

Just as our meeting was concluding, the receptionist informed the partner in question that the vendor of the ‘break in’ house was on the phone and he wasn’t happy.  Had we let the dog or cat get out and be run over? Did one of the agent’s use the powder room and leave an unwelcome message?  My surveillance instincts kicked in and I listened to the phone call whilst appearing to photocopy something.  My suspicions were bang on.
“Yes, Mr Jones.  We were there this morning.  Loved the house.  I’m sure we can get you a great result.”  I could hear a strained, angry voice cackling out the phone’s ear piece. “But Mr. Jones, we did go there as I said we would.  My entire staff inspected the house.  They thought the pool area would be a fantastic feature to attract buyers.”  The voice became more agitated on the other end of the phone.  “What, you don’t have a pool……”  The partner slumped into his seat and that is where I left the conversation.  I buckled over with laughter and relayed the conversation to my ex-cop colleague.  We just roared laughing.  Wrong house!  The right one was next door.

Someone got a free appraisal whether they liked it or not, and came home to several agents’ cards on their kitchen bench.  The mistake was accepted by all parties and I think the partner did go on to list the right property.  I could see the writing on the wall and moved on before the business folded.  These two guys are still in real estate, so if you want either of them to sell your house, please show them a picture first.

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Dec
14

Welcome Sports Fans To ‘TBMA’

TBMA?  Is that like WWF?  Maybe UFC?  How about BJJ? (at first I thought this one was an ‘unmentionable’ but it turned out to be Brazilian Ju Jitsu. Apparently participants are waxed to within an inch of their life before competing). What about NRL or NFL?  No, we are not even warm.

I have come across a phenomenon that could make for exciting, adrenaline pumping, edge of your seat action and could be a ratings winner for a sports caster like FoxSports or ESPN.  It’s called ‘The Busiest Man Alive’ or TBMA is it’s catchy acronym.  Why TBMA?

All day long I meet and deal with people from all walks of life.  For the most part these individuals, couples or families are looking to either sell or buy an asset worth hundreds of thousands of dollars – a home.  A fairly substantial transaction in someone’s life you would have to agree.  We are not talking about whether you buy the pink shirt or the blue shirt here.  We are diving into a purchase that needs consideration, attention to detail and an investment of time to pull it all together.

During quite a few of the thousands of interactions I have had with buyers and sellers of real property, I have had the fortune to meet some true contenders who have what it takes to compete in a ‘TBMA’ championship, and for a select few, they could make it all the way to the final.

Overworked man 300x295 Welcome Sports Fans To ‘TBMA’

“I would really love to see that property with the pool and the shed.  My husband really needs the shed for his boat, bike, pool table and wood lathe.” “Great,” I say, “When are you both available to see it?”  “Oh, it will be just me, my husband is sooooooooo busy at work.  He wouldn’t be able to see it until after nine o’clock on Sunday night.”  What the…….when does he have time for the boat, bike, pool table and wood lathe?

“We’d like to make an offer on that house.” “No problem, I’ll have the documents drawn up.  Can you come into my office, it’ll take about thirty minutes to run through and sign.” “Mate, I’m sooooooo busy. Just flat out. Start work at 6am and finish at Midnight.  I might be able to make it in by Friday week.”  Next!!!!!

“Fantastic, I really look forward to helping you sell and move on to the next phase of your lives.  Before we start, to make sure the presentation is right you might just need to give that gate a lick of paint, cut those bushes back from the front windows and give the (knee high) lawns a run over.”  “Maaaaaate, I am sooooooooo busy. Working eight days a week at the moment.  It’ll all fall apart if I’m not at work.  Buyers will just have to deal with it.”  It’s your home sir and the buyers will ensure it stays that way.

These are only some of the contenders. But, there is one fatal flaw with TBMA. What chance the contestants will actually turn up for the Million Dollar Prize Money?  They are soooooooo busy!  Oh well, back to the drawing board.  How about ‘Death By Negotiation’?  We could put half a dozen buyers and sellers in a pit with knives and stakes to fight it over $1,000 and whether the spice rack stays on the sale of a $400,000 home and the last one standing………

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Dec
02

A Cautionary Property Tale

Thank heavens we are not the USA.  Australian Banks, using the Aussie vernacular, are total tight arses compared to their ‘loose as a goose’ counterparts in Europe and the USA. 

For the greater part of the last decade American Banks and Lending Institutions threw money at less than qualified applicants so they could buy over-priced residential property.  As we all know the house of cards came tumbling down when the re-payments from the millions of struggling home owners began to dry up – then the owners just threw the house keys in an envelope and mailed it to the bank (the ‘Jingle’ envelope as the Bank employees called them, because thousands would land in bank offices everyday in large post bags and the weight of keys would make a jingling sound as they hit the desks), in most cases then strip the houses of fixtures that may have some monetary value and simply disappear into a vast unknown – never under any obligation to pay the loan back to the lender.  This scenario has played out millions of times.

 

In Europe, the Banks had some similar exposure to Residential property but they also continued to finance several ‘basket case’ economies that were no hope of servicing the massive debt.

In Australia, even during the property boom of the early 2000’s, banks were still very mindful of who they lent money to and our rate of foreclosures is merely a speck compared to the carnage in the USA and some parts of Europe.  However that does not mean that any of us can sit back and allow complacency to creep in.  Especially knowing the fact that if you default on a mortgage, the Australian Banks and Lending Institutions will come after you for every last cent.  No-one came simply walk away and post the ‘jingle envelope’.

keys A Cautionary Property Tale

 

A recent case study represents a cautionary tale for any home owner who is ‘baby-sitting’ their home for the bank.  If you get into difficulty and servicing the loan is almost impossible, take my advice – take control and liquidate the asset before the Bank takes it and takes the rest of your life away from you.  Here’s why.

A single mum with a small acreage presented to me and told me that the property had to be sold as the bank was only a couple of months away from re-possessing it as she had fallen on hard times and could not meet the payments.

We swung into immediate action and eventually placed the property up for Auction.  Interest in the property was solid and buyers began coughing up offers which were not far off the amount needed by the owner to clear the  vast majority of her debt.  The key here was that she was in control and if she sold it, could have negotiated with the bank if there was any shortfall, probably leaving her with a manageable, very small debt and no big fat black mark on her credit record.

As the bank was literally circling the property, we received two offers around $450,000.  The owner rejected these stating she ‘needed’ over $460,000.  The buyers, having a wide choice of properties and little competition, drew their lines in the sand and basically said, ‘Take it or leave it.’ We explained, to the owner, the enormous risks involved to knock back either of these strong offers.  The owner, sadly, failed to heed our considered advice and warnings and rejected the offers and within days, the bank pounced.  Once a property is sucked into the deepest darkest corner of the banking world – ‘Collections’ – it is all over.

Three months later the property was put up for ‘Mortgagee in Possession’ Sale and at a recent Auction the property sold for – $390,000!  Unfortunately the Bank will be the former owner’s creditor for years to come without any asset to speak of.

In tough times, act early and act decisively before someone (or something) acts for you.

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Oct
28

Did you wake up and the world was different?

Is it just me or do you feel like you awoke from a short hibernation and everything had changed?

The world in which we live in, do business in and interact in is evolving at such a rate, what appeared to be ‘cutting edge’ yesterday has been superseded and considered ‘old hat’ today. As one of the last Baby Boomers, you might expect that I would throw my hands in the air in frustration and say – that’s enough, it’s moving too fast and I want to get off. Not this little Black Duck (stealing the words straight out of Daffy’s bill). As far as I’m concerned if the Gen Y’s inherit the earth, look out. Us Old Codgers need to try and stay a step ahead so we don’t end up in a Nursing Home being forced to play COD (Call of Duty for us dinosaurs)and living on a diet of Chicken Crimpies and Coke.

Waiting for Social Media Did you wake up and the world was different?

I am embracing every social and technological change I can. And it is actually a bit of fun. I have a blog www.propertypeye.com.au I have Twitter and Facebook presence, plus I ‘Google’ my way through every day to shop, research and actually do business. I film videos of the properties I have for sale and load them onto YouTube. My iphone is a portable office and all my favourite songs are stored on it as well. So if you see my head wobbling and shaking as I drive around town, no I haven’t developed a strange tick, I am more than likely rocking out to ‘Panama’ by Van Halen.

‘On-line’ is no longer just a term. It is the way we interact, shop, meet, research and for an increasing number of people, make a living. Don’t think it is a fad, it will grow and grow and leave those who ignore it in its wake. The scary fact is; a recent study by Optus discovered that almost 65% of Australian Businesses did not have an ‘on-line’ presence!

Here are a couple of my predictions for the near future:

  • Newspapers will be almost extinct in 10 years
  • On-line products and services will make ‘bricks and mortar’ shops and shopping destinations irrelevant in 10 years
  • Very few households will have landline telephones within 5 years
  •  Television content will become a secondary form of entertainment, compared to on-line content, within 10 years
  • Almost every Western Democratic Society will be indebted to China in the next 5-10 years.

Jot them down and remind me in 10 years which ones I got right and which were wrong. By that time I might be on the Coke drip, re-spawning every two minutes and sucking Chicken Crimpies by the box-full.

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Sep
09

Monty Python Sings The Nambour/Hinterland Property Market Theme Song

It’s amazing how a little ditty can stick in your mind more than thirty years after it accompanied the final scenes of one of the funniest movies ever – The Life of Brian. That ditty is of course, yes, I can hear you whistling it……’Always Look on The Bright Side of Life’ Those who aren’t whistling probably take their crucifixions a little more seriously.

When I am exposed inadvertently to the musings of the many ‘Doomsdayers’ who are granted their 15 minutes of fame, I find myself murmuring and whistling Eric Idle’s melody as a repellent to the horror stories these experts thrive on sharing, supported by a ravenous media looking for the next ‘OMG’ reaction from viewers, listeners or readers.

After reading the following economic/property ‘Silver Lining’ report from Christopher Joye of Rismark International, I broke into a rousing rendition of the Python classic, much to the bemused looks of my staff, some of who are young enough to think that Monty Python is the name of one of the reptiles at Australia Zoo. Everybody – “Always look on the bright side of life………”

So check out Christopher Joye The economy and housing market are stronger than you think

Yesterday we received the official economic growth data from the ABS, which while surprising on the high side, confirmed the medium-term outlook I pitched in August last year.

The smart money was punting on relatively uninspiring real growth of 0.9% in the second quarter, which was going to be driven by an inventory rebuild after the floods. Instead, we generated substantially greater 1.2% real GDP growth, which was notable for being surprisingly broad-based. This was even more impressive given the flood-induced contraction in the first quarter was revised down from -1.2% to -0.9%, which meant that the second quarter was starting off a higher base.

The details surrounding Australia’s economic growth engine were revealing. Net exports actually detracted 0.5 percentage points from the GDP result due to a slower-than-expected recovery in coal volumes. Had net exports been flat, the real GDP growth estimate would have been +1.7%, which is a little higher than the RBA’s priors. The good news is that coal exports should recover forcefully in the third quarter. The public sector also lopped off another 0.4 percentage points from growth as the government tries to eliminate its deficit before the next election.

To read the rest of the go The economy and housing market are stronger than you think

So remember  “Always look on the bright side of life”

Monty Python Monty Python Sings The Nambour/Hinterland Property Market Theme Song

 

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Aug
26

The Block’s Auction Antics

More than a decade on and the phenomenon that is Reality TV continues to roll out more and more cringe worthy spectacles.  Who said it wouldn’t last?

Ok, I have been known to immerse myself in the sparkle, silicon and veneers of The Housewives of OC or drool over some Top Chef fare, but being the Real Estate tragic that I am, I tuned in, for the first time, to The Block Auction Finale, and I was not disappointed.  My watching of TB finale was similar to observing a sports fan going through the highs and lows of watching their favourite game.

I buried my shaking head in my hands at some of the Auctioneering techniques and strategies (or lack of them).  Yelled mild obscenities at the ungrateful sister act as their property was passed in and laughed hard and knowingly as Scott Cam revealed the ‘Network paid too much for the properties’ reserves.

The reality of this whole exercise was not an accurate depiction of the Auction process.

Firstly, at no time did the Auctioneers threaten any of the bidders with ‘highest bidder gets first crack at the property if it is passed in.’  Second, the mysterious woman with jet black hair in the front row should have been shamed into opening her purse a little further after a couple of incipit $1,000 bids.  Third the portly little Auctioneer of noble Mediterranean heritage should learn to pace himself. He was out of the block that quickly that I literally thought he was going to explode.

The Block winners The Block’s Auction Antics

The Block winners

(For more info on The Block go to http://homes.ninemsn.com.au/theblock/ )

Next, and I understand the winner of TB was based on best result ‘under the hammer’, no-one took the time to explain to the television audience or the contestants for that matter, that negotiation straight after the passing in of  property still yields fantastic results.  One couple who sold in the last day or two, ‘post auction’ pulled $70,000 over their reserve!  That’s a better result than the winners on the night.

The Auction process is about unearthing buyers who are willing to pay a reasonable price in a reasonable time in a challenging market.  There is absolutely no failure if a property is passed in.  The only failure is if all those involved in the sale process don’t listen to the collective opinion of the market and maintain an over estimation of the true value of the property.

I believe all the properties are now sold and the worst result was the home renovated by the sisters who sold for bang on their reserve price straight after Auction.  Their performance, when their property was passed in, should see their papers stamped by Channel Nine – “Do not invite back to The Block Masters Series.”

Some of my Queensland Real Estate Peers have been critical of the practice in Sydney and Melbourne of Agents placing price guides on Auction properties. The ‘investigation’ by the Victorian Fair Trading Office was at best a publicity stunt to gain a larger audience.  All the quoted prices were very close to eventual sale prices. Why do you think that Sydney and Melbourne are achieving 50%-60% clearance rates at Auctions?  Because the buyers are given a general guide on price – they actually have something to aim at.  I do not condone for one second the practice of ‘Bait Pricing’ which understates the expected sale price of a property to give unsuspecting buyers false hope and pump up the number of ‘interested parties’.

Properly researched price guides are a solid indication of market activity and the prices being obtained other similar properties that have recently sold.  Ultimately it is the buyers who determine the eventual sale price of a property, especially in the evolving market we are now experiencing.

The Block Finale entertained over three million Australians.  Those who believe the Auction process is a waste of time, as one the contestants bemoaned, should not take this television spectacle as an accurate example of how a tried and proven process actually works.

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Aug
19

Nambour Real Estate’s Guide to Open Home Etiquette

Open Home.  Open For Inspection.  Buyer Viewing.  All these terms describe the same accepted (well, in most cases) Real Estate practice whereby a home seller’s agent ‘throws the doors open’ to the home, which is of course for sale, and encourages prospective buyers to look through at their leisure and without pressure for half an hour or forty-five minutes.

After conducting somewhere in the vicinity of two thousand Open For Inspections, which I now call Buyer Viewings, I am confident enough to anoint myself as the Nambour and Hinterland’s resident expert on the subject.  I have handled everything from dozens of people streaming through the one property to mind numbing boredom manning overpriced and under-promoted properties on behalf of sellers whose motivation level to sell was almost below zero.

During the thousands of viewings I have conducted I have experienced everything from refusing entry to belligerent sticky-beaks to shaking hands with prospective buyers walking through the door and within ten seconds asking, “Do you have a contract with you that I can sign?”  I’ve also had everything from sellers who refuse to leave their home during buyer viewings, literally scaring off prospective buyers, to vendors who almost leave me a three course meal and a banquet of snacks for prospective buyers.

Over the last decade here in Nambour and throughout the greater Sunshine Coast area, buyers and sellers alike have become far more accustomed to Buyer Viewings with the vast majority of buyers expecting that the home they have identified, through the various forms of promotion, to be open for viewing at some stage over the weekend.

I can say, hand on heart, that sellers who do not incorporate Buyer Viewings as part of a solid and cost effective marketing campaign should think twice about whether or not they should place their home on the market.  More than 60% of the properties I have sold in the last nearly ten years were as a result of the buyer attending a Buyer Viewing.

The sign that s sold Nambour Real Estate’s Guide to Open Home EtiquetteOk, so what about the etiquette for Buyer Viewings.  Over two thousand buyer viewings later, I am still doing my utmost to help sellers and buyers make the ‘Buyer Viewing Experience’ productive and enjoyable.

First of all, I’ll help the buyers:

  1. Be on Time: Draw up a time and travel schedule if you plan on visiting multiple properties on a given viewing day.  The average buyer spends around fifteen minutes looking a home during a Buyer Viewing, so if you have two properties with viewings starting at the same time, say 1pm, then get to the first property right on start time and aim to arrive at the second property with fifteen minutes to go for that viewing.  I know we should not have pet hates, but I do have one.  They’re called the ‘Last minute Larry’s’. I am packing up at 1.44pm after a brisk buyer viewing with two groups showing keen interest, I am excited about the good news I will pass onto my clients and a car pulls up, the occupants amble out, look at the sign, can clearly see the time has expired, but they wander in and say. “Oh, is it finished?  Can we have a quick look, sorry we just finished lunch.” “Ok,” I say, “Could I get some quick details please, but I do have to be at my next Viewing in eight minutes.” “We’re not really looking to buy we’re just seeing what’s out there.” My smile is now in need of major support and my tongue has glued itself to the top of my mouth to prevent me from saying what any other normal human being would.  Details are taken regardless using a little ex-cop persuasion, the non-buyers are ushered through, shown the door and I am on my way, now two minutes late for my next viewing.  In short; Buyers – be on time!!!!
  2. Take notes:  Once a buyer has seen more than four properties on any given day, the properties can start to meld and blur.  Write down what you like and what you don’t.  Ensure you get an information brochure from the agent.
  3. Wear slip on, slip off footwear:  Whether it is wet or dry, it is a nice courtesy is you remove your shoes before walking into a seller’s home.  Unfortunately the fellas are the worst offenders when it comes to footwear because many like to wear runners or boots, and it is a monumental pain in the ‘youknowwhat’ if you have to take your shoes on and off at five different properties.
  4. Be Discreet:  If you are inspecting a property and you don’t like it, the agent wants to hear your feedback but please don’t bellow your opinion down the hall for everyone to hear.
  5. Provide Details:  You are a stranger in someone else’s home.  They have a right to know who has been in their home.  When the agent asks for your name and contact details don’t be evasive.  A good agent will contact you at some stage for feedback.
  6. Be open to providing feedback:  A seller is very anxious to hear what the market (buyers) has to say about their home.  If the agent is unable to obtain your opinion at the open home, when he calls soon after for feedback, give it freely so he can report back to his clients.

Now, sellers, here are a few Buyer Viewing etiquette techniques for you.

  1. Let there be light:  Open all blinds, curtains and shutters to allow maximum light flow.  Dark homes are an immediate put off for buyers
  2. Tidy up:  This is the most obvious of all.  Don’t think that pile of dirty washing left by your partially brain dead teenager (I speak from experience – I have them inhabiting my home) in the corner of his room will go unnoticed by the buyers.
  3. Remove Rover from the property:  I love dogs, but some buyers just don’t.  Take Rover for a walk or a visit somewhere and pick up any of his ‘barker’s eggs’ before you leave.
  4. I would like to say this in the nicest way – Get Out!  Leave your home about 5-10 minutes before the scheduled Viewing time.  If you have any last minute instructions you need to give your agent, like switch off all the lights, lock all the doors and windows, put the cat out, turn on the roast in the oven, bring in the clothes if it looks like rain………give them to the agent earlier in the day.  There is nothing worse than having three car loads of prospective buyers waiting at the kerb whilst the owners load up the kids, the dogs and the bikes and give the important last minute instructions to the agent, “And make sure the oven is set at 200c….bye….”
  5. Do not return home until fifteen minutes after the viewing is finished:  Your agent may still be dealing with some Last Minute Larry’s or talking serious ‘Turkey’ with a buyer who has stayed the distance and has a genuine interest.  Bursting in the door and saying, “How did it go?”  While the agent is doing his thing has been termed by me ‘negotiatus interruptus’.  I clearly recall one Buyer Viewing I was conducting and there was about five minutes to go and I was deep in negotiation and fact finding with a prospective buyer.  Bold as brass, up the stairs comes the seller with a hearty, “Any action today?”  I looked at him, as did the buyer, the buyer shut up in mid sentence and said, “Thanks.” Then walked out.  By the time I did talk to the buyer between ‘negotiatus interruptus’ and the time I called him about 30 minutes later, he had gone quite cold on the idea of purchasing the property.  Oh dear!  It was back to the drawing board.
  6. Don’t invite them in:  If a buyer a turns up well after the Buyer Viewing has finished and says, “So sorry, we couldn’t get here on time,” DO NOT invite them in for an inspection.  Politely ask them to call your agent and he will arrange an inspection.  This has happened on a few occasions and I get excited sellers calling me telling me that the home is about to sell as they showed a buyer through, who was late (couldn’t read or tell the time is closer to the truth), and they love it and want to buy it.  My first question to my client is, “Did you get their name and phone number?” “No, but they said they would call you.”  Sadly the call never comes.

Without sounding blasé , I can conduct buyer viewings in my sleep, so I am very adept at quelling any fears a seller may have and love welcoming prospective buyers and allowing them to feel comfortable  during their inspection.

Even in this evolving world we live in, where all manner of purchases are made over the internet without the buyer actually seeing or touching the product in the flesh, property is most unlikely to take up this trend.  Therefore property buyers will always want to see, touch, smell and physically judge the property they have identified as there next abode.

My guide to Open Home etiquette is designed purely to help buyers and sellers enjoy the experience and optimise the anticipated results.

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