Private Treaty/Sale or Auction?
Deciding to put your property on the market is a massive decision, for most, and ultimately everybody wants to receive the highest price for their property. The highly debated question though is, does having an auction impact on the sale price? Or what are the benefits of having an auction in comparison to a private sale?
Private Treaty – When the owner can personally set the price at which the property is marketed and sold for.
Positives:
- It is less stressful than an Auction as you do not have to make immediate decisions.
- A private sale can be just that – private. The public nature of an auction (especially with curious passers-by) can be off-putting for some vendors, and others might just prefer to keep their business low key.
- There is no particular rush to sell. Sellers can take their time in receiving offers and selecting the best potential buyer. Sellers can choose to extend the settlement period as well if the need arises thereby providing more flexibility to them. Unlike an auction, there’s no specific set date involved for selling the home.
- There’s more certainty regarding price than at an auction.
- Cost savings on the marketing and promotional expenses versus an auction campaign.
Negatives:
- If you set the initial price incorrectly you can run the risk of selling too cheaply or pitching too high to begin with. Having to reduce the asking price down the track can make you look desperate.
- It may take longer to sell your home compared to an auction campaign.
Auction – Where potential buyers gather to publicly bid on a property for sale.
Positives:
- There is a sense of urgency for buyers in fear of competing at a public auction.
- If you prefer a decisive process, an Auction has no cooling-off period and the buyer is locked in immediately.
- There is no price barrier, and it encourages competition, which may result in a higher price.
- Attracts more qualified buyers who need to produce the required identity items and pay the required deposit immediately if they succeed in a purchase.
Negatives:
- There is the risk of damaging the perceived ‘value’ of your property if the Auction fails, which may result in a price reduction.
- Negotiation power can be less as the perceived ‘value’ of your property is publicly decided by the buyers.
- More expensive marketing campaign.
- Little to no privacy which can be daunting to some vendors.
Preparing for an Open Home Inspection
You have now made the big decision to put your property on the market and have enlisted the help of a real estate agent (RE/MAX – Metro).
Now it is time for the open inspections, but you have absolutely no idea how to make it appealing to buyers and make it a memorable property amongst others that are for sale.
This is a crucial stage in selling the property because you want it to shine and look its absolute best to entice buyers. You want it to make a lasting impression on buyers so that they can’t get it out of their minds. The difficult question is how can you do this without breaking the bank on additional costs?
Of course, hiring a professional stylist would be preferred as they have an eye for decorating and would style out the property with ideal furniture suited for the space which usually results in a higher sale price. However, there is an alternative and these simple tips will help you make a lasting impression on your property:
Choosing Inspection Times
Saturday/Sunday late mornings and early afternoons are generally the best time for an open for inspection. This is the most ideal suited time for house hunters because it is on a weekend, so they are unlikely to be working and it’s late enough in the day that they won’t be sleeping in. It is also a good idea to have a second open for inspection during the week for potential buyers who are keen to see the property again when it is not as busy.
Marketing Materials
It is an excellent idea to have your appointed professional create brochures to give tangible information to buyers to look at and hold onto even after the inspection is finished. Prospective buyers will find this useful in their process of house hunting because it reminds them of your property, so it’s not forgotten amongst other properties they have seen.
Keeping it clean
Ensure that you have given the property a thorough cleaning so that it appears sparkling clean. It’s amazing the difference it makes for the buyer to see a clean property compared to a dusty, dirty one. Don’t forget small things like washing and putting away the dishes, taking out the rubbish and picking up dog poo in the garden.
De-clutter
All those trinkets, books, photos, bits and pieces that are lying around the home, it is time to put them away. These items make the space look small and cluttered, so best to hide them away to give the impression of a larger, open space.
Re-arrange furniture
Trial moving some of your furniture around, sometimes even just moving a few things around can give the room an entirely new feeling. Perhaps you have lived with it in the same position for such a long time you didn’t realise it made the room look smaller. Buyers will be on the lookout for open, welcoming rooms.
Coat of paint
Giving your property a fresh coat of paint is an easy, cost-effective way of making your property look more enticing. It could have been a horrible feature wall with a colour which was once in fashion or the original colour has faded over time. Whatever it is, a nice clean coat of paint can do wonders because it creates a blank canvas and allows the prospective buyers to use their own imagination on how they would like to style the property and make their own imprint on the property.
Climate
You want your property to be as welcoming and comforting as possible. A fantastic way to do this is to ensure the temperature is just right. So, if it’s a warm day have the air conditioning on to make buyers feel cool, relaxed and calm. On the other hand, if it’s a cold day have the heater on to make your home feel cosy and inviting.
Sounds
The aim is to create a tranquil, pleasant environment where buyers feel peaceful. To ensure this is the case make sure loud sounds are turned off such as the television, dishwasher and washing machine. If you can hear cars on the road or if the house is perhaps too silent it might be a good idea to play some background soothing music to enhance the ambiance of the property, which your professional should easily be able to assist with.
Smells
Before an open for inspection, it is a good idea to open all your windows and air out the property removing lingering odours such as any mouldy or damp smells. Be careful not to overpower the space with smells or scents that are too strong. Scented candles, fresh flowers, a room spray, etc can easily enhance the experience of buyers.
Lights
Buyers are looking for an open, bright property because ultimately nobody wants to live in the dark. So, prior to inspection ensure all blinds and curtains are open, streaming in the natural light. Turn lights on throughout the house to illuminate every room making it an inviting, homely atmosphere.
Pets
If you have pets, it is in your best interests to take pets away whilst the open for inspection is on. It is understandable that you love your pets and so do many buyers, but ultimately these buyers come to inspect the home in its best condition and without interruption. It is a good idea to remove any hair, lingering smells or faeces, as these will be unappealing for buyers.
These are some very simple tips on how to make your property look most appealing. Ultimately you want to create such an inviting atmosphere that the buyer falls in love with so that they never want to leave!
How much is my property worth?
Probably the first and most important factor that enters the mind of a potential seller is “how much is my property worth”. Not all homeowners understand the process completely and they can sometimes be manipulated due to the fact that they are misinformed. That is why it is important to know the process inside and out in order to make the right decision.
The first step is to know the difference between a Market Appraisal and Market Valuation.
Market Appraisal is the process in which a real estate agent gives their professional opinion on what they estimate a given property will sell for under the current market conditions. This opinion should include a thorough study of all the factors, in order to produce the most plausible result given the integration of the recent comparable sales and the market statistics. A Market Appraisal is usually a fairly quick and free process, and if provided by a reputable real estate agent, will reflect the actual sale price on paper.
Market Valuation is a formal valuation that can only be conducted by a qualified valuer, who has undertaken prescribed education and training in this field to ensure that they take into account all features and issues relating to a particular property. Valuing is a complex task that will take some time to complete, and a fee will be charged for this service. A valuation is usually conducted on behalf of financial institutions and the value represents a lower ‘floor’, that the bank can rely on in the unfortunate event that it must be sold through them to recoup the loan costs.
Knowing the difference between an appraisal and valuation will allow you to better understand the ‘price’ given by a real estate agent. Sometimes real estate agents might use the terminology of ‘valuation’ although it is technically an appraisal. As previously mentioned only a qualified valuer can perform a valuation, however, generally you would only need a Market Appraisal from a reputable real estate agent to gauge at what likely price point your property will sell at.
Why do Market Appraisals differ from real estate agents and which one is right?
The keyword to take notice of here is ‘Opinion’. Although a good real estate agent may give their best professional advice, it is still an opinion and opinions differ. Regardless of how much you think you know the market or trust the real estate agent to give you an accurate opinion, you should always insist that the agent can thoroughly explain their position in order to satisfy your understanding rather than just taking their ‘opinion’ as fact. A good market appraisal will be consistent with the recent comparable sales and take into consideration the current market statistics to indicate the most plausible ‘price opinion’.
Will my property sell at the appraised price?
There is no definitive YES or NO answer to this. If the market appraisal was done the correct way as mentioned above, the property will likely sell at the appraised price point. However, if the market appraisal was done incorrectly then there is a big chance that there will be a large disparity between the appraisal and the sale price, regardless whether it’s over or under the rational price average.
Should I always choose the agent that gives my property the highest appraisal?
- It is imperative that each owner understands that simply choosing the real estate agent with the highest Market Appraisal value can often deliver a worse result. In order to understand this, let us look at the advantages and disadvantages of quoting at different levels.
Over Appraisal: This involves the agent appraising a property higher than the genuine market price in order to simply get your business or if they did not give a proper opinion based on the facts. This damages the process of attracting initial buyers, creates a false illusion for the owner that they base decisions on, and places both the buyer and owner in an undesirable position to get the property sold.
Conservative Appraisal: This is the method of giving a more realistic appraisal in the ‘middle’ that might initially look unattractive to the owner, however, this allows for a higher chance to sell the property seeing that more buyers are attracted, there is more of a consensus between the buyer and seller as well as the owner walking away happy from the sale of their home. This method reserves the right as well to always sell higher but creating a ‘bottom level’ that the property is very unlikely to sell under. This is the best method to use.
Under Appraisal: If an appraisal is well below the rational market average for the recent comparable sales. This is done either as a misunderstanding of the involved factors or wilfully misleading the owner in order to manipulate them. It allows the real estate agent to sell your property with barely lifting a finger due to a large influx of buyers that can buy the property for a bargain.
If I had an appraisal done a few months ago or more, is my home worth the same now as back then?
No. Any market appraisal is subject to the market conditions at that given time. It can change quite drastically in a short period of time, so do not rely on an appraisal that is a few months old. If you are interested in selling, always get a new updated appraisal.
If you are interested in having a complimentary appraisal done for your property with prompt service, it will be my pleasure to assist you in this regard.
With in-depth knowledge and experience, I can give you a trusted Market Appraisal with no strings attached. All you need to do is simply get in contact with me and book in a time that is convenient for you.
Which Real Estate Agent?
Choosing a real estate agent to help sell your home is an important decision, that can heavily impact the sale process and final sale price of your property. But how do you know what to look for? The best agent is not necessarily the one who quotes the highest price for your property or who offers the lowest commission.
These are common pitfalls that people make in the selection process and end up disappointed with the price their home sells for. Ultimately you need to find a real estate agent you trust and have a good rapport with, who will help navigate you through the confusing world of real estate, has a high level of expertise, who will keep open communication between you and prospective buyers, who keeps your best interests at heart throughout the entire process and who ensures a low-stress experience. These important qualities, skills and services separate an average agent from an excellent one.
What differentiates our team from everyone else?
- Results: We pride ourselves on an exceptional work ethic from the inception of the process right through to settlement and beyond to create clients for life. With our combined expert background from accounting through to the trades sector and more, we deliver on our promises by drawing from these experiences to build on our established real estate prowess. Thus, giving the client the advantage to achieve their desired result.
- Superior communication: Listening to what our clients want and need is a fine craft that we continuously focus on. In addition to communicating frequently across multiple mediums with clients, we are able to fluently assist the English speaking, Mandarin speaking and Afrikaans speaking demographic groups.
- Fundamental values: Honesty, integrity and a genuine care. Often these values are broadcast from the lips of multiple agents and agencies, yet when desperate times come, they abandon those values. With our team, we are unwavering in these values and this is verified by our outstanding testimonials from past clients.
- Commitment and Dedication: Advising and facilitating clients through the sale process is a passion for us. Taking each facet seriously and sincerely giving 100%, regardless of whether it is something minor like adding one extra pointer board for an Open Home Inspection or something major like physically driving out to a buyer to have a Contract of Sale signed within the hour.
- Systematic approach: Our team has a focused methodology and reliable plan to present your property in the best light possible, attract more buyers than other properties and maximise the sale price.
- Flexibility: Most agents or agencies try to force a specific ‘mould of doing things’ on the owner. Our team is flexible and work around your suggestions and desires to achieve a mutual agreement. Our view is to advise the client and leave the power to them to decide how we proceed.
- Adaptability: Occasionally there are unforeseen situations or difficulties during the process. However, this is where we excel seeing that we focus to isolate the situation, swiftly develop a resolution and seamlessly implement it.
- Contact time: Heinrich & Bryan is available and reachable by email, text or call, 7 days a week, and often assist clients late at night or on weekends. This prominent advantage allows uninterrupted access and peace-of-mind as to the progression of the sales campaign.
Book an appraisal through the website at a date and time that is convenient for you or simply make contact with our team and we will provide you with 5-Star service, as we answer all of your questions and plan the most optimal way forward for you.