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Selling

How to get a Buyer to pay more for your home.

Find out what motivates a buyer to pay more than market price for your property. This approach can be applied to most types of properties.

When you’re selling your property, you want the premium price, of course. But that’s not always the outcome. So why is that? 

To explain this a little bit more, we’ll look at the Olympics and your hundred metre final as an example. The reason why we’re getting world records (at the Olympics) is because the runners have transparency, they have competition. They’re pushing each other and it’s no different when selling a property or your home. 

If a buyer submits an offer and they know that they are the only buyer, they’re not going to pay any more than they absolutely have to and that is the problem with using private treaty as your sales method which is the most common method of sale here in Perth. 

The Agent is not allowed to the other buyer’s offer price is. The Agent can disclose that here is another offer but as a buyer, you don’t know for sure if the Agent is telling the truth or not.

However, if the buyer knows that there are other offers on the table and they know how their offer ranks among the other offers, the lower priced buyer would be more inclined to offer more. With the transparency and the urgency, the fear of missing out kicks in.

To get competition for your home, you need the urgency and that is why that my clients over the last couple of years when the market’s been down and the market’s been up have been getting premium prices for their properties because we’ve been able to create urgency and competition using transparency. 

If you’d like to know more about how that can happen for your property, do get in touch.

Sales Methods that are transparent. 

As a vendor, you want to sell for a premium price.

The best way (regardless of market conditions) to achieve that goal is through competition. To ensure that you get the best possible chance of generating competition, you need urgency and transparency. Click below to learn more about the different sales methods. 

Overview of traditional sales methods

Transparent sales methods

Categories
Selling

Sales Methods that are transparent.

As a vendor, you want to sell for a premium price.

The best way (regardless of market conditions) to achieve that goal is through competition.

To ensure that you get the best possible chance of generating competition, you need urgency and transparency.

This is where the sales method comes in.

Traditionally, your choices are either private treaty or auction but in the past 3 years or so our clients have experienced great results with the following 2 methods.

  • Openn Negotiation – Auction style (but with flexible terms) approach
  • Openn Offers – Private treaty style approach but you can disclose pricing
openn-features-blog-3-Jan-15-2022-08-30-44-75-AM

Openn Negotiation

In an Openn Negotiation, all bidders are pre contracted – which confirms their commitment to purchasing if they are the winning bidder and provides authority for the auctioneer to transfer their specific terms to the final contract and execute on their behalf.  

Because Openn Negotiation operates under Auction Law, the highest unchallenged bid above reserve wins. As such you need an Auctioneer (complimentary when selling with The Haus)

Throughout an Openn Negotiation campaign, there is full price transparency. And just like an auction, the current bid (price) will be updated throughout the advertising.  

Openn Offers

As Openn Offers operates under a private sale or private treaty legal framework, the agent is able to control whether qualified buyers can see the prices submitted by other buyers via an on/off app setting. If the app setting is turned on, then buyers can see where their offer ranks in terms of price, providing greater transparency than traditional private treaty.

An Openn Offers campaign does not require an auctioneer and given it is not an auction, the agent would not reveal any prices outside of the platform. Only qualified buyers are informed of the price ranking through the app.

Openn Offers also allows the vendor, guided by the agent, to accept an offer which may have a lower price but more favourable terms.  They may also accept any offer at any time – which means they don’t have to proceed to the final stage.

Shared features

There are a number of shared features the Openn platform offers across all sales methods. These include:

  • A countdown timer and final stage to help build anticipation, competition and bring each process to a close. 
  • The capability to turn on or off the registration of interest feature. 
  • Contract automation – so agents can execute the final contract of sale by uploading any document, applying the fields they’ve captured from buyers and routing it for digital signatures. 
  • The ability to embed a “make a bid” or “make an offer” button directly onto an agents’ website and,  
  • A property report which can be automatically generated as a PDF at the end of the campaign with statistics on how the sale ran.  

Which method should you choose?

It really depends on your property and your situation.

If you believe that there will be strong competition for your property or you are unsure of market price for your property, then Openn Negotiation is the way to go.

On the other hand, if your property is less likely to attract strong interest or price is not the most important factor, then Openn Offers is the way to go. You can also start with a traditional campaign and switch to an Openn Offers campaign as soon as you receive multiple buyers.

At this point in time, you can switch between the two campaign styles at no extra cost.

That’s a wrap! Hopefully this helps you to understand the key differences in features between the sales methods available on Openn.

If you would like to learn more, simply get in touch here.

(Images and text supplied courtesy of Openn)

Categories
Selling

Should you sell before you buy or buy before you sell?

Similar to the chicken and egg scenario, one of the greatest conundrums when transacting property is: do you sell before you buy or buy before you sell?

There’s a few points to consider if you’re in the market for a new home, especially if you are considering the subject to sale option.

Finances

Depending on your financial capacity, buying a property before you sell your existing home is a good position to be in. It gives you the option to search for something that meets all of your needs without any time pressures.

But for most of us, this scenario is uncommon. There’s not many who have the financial ability to stump up for two mortgages at the same time, so it’s important to crunch the numbers before you take the plunge and make an offer on your dream home.

Subject to sale

One way to buy before you sell without having to simultaneously fund two mortgages is to include a “subject to sale” clause in your offer. While this can be a solution, there are some underlying issues that mean a “subject to sale” clause might not be all it’s cracked up to be.

For example, you can’t be absolutely sure how long it will take to sell your home so there’s going to be an element of uncertainty if you’re traversing this path.

It’s also possible for the seller to instate a 48-hour clause, which means that the vendor can continue to market the property and stage home opens as if your offer is not even on the table. If the vendor receives an offer from another buyer, they are well within their rights to accept it but will give you a period of 48 hours to make your offer unconditional.

Alternative approaches can be especially enticing if they’re a cash offer, even if it’s of a lesser value as it may be perceived to be less of a risk than an offer that relies on sign-off for a new loan.

Get your ducks in a row

It’s widely accepted that the best process is to list and sell your existing home before you make an offer on a new abode. That way, you’re not overextending yourself or adding to what can already be a stressful situation.

Ensure your finances meet your expectations for your dream home. Take the time to speak with you mortgage broker or bank about how much you owe on your existing home, what equity you have and how much you can borrow.

Research real estate agents and speak to some trusted realtors to get an idea about how much your property is worth in the current market. It’s also worth conducing your own inquiries about the prices of similar properties are fetching in your neighbourhood.

What if I sell before a buy?

There are a few things to consider if your home gets snapped up before you find a new property.

  • Request a long settlement. Usually, settlement periods are between 21 to 28 days once finance is unconditionally approved. But it’s worth trying to negotiate a longer settlement if you don’t have a new place to call home
  • Is it possible to rent your home back? If you’re hopeful of becoming a tenant in your own home, include a condition on the offer and acceptance agreement for the buyer to consider.
  • It might not be an ideal situation but you might want to consider moving in with family or friends or to a rental property as a short-term solution until you find the next home you want to purchase. It might be an opportunity to pay no or minimal rent and save more towards your next bricks and mortar investment.

Additional costs

As well as fees and commissions paid to a real estate agent for marketing and selling your home, it’s important to be aware of any additional costs that you may be presented with during the process.

If you are looking to sell an investment property, you will need to consider capital gains tax.  You will also be expected to pay stamp duty and settlement fees on your new home. And depending on how much you are looking to invest in marketing your existing home for sale, there may be extra maintenance or property staging costs to pay for to ensure the property looks its best when it’s put on the market.

How is your property value tracking in this shifting market?

Why guess when you can just ask us for a Digital Appraisal of your home or investment property. If it’s been on your mind, but you haven’t had the chance to arrange an appraisal or you would prefer to let your tenants have their privacy, this is your chance to stay informed without the hassle. 

Simply get in touch with the property address and a brief description so that I can send you an estimated value based on similar homes sale over the past 12 months.

This report costs nothing and is totally obligation-free, so why wait? Simply get in touch and I will send you the report including market research and comparative market sales within 24 hours.

Categories
Selling

Should I sell my investment property with or without tenants?

Finding the right answer will be a delicate balancing act for any investor and one that requires significant consideration well before you erect the ‘for sale’ sign.

For some, how to sell an investment property will relate to cash flow so it’s likely your decision will largely be based on whether you can afford to have it vacant while it’s on the market and you wait for settlement.

Retaining the tenant

The most attractive reason for retaining tenants while the property is for sale is that you will be able to keep earning rental income. This will remove some of the time pressure and hopefully enable a higher price.

But be aware that if the tenant is on a periodic lease, they may decide to vacate at short notice and this could cause upheaval during the marketing period.

Selling while a tenant has occupancy can also throw up a few challenges, particularly when it comes to access and presentation.

Access to the property can become an issue depending on the tenants you have. For example, if the tenant is a shift worker and sleeps during the day it may not be possible to show prospective buyers through during daylight hours.

While tenants are required to provide agents with ‘reasonable access’ to a property that is for sale, some can be uncooperative and difficult.

In addition, presenting the property in a clean, welcoming state is important. Sometimes a tenant’s clutter, pungent cooking smells or the two bedrooms jam-packed full of Star Wars collectables or their 30-year teddy bear collection might not help to present the property at its best.

Having a tenant will also mean you have little to no control over presentation of the property, especially if the renters’ standards are not in line with your expectations.

Some tenants keep rental properties in pristine condition and invest considerable time and effort cleaning and tending to the gardens. But others, particularly share houses, can leave a lot to be desired when it comes to presentation.

It’s also worth remembering that even if tenants are helpful and generally tidy, their furniture and personal belongings may not showcase the property at its full potential.

Selling your investment without a tenant

Marketing a vacant home may make the property appear less welcoming, so there’s a good argument for having an expert “stage” or “style” the property with the right furniture and furnishings that makes the most of the space.

“Quite often after a property has been tenanted for a while it needs a bit of TLC, but the downside is that you’re not going to have a rental income for three or four months so cash flow could be an issue,” said The Haus Exchange proprietor Rasmus Nielsen.

“At The Haus Exchange, we understand that primo presentation can ultimately result in a higher sales price and that’s why we offer a complimentary styling service for new listings.

“The Haus Concierge service is an exclusive offering where we can arrange a staging consultation, organise quotes and coordinate the experts to make sure the property looks its best from the first day it hits the market.”

How is your property value tracking in this shifting market?

Why guess when you can just ask us for a Digital Appraisal of your home or investment property. If it’s been on your mind, but you haven’t had the chance to arrange an appraisal or you would prefer to let your tenants have their privacy, this is your chance to stay informed without the hassle. 

Simply get in touch with the property address and a brief description so that I can send you an estimated value based on similar homes sale over the past 12 months.

This report costs nothing and is totally obligation-free, so why wait? Simply get in touch and I will send you the report including market research and comparative market sales within 24 hours.

These articles may also be of interest to you

Categories
Market Update Selling

It is a crazy market. What is the value of your Perth property in 2022?

HAPPY NEW YEAR! I hope you had a chance to relax and recharge over the Christmas/New year break!

The challenges in 2021

During 2021, we experienced some challenges including preparing a home for sale that was left vacant for nearly 2 years due to covid. With the help of our trusted trades contacts, the home came up like new and sold for a fantastic price with a very happy vendor as a result.

The Haus Exchange has prepared, staged and sold more homes and investment properties in 2021 thanks to your support and we have increased our staging capacity for 2022 as the flow of repeat clients and referrals increase.

In 2021 we have sold in more than 13 suburbs with sales prices ranging from the $300k range all the way up to mid $2 million range helping 62 buyers and sellers making a move.

What you can expect from 2022.

2022 has barely started but already buyers are thick on the ground and property prices are strong.

Over the past few months, we have seen a big increase in buyer demand and strong levels of buyer confidence.

To help our valued clients keep up to date with the current market, we are offering a market update so you can discover the NEW 2022 value of your property. It’s complementary and part of the service we offer our loyal clients.

What will you receive?

  • We will assess the current market value of your property
  • You will discover the NEW 2022 value of your property
  • We will supply a detailed market report of properties sold in your immediate area over the past three months.

REIWA is expecting that the Perth property market is in for an 10% increase in 2022 and in fact, we’re finding many of our clients are surprised when they discover the NEW value of their property.

If you would like to know the NEW 2022 value of your property, please get in contact with me on 0466 725 866 to arrange a time.

Categories
Selling

3 tips on how to generate more interest for your Perth property from interstate buyers.

Lately, at the Haus Exchange we have experienced a significant increase in the number of enquiries from interstate.

As a result, we have sold a number of properties to buyers who never actually personally inspected the property at all.

For instance, for one property located at 14 Velvetene Rd, out of the 9 registered buyers, 4 have not inspected the property, with

  • 2 buyers from NSW,
  • 1 from Tasmania,
  • as well as a buyer from regional WA .

In this quick 1 minute video I am sharing my top 3 tips on how you can generate more interest for your Perth property from interstate buyers, who would be looking at buying your property, sight unseen.

For more tips and the latest updates, please connect with us on Instagram and Facebook

Related tips on how to sell your Perth property:

Categories
Selling

How Carl added $47,105 to his sales price

It is incredibly important in this booming market to have the right sales strategy to ensure that you sell at a premium price.

This simple, yet highly effective approach ensures that you don’t undersell your own home in a hot market.

As a result, Carl increased his sales price by a massive $47,105 from what he was willing to accept when he recently sold with The Haus Exchange.

Click on the video below to learn more

However, that was not all as Carl also took advantage of the Haus Exchange Concierge service to prepare and stage his empty home fo sale.

This is what Carl had to say:

“Fantastic agent. Even though I never purchased a property from Rasmus he kept in touch for 4 years so when it’s my time to sell i knew he was the man.

Never had to chase from day 1, updates so frequently i knew exactly whats going on throughout the process.

Tricky property to sell, Rasmus helped navigate through all the issues.

Achieved end results far beyond the reserve. If you want a honest, professional, approachable, diligent, hardworking agent, Rasmus is the man for you. Couldn’t sing enough praises. 10 stars”

You may also like:

What is The Haus Concierge?

Why do some properties sell for more?

How much does it really cost to stage your home for sale?

How much is my property worth in this changing market?

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Buying Our Haus Selling

Where there’s a will, there’s a way and the team at the Haus Exchange always find a way!

Additional challenges pop up with more interstate and overseas investors wanting to buy into the Perth market without being able to view the properties in person. 

A Sydney investor was keen to take a look at this property the other day  and so this video tour was created just for this investor by the Haus Exchange. We then had a Facetime meeting so the investor could make an informed decision.

Currently, we now have 3 registered bidders on this property and none of the bidders have inspected the property in person. 

Instead, we have sold them all on this property by virtual means and a proven process that has generated fantastic results for our clients even before the local property boom! 

Categories
Selling

Why Perth property owners are selling themselves short despite selling in a booming market.

This is a very common mistake that both agents and vendors are making in Perth right now. 

The good news is that there is a really easy fix. However, if you don’t get it right, this mistake could cost you. 

In the past month, my clients have managed to sell their properties for an additional $35,000 – $60,000 just by using this easy fix.

To learn more, get in touch on 0466 725 866 or check out my tips below.

Categories
Selling

Watch this one sell

An online auction does not get any more exciting than this. 5 Registered bidders and we are way past the reserve.

Watch 1/53 Manchester St Victoria Park sell using Openn Negotiation – tonight Sunday 13 December at 7.30. To register as an observer, simply click on the link below.

Watch as an observer