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Brody Willis

Real Estate Sales Person Goulburn First National

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Blog · October 10, 2019

AGENT’S TRICKS TO CREATE VENDOR MOTIVATION

If you want above market price for your property, agents have a number of tricks to bring you back into line. Some of these tactics are subtle, others are more transparent. Either way, when you know what they are, you stand some chance of protecting yourself.

AGENT'S TRICKS TO CREATE VENDOR MOTIVATION

Pre-auction low offer – If you are expecting a huge price on auction day, a low offer well below the expected price often arises the week before the auction. The agent does not expect the offer to be accepted, it’s more a case of causing the vendor to second guess their price expectations and be grateful when the price exceeds the bargain hunters low ball offer.

Move the tenants out – the more financially committed the vendor is during the campaign, the more likely they will accept the highest bid on the day. Moving the tenants out in the name of an ‘improved presentation’ also increases the vendor’s financial exposure to the campaign. Hence the real motive to encouraging landlords to move their tenants out

Deadline – sellers are often encouraged by agents to list for an auction. Apparently, as the deadline approaches, it pressures buyers to act. In reality, as the deadline (auction) draws closer, the pressure of the situation begins to shift from the buyers towards the seller. The buyer can wait for the next property whilst the owner is publicly on the chopping block on auction day. Don’t let a reported clearance rate of 80% fool you into a false sense of security. Many properties are withdrawn and/or fail to sell at auction, so the ‘result’ conveniently goes missing and unreported.

Hire staging furniture – when the owner hires designer furniture for 6 weeks, it creates both an expense and a deadline for the vendor. If a landlord, selling their investment property, moves the tenant out then leases furniture and commits to a $10,000 advertising campaign, they are committed to the tune of $25,000 on day one of the campaign, regardless of the result.

Upselling advertising – many agents are addicted to VPA – that stands for Vendor Paid Advertising. Industry training encourages agents that upfront VPA ensures they get a committed vendor from the beginning of the campaign. VPA comes in many forms. In the past it was full page newspaper ads, then it was real estate magazines & flyers and now the latest craze is ‘premium package” internet campaigns. If an agent really believes in these advertising methods, ask the agent to carry the cost and risk of the strategy. You may find the agent can quickly present a buyer to you without either of you having to commit to a massive upfront expenditure.

The greatest losses often occur at the time of greatest gains. It’s a reality that vendors are resilient and careful when the market is flat yet more relaxed and amenable to expenditure in rising markets. If you stay resilient and careful in a rising market, you are assured of the best possible net result.

By Peter O’Malley  
Author of Inside Real Estate
 

Are you interested in reading Inside Real Estate by Peter O’Malley? Contact us to receive your free copy. Email: mail@goulburnre.com.au or call 02 4822 8711

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Blog · November 7, 2019

MYSTERY SHOP THE AGENT

MYSTERY SHOP THE AGENT

The selection of the selling agent is usually decided upon from an interview and/or a sales proposal process. Whether it’s an interview or a sales proposal that you are using to determine your agent, neither actually shows the agent in action. Agents are fully rehearsed with scripts and …

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Blog · November 4, 2019

RELAY FOR LIFE 2019

RELAY FOR LIFE

On the weekend of the 2nd & 3rd November we saw yet another successful turnout for Cancer Council’s Relay For Life. This has been our 4th year supporting Relay For Life & we are so proud to be a part of it. This year the committee announced that 33 teams & 307 people registered. …

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Blog · October 30, 2019

HAVE YOU BEEN OUT ON A BUCK’S NIGHT? THE QUESTIONS BANKS ARE ASKING

BUCK’S NIGHT

Mortgage brokers have been asking some highly intrusive questions in the wake of the banking royal commission. With banks tightening their criteria for lending to Australians, brokers have reported asking more personal questions. Pro Solution Private Clients associate director Jodie McKeown, …

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Blog · October 23, 2019

THE ‘HEART BUYER’

THE HEART BUYER

The location is ideal, it has the right number of bedrooms and living spaces, the yard is great – it feels like the perfect home. Occasionally, a buyer matches a property to perfection. This buyer is going to live in the property. It will become their home. There is an instant and strong …

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Blog · October 17, 2019

SHOULD I BUY NOW OR WAIT UNTIL THE FIRST HOME LOAN DEPOSIT SCHEME STARTS?

SHOULD I BUY NOW

As you slog away, saving the deposit for your first home, it’s difficult not to get excited when new government incentives are announced. From the First Home Owner’s Grant, introduced in 2000, to the First Home Super Saver Scheme of the 2018 Federal budget, Australian first home buyers can hardly …

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Blog · October 10, 2019

AGENT’S TRICKS TO CREATE VENDOR MOTIVATION

AGENT'S TRICKS TO CREATE VENDOR MOTIVATION

If you want above market price for your property, agents have a number of tricks to bring you back into line. Some of these tactics are subtle, others are more transparent. Either way, when you know what they are, you stand some chance of protecting yourself. Pre-auction low offer – If you …

Continue Reading

Blog · October 3, 2019

LOOK BEYOND FEES FOR EFFECTIVE MANAGEMENT

LOOK BEYOND FEES FOR EFFECTIVE MANAGEMENT

Majority of property investors spend too little time assessing the skills of their property manager and need to look beyond fees when choosing who will manage their investment portfolio. The commitment required to effectively maintain properties, quality client relations, legislative compliance, …

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Blog · September 26, 2019

FLAWED REAL ESTATE STRATEGIES 4/4: PUBLIC AUCTION – BUYERS

Auction

Inspired by Andrew TrimAuthor of Real Estate Dangers While the public auction method certainly costs the seller both financially and emotionally, the buyer is also deceived. Transparency only applies on auction day. During the lead up to a public auction, the lack of transparency of the process …

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Blog · September 19, 2019

FLAWED REAL ESTATE STRATEGIES 3/4: PUBLIC AUCTION

PUBLIC AUCTION

By Andrew TrimAuthor of Real Estate Dangers For most agents, public auctions are all about advertising revenue and personal profile. Public auctions are promoted widely throughout the real estate industry and major media organisations. You can’t have a public auction without the significant spend …

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brody@goulburnre.com.au

OFFICE

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www.goulburnrealestate.com.au

LOCATION

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Goulburn, NSW

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