1. Property inspection and recommendations for improvements.
a. We go through the property and advise you about what improvements will help you to get the best price for your property.
b. We get quotes from reliable tradesmen and suppliers for the agreed scope of work.
c. We get the work done and supervise it to make sure it’s done to a professional standard.
d. We sign off on the completed work.
e. We identify areas that might need investigation in terms of compliance such as unconsented work and potential of hazards, such as asbestos. We provide advice on our disclosure obligations under the Code of Conduct for real estate agents and how to mitigate the impact of the same on the selling price.
2. Appraisals
a. We provide you with a Comparative Market Analysis (CMA) which is our estimate of what your property is worth in the current market. This is backed up with a list of recent sales of comparable properties in the immediate vicinity in the recent past. This does not mean that someone will not pay more, but it gives you some basis for what you can expect.
b. Sometimes if the improvements are done after the Appraisal is prepared, it is a good idea to do another appraisal just before going to market.
c. Sometimes market conditions change between the time we appraised the property and the time the property is ready to go to market. This again would be a good reason to do another appraisal.
3. Signing the Agency Agreement
a. We discuss the Method of Sale. Whether you would like to Auction the property, sell by asking price or by negotiation or by set date of sale. We discuss the merits and demerits of each method of sale with you and you choose the sale method.
b. We discuss the marketing costs and get your approval for the same.
c. The Agency Agreement form is completed and signed.
d. We invoice you and you pay the agreed cost of marketing to our account.
4. Marketing
a. We order the property documents as agreed, such as Title, LIM report, property files in Council records. We recommend ordering a building inspection report if you choose the Auction method of sale.
b. We book a date for doing the staging (if agreed) and photography. We also book the auctioneer (if agreed).
c. Our real expertise lies in being able to reachthe largest number of people who might be looking to buy your property at the time. The main vehicle for that is by publishing a Platinum Ad on Trademe. Some information about Trademe’s reach is attached for your reference. By attracting a large number of buyers, we have the best chance of getting a buyer quicker and of getting multiple offers.
d. We conduct open homes and private viewings.
e. We distribute fliers to homes around your property and hand them out at Malls, churches, temples and other places where people gather in the neighbourhood.
f. We tweak our advertising message and method, as required from time to time, to stimulate more interest.
g. We will always get calls from other agents if they have buyers for your property. We will always co-operate with them for a conjunctional sale, on a commission sharing arrangement.
5. Reporting
a. We send you a weekly report of the response that we are getting and buyer feedback.
6. Offers and Negotiating
a. As per the Code of Ethics prescribed for licensed real estate agents, we are obliged to present any offer that we receive. In a Buyer’s market, that is invariably not going to meet your expectations. Of course, you do not have to accept an offer that does not meet your expectations. But we will treat this is an opportunity to negotiate a price that may ultimately meet your expectations.
b. We believe that a low offer is better than no offer. The longer we can keep a buyer engaged in negotiations, the greater the chances of a second offer coming along and making it a multi-offer situation. As soon as there is competition from a second buyer, the first buyer will be encouraged to increase their offer.
c. At the end of the day, it’s a numbers game. The more people we are able to expose your property to, the more will be the interest generated, more will be the chances of getting one or more offers.
7. Auctions
a. Auctions are the best way to market some properties, like those in high demand areas (high quality, upmarket areas) and properties that are presented in an attractive manner.
b. We consider an auction as a means to an end and not an end in itself. The end goal being to achieve a sale at the best possible price, that a genuine buyer is prepared to pay, in the current market. An auction serves a number of important purposes as below.
c. It creates urgency in a Buyer’s market, when buyers are taking their time about making a decision. If they like the property, they won’t want to miss out. Or they will attend the auction and if it’s not sold, they might put in a conditional offer.
d. It has been seen time and again, that competitive bidding slowly drives the price up. Since it is a public and transparent process, it encourages people to pay more than what they would do if they were negotiating one on one through the agent.
e. An auction is a good option for investment properties which often cost the Vendors loss of income, if they are vacant.
f. A successful auction bid means that you have an unconditional offer on auction day or the next day, at the latest. That means its SOLD! No more dramas of a contract falling because either the buyer didn’t get finance approval, or their lawyer found something negative in the LIM or building inspection report, or they simply changed their mind after three weeks.
g. An unsuccessful auction does not mean failure. It tells you in real terms, the truth about where the market is at that moment, relative to your expectations. The marketing continues and conditional buyers will come into the process of making offers and maybe someone will pay a better price. If after a few weeks you still don’t get an offer that meets your expectations, then you can take a call on whether to withdraw the property from the market or carry on for some more time.
h. So an auction is not a make or break event in itself. It is one important part of the process of a good marketing campaign.