With the changed market conditions to a strong buyer’s market it was interesting to read Michael Matusik’s June newsletter.
In his newsletter he says:-
“House sales across South East Queensland are down about 50% on last year. There were just 28,000 sales during 2010/11, compared to 41,000 the year before. This magnitude of decline was widespread, with no area being spared the pain. In contrast, the amount of property listed for sale across the region has increased, and by as much as 30%, on this time last year.”
Michael went on to provide the reasons he believed a property doesn’t sell in today’s market. Reviewing these points and your businesses strategies to deal with these issues individually may give you the edge necessary to improve sales. It may even be worth printing out and using in your listing presentation or vendor meeting with a seller.
There are several reasons why a house doesn’t sell. These include:
- It is overpriced.
- We are in a buyer’s market and vendors need to meet the market -and fast -or their house will not sell. Asking prices are, on average, for motivated sellers (note, not distressed ones) being discounted about 10% at present.
- It doesn’t show well. Often houses need a make-over before they are really ready to sell. Be prepared, in this market, to spend some bucks before you sell.
- It is in a unpopular location. Recently flooded areas typify this point. A price reduction will more often than not fix this problem.
- Having a poor real estate agent. The less said about this the better, except to say that they do exist. The good news is that hard markets, like now, help separate the wheat from the chaff. And ineffective marketing. You must have every promotional avenue open in a buyer’s market, including a well thought through digital campaign.
- Market conditions. And this is the biggest reason why houses aren’t selling at present. Local demand is weak, constrained by a lack of confidence. There is also a mismatch between what is for sale and what the market, at present, perceives it can afford.
Unless you are really committed to sell, it might be best to take your property off the market for the time being. Buyers at present have too much choice, and as a result, aren’t choosing anything.
What are your strategies for dealing with overpriced listings? Do you have regular vendor meetings? Do you communicate often enough with your vendors? Do you provide them with proof of other sales which give them reason to question their asking price? Are there other strategies you can use such as Auction or offers over?
How does the properties you are selling present in the market? Is the street appeal attractive and inviting to a buyer? Is the property presented like a show home for open houses?
Ask yourself – are you really doing everything you can do? I know the market is tough but are you portraying a positive environment to attract buyers and sellers?
In today’s market VPA is essential. Placing an ad on a couple of internet sites and waiting for the phone to ring is not a strategy that will work in the current market, your marketing plan needs to exhaust every opportunity to attract the right buyer and build your genuine buyer database.
Contact Real Estate Agency Sales today to discuss selling your agency or rent roll on 3266 4242 or email email@example.com
Article written by Kevin Hockey July 2011