orange the real estate newsletter Published by The Johnson Real Estate Group 45

HOW TO ACHIEVE A QUICK SALE Selling for more in less time

(  1800 SELL SAFE www.johnsonre.com.au  

IN THIS ISSUE:

Achieving a Quick Sale

Money, Money, Money!

Suburb Snapshot: Brassall

The Arithmetic of Inspections

Recent Sales

When selling a property, most people have two conflicting emotions. They desire a quick sale, but if that is achieved, they fear that the property may have been undersold. Given that you will only sell your property once, it is imperative to get the highest possible price in the market. Is time on market the key to getting the highest possible sale price though? The answer somewhat lies in the market conditions at the time you are selling. Time is unemotional and inflexible. In a rising market, time is your friend. Time will help carry the price toward your price goal. In a falling market, time is your enemy. Time will erode your price. In a falling market, the longer you leave your property on the market unsold, the more time you give it to drop in value. Even in a rising market, a property that sits on the market not selling can become a lemon in the eyes of the buyers. In such instances, it takes a massive reduction in price to stimulate buyer activity. Time and Price Many industry experts claim the key to achieving a successful sale lies in getting the three essential components of your campaign correct. Those components being: 1) Presentation 2) Marketing and 3) Price. Getting your price strategy correct will do more to achieve a quick sale than marketing and presentation in today's market. When it comes time to sell, most people have three agents provide opinions on the possible selling price of the property. The seller will also have an

Continued on Page 2

expectation of the price. What can get overlooked during the process of pricing, is what the buyers think the property is worth. At the end of the day, the buyers will only pay what they can afford and what they feel a property is worth. To sell a property quickly, the seller's expectation of price needs to overlap with at least one buyer's expectation of price.

This property in Springfield Lakes sold in less than 7 days for full asking price

       Dear Readers,

                                 

Suburb Snapshot: Brassall Source: RP Data 2000 2006 2014(YTD)

Average House Price $125,838 $253,168 $326,624

Average Unit/Strata Price Not Available $215,847 $231,263

Total Number of Sales 37 172 117

Highest House Price $230,000 $480,000 $639,000

Highest Unit/Strata Price Not Available $249,000 $339,000

   Disclaimer Notice: Neither Andrew Trim, The Johnson Real Estate Group, nor the publishers and editors of articles in this issue, accept any form of liability, be it contractual, tortious or otherwise, for the contents of this newsletter or for any consequences arising from its use or any reliance placed upon it. All the information contained in this publication has been provided to us by various parties. We do not accept any responsibility to any person for its accuracy and do no more than pass it on. All interested parties should make and rely upon their own en- quires in order to determine whether or not this information is in fact accurate. Any matter in the nature of advice contained herein is general and should not be relied upon for specific purposes and individuals should seek, and rely on, their own advice from professional advisors at all times. Unless stated as such any opinion is not the opinion of Andrew Trim, The Johnson Real Estate Group, nor the publishers or editors.

 

Johnson Real Estate Redland City | Wynnum Manly | Forest Lake | Ipswich

! 1800 SELL SAFE w www.johnsonrealestate.com.au e sales@johnsonrealestate.com.au e rentals@johnsonrealestate.com.au

South  East  Queensland   has   started   to   see   some  increase   in   sales   number   and   even   some   slight  price   growth   during   2014.   Price   increases   have  been   stronger   in   the   more   central   suburbs.   For  The   Johnson   Real   Estate   Group,   that   is   Forest  Lake   and   Wynnum   Manly.   The   outer   areas,  Redlands   in   the   East   and   Ipswich   in   the   West  have   also   seen   some   steady   growth   in   sales  number’s,  prices  have  yet  to  move  significantly.    

We   expect   the   sales   numbers   will   continue   to  increase   during   2015.   Strong   price   growth   also  being   forecast   by   a   number   of   independent  economic  forecasters,  such  as  Louis  Christopher,  who   is   forecasting   5%   to   8%   property   price  growth  for  Brisbane  during  2015.    

This   growth   forecast   has   seen   many   investors  moving   back   into   the   residential   market   this  year.   Due   to   this   increased   interest   in   property  investment   we   have   asked   Terry   Ryder,   the  brains  behind  the  incredibly  successful  forecaster  Hotspotting,   to   prepare   a   report   on   how   to  identify  the  next  Property  Hotspot.      

We   have   a   special   offer   for   anyone   considering  investing  in  property  during  2015.  Contact  us  and  we  will  forward  you  this  exceptional  report  at  no  cost  or  obligation.    

Wishing   you   all   a   Merry   Christmas   and   a  Prosperous  New  Year.    

All  the  best,  Andrew  and  the  team.    

EDITOR’S LETTER

Continued from Page 1.

If there is a gap on price, the seller needs to adjust their price expectations or find a new buyer. The maximum interest in a property will usually come in the first 21 days of marketing. The property is fresh to the market and grabs the attention of all potential buyers in the marketplace. The activity level on the home is unlikely to be higher than in the first 21 days of marketing. If a sale is not achieved in the first 21 to 28 days, the seller will have to consider re-pricing or waiting for new buyers to enter the market. Waiting for new buyers to enter the market can really blow your time on market out. For the success of the sale, in the first 21 days, the agent and property seller must establish what the buyers are prepared to pay for the property.

Attracting Multiple Buyers Most sellers desire the situation where multiple buyers all bid strongly forcing the price up. Charles Milburn of Harris Partners recently sold a townhouse in Glebe over the

asking price. According to Charles, "the owner was keen to establish the correct market price and sell. In keeping the focus on what price would attract a buyer, we actually attracted 24 inspections and 3 offers in 26 days of marketing. In instances like this, there is a power shift. The focus becomes what a buyer is prepared to pay up to, rather than what price the seller will drop too. By quoting an attractive price, the seller attracted multiple buyers."

The highest possible price is assured if you have multiple buyers trying to buy your property.

Bargain Hunters It is okay if bargain hunters don't like your price. It is not good if the fair minded buyers in the marketplace reject your property on price though. One of the worst ways in marketing a property is intentionally loading the asking price with intent of coming down in price over time. The best buyers will reject the home based on the initial high price and are unlikely to return later when the price has been reduced.

Some  say  money  makes  the  world  go  around.   Others   say   money   is   a  necessary  evil.  Whatever  your  views,  the   fact   remains   that   any   great  income   can   (and   will)   make   a   huge  difference  to  your  quality  of  life.    In   fact,   your   feelings   of   satisfaction  and   life   mastery   increase   in   direct  proportion   to   the   range   and   quality  of  choices  available  to  you  as  a  result  of   financial   independence.   Maybe  money   really   does   make   the   world  go  round.    So   how   can   you   achieve   financial  independence?  What  does  it   take  to  be   a   millionaire?   How   have   the  current   millionaires   in   the   world  made  their  money?    You  may   be   surprised   to   know   that    

professional   real   estate   sales   is   one  of  the  very  few  professions  were  you  can   achieve   your   financial   goals  (including   being  a  millionaire,   if   that  is  what  you  want),  without  the  huge  cost   of   establishing   a   business,  buying  inventory,  hiring  staff,  renting  premises  etc.    Real  estate  is  a  level  playing  field  for  anyone  willing  to  work  hard,  trusting  relationships  and  genuinely  serve  the  needs   of   the   community   by   helping  people  and  families  find  their  first  or  second   home   -­‐   or   investment  property.    If   you   know   the   value   of   hard  work  and   value   the   lifestyle   that   financial  independence   brings,   maybe   a  career   in   professional   real   estate  sales  is  for  you.  

             Key  benefits  of  real  estate  career:  -­‐  Guaranteed  income  for  qualified  applicants  -­‐  Unlimited  earning  potential  -­‐  Flexible  hours  -­‐  Exciting  industry  -­‐  Professional  training  and  support  -­‐  Generous  incentives,  rewards  and  recognition.    If  you'd  like  to  learn  more  about  the  benefits   of   a   career   in   professional  real   estate   sales,   please   visit   our  website   www.johnsonre.com.au   or  phone  Helen  any  time  on  3245  1377.  

Money, Money, Money!

“When I was young I thought that money was the most important thing in life; now that I am old I know that it is.”

Oscar Wilde

                 

                               

       

 8 McDermott St, Augustine Hghts | $600,000 10 MacGregor Street, Woodend | $380,550

57 Serrata Crescent, Forest Lake | $312,000 44 Russell Street, Silkstone | $225,000

7 Robusta Place, Forest Lake | $310,000 257 Whitehill Road, Raceview | $200,000

7 Wyambi Place, Middle Park | $489,000 50/67 Cascade Street, Raceview | $235,000

216 Blackwater Road, Greenbank | $492,000 12 Holly Court, Raceview | $295,000

7 Leonie Place, Doolandella | $370,000 24 Hamilton Street, Booval | $295,000

7 Siesta Street, Camira | $345,000 6 Wilson Street, Newtown | $495,000

 

Recent Sales

THE ARITHMETIC OF INSPECTIONS You   only   have   to   do   some   simple  sums   to  discover   the   inefficiency  of  most   agents   with   the   so-­‐called  ‘search   for   buyers’.   You   can   apply  these  sums  to  any  area.    

As   an   example,   take   an   average  suburb   in  a  major  city.  The  number  of  sales  per  year  rarely  exceeds  500.  This   is   approximately   42   sales   a  month.   If   the  average  buyer  spends  three   months   looking   for   a   home,  there   will   be   approximately   126  buyers   actively   looking   in   the   area  all  the  time.  This  means,  when  your  home  first  comes  for  sale,  there  are  a  maximum  of  126  fresh  prospects.  

But  these  buyers  have  to  be  shared  among   all   types   of   properties   for  sale.   Just   as   there   are   different  properties,   there   are   buyers   with  different   requirements.   This  narrows  the  prospect  base  for  each  home.    

Within  a  month,  42  buyers  will  have  bought,   but   there   will   still   be   126      

 

 

 

 

 

   

 

buyers   looking   to   buy   because   42  new  buyers  will  enter  the  market.  It  really  is  like  a  bank  of  buyers.  Those  who  buy  are  ‘withdrawals’  from  the  bank.   They   come   off   the   market.  And   those   who   start   looking   are  ‘deposits’.   They   come   onto   the  market.    

The  greatest  number  of  new  buyers  for   your   home   will   be   when   your      

 

 

 

 

   

 

home  is  new  to  the  market.  You  will  never   have   a   better   chance   to   get  the   best   market   price   than   when  your   home   first   comes   up   for   sale  because   the   number   of   buyers   for  your   home   will   diminish,   not  increase,   as   time   goes   on.   If   your  home   does   not   sell   to   any   of   the  large   number   of   existing   buyers   in  the  bank,  you  have  to  wait   for  new  buyers  to  enter  the  market.