No-newspaper ads campaign praised PhilipWebb’s new focus on digital advertising has been applauded by respected real estate industry commentator and researcher Terry Ryder.
“If you’re selling your home and your agent tells you that you need to budget thousands for newspaper advertising, you have appointed the wrong agent,” said Mr Ryder.
“Sack them and find an alternative who has buyers looking for property in your area and therefore doesn’t need to waste your money on advertising. “Why blow a big chunk of your capital gain on a wasteful agent?”
Mr Ryder, the founder of property research company hotspotting.com.au, said he had argued for more than 10 years that newspaper advertising was a waste of money. “One of the unsung scandals of real estate is the many different ways agents abuse their clients’ advertising money,” Mr Ryder said. “Agents use their clients’ marketing budget to promote themselves. Often the largest words in a real estate ad describe the agency name.”
From January 1, PhilipWebb stopped newspaper advertising of clients’ properties for sale unless directed by owners because almost 90 per cent of buyers now use websites to do refined property searches.
The company has launched a YouTube video explaining that “Jurassic” newspaper advertising is from the dinosaur era that is now outdated by
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Doncaster 03 9842 1477 989 Doncaster Road Doncaster East VIC 3109
the digital age of internet advertising.
PhilipWebb says newspaper advertising campaigns cost property sellers between $5000 and $12,000 that is wasted on 0.5 per cent of a property’s target audience when a digital campaign will be far more successful for a fraction of the price - $2800 including GST.
PhilipWebb’s “Webb Revolution” approach includes advertising on five websites and using video presentations, mobile phone apps, touchscreen displays, online magazines and brochures.
“One of the unsung
scandals of real estate is the many different ways agents abuse their clients’ advertising money. Commentator Terry Ryder
Mr Ryder said home sellers appoint real estate agents to sell their property and pay them with handsome commissions if they are successful. “It’s scandalous for agents to ask their clients to also spend thousands on advertising,” Mr Ryder said.
“Online marketing is far more effective and less costly. It’s so much more user-friendly than the great mass of newspaper advertisements grouped under agency banners and designed primarily to promote the agency – at their client’s expense.”
Our move away from advertising properties for sale in newsprint has sparked vigorous debate in our industry.
But many of those objecting to us saving our clients’ money by favouring digital advertising are those with vested interests, mainly newspapers and competitors. For two years we have been trialling the impact of not advertising properties for sale in newspapers and found no effect on our selling ratios. We believe in advertising that will achieve maximum effect for minimum cost, and newspapers, we believe, no longer provide this cost benefit. We will happily use newsprint if our clients wish, but we believe vendors get the best value for money by advertising their properties using a suite of online products. Our results speak for themselves. Last month we sold 55 properties and so far in 2013 we have an auction clearance rate of 89 per cent even though we haven’t advertised any properties in the local paper. Best regards,
Philip Webb, Director
Ringwood 03 8870 2888 Mitcham 03 9874 3355 facebook.com/philipwebbre philipwebbrealestateblog.com.au 139 Maroondah Highway 483 Whitehorse Road Ringwood VIC 3134 Mitcham VIC 3132
Easter eggs all round
More than 200 children from throughout the eastern suburbs have participated in an Easter colouring competition.
Million dollar homes grow in outer suburbs Proximity to Melbourne’s CBD is not the major factor to determine the value of all properties in Victoria, according to the Real Estate Institute of Victoria. The REIV’s latest list of million-dollar suburbs shows that Warrandyte South – the 15th most expensive suburb in Victoria – Main Ridge on the Mornington Peninsula and Kangaroo Ground near Research are among the most affluent suburbs in Melbourne. “Each is on the edge of the metropolitan area, meaning that proximity to the CBD is not a factor underpinning their high prices,” says a summary by the REIV. “As suburbs on the edge of the city, they share quiet bush settings and low density. The dwellings are larger, with four to five-bedroom houses being the average, clearly to take advantage of the
other common factor – larger blocks. These two factors will contribute to the higher values.” Warrandyte South’s median house price is $1,325,000, only marginally behind Camberwell’s $1,345,000 and Hawthorn at $1,350,000. Melbourne’s most expensive suburb is East Melbourne, with a median house price of $2,540,000, followed by Toorak’s $2,212,500 and Canterbury at $1,800,000. Other suburbs in the list of 39 with median house prices at more than $1 million include Red Hill South (fifth most expensive at $1,687,500), Kew $1,380,000, Balwyn $1,251,000, Hawthorn East $1,215,000, Glen Iris $1,188,500, Surrey Hills $1,095,000 and Malvern East $1,076,250.
“You only get back what you put into it,” is how one of PhilipWebb’s successful landlords describes his investment strategy.
on a Monday and eight potential tenants inspected the property on Thursday and another 13 groups visited on Saturday. The tenancy application was approved the following Monday and the property was let two days later. Ms White said the success was based on presenting the property clean and tidy at a fair market price of $450 a week. “The owner was not greedy on price – he took our recommendation. We had a great response and it was a great result all round.” The owner, who lives in Doncaster with
The competition has been organised for the past eight years by PhilipWebb senior sales consultant Robert Groeneveld, based in Doncaster. Every child who submits an entry receives a certificate and an Easter egg. This year’s winner was four-year-old Mia Wright, of Doncaster East, who won a $200 gift voucher for her entry.
Easter colour: Robert Groeneveld with some of this year’s entries.
Simple method for success “If your property has better presentation, you get a better result.” It’s a straight-forward approach that has solid and predictable outcomes. Property manager Melissa White said the owner’s simple philosophy helped achieve a great result in quick time when his latest investment at 82 Rose Ave, Templestowe Lower, hit the market. The three-bedroom house was advertised
Presentation: Neat properties such as 82 Rose Ave, Templestowe Lower, win hearts with tenants.
his wife and three children, has two other investment properties managed by PhilipWebb which he has bought in the past three years.
PhilipWebb: Victoria’s largest non-franchise real estate company.
Our auctions ahead of the pack PhilipWebb’s sales team is among the most successful in Victoria, with its auction clearance rate at 89 per cent this financial year – 26 per cent ahead of the statewide average. Recent highlights include a Doncaster house with city views that sold for $100,000 above its reserve price for $910,000. Senior sales consultant Craig Nowotsch said there were 67 bids by four bidders for the five-bedroom house at 5 Brendan Ave. Sales consultant Stuart Freeman said a three-bedroom house at 36 Killara St, Box Hill North, sold before auction for $638,000, when the vendors would have been happy with anything above $580,000. Senior sales consultant Eric Napoleone said a four-bedroom unit at 1/25 Westwood Drive, Bulleen, which had a market value of $650,000 and sold for
$693,000 under competition from four bidders. Several of PhilipWebb’s recent successes have attracted more than 100 buyers to the properties through robust internet sales campaigns. The Real Estate Institute of Victoria’s auction clearance rate so far this financial year is 63 per cent. In the first three months of 2013, the statewide figure has risen to 67 per cent, which is 7 per cent higher than the same period last year. Improving clearance rates, rising property prices and low interest rates showed the Melbourne market had “turned the corner”, said REIV chief Enzo Raimondo. “REIV research suggests that the market is in a mild recovery which should provide buyers with confidence that they won’t be priced out of the suburb they have budgeted for this autumn,” Mr Raimondo said.
Melbourne prices have risen 2.5 per cent this year. RP Data says that rents, investor yields and sales volumes are also increasing. “Pretty much every market indicator is pointing to a further recovery in the housing market. Clearance rates are higher and homes are selling faster,” said RP Data’s research director Tim Lawless.
Competition brings rewards
Mr Dermott said. “Travis did a great job with his advice and his negotiation.”
When several buyers want a property, one thing is certain to happen – the price goes up.
For Patrick and Sue McDermott, of Ringwood North, that meant a fabulous sales result, well beyond the price they expected to achieve. And they got it all before auction. Mr McDermott said that when senior PhilipWebb sales consultant Travis Milton advertised their three-bedroom family home at 66 Melview Drive at more than $475,000, he did not expect more than 20 groups of buyers at each inspection.
He said it was a weight off their mind when Travis, assisted by sales consultant Ruby Watson, sold the property within three weeks, a week before it was due to be auctioned. Big result: Groups of more than 20 buyers attended each inspection of 66 Melview Drive, Ringwood North.
And he was “absolutely rapt” in the sale price of $553,000 after numerous buyers made offers to buy their property. “We achieved all we wanted and more,”
Neighbours star our voice “Neighbours” star Stefan Dennis has become the voice of PhilipWebb. The actor has been recording radio advertisements for the company that have been aired on Smooth FM this year. Mr Dennis, 54, who plays Paul Robinson in the world’s second-longest running prime time soap show, is also a PhilipWebb client.
“We had a solid marketing plan through Premiere Properties (on the internet), the property was well quoted and it was in a well-sought after area of Ringwood,” Travis said. “I grew up a street away so I know the area very well.”
Mr Dennis bought a property through PhilipWebb in 2009. He was one of the original actors on “Neighbours” with Kylie Minogue in 1985 and after a few years away he returned to the popular show in 2004. The TV soap is now seen in 57 countries and has more viewers in the UK than the population of Australia.
PhilipWebb: A trusted name in real estate for 41 years.
Buyers search wide on web By Anthony Webb, Sales Manager
Positive signs of strength are building momentum as the property market enters the busy autumn selling period. Low interest rates, improving auction clearance rates and increasing numbers of properties coming on to the market highlight the mood of confidence which has been building this year. In the past month we sold 55 properties and listed 84 for sale, and it is interesting to note that more than 50 per cent of the buyers came from areas outside the distribution area of local newspapers for those properties. This sits comfortably with our
44-46 Richardson Rd, Croydon Nth
17 Matisse Drive, Templestowe
Custom-designed family home set amongst bushland surrounds.
Tri-level executive family home occupies sought after locale
Travis Milton 0414 404 942
company’s emphasis on internet marketing, videos, smart phone apps and social media as selling tools which we believe are better alternatives to newspaper advertising. The other good news is that the Real
Auction Above $950,000
Joseph Corsi 0418 149 290
Estate Institute of Victoria reports that Melbourne property prices have increased every month for the past six months and that the number of properties for sale increased by 9 per cent in March compared with the same month last year.
Flexibility key to success
By Sophie Lyon, General ManageR, Property Management DIVISION
The past month generated new leases for more than 170 properties, which is a strong result after a slow start to the month. This takes the total to more than 500 properties let in the first three months of the year. The PhilipWebb leasing team is actively working with prospective tenants to help them to find a suitable property. Our ability to show people through properties at a time convenient to them, rather than corralling them into an open for inspection timetable, means we get great feedback and shorter vacancy times in many cases. Vacancy rates have reduced slightly to
Spotlight on prices
≥≤¥µ ≥≤¥µ ≥≤¥µ
15 Seven Oaks Avenue, Croydon
Stylish apartment with premium fixtures in the heart of Doncaster.
Light-filled and low maintenance home, close to all facilities.
Avail: Sat 4 May - $470 per week
Call 9874 3355
$385,750* $431,000 $361,000* $380,000*
2.8 per cent across Melbourne, according to the Real Estate Institute of Victoria. Our investors’ club is gaining momentum, with strong interest from clients. We will be arranging our first breakfast seminar soon, with self-managed superannuation
*Indicates less than 25 sales per quarter. Source: REIV quarterly median prices
$623,333 $450,000 $462,500* $380,000*
Avail: now - From $395 per week.
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Doncaster 03 9842 1477 989 Doncaster Road Doncaster East VIC 3109
Ringwood 03 8870 2888 Mitcham 03 9874 3355 139 Maroondah Highway 483 Whitehorse Road Ringwood VIC 3134 Mitcham VIC 3132
funds and property investment as the main topic. If you are interested in attending, please contact me on 9955 2604. This service helps clients to match their investment goals with suitable properties and to leverage our industry connections.
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Published on Apr 22, 2013