WHAT IS THE SMARTRE SALE?
Planning Your Smartre Sale
Agent Selection Method of Sale Price Marketing
Great care should be taken when deciding which agent to trust. Crucial selling decisions are made with your agent. Tenant manage- ment also requires consideration.
A choice that dictates your chance of obtaining the best price, without financial harm or damage to the digital footprint.
What is market price? The price willing buyers are prepared to pay for your property today.
Thousands of dollars in equity vanish every day through unnecessary & expensive advertising and poor pricing tactics. What is appropriate for you?
Inspections
A good inspection is so much more than simply opening your house for strangers. The right strategy minimises any impact to your tenants.
Negotiation Costs Guarantee
To achieve the highest price possible for your property, an integrated negotiation strategy is essential.
Hiring a bad agent costs a lot more than just their selling fee. The right agent adds tens of thousands to your bottom line.
If an agent is not prepared to guarantee their service, why offer it?
Agent Selection
The average gain from having the right agent working for you is:
$20,000
Make no mistake, the ability of the agent you select will have a huge influence over the final price you receive. This includes their ability to effectively manage your tenant throughout the sale.
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Working with your Tenant
Establishing the right working relationship with tenants aids greatly in achieving a sucesful sale.Whilst legislation can impact an agent’s ability to effectively market & show tenanted properties; developing a working relationship with tenants can minimise and at times,remove these impediments completely. It is important to acknowledge that whilst it is your property, it is infact their home.
Salaried Professionals vs Commission Based
Commission based agents need sales to survive and accordingly, make poor decisions. The professional agent has a responsibility to sell your property for the highest price within the allotted time frame with as little financial risk to you as possible. A significant salary supplemented with commission provides the professional both financial security and incentive.
A Genuine Sales Team
An agent on commission-based pay has no desire to share that commission. They are interested in making a sale at any price rather than using buyers introduced by others. The benefits of employing a genuine team are many. Your property never has a day off and a good team competes with one another for the best price rather than the first price. Quality stable teams are a hallmark of a good real estate company.
Ongoing Training and Learning
The most common and dangerous way to hire an agent is gut instinct, sale price estimate and fee charged – many agents promise much and deliver little. Yes, an agent should be considered on likeability, but also on their marketing and negotiation skills. Skills that are easy to demonstrate but hard learnt through training, study and mentoring.
The Importance of a Dismissal Guarantee
While still obtaining the associated benefits of employing an agent on an exclusive agreement, a dismissal guarantee is effective in avoiding the danger of being stuck with the wrong agent. The right agent will always back their ability to get a great result with a genuine dismissal guarantee. If they won’t, they are the wrong agent.
Agent Selection
Method of Sale
The 2 Types of Sale
When it comes to selling houses, there are two main pricing principles: Market the property with a price. That is, publish a specific figure that is recognised by all parties as one the owner will accept , a ‘stated asking price’.
Or, market the property without disclosing a price the owner will accept. This includes flawed pricing strategies such as ‘price ranges’ or ‘offers above’ and of course public auction.
FLAWED PRICING STRATEGIES
Public Auction
Offers Above
Public Tender
Expressions of Interest
Set Sale Date
Priced by Negotiation
Agents use ‘No Price’ strategies to create a sense of competition at a lower price than is acceptable to the owner. Whilst appearing to drive the price up, this false competition is actually used by the agent to negotiate the seller down.
MAJOR POINT
The lowest price mentioned in a marketing campaign becomes the property’s DE FACTO LIST PRICE.
Any future negotiations under these methods are predicated on the assumption of the competition.
Yet what happens when there is only one buyer?
The Smartre Sale is the best method when there are multiple buyers, and the only effective method of sale when there is just one.
The aim of any sale for the seller and their agent is to maximise the final sale price within the agreed time frame.
For the property seller and buyer, simplicity leads to good outcomes.
A genuine asking price close to or at market value helps the seller maintain the negotiation power once a buyer is found.
Negotiations should always begin from a position of strength.
This is the essence of:
THE SMARTRE SALE
The Selling Puzzle
What is Market Value?
Simply put, it is the price where there are multiple buyers for that particular property today.
Is it possible to beat the market? Yes.
The Importance of Pricing
Having three out of the four pieces of the puzzle in place can lead to a good result. With the right agent, quality marketing and the right price, even a property that has been trashed will sell.
However try this; swap the trashed house for an immaculate one but get the price wrong, you still have three out of four, but no sale. People won’t buy overpriced things.
The Dangers of Overpricing
The Internet creates a digital footprint, a record of a property’s advertising and pricing history for all to see.
A digital footprint intensifies the danger posed by an extended marketing period. If a property is launched onto the main real estate portals at an inflated price and doesn’t sell, significant long-term damage occurs to the property’s recorded history and thus the eventual selling price.
Influencing Property Presentation
Many strategies exist for selers and their agent to help influence the presentation of the property.
Compensation such as a reduced rent is a gesture of goodwill that is more often than not repaidwith a supportive tenant. Property presentation can also aid in the speed of a sale reducing the overal impact on the tenant’s lives.
BE CAREFUL
Many homesellers often fall into one of the following five pitfalls when looking to price their home.
Automated Algorithms
Similar Properties For Sale
The Endowment Effect
Advice from well meaning family and friends
The Two Lies
Thorough discussion around current & accurate information should be employed when pricing your property for sale.
ACCURATELY PRICING YOUR PROPERTY FOR TODAY’S MARKET
A professional agent can give you an accurate estimate of a selling price in the current market.
It is essential that this estimation is evidence based.
What a professional agent will then provide - which is hard to find elsewhere - is an interpretation of this evidence, such as:
- How does this information relate to the current marketplace?
- Is it a buyer’s or a seller’s market?
- What are the strengths of your property?
- What will the current buyers be looking for and comparing to?
All these questions need answering when looking to discover a market price.
Once a market estimation is provided, you as the seller have the final say with regard to establishing your property’s Asking Price.
Remember: We control the price, we do not control
the value.
QUALITY MARKETING
Ad Presentation (i.e Photos & Script) and Property Price.
M.A.A.P. DATA
What makes Keyline Realty genuinely different?
COSTS: WHO TAKES THE RISK?
The Seller or the Agent?
KNOWLEDGE IS POWER
The Risk of Promoting your ‘Why’.
During the Preparation Stage, the property is organised, photos taken and floorplans created. Professional signage (your 24-hour salesperson) is erected. This is the ideal time to finish off small jobs and any outstanding maintenance.
1
Going Public with quality marketing will create reactive enquiries. It’s here we commence using major portals including realestate.com. au, domain.com.au, homely.com.au and others. Smart Open Homes will also be held to attract buyers that may not otherwise enquire. The entire team work together to sell the property, 7 days a week.
3 Prepare Preview Public
2
The Preview Stage allows us to locate any potential Heart Buyers for your property. Both the ‘Impulse Buyer’ and ‘Long-Time Searcher’ are targeted. M.A.A.P. Data is used to help in matching the property to any heart buyers already identified within the agency database. All without risking your property’s digital footprint.
Inspections
Accompanied by the agent, genuine buyers should be able to view a property at a suitable time. Giving buyers the time to look around and get a true feel for your property is key to a successful sale.
Inspections
INSPECTION STRATEGY - MAJOR POINT
The centrepiece of any inspection strategy should be One-on-One Inspections. This style of inspection affords agents the opportunity to assess a buyer’s situation, their needs and budget; providing the agent with information that significantly aids in bringing success to any future negotiation.
Teamwork
Commencing with our Team Inspection, all agents view the property to ensure they can notify any suitable buyers. Teamwork continues throughout the campaign ensuring the property is available for inspection 7 days a week.
Qualifying
Buyers whom enquire on the property are qualified to ensure the property suits their requirements. Questions relating to finance, time frames and location are also asked.
One-on-One Inspections
A property should be available for inspection at a time that suits the buyer to ensure the best buyers are not missed.
Smart Open Homes
Smart Opens are conducted at key milestones throughout the campaign and are used to attract buyers that would otherwise be unlikely to enquire on the property.
Effective Follow-Up
All buyers are followed up via a phone call to extract Quality Feedback. This feedback allows your agent to determine which of the Three Responses your property is receiving from the market.
TO ACHIEVE THE HIGHEST PRICE POSSIBLE FOR YOUR PROPERTY:
A N INTEGRATED
NEGOTIATION STRATEGY IS ESSENTIAL
Buyers must be assured of a fair process, without compromising the agent’s ability to obtain the buyer’s best price.
It is also essential that your agent be wiling and able to negotiate with your tenants when necesary.
THE QUADRANT STRATEGY
Detachment
Emotional and financial attachment leads to fear of loss. Decisions are then made emotionally rather than objectively. The best decisions occur when you are detached and look at the process objectively.
Knowledge
The best price cannot be successfully negotiated without knowledge of the buyers’ needs. Knowledge is not simply understanding their wants, but also their emotional ‘Why?’ Protecting a sellers’ motive puts them in a stronger position to achieve the best price.
Relationship
A course of action is viewed less risky and more acceptable when suggested by a liked and trusted confidant. An understanding relationship with the buyer is crucial for a successful negotiation.
Risk
When agents attach themselves to the outcome, have no relationship with and are ignorant of the needs and capacity of the buyer, the risk of underselling a property significantly increases. Conversely, an agent that is detached, has solid relationships and good knowledge of the buyer will minimise the risk for the seller throughout a negotiation.
A great strategy is always required to achieve the best result.
Costs
2 POINTS TO CONSIDER:
An agent must bring more value to your transaction than they cost.
The true test of a marketing campaign is its result. Is your house sold?
The Golden Rule of Real Estate:
Never pay any money, to any agent, for any reason, until your property has been sold, and you are happy with the outcome.
THE SMARTRE SALE GUARANTEE
1. NO SALE, NO CHARGE
The agent guarantees that in the event that the property does not sell, and is withdrawn from sale, the sellers will not be charged any monies/fees/expenses whatsoever by the agent or their agency.
2. PERIOD OF AGREEMENT
THE PERIOD OF THE AGENT’S AGREEMENT WILL BE DAYS, COMMENCING ON:
Note: Generally, the shorter the period, the safer it is for the sellers. A period between 45 and 90 days is safest for the sellers. Any longer and the sellers could find themselves tied to the agent against their wishes. If the sellers wish to extend the agreement at the expiration of the period, they can do so at their discretion.
3. BAIT
PRICING
The agent will not market or promote the property by use of a lower price than what the sellers are willing to accept. The agent understands that under-quoting the value of the property in order to attract buyers on the basis that these buyers can then be talked up in price, is contrary to the interests of the sellers because it attracts buyers who can only afford the low price, or buyers who only want to pay the low price.
4. QUALIFICATION OF BUYERS
All buyers, to the best of our ability will be qualified in terms of finance, time frame and style of property. We guarantee that prospective buyers that inspect the property will be in a position to purchase within a reasonable timeframe.
5. CANCELLATION OF THE AGREEMENT
The sellers will have the right to cancel the agent’s agreement if the sellers are not satisfied with the performance of the agentprovided that the sellers give the agent seven days to rectify any concerns. If the sellers concerns are rectified, the agreement will continue. Should the sellers decide to withdraw the property from sale, there will be no charges payable by the sellers to the agent.
6.
BUYERS FOUND BY THE OWNER
The sellers reserve the right to sell or transfer the property to a close relative or partner should the opportunity occur, or if directed by a court. In this case, the sellers will not be liable for the full commission to the agent.
7. SPECIAL REQUESTS OR CONDITIONS
If the sellers have any other conditions they wish to impose on the agent, they can notify the agent in writing within 2 business days of signing the Selling Agreement. Such conditions will then form part of this guarantee. If the agent does not agree to the sellers’ extra conditions, the sellers will have the right to immediately cancel the Selling Agreement without penalty or charge.
If an agent won’t guarantee their service, why offer it?