More Mistakes Sellers Make In A Declining Market, All-Star Selection & Sixty-Eight Times Around Australia
I’ll start with an apology this week.
Last week, I promised to send you a video of Sco-Mo and his “explanation” of the job situation in Australia but it seems the video link didn’t make it to the final edition… so here it is – we hope you have a good laugh…
@destineelee88
When the market is in such a precarious position, every mistake that you make as a seller can result in bigger losses than you’d expect…or even worse, no result at all.
We’re observing many sellers making some erratic and illogical decisions right now…and when this is going on around you, it’s possible for you to capitalise.
Today, I’ll share with you more mistakes that sellers make in a turning market…
4. Quirky decisions when renovating – it’s the time of the year where many are watching ‘The Block’ on TV… and many are taking ideas from some of the renovation styles and colour schemes that they’re seeing on the show. Whilst some of renovation ideas can be a little ‘left of centre’ and look good on television, they can be polarising for some buyers. Remember than ‘The Block’ would be as boring as a snail race if everyone employed neutral tones and textures through their properties but in reality, neutral ideas will appeal to the widest variety of buyers. And it’s worthy to note that with the cost of renovating right now, a buyer who doesn’t like your kitchen will allow for a lot more money to “fix it” than they would have had to allow a few years ago. So the message here is to make smart choices when renovating and don’t feel you have to invent new styles yourself.
5. Over-capitalising on Renovations – Taking the previous point a step further, we believe you need to very careful when renovating anything at all right now – make sure you don’t spend too much money for the property you have. I’ve lost count of the number of clients that have spent a motza on renovations and improvements…expecting that their $60,000 kitchen will increase the home’s value by $100,000 but in reality, the money spent might be way over-capitalising. For example, a property on a main road, a small property (particularly a 2-3 bedroom home) or a property encumbered with easements should be handled with caution. It should also be noted that the market will likely slide a little further over the coming months so a delay in placing your property on the market might cost you the equivalent money you’ve gained with a renovation where you’ve made good choices.
6. Wait Until The Market Improves – Here’s a mistake that we’re seeing plenty of right now. Owners are choosing to hold on to their properties and “give it another go” in a period of anywhere from 6-24 months. There is a strong train of thought that things will improve significantly in a relatively short period of time. But if many property owners hold this theory, we’re effectively creating a ‘back-log’ of property owners that are seeking to sell – this is hardly creating a supply and demand swing that will move prices forward. Real estate is pretty simple – when demand outweighs supply then prices go up but when supply outweighs demand, prices will fall. All we’re doing here is kicking the problem down the road and the market might be even worse than it is now.
7. Ignore the Detail With Your Presentation – When you come out of a market where properties are in such short supply, sellers are used to taking a few short-cuts and still achieving great prices. But with an ever-increasing number of properties on the market for sale, a few areas that might appear to save you a few dollars could cost you tens of thousands. When buyers have so much choice (which they don’t yet but give it another 6 months and they might have more choice than you’d think), it’s such small things that can make an enormous difference. Whilst that new carpet might seem like a pain in the backside to install, it’s one less thing for a buyer to do when they move in so a simple decision like this could persuade a buyer to purchase your home rather than another that’s on the market. Taking this a step further, it might even persuade several buyers to make an offer, thus creating a multiple offer situation and who knows – you might pick up $15,000 – $20,000 more whilst similar properties for sale sit on the market without any offers at all.
Next week…I’ll share the final list of mistakes that sellers make in a declining market.
Until then and as always…Happy Listing and Happy Selling.
Feature Property Of The Week
This week’s feature property is 2007 Mount Samson Road, Yugar – Located only a few short minutes from the heart of Samford Village, this gorgeous Colonial ‘homestead’ has been superbly renovated with stunning upmarket finishes (particularly the incredible gourmet kitchen and bathrooms). But that’s only a small part of what’s on offer within this amazing property – more than 4.5 acres of vastly usable land (combining rolling green pastures with a horse paddock and a huge area for heavy machinery), 2 huge dams, a plethora of sheds and carports and finally, a sensational fully self-contained Granny flat that’s perfect for a home business, elderly parents, older children or simply a way to create an additional income. What’s very special about this property is that the main residence and Granny flat are approximately 250 metres from the road so your serenity is assured. Brand new to the market, this one needs to be on your ‘Must See’ list so Be Quick!
Click Here To View Listing
Insights Article…
There’s been growing speculation about how to curtail the rapidly increasing costs of rents across Australia and if you’ve seen the press recently, the ‘Greens’ are pushing for a two year ‘freeze’ on rental amounts that tenants are currently paying. This is an interesting solution to a growing problem and one that Michael will discuss in his blog over the coming weeks. Worth a read…
Click Here To Read Article
Did You Know?
Last week, Michael grabbed a few sneaky days away and competed in Melbourne at the National Masters Indoor Cricket Championships. It was the first time he played for Queensland (after being selected last year but having the tournament cancelled due to COVID). Unfortunately, Queensland were knocked out in the semi-final with Victoria requiring a 7 from the last ball of the game and hitting it. After a disappointing end to the tournament, Michael was elated to be named in the Australian All-Stars Team at the presentation dinner…. One of 4 Queenslanders named in the 10-man squad. Well done to our fearless leader.
‘The Michael Spillane Team’ have driven a combined total of more than one million kilometres in their vehicles over the past 10 years. That’s approximately 68 times around Australia!
