Selling a property in Australia commonly use the agent as a liaison between the buyer and the seller. It can make things easier, and you don’t need to do the advertising or price negotiations until settlement.
Here a little background about the profession of a real estate agent (REA) in Australia.
The primary task of REA is as an organizer and negotiator to representing the interests of the seller.
Organizer in the sense of REA has to handle some tasks such as setting up a photo shoot for the needs of marketing, installing advertising board (billboard), scheduling open house dates, and inspecting builders for small renovation/touch up (if needed).
The success of the REA could be achieved after successfully closing the sale with a high price.
Use the services of REA is not cheap. The agent commission ranged from 1.35% to 2% (plus 10% tax) of the selling price of the house.
It also does not include the cost of marketing which can reach AUD$3,000 – depending on what marketing strategy is selected.
This article is based on personal experience seeing how the real estate agent selling property in Sydney.
Broadly speaking there is two methods of selling a property in Australia: auction (public auction) and private treaty (approaching the potential buyer directly to negotiate). Only the second method discussed here.
The sales strategy of each agent is undoubtedly different. The state of the market (the level of supply & demand), the sentiment of buyers, the condition of the property, the macroeconomy at a time when sales dictate marketing strategy.
When this article is derived, the growth in property prices in Sydney are slightly being corrected, the level of sales through auction (auction clearance rate) falls below 60%, the four big banks raise MORTGAGE rates.
Some analysts estimate the price of property in Sydney is approaching bubble risk zone so that more buyers prefer to wait and see, hope the prices will fall next year. It is 180 degrees different than five months ago.
For readers in Australia, I hope you as buyers become more aware of the psychology tricks that REA made to achieve a high price.
For those who still like to sell a home without an agent, there is no harm to learn the technique of closing a deal from the professional property seller.
Real estate agent tricks to sell property in Sydney:
1. Clean and Neat as Showroom
Regardless of how old the property and the number of occupants in the house, the most minimum requirement is to make sure the condition of the property is clean and tidy as a showroom.
All furniture that has flat surfaces should look clean, no piles of stuff in the corner of the house. If needed, put all items into the drawer and warehouses during an open house inspection.
Prospective buyers are indeed buying a property without the household, but they might think it will be difficult to live there comfortably with the mess.
Even some agents recommend sellers to rent the entire furniture and interior designer for staging (show the home like a showroom for real; choice for sale of luxury homes).
2. Pricing Strategy and the Open House as a Bait
Once the property is ready to be marketed, the next stage is to determine the price (pricing) and time to open it for the public, the usual duration is thirty minutes (open house inspection).
The seller naturally wants to sell as high as possible. But put a price on the ad looks more like art than science. Set a rate too high can make the prospective buyer escaped, on the contrary, if too low only attract buyers that are not able to pay an appropriate price or that the seller wants.
It is when the ability of the agent tested. You know it was Impossible to sell a property without negotiating. A reliable agent can see the price point low enough to attract qualified buyers without compromising the minimum price that the seller is ready to accept, but not too low to relatively price baiting; also, not too high to undo the intentions of the prospective buyer seriously.
The more people come to the open inspection the higher possibility of finding buyers who are willing to pay the right price.
3. Negotiating Prices Through Competition
With many people comes to the open house, it is expected that the competition among buyers becomes larger.
Unfortunately, it is not always the case. From personal observations at that time, from the 14 group that came it turns out to 1 offer, it was low below the bank valuation.
So, how agents push the price higher?
This is where the agent creates the perception of competition. Concerning the number of people who came to the open house, the agent pushed the buyer to raise the offer in order not to missed (when in fact, he was the only one interested in buying).
Unlike the method of the auction which the magnitude of the bids and the number of people bidding openly in public, by private treaty potential buyers do not know the number and the offer of his rival so that the agent is freely waging his marketing tricks.
4. Take into account the non-monetary needs of buyer and seller
The scope an amateur negotiation is only about the price and profits of products or services, while more professional take negotiation as a problem-solving process for both sides.
Through chat, the agent knows if the buyer is desperate for a new place.
While the seller misgivings about the condition of the property market and secretly still hope the selling price is not far from five months ago when the market was still hot.
In the state of New South Wales, settlement occurs 42 days after signature of the contract (exchange of agreement) and the “cooling off” period passed.