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Interest rates bite!
Friday, July 25, 2008
There is no doubt that the more recent series of interest rate hikes in our Australian market have created a number of effects on the local property market. What many potential buyers are discovering are that the banks are generally more cautious to whom they will lend money. It is generally taking ( despite promises of quick answers from the banks) a lot longer to get the final answer from the banks so experienced agents are qualifying that the buyer is finance approved before submitting offers We are no doubt in stormy seas from a financial markets point of view however we know from the history or 1987 and 1991 that property recovers quickly after these times.
There are currently 5 “P”s that any potential vendor needs to strongly consider in estimating the time and effort to sell their property.
“P” No 1 Presentation If a property genuinely presents well and appeals to a wide market of buyers it will be a lot easier and a lot quicker to sell.
“P” No 2 Position Has historically been what more buyers consider in the appeal of a property. The better the position and aspect, the shorter time it takes to sell and the better the price.
“P” No 3 Price Every property has competition, and that’s what the buyers are comparing your property with, so it is very important to pitch the price at an appropriate level in comparison to the competition, to avoid being the last man standing.
“P” No 4 Persistence In a slow market persistence is really important as the buyer of your property may be just about to sell their property. Offers can be just around the corner so taking the weekend off might just send them to your competition first.
“P” No 5 Patience Real estate is sometimes like fishing, you have to be patient to catch the right fish, sometimes there are plenty and sometimes there are few.
- Alan Morton - Business Development Manager