Buyers market - no one is even LOOKING at my house!

Hi, everyone.
Hubby and I have our house up for sale. It seems that the market is as flat as a tack here, just south of the QLD border in the Tweed shire, NSW. Our house is just lovely with great views, 4 bed, 2 bath, 2 verandah, 2 living areas, fully fenced, etc etc etc... but we can't seem to even get people through the door to look at it.

The real estate agent we have chosen has a capped commission (reason we chose him) and seems to be a nice and genuine guy. He is not recommending we drop our price, since all the other properties in the area are having the same kind of non-response. We put an ad in the paper when we did our first open house, and we are on realestate.com.au

The real estate agent has recommended that ads in the paper are not currently working (said a couple of weeks ago they had 52 open houses and only TWO people in total came). Being pro-active, I have put an ad on trading post online for one month (cost $50), and also on a couple of free internet sites, all referring to the agent as we signed a 3 month exclusive, which expires in one month.

Another idea I have had was to put small classified ads - just a few lines - in lots of the local papers (Sun, Bulletin, Echo etc) for the next open house. I remember when I was looking for my first house, that was where I looked a lot of the time, just the classifieds. I found the big ads too scary! I've not yet done these smaller ads.

Also, the real estate agent has done letter box drops with brochures, in the local area. We get four lots of brochures, apparently, as part of the exclusive. My husband and I requested another 100 of them and we letter boxed dropped them at night when we were walking the dog.

Basically, I am pro active and I want my house sold!!!!!! We have plans and our money is tied up in the property at the moment.

Does ANYONE have ANY ideas about how to get people actually through the door to LOOK at the house???!!!!!!
Any websites that are worth listing on, any anything? Should I dress up in a chicken suit and stand on the corner with a sign and point people in? lol. (now, just kidding with that one!)

Any suggestions are gratefully received.

thanks so much!
YR

p.s. How do I tell if he's a good real estate agent? I have requested new photos be taken, and that was a week and a half ago, and he still hasn't called to arrange a time. I provided him wtih a floor plan of the house, and he said he would use it on the next brochure but so far I've not seen it. I also asked him if he could put it on the realestate.com website.... nope. Also, he told us that each brochure that got printed and delivered, he would give us a copy. I have only seen the one that we actually dropped!

I'm wondering if he is slack because the market is slack, or if the market actually isn't that bad and we would be better off with another real estate agent? I truly don't want to sell it myself - I'd rather use an agent.

Another agent approached me and she has now opened her own real estate office and wants to list our property when the exclusive runs out. She said she could match our agent's commision now that she is working for herself. She just wants to get houses on her books (fair enough!). What do you recommend about having more than one agent on your property? How does that all work?
 
Sheesh! I'm a fast typist. I just looked at what I wrote - and thank you to all those who perservere with my questions as there is so much to read!!!!!!!!
 
What do you recommend about having more than one agent on your property? How does that all work?

It does not work. An agent cannot afford to advertise a property (or put much effort in) if they cannot be guaranteed to be the seller of.

Please post a link to your advert on re.com and we will critique the advertising copy and the photos and make comments on how to improve.
 
Go on to realestate.com.au and take a long hard look at the other houses for sale in your area. These are the oppositon. Check that your house is priced appropriately, i.e., the more expensive listings have advantages over yours.

You must be totally objective, don't add $50K because you just love your garden.

Get your agent to print out a list of the houses that have sold in your area. Again, compare the prices actually received.

This won't help much if for some reason your area is not popular, but should help to ensure that anyone looking in your area and price range will consider your property.

Good luck.
Marg

PS: I've just noticed Elf's reply, and suggest you change agents as soon as your contract runs out. Listing on realestate.com.au is absolutely essential in this day and age, and is the first question I ask an agent.
 
Sorry to confuse, - yes he has listed on realestate.com.au but has not put the floor plan on it, which I supplied to him a few weeks back.

now, as far as real estate agents go, how do i choose a good one? My dear daddy says don't go exclusive, or sole agency, but like propertunity said, they won't put a lot of effort in if there is no guarantee of reaping the rewards.

YR
 
Marg4000 and RE,
The property is already on Realestate.com as mentioned in the first post.:cool:

yvetterydman,
I dont want to be the bearer of bad news, however, it's like this...you need to lower your price to sell your house. Price is the only thing that stops potential buyers from buying your property. I know there will be a lot of people who disagree with this simplified theory on here, but its just the way it is.
If you are not getting any enquiry at the moment, it is because of the price. There is a price point in every market (and every individual property) that will make the property an attractive proposition to a buyer. You just need to set your price at that level. Don't be suprised if that price point is considerably lower as to where you think the correct level is. The majority of owners have unrealistic expectations in regards to the value of their property. In most cases, its not enough to just say "well, all the others are listed at this price so I should do the same" - all those others are not selling...what does this tell you?

I'm not just saying this to annoy/have a go at you, I'm just saying this so that if you are serious about selling, you might as well adjust the price now, then wait another 6 months and then do so. If you do so now, you differentiate yourself from all of the other properties in your area and will gain the upper hand as far as interest goes.

Boods


Edit: Marg4000 ande RE, sorry, just saw yvetterydman's clarification made whilst I was writing my post
 
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Thanks for that JRC. Where did you get that info? I've been googling until my fingers are sore trying to find out info like that! I'm not really up on the whole real estate shebang, this being only the second place I've owned (my husband had one, too, before I met him). I looked up RP data, but they didn't really tell me much unless I wanted to pay money for more than a cursory overview.

YR
 
Hi, Boods,

Thanks for that advice. We have put the price at $529 000 with view come down with negotiation, as whenever anyone makes an offer it is generally nowhere near what the asking price is. Perhaps you can tell me what the standard drop in price is? My previous property was listed at $279 000 and I accepted $263 000 for it, a $16 000 drop from the asking price. How much room do you generally need to leave to move when you choose your asking price? Do you think that by dropping the price, we will get people in to actually look at the property? The market here is so very quiet. Also, we live in a cul de sac, so there will be very little passing traffic to actually see our for sale sign.

YR
 
There is no such thing as a "standard drop" in price.

Everything depends on the asking price.

You can knock $100K off the asking price, but what if it was inflated by $150K to begin with? You think you got a bargain, but have paid over value.

We sold my mum's house last year and spent a lot of time checking out the other houses in the suburb up for sale. We priced it carefully and sold within 3 days for 99.5% of the asking price, around a $5K deduction.

I suggest you figure out your "bottom line" - if you don't get that price then you won't sell. Add on no more than $10K to allow for a bit of haggling and list at that price.

People look in "price brackets". To go over the $500K you will cut out a lot of internet searchers.

If it is within your negotiating range, I suggest listing at $499K.

All those retailers who have sales for prices ending in ....99 have done extensive market research.
Marg
 
Hi, Boods,

Thanks for that advice. We have put the price at $529 000 with view come down with negotiation, as whenever anyone makes an offer it is generally nowhere near what the asking price is. Perhaps you can tell me what the standard drop in price is? My previous property was listed at $279 000 and I accepted $263 000 for it, a $16 000 drop from the asking price. How much room do you generally need to leave to move when you choose your asking price? Do you think that by dropping the price, we will get people in to actually look at the property? The market here is so very quiet. Also, we live in a cul de sac, so there will be very little passing traffic to actually see our for sale sign.

YR

Generally, there is no rule as to a standard drop in price, although there are some data collectors that will quote these figures. Not worth the paper they are written on in my opinion. I have seen the same property advertised in several different places, all with different asking prices...which one of these asking prices do these data collectors use? These figures pretty much tell you (if you believe in them) is how much they were overpriced to start with. Why not just price yours realistically from the start?

You need to ascertain as to what market you are selling to - OO's or investors. If Investors, does the deal offer the buyer a good yield? If not, why would they buy, unless of course, the area will be subject to almost certain, steady capital growth. A savvy investor will not overpay for an investment unless that particular property forms a part of their overall investment strategy (next door to a property they already own etc..)

Perhaps you could price realistically as mentioned above and see what happens...you don't have to sell if you get lowballs. You can't negotiate a price unless you have someone to negotiate with...

Boods
 
my feedback on the ad is that its focused very much on features of the house, but not the benefits. So, it hasn't painted a picture of who this house would be ideal for, or any sort of marketing spin which would set your house apart from the others which are advertised in your area....
so comparing yours to the others in the list...
"with rental demand always high"...
"If you need to park multiple vehicles"....
"This country styled retreat"
"relax on the spacious timber deck"
"this rustic farmhouse"
"you'll be deceived by the size"
"looking for room to move"

so, then I get to yours and its
"located at the end of a cul-de-sac...." I don't know, but for me, it just doesn't paint any sort of a picture of what the house is like.
I notice that most of the ads from this real estate agent are the same... very boring!
So, I would work on setting your house apart from the others in the listings by highlighting the key sales points of your home, and get a listing which is more attractive.

But I suspect the biggest issue is that the market is flat. If you could rent out the property and move on with your other plans, you might find things have improved in 6-12 months.

cheers
Pen
 
Nice house and not trying to be nasty but how much would it cost to paint it more neutral colours (get rid of the green).

Would this be less than a discount?
 
You guys are awesome. This is great feedback - I see what you mean, Pen, about the features and benefits... he has not translated any of the features into benefits, really. I shall get into that and see what I can do about changing the listing's wording.

I will discuss with my husband about dropping to $499. Maybe that will make a difference with lookers. And yeah, you are right, Marg4000. When I search I usually put in the particular bracket, and even though my house would be available to people who are looking in the bracket under it, I guess it would not show up in their search. Like Boods said, you can't negotiate a price unless you have someone to negotiate with!

Boods, what differentiates an investor from a home buyer? I was always under the impression that an investor would like something they can possibly renovate, and put tennants in at a good return. My house is in pretty darned good nick with very little that needs doing to it.

Does anyone think it would be possible to get out of the exclusive contract with the current real estate (finishes mid August) and look for another real estate agent to list with? And any recommendations? What is your opinion of going with the agent who has just started her own business and wants the listing? i'm a bit dubious about going exclusive with her (even though she offered low commish) because she is new to the area, and has a new business. How will she get clients/buyers?

YR
 
But I suspect the biggest issue is that the market is flat.
Is it "flat" or "dropping"?

If the latter, it would be best to meet the market now, rather than later. In my market I came to that conclusion and put mine to auction. I couldn't think of anything worse than a "slow death" of gradual cuts which never quite meet the market. The end result is a lower price, much later.

If you have never known a buyer's market, you would be surprised how often this scenario plays out.

Talk to your Ray White agent about an auction. They are pretty good at them, I think.
 
Oopsie, sorry, guys. I just realised that i DID post the last reply I made - it just went onto a new page. So sorry to bombard you wtih that! i'm still very new to this great site. :)
 
I'll be blunt. The photos suck.

They appear to be some what blurry and in the some shots it looks like the person is a bit drunk (eg the picture that shows you pine dining table (4/13) and the next one (5/13)).

Have a look at the elders inner website to give you an idea of what semi decent pictures look like.

http://www.eldersinnerwest.com.au/index.php/listing/listings/:searchtype~ressale:parse~0:max~8

Some a probably overly photoshopped, but others pics are ok.

That said, when i sold my place, the agent came in with his camera, pictures were crap as. So i decided to take photos myself. Using a camera like has a 25mm wide angle lens makes the place look a lot bigger than it is.
 
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