April 1, 2009
Benchmark your Property
Posted in Secrets of Selling FAST tagged Assest Management, Benchmark, emotional attachment, housing shortage, match the market, RBA at 7:54 am by wendymcquillan
The Real Estate industry has been riding a rollercoaster. This quarter sees good news. The RBA’s decision to continue to cut interest rates has increased housing affordability, with the current cash rate the lowest in four decades. Increased activity is being seen right across Australia as the June 30 deadline on the Boost to the First Home Owners Grant approaches, with a steep jump in first homebuyer commitments. One of the main issues raised in the National Housing Supply Report tabled in Parliament House in March is that demand in housing currently exceeds supply. The shortfall in 2008 was a shocking 85,000 dwellings.
All these factors add up to mean that improving your profitability during challenging times is possible. The odds for the average homeowner are improving.
However, in today’s competitive market, average is just not good enough. Successful people wisely manage the assets within their control, and for homeowners currently on the market that means managing your property’s potential to return the highest possible profit to you.
Just as with industry and business, the ‘how to’ of profitability lies within knowing how your asset compares to the average, and how it compares to the best. How your property ‘stacks up’ against the others is called benchmarking, and it is the key to maximising your property’s potential during this challenging market.
If you are on the market, you must do the legwork. Check out your immediate competition. How does your property compare? How can you improve your chances of beating the competition? Are you priced correctly? What can you do to tip the scales in your favour?
One of the greatest hurdles we come against when presenting the best of any property is the homeowner’s emotional attachment. We often find a property does not sell because, deep within, the homeowner does not want to sell it. Reluctance to sell manifests in two ways: pricing beyond market value, and presenting the property too personally. Homeowners view their own property through rose-coloured glasses, often believing the price should be higher, and that buyers will love what they’ve done with the place. This is not the time to showcase your personal taste to the world.
The reality is that for every $1,000 the homeowner doesn’t spend repairing, decluttering, restyling, improving their property before they go on the market, they will be dropping $5,000 off their final price.
It is important to step aside – or outside of yourself – and look through the eyes of a potential buyer.
However challenging the market, the same rules of property presentation apply. Your property must match the market, in price and presentation. First impressions always count, but its the lasting impression that makes the sale.
