Chapter 1: What are the crucial steps to take before selling your home?
it's the real estate podcast brought to you by ray white the largest real estate and property group in australasia and welcome to another episode of the real estate podcast we are going to be looking at that all-important step stage moment whatever you want to call it in fact it's probably the moment of truth when you've decided to take your property to market
Of course, one thing that we know about property ownership, and that is that we want the best possible price when selling. Not the closest price to the number that you have in your head, but the best price that you've got in your head.
And to get anywhere close to that expectation that you have, there has to be some really important steps that you've got to take to ensure that you have your property prepped and and ready to go. And to help us on this subject, we are talking to Tom Greve from Ray White in Carnegie in Melbourne. G'day, Tom. Good to have you on the Real Estate Podcast. G'day, Craig. Pleasure to be here.
Chapter 2: How can vendors prepare their property for the market?
Thank you very much. Carnegie, that's the spot for the Asian cuisine, I'm told. Fantastic eating. It is, absolutely. We've had a lot of different places pop up here over the last few years, and it's been incredible. Some of the smells we get coming out of Kroonang Road are absolutely fantastic. And you've got the university just down the road, which also makes it a bit of a popular destination.
Yeah, absolutely. Monash University in Caulfield. It's probably been one of the reasons, I think, why Carnegie and some of the surrounding suburbs have been targeted so much by developers for apartments and I guess all of that sort of entry level accommodation that really appeals to students as well.
Chapter 3: What common mistakes do sellers make when preparing their homes?
Well, let's have a look at launching a property online for any vendor. It's both a scary proposition and also an exhilarating process. And Tom, what are some of the things that vendors should be thinking about prior to launching? Yeah, look, it really depends the type of property we're selling, whether it's a house or an apartment.
Some of the things that we need to pay attention to can be completely different, particularly with apartments, for instance. We like to have the Section 32 ready. We like to have as much information there as we can. And just understanding if there's things like outstanding building notices, cladding notices or things like that on the property, because
A lot of the time if you've got some of these things on your property that the way we market them is altogether different and it's best to sort of understand some of these things prior to having the properties ready rather than sort of trying to catch the curveballs as they get thrown at you throughout the course of the campaign.
And so looking at somebody who's not prepared when taking to market, now, like I said, given that vendors want the best possible price, what can be a negative impact of somebody that is just not paying attention and is dropping the ball and is being underprepared?
Chapter 4: How does being unprepared affect the selling price?
Well, I think in a marketplace where it's always growing in terms of the amount of properties available, there's always new development happening. The reality is, as a vendor, there's more and more competition that you're competing with week in, week out.
So if you're not ready, if you find that buyer in week one or two and you don't have a contract to sale or you don't have a section 32 contract, it's very easy for buyers to go on the path of least resistance. And if another agent is more prepared, it's not uncommon for them to sort of get caught up and make an offer on something else and you potentially lose a buyer.
Now, you know, if that happens two or three times over the course of the campaign, well, You know, losing two or three bidders at auction day can have a monumental impact on the outcome of the auction. You know, it's not uncommon for us to see an auction where maybe you've got a bidder at a million, a bidder at 990, and then the third highest bidder could be at 880,000 or something like that.
So the impact of losing that second highest bidder might not just be a $5,000 or $10,000 difference. Now, we've seen that be a $100,000 or a $200,000 difference in certain instances.
Chapter 5: What are the impacts of competition on the selling process?
Yeah, it's interesting, isn't it? Because it comes back to that whole marketing as well, where you're trying to explain that, look, we need everybody there on auction day if it is an auction. We need every single person that we can extract who is remotely interested in buying property. And a lot of vendors, I don't think they give enough detail to everybody.
every single person because as you say if you haven't got every single person and there might be just one person missing that could end up being two three hundred thousand dollars come you know sale price missing out on that Well, and Craig, it's not just the vendors. I think it's the agents sometimes as well.
Like there's a very natural inclination towards finding the best buyer and looking for that best offer. But, you know, sometimes that environment, if it's not right, if you don't have the competition next to the best buyer, it can really sort of impact the way that buyer thinks about the property. So you're absolutely right.
Chapter 6: What should vendors know about cladding notices and their significance?
Getting as many people there as you possibly can and being prepared is a big part of this. So when an agent is talking to you, the vendor, and you hear the agent say, we need every single person, they're not saying it just to hear their own voice. It is absolutely critical because that one person could make all the difference.
Now, preparation is always the key with anything that you sell in life. It's all about the prep and being ready and covering all of the bases and And it's surprising given that this is your largest asset, just how cavalier a vendor can be.
I hope that the vendors that are listening to this, it's not you, because if you are casual about the level of detail in the prep, it's going to be reflected on the price. Unfortunately, that's a reality check. So Tom, what are some of the most common things that are overlooked when it comes to preparation? Yeah, look, I could reel off a list of lots.
Chapter 7: How can proper preparation lead to better sale outcomes?
I think maybe in vacant properties, not having electricity connected, not paying enough attention to detail to garden maintenance and things like that. And particularly with investment properties, a lot of landlords are probably set and forget. And when they move out there, they're not sort of paying too much attention to some of the things that really make a difference.
On the family homes, ensuring gardens and things like that are perfect, making sure the time of year that you sell that type of home is perfect. There's so many things that people probably don't pay enough attention to and maybe just get a little bit caught off guard.
Okay, so now we're going to put you on the spot here a little bit because I'm interested to know one of your really bad, poor preparation cases where it's a really bad detrimental example of somebody that has not been prepared. Have you got anything off the top of your head that you can think of in terms of a vendor that sort of went down the waste disposal unit a little bit?
Probably the most common one in my area would be vendors that don't know they have a cladding notice on their property. And for the benefit of the people who might not understand the significance of cladding notices, it's obviously a very big thing where a lot of properties are having to have serious work done for them.
And it's gotten to the point where quite often banks won't even lend on some of these properties if they've got them. And You know, it's not uncommon that maybe we get into week two of a campaign before a contract comes out. We'll ask the vendor, now, have you been served a clouding notice? And they'll say no, not to their knowledge. We get it.
And sure enough, there's red flags left, right and center in the contract. In that sort of situation, I've got an example that we had recently where sometimes a clouding notice can be a difference of maybe $100,000 in the price.
And if you understand that these things are there, you might price that property far more conservatively to begin with because you know that you're going to need to get those 40 or 50 people through a week in order to get the competition to push through some of these issues.
And we've definitely had plenty of examples that I could think of where we've not been able to navigate through that situation because we just haven't known soon enough. And on the flip side, we've got examples where we have known upfront and vendors have been completely across it.
And, you know, we've priced the property accordingly and ended up still getting a really good result for the property. So, you know, that's probably one that's the initial one that springs to mind. Hey, Tom, thank you so much for illuminating some of your information for the vendors and how well they should be prepared. And thanks for coming on to the Real Estate Podcast. My pleasure, Craig.
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