Altus BLOG

We’re seeing a lot of activity in the market at the moment. This is in stark contrast to 12 months ago. Buyers then were few and far between. And as a result, property took a long time to sell…and house prices fell accordingly…in some cases as much as 30-40% from the extreme levels that were reached in 2006 and 2007.

Over the past six months, momentum has been returning to the market. Initially, we felt it in the lower end where properties priced below $500,000 were being snapped up like hotcakes. Several months after that, we noticed it in the next tier of property, the $500,000-$800,000 range which in-turn generated interest in the next tier, the $800,000-$1,200,000 range – entry level into a lot of the western suburbs.

To give you an idea of these trends, we recently sold 5 properties in the space of a week. One had two offers the day after it went to market. The other sold after one home open. What’s more our experience seems to be supported by other agencies across the westerns suburbs. It seems no matter who you talk to, they’ve noticed there’s a “change in the air”...the buyers are coming back.

So are we back to the halcyon days of a couple of years ago when people were too scared to sell their homes before buying in case they lost out in the change-over period?

Not quite. The prices for property prices achieved for property during that period are still, in most instances, yet to be reached again. What we can report is that prices are on the way back – perhaps 10-15% - and at this stage, continuing to move upward.

Whether that trend continues is anyone’s guess. However, given the recent announcement by the State Government that they have secured the Gorgon deal – a project that should create an economic buffer for WA for the next 20 years – there is good reason to be optimistic that the recent positive activity in the real estate market in the western suburbs will continue.

David Fear

I sold a property in Mengler Avenue Claremont after one Home Open this weekend. There were 25 groups through. It reminded me of the boom period of 2005 and 2006 when there was so much demand that we often sold a home before the first Home Open.

Now don’t get me wrong, I’m not saying we’re back to those times. What I am saying is there is definitely more activity than there was say 6-12 months ago…

Particularly if you do things right. So how do you do that?

Well, one of the first things to ensure is that your home is priced competitively. Look at what has sold, what people were prepared to pay for it…and then price accordingly.

Secondly, present your home at its optimum. We had Maddie Jungstead, our Interior Stylist meet with the people in Mengler Avenue. To a tee, the owners acted on her advice. And, as a result, the home presented beautifully.

The third piece of advice for selling in this stable market is to make sure you use professional photography. The guy we used on the Menglar Street property did a magnificent job. The photographs, which were taken at dusk were simply stunning and you couldn’t ask for a better advertisement.

Finally, make sure your sales copy matches the images. We were able to describe this home as “Designer Living”, a reflection of the quality of the photos…and that’s exactly what the property conveyed. In fact, if anything we probably underplayed the property a bit.

So there you have it…

Four golden pieces of the puzzle to sell your home in a fluctuating market.

1. Price competitively
2. Present at optimum
3. Use professional photography
4. Make sure your sales copy matches (or underplays) the home.

All the best…

Jamie Harrington
Director
Altus Real Estate

It’s getting close to that time of the year again when the flowers come out and people start thinking about selling in order to tap into that inevitable movement of housing that occurs as Christmas and the holidays near.

Here’s a to-do list if that is you.

1) Get an up-to-date Market Appraisal of the Estimated Value of your Home.

2) Start to collate information on what’s selling in your area as well as the area you want to move to.

3) Identify the Selling Points of Your Home.

4) Identify the Obstacles to Selling Your Home (eg. Busy road)

5) Tidy the inside.

6) Tidy the outside.

7) Decide on a marketing strategy.

8) Decide on a pricing strategy.

9) Have Professional Photographs Taken.

10)Have a Floor plan drawn up.

11)Write the Copy.

12)Select the Style of Brochures.

13)Notify the Local Residents.

14)Contact hot buyers.

15)Arrange Advertorials.

16)Negotiate when the time is right.

17)Arrange Times for Building/Pest Inspection if Required.

18)Choose a Settlement Agent.

19)Maintain/Fix Home in Preparation for Pre-Settlement Inspection.

20)Sit back for the ride.

Alternatively, you can choose an agent to do these things for you. Look for one who:

knows the difference between pricing and negotiation strategies.
has a support team behind them.
you get along with.

After all (for most people), you’ll be entrusting that person with your biggest financial asset.

Hope this helps

David Fear

Selling your home is about the right price.

Selling your home is about the right agent.

Selling your home is about supreme internet exposure.

Selling your home is about the quality of the database.

Selling your home is about the right marketing strategy.

Selling your home is about negotiation skills.

Selling your home is about presenting the home at its best.

Selling your home is about keeping the buyers interested.

Selling your home is about the quality of the photography.

Selling your home is about the inclusion of a floor plan.

Selling your home is about an understanding of the legal technicalities.

Selling your home is about bringing people together.

Selling your home is a combination of all these factors.

Jamie Harrington

Google are at it again.

They’ve decided to get involved in real estate in a big way through a new Google maps feature.

To try it out, type in

Real Estate on Google Maps

into a Google search.

Choose:

Rent or For Sale

Put in your other specifications.

You’ll now see a map showing the top 10 listings that match your criteria and an alphabetical icon.

Scroll over the icon (example, property A) to get more information about that property.

Should that information prick your curiosity further, you can click away for more information from the primary feeder site. In WA, that seems to be Aussie Home and REIWA.

The 10 listings are also listed down the left hand side of the page.

There is also a capacity to view the next ten and so on.

At this stage, one of the downsides of the feature is that not all feeder sites are included in the search.

For example, realestate.com and domain.com (the two biggest feeders in Australia) are not part of the service.

And so people who upload their properties directly through them would miss out on the Google exposure.

However, given Google’s propensity to dominate a market, I wouldn’t be surprised if realestate.com and domain.com eventually come on board.

After all, if I were a seller or landlord, I’d want the maximum exposure for my property.

Another drawback of the present Google Real Estate feature is that at this stage, the process of getting to this page is slightly convoluted.

However, in time, I wouldn’t mind betting that Google refine the process like they did with business searches so that real estate listings appear on the first page of a regular search.

Buying and renting properties just got easier.

David Fear

Do you know that when Altus compete for business, we win the business 82% of the time.

Typically, we’re up against another two agents, often representing the big agencies.

Why do people choose us?

Well the most common reason people give is that we our STRATEGIC about how we do things.

We understand the difference between pricing strategies and marketing strategies.

And, we know who we’re going to market to…

When and where we’ll market…

And when we need to change things up…

In order to get a result.

The great Chinese General Sun Tzu once declared: "Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat”.

We agree with him.

David Fear

The latest data from REIWA on the Perth rental market shows two interesting trends.

Firstly, the average median rent in Perth has more than doubled over the past six years from a figure of $180 per week in June 2003 to $370 per week in March 2009.

It also shows a recent trend toward increasing vacancy rates.

In June 2003, the vacancy rate was 4.5%.

Over the next few years that figure gradually decreased to a low in March 2007 of 0.8%.

Since then, that figure had steadily crept up to 3% - nearly four times the rate that it was two years ago.

Why the increase?

Well one of the trends we’ve been noticing with the slowing sales market is that some people, are choosing to rent their properties out and wait for the market to turn rather than sell them at rock bottom prices.

As such, there are presently more rentals available than there were 12 months ago.

The other factor is the general economic downturn.

Premium rental property was extremely difficult to find in 2007 and most of 2008.

The fall in the commodity prices last October has impacted on the mining sector and those affiliated with that sector.

Mining executives (who were driving higher end rental values) have left in droves.

As a consequence, premium rental property (that above $1000 per week) has been the hardest to shift in recent months.

Having said that, low priced rentals and to a lesser degree, medim priced rentals, are still moving relatively quickly.

Jamie Harrington

I was talking to a friend of mine the other day who is about to build a home.

What should we consider if we want to maximise the resale potential was her question.

It was a good question.

I mean, if you are going to be spending 100s of 1000s of dollars in order to get your dream home, you might as well integrate what the market considers be valuable if you can.

After many years in the trenches, here’s my top 10 list of Must Haves for your home – things that buyers consistently give a big tick.

Open Plan Kitchen – 21^st century living is about flow between the different living areas. Potential buyers always want to envisage themselves entertaining. Part of the process is being able to cook while still talking to guests or family. Make this one a priority.

Alfresco Living – Seamless integration between inside and out is also a real “wow” factor. The ability to open up and enjoy a balmy summers night in this fantastic climate we live in is a real plus.

Views to the backyard – This one is particularly true for young Mums who want to be able to give their kids the freedom to roam outside but also want to keep an eye on them. Factor this feature into your planning if you are buying in an area such as Floreat or Nedlands whereby the large backyard is one of the principal drawcards.

Environmentally Friendly – People are becoming more concerned about the environment. Just ask Kevin Rudd who built an election campaign around that ideal. Taking into consideration the positioning of the sun at different times of the year can save 1000s of dollars over time. More importantly, it can lessen the impact of greenhouse gases on the atmosphere. It is certainly worth talking to experts on saving energy before you build.

Parents retreat – The days of Mum and Dad living on top of the kids are long gone. Now days the idea of the kids having their own quarters has considerable appeal.

Walk-in robes – Women love this one. They don’t like having to share space and they don’t like their clothes creased. So if you can fit one in – do so. In fact, if you can add an additional dressing room for the Master Suite, do it too.

His and Hers Showers – This feature is becoming increasing desirable; probably due to the fast paced nature of the 21st century life. Men don’t want to be waiting hours to get a shower.

Kids Playroom – If you can create an area with lots of storage that the kids can play safely inside, and you can close the door to the mess, you’ll win many friends, particularly amongst Mum’s with little kids.

High Ceilings and pitched rooves – A traditional favourite that keeps on kicking. Unlike the 1980s however, drop the dark brown painted beams. This feature works particularly well where the kitchen meets the alfresco area.

Quality Finishes – Buyers are becoming more discerning. Your home can be in the best location, have a great design, tick all the boxes – but if the finishes don’t match, a lot of potential buyers will dismiss the house. Mark Twain once said: “The clothes make the man”. The same is true for your home. What sort of bench tops, light fittings, kitchen appliances will you be fitting? This is not the area to skimp.

David Fear

The decision by the Federal Government to extend the First Home Buyers bonus for an additional three months in full, plus another three months in part, has had a mixed reception in real estate circles.

Those who sell property under the $500,000 have endorsed the decision.

I’m less enthusiastic.

That’s because I think the Home Buyers Bonus is a bit of a “band aid” solution that has really only aided the bottom end of the market; those of us who sell to “middle Australia” as well as the top end, have been exposed to open market forces, just like the stock market.

Now I don’t think we will see any great falls from here, with the 25-30% drop about as far as I think it will go.

But some stimulation would certainly help.

For me, a far better solution that would really help the top end of the market would be for the State Government to reduce Stamp Duty.

Now I should point out that Stamp Duty has a new name, Transfer Duty.

The reason?

The Government realised that charging someone $25,000, $30,000 – even $50,000 (approx duty on a property of $1 million) for “stamping a document” was unpalatable – even for those who could afford it.

The name “Transfer Duty” is designed to murky the waters just that bit more so as to ward off criticism.

Now, make no mistake…

Buyers to a tee hate this tax.

But even so, relief from this “Duty” seems unlikely.

That’s because according to RP Data, State and local government collected a combined total of $31 billion in property taxes in the last financial year - 39.4% of ALL taxes collected.

And given that for the most part, it is only a small segment of the population, potential homebuyers, who are affected by Stamp Duty and any one time, the governments have nothing to lose by NOT reducing them.

Because the public outcry, if any, is representative of the vocal minority rather than the silent majority.

Which the Government can live with…

Without fear of any electoral consequences.

Currently there are more than 40 homes being advertised for sale in Swanbourne and over 50 blocks of land available.

In the December Quarter there were 7 Sales (now settled) 3 Houses and 4 Blocks of land, which means at this rate of sale that there is over 3 years supply of properties on the market.

Whilst the REIWA statistics have shown that Swanbourne prices have increased by over 25% for the 12 months to the end of the December Quarter 2008, the reality is very different. It is more like a drop of 25%-30%.

The main reason for the discrepency is the unusually low volumes of sales.

Examples of this are;

3 properties in Wright Avenue sold around January 2008 for $1,5m to $1,645m a very similar property in now on the market for from $1.15m.

A block of land in the Old Swanbourne Primary School Site bought for $1.2m in May 2007 brought back on the market for at $1.55m then eventually sold for $1.01m

A property in South Cottesloe had a cash offer of $2.85m early 2008 (which was rejected by the owner at the time thinking that the market would offer more) just recently sold of $2m.

There are many other examples which would suggest that an adjustment of 25%-30% has occurred across the market, particularly at the upper end.

In the Western Suburbs turn over (number of sales) have been dropping steadily since 2005.

In the December quarter the volume of sales was down approximately 80%.

Since my time in real estate, over 15 years, I have observed that Swanbourne sold 80-100 properties per year as a rule.

This is not all bad. If we can block out what we believe our properties would have sold for in 2007 and early 2008 then we would be very pleased with the sale prices we could achieve today.

We recently sold a property in Floreat for $1.32m for people who paid approx $650,000 four and half years earlier. Initially we all were disappointed because the expectation was greater than $1.6m, but doubling the value in less than 5 years is still a very good result.

What we need to understand is the real estate market in recent years has been driven by people speculating - purchasing properties using the equity of their family home and gearing up, expecting to be able to turn them over quickly with a tidy profit. Expectations of 20% to 30% increases year after year, were unsustainable!

Since the start of the year enquiry rates have increased, buyers are still tentative and the lower end of the Western Suburbs market is performing well, with units $500,000 or lower holding their price and selling relatively quickly.

David Fear

For the past 12 months, the Perth property market has been slow.

Property, across all sectors has sat. And sat. And sat.

The reason? More people were putting their homes on the market and less people were buying.

Quite simply, it was a “Buyer’s Market.”

Several months ago, first home-owners ($300,000 -$500,000) began to enter the market again.

There were several reasons for this; stamp duty concessions from the State Government as well as the Federal Government’s First Home Buyer Grant initiative ($14,000 for established dwellings and $21,000 for new) had made owning a home more attractive. The fact that interest rates have continually fallen also helped.

In recent weeks we have noticed activity in the second and third tiers of home ownership ($500,000-$800,000).

As at the time of writing, four of the last six properties that have SOLD at Altus have been in that price bracket with the other two in the low one millions.

More importantly – all have occurred in a relatively short space of time – 3 weeks.

Has the tide turned?

It’s difficult to say – especially give the unpredictable nature of financial markets across the world in recent months.

Could it be turning?

It’s very very possible.

Watch this space.

Jamie Harrington

Director

Altus Real Estate

When prices were increasing dramatically in Western Australia, people accepted, albeit somewhat begrudgingly, the imposed sales tax for buyers – otherwise known as Transfer Duty (formerly Stamp Duty).

I’m not sure that they will for much longer.

I was talking to some people recently who bought their house in July and now have to sell it.

The fact the market has dropped was painful enough for them.

The “sting in the tail” was the $55,000 Stamp Duty that they paid in the transaction costs.

For the past few years, buyers have tolerated this tax.

The fact that their own properties, had increased – often at a substantial amount – somehow made this "rort" more palatable.

Now, the potential for loss is well and truly there, they are less likely to do so.

Perhaps the saving grace for the Government might be the relatively low number of home buyers at any given time – about 3 per cent of the population.

These people can create a noise, but because the majority of the voting public are not affected – they, like their predecessors, can perhaps afford to “put on the ear muffs.”

This lack of action does not make the practice right though.

Jamie Harrington (0413 009 962)

Director

Altus Real Estate

A friend of mine has an interesting way of describing what has happened to financial markets across the world.

He likens the present downturn to the way people feel after a “big night on the town.“

“You party hard, you do it hard the next day” is his philosophy.

In his view, because financial markets have “partied” for the last three years or so – the fall we are currently experiencing is inevitable.

An analysis of real estate growth in 2005, 2006 and 2007 in Western Australia shows that property values did in fact skyrocket in this State.

Traditionally, Perth property values double every seven to 10 years.

All of a sudden, they were doubling in two or three years.

Blind Freddy could have seen that that sort of growth was unsustainable.

Unfortunately as is human nature, the blind Freddys got lost in a boom amongst the wave of positive press and speculation stories that characterised the period.

The good news is that despite all the doom and gloom that has been appearing in the press, all is not lost.

That’s because the recent downturn can be explained as a correction rather than any major structural issue.

To put it another way, property prices are still tracking ahead of where they traditionally should be.

David Fear (0403 052 222)

Director

Altus Real Estate

The opportunity for overseas buyers to buy well has increased in recent times.

REIWA figures indicate that the number properties on the market in the western suburbs has increased by 79% over the past 12 months.

Conversely, the number of sales per quarter has decreased. In fact, there were only 14 sales in Cottesloe for the three months from July to September 2008 - down from 52 in 2007!

With the fall in the Australian dollar, buying opportunities in the western suburbs have become even more attractive to overseas investors.

In July, the Australian dollar reached a high of 98.49 cents. In recent weeks, the price has been fluctuating at 30-35 per cent less in the range of 62-68 cents.

What this means is that assuming, an overseas currency has remained steady, property prices for the overseas investors are now considerably cheaper than what they were 12 months ago.

So, if you know anyone living and working overseas – now might be a great time to alert them to real estate in the Western Suburbs of Perth – the best place to live in world and now at a far more affordable price.

Yes - there is a down turn in the market at the moment. Properties are taking longer to sell. And most are selling below asking price – some considerably so.

Everyday we hear the media forecasting doom and gloom – the end for a lot of real estate agencies in Western Australia.

They may be right.

The thing to remember in this changing market is that real estate is not about numbers – it’s about people.

People will still need to upsize, downsize and move sideways. They’ll still yearn for the home of their dreams.

We’ll be there for them when they do.

Jamie Harrington

Director

Altus Real Estate

When Michael Douglas’s character made this quip in the 1988 film Wall Street, he probably did not realise that it would become one of the most memorable lines ever to come out of Hollywood.

Twenty years on, it seems just as relevant today as it did then.

I work in an industry that has a tendency to operate on greed. Not for everyone – but for some.

The funny thing is that even though it is an important part of the psyche which makes the “real estate wheel” turn – it is also the factor that most often prevents it from moving.

This paradox has never been borne out more than over the past few weeks as I reflected on the events that have led to the downturn in the world economy.

It was greed that was the driving force behind millions of Americans to enter the real estate market between 2003 and 2005.

It was greed that inspired the American Banking executives to offer loans to these people – when their capacity to repay the loans was always going to be tenuous.

Greed is also the problem getting in the way of our own levelling market in WA.

Owners have not heard that the market has slowed and are holding out for the growth and prices of 12-18 months ago. Such attitudes invariably get in the way of the negotiation process, and lead to properties still being on the market several months later.

Buyer greed has also played a role in the present state of affairs. Ridiculous offers, very often kill negotiation before it even begins.

What is required in this present market is a level head. If you want to sell, recognise that there is a lot of choice on the market for buyers and make your home as attractive as it can be – both in terms of presentation and price.

If you want to buy – don’t start hundreds of thousands under the mark. Make an offer that says that “I am genuinely am interested in purchasing this home from you” – let’s do a deal.

Jamie Harrington

Director

Altus Real Estate

You're buying a car. You decide to buy it privately and conduct your research accordingly. After searching through the newspapers and on the internet for weeks, you find that most of the cars that you are interested in are priced in the $14,000 to $17,000 bracket. You're buying a car. You decide to buy it privately and conduct your research accordingly. After searching through the newspapers and on the internet for weeks, you find that most of the cars that you are interested in are priced in the $14,000 to $17,000 bracket.

You also find a car locally that matches your needs - but it has no price. You pay the guy selling that car a visit. You like it. It ticks all of the boxes. You ask the price. “It’s $20,000” he tells you. “It’s $20,000 because I’ve booked a holiday with my wife to Bali and we want to pay for it with the money we get for the car.” You look perplexed. This does not add up. How can the guy be factoring the price of his holiday into the sale price for the car?

Surprisingly, we encounter this sort of rationale quite often in real estate. Occasionally, people will refer to what they hope to do with the money – buy a car and so forth. Mostly though, people explain that they can’t accept this amount or that amount because they have spent so many dollars on the new bathroom, the new roof or the new kitchen. In other words, in their minds, cost must equal value.

Would you pay the $20,000 for the car in the above example?

I wouldn’t. The reason is simple. It doesn’t matter what the guy wants; what matters to me as a buyer is what I think the car is worth. And how do I make that decision? By comparing it to what else I can get for my money.

As sellers, it is very easy to lose sight of the fact that buyers do their homework before they buy property. If you price your property according to your needs instead of comparative market value, the chances are that it will still be sitting there long after the genuine buyers have gone.

Jamie Harrington (Director, Altus Real Estate)

It’s not hard to love the western suburbs of Perth. The area takes in suburbs that collectively form a triangle running from Mosman Park along the river to the city and out to City Beach. As a father of three teenagers, two of which whom attend private schools, I have been fortunate to live in the area.

My two attend Scotch College (Uniting) for boys and St Hildas Anglican School for Girls respectively. Both are great schools. They could have conceivably gone to any one of a number in the area though. Christchurch Grammar School for boys is just a “hop step and a jump” from Scotch. Iona (Catholic), Presbyterian Ladies College and Methodist Ladies College are all very close to St Hildas.

Should we have elected to send our kids to a co-educational school – John 23rd College (Catholic) is based in Mount Claremont while Shenton College, a public school, is situated in Shenton Park.

Aside from secondary education, the Western Suburbs also offers the advantage of housing the University of Western Australia. UWA, one of Western Australia’s most picturesque establishments, is situated in Nedlands, and is relatively easy to reach via public transport from any of the other western suburbs.

Lifestyle is the major attraction for people in the area. No matter what suburb you live in, you’re never that far from a stunning beach or a relaxing walk along the river’s edge. Invariably, your also close to a large oval or two where you can kick a football, throw a Frisbee with the kids or, take the dog for nice long walk.

There’s an array of sporting clubs in the area including surf life-saving, football, cricket, golf, tennis, rugby, bowls, hockey and netball and sailing. The hard thing for our kids has been choosing which sport to play.

Shopping in the western suburbs tends to take place at one of several shopping precincts. Floreat Forum and the Grove Plaza are the most "traditional" of the centres in terms of layout. Neither are particularly large - but they do offer an undercover "mall feel" that is typical of some of the major centres in Perth such as Karrinyup, Garden City and Galleria. The western suburbs has several shopping areas that are best described as "strips" and are typically serviced by independent retailers, coffee shops and restaurants. This makes the western suburbs great for catching up with friends. Go down the main streets of these suburbs any Friday or Saturday night and chances are that you’ll see people - young and old - out enjoying themselves. In this sense thay are "mini-versions" of what people might have experience in Lygon Street in Melbourne or Rundle Street in Adelaide.

David Fear (Director, Altus Real Estate )

American multi-billionaire John Paul Getty knew a thing or two about creating wealth.

At the time of his death in 1976 he is believed to have been worth over 4 billion dollars.

A sizable part of Getty’s success can be attributed to the aggressive investment strategy he pursued during the Great Depression.

When the American economy turned for the worst in 1929, Getty began to buy stock.

Getty was shrewd enough to recognise that markets are fickle and what someone is prepared to pay on a particular day does not necessarily equate to its true market value.

He also recognised that there is an optimum time to buy. As he was later to reflect: “I buy when other people are selling.”

I think the time is right to apply Getty’s principles to the real estate market in Western Australia.

This is because there are more properties on the market than there have been for several years.

In addition, the selling time has also increased from a low of 30 days in 2006 to and average 75 days in 2008 and as much as 90 days!

As a consequence, sellers are more receptive to offers than they were two years ago.

If you look at previous cycles, the longest down time in WA has been 1 to 1.5 years.

At the moment we are at about 10 months which suggests that we are closer to a return to positive growth than not.

If you are looking at purchasing property from an investment point-of-view and have medium to long view of the market, there are some good buys right now.

Of course, if you are looking to upsize or downsize the family home, the pricing doesn’t really matter because you are buying and selling in the same market.

This is not to say that there are you don’t have to strategize correctly in the present market for as always, the opportunity lies in deciding whether to sell or buy first...

David Fear

Director

Altus Real Estate

You're bringing your home onto the market. You want to reach every potential buyer. But how do you do it?

Ten or 15 years ago, you placed an ad in the paper and put a sign up. That was it. Those two mediums are still important today but perhaps not as important as they were. We find that a lot of buyers who come through our home opens have checked the times in the paper. The interesting thing is, many of them first saw the property the internet.

Our research shows that the number of people who see your property first on the internet is approximately 85% - and that figure is rising! This fact has definite implications for you as a seller - perhaps the most obvious being the breadth of internet exposure. There are multiple real estate sites that feature properties in Western Australia? Exactly how many sites does your agent use to promote your property?

Given that many people will first see your property on the internet, it is imperative that your agent has an understanding of how best to present the property - with special consideration given to the photography. Top quality photographs - taken by professionals - are critical to this end.

Unfortunately, great photographs alone will not sell a property. This is because it depends on how those photographs are being used.

I was recently shown an ad on realestate.com which featured a property in Dunsborough – part of the highly desirable beach and wine region in Western Australia’s south-west. The interesting thing was the lead photo on the ad; it was the large “bush” at the front of the home – you couldn’t actually see the house! It turns out that this property was actually about 200 metres from the beach. In my view the agent hadn’t done his job on that occasion. Think of the vast number of people who would have skimmed past that photo. What could he have done differently? Well, what about taking the time to ensure that at least you could see the house in the main photo. Better yet, what about if they had replaced the photo with a map highlighting it’s proximity to the beach?

The other important element relating to the use of the internet in selling your home is to make sure that as much information as possible is available to the potential buyer. We know from our own research that people really appreciate a floor plan of the property. It helps them to make an informed decision about whether to further their enquiry.

We also know that people enjoy the panoramic views and virtual tours of property that are now offered by some agencies. Again this gives the prospective purchaser an appreciation of the home that they otherwise might not have.

Finally, a link to Google Street View is a positive feature. It allows a person interested in buying the home to take a “virtual walk” down the street where the property is located - an invaluable tool in assessing the “street appeal” of a home.

So the next time you decide to sell your home, make sure that you ask your agent some hard questions about their ability to showcase your home. Ask them:

How many web-sites will your home appear on?
Will you use a professional photographer?
Will there be a floor plan?
Will your home have a panoramic and/or virtual tour facility?
Will Google Street View be linked to the property (on every site)?

Cover these bases and chances are that you will be maximising your chances of reaching that one person you need to buy your home.

Jamie Harrington (Director, Altus Real Estate)

A recent report from REIWA provides some indication that the softening market may be changing.

First home buyers – who traditionally make-up 20% of the market (and who were the first to be squeezed out with the dramatic price increases between 2004 and 2007) have begun to re-enter the market.

The figures are a positive indicator for the market. The first home buyers are the most influential buyers in real estate. When they stopped buying 18 months ago, “the market began to catch a cold.” Similarly, their renewed interest suggests that a real estate recovery is just around the corner.

D Fear (Director, Altus Real Estate)

Spring is in the air. Traditionally it is a time when more home owners decide to sell. The better weather certainly hopes. People also know that the latter part of the year is the period when people start setting themselves for the following year – a move interstate, a change of jobs, a new school. All this means is that there are more buyers at this time of year.

So how do you take advantage of this fact? Make sure that your home presents at it’s best is probably the best piece of advice.

Research has shown that most people will make a decision about a home within the first 30 seconds. This means that FIRST IMPRESSIONS ARE CRITICAL.

Ask yourself if you’ve bought a home in the last few years, where you first saw it. Chances are it was on the internet. In fact our research shows that over 50% of our enquiry comes from the internet and that figure is growing!

So how do you make sure that your property attracts buyers?

Firstly, ready the home for market. Look at the outside of the home (typically from across the street) How does it present? Do trees need to be cut back? Do lawns need to be cut? Could the windows do with a clean. Could the whole façade do with a new coat of paint? Would it be possible to plant some flowering plants that would bloom at the right time? This “curbside appeal” is very important. You don’t want people stopping outside your home and then driving off, without venturing out of their car!

Secondly, “attack” the inside of the house. The two most important areas to concentrate on are the kitchen and bathroom – the wet areas. If you are going to spend some money on sprucing the place up these are where you need to focus. FEMALES MAKE 80% OF REAL ESTATE BUYING DECISIONS. To neglect these two critical areas to family life is critical. At the very least kitchens and bathrooms should be clean and tidy.

Thirdly, remember that a potential buyer wants to be able to see themselves in your house. Your things gets in the way of this process. Tidy all rooms. Put away as many personalised possessions such as photographs and other memorabilia as possible. According to Maddie Jungstedt, the Interior Stylist whose service is complimentary to owners selling their home with Altus, “de-cluttering is the most important task an owner can carryout before going to market.”

Fourthly, give your home a “homely” feel. Clean fluffy towels on beds and in the bathroom are great for this process. So too are strategically placed homely smells such as peculating coffee. Don’t overdo it though. We once had a lady who did the coffee thing, but decided to combine it with incense as well as cook a roast. Fortunately, this case of overkill did not cost her the sale.

Finally, make sure that your home is photographed by a professional photographer. The difference between the amateur and professional can be stark in terms of photographic appeal. These guys see the angles, the light and the story behind each home more clearly than we could ever hope to do. That’s why we are always happy to let them do their job.

Happy hunting this Spring!

Jamie Harrington (Director, Altus Real Estate)

Next time you go to sell your home, treat it like you are selling any other good or service. Ask yourself the most important question that any business owner asks themselves: What sort of person will buy this home?

Consider what attracted you to the property in the first place; often the reasons are the same for the buyer. As you reflect, it’s good to picture them. Are they a young couple looking to enter the area? Or, are they an older couple looking to downsize who having sold their large home and are now looking for a property that is easy to manage, offers lifestyle features and is secure?

In this changing market pay particular attention to the unique features of your home. For example, someone with an extra large garage should target those with several cars, or those looking to set up a workshop from home.

Similarly, a huge backyard would have significant appeal to families who want a garden for their children to play in. It may suit animal lovers who may be willing to forego their expectations of the house to accommodate their pets or even a gardener whose love is the garden.

No matter what type of home that you area selling, there is a market for it.

If you want to sell your house in the quickest possible time frame it might pay to “think outside the square.”

Melanie Fear, Property Executive, Altus Real Estate

Eighty per cent of the properties on the market in the western suburbs are currently overpriced.

Why is this so? Owner expectation being “out of sync” with the market is the main reason. Owners base their ideas about the value of their home based on faulty or outdated information.

One of the common misconceptions that I encounter as an agent operating in the area is that for a property to have sold, the asking price must have been attained. This is often not the case – particularly in the present market. There are many examples where properties have sold for hundreds of thousands of dollars less than the asking price but the perception by the local home owners is that they sold for close to asking!

It is also a dangerous practice for a home owner to compare their property with what is currently on the market – particularly if the “comparables” have been on the market for some time.

The final reason that sellers have inflated ideas about current market value of their home is that patterns established 18 months to two years ago when the market was increasing dramatically are still being applied. From 2004 to 2007, prices rose by an average of over 20% annually in the western suburbs. Essentially, this growth meant that the price of people’s homes doubled in that period. Conversely, for the past six months the market has fallen by a figure of 10-15%; to factor in any growth at all for that period is a mistake that can leave a property sitting on the market for months.

The key point for owners is to decide what they are trying to achieve by selling their home. Homes that are perceived by the market to reflect true market value as opposed to an owner’s unrealistic expectation are likely to sell under the market average of approximately 60 days.

The market has shown that overprice properties will sit – and sit – and sit.

David Fear (Director – Director, Altus Real Estate)

It would be easy to get discouraged about the state of real estate in Western Australia.

For some months print media such as the West Australian and Sunday Times have reported very little positive news about the market. More recently, the electronic media such as Today Tonight have started to do the same.

It’s not all “doom and gloom” though – especially if the levelling of the market is viewed in context.

Between 2004 and the end of the 2007, the Western Australian real estate market experienced growth that was unrivalled in the country. For example, according to REIWA, the median price for a three bedroom home in Swanbourne in 2004 was $700,000. By the end of 2007 that figure was nearly 1.4 million dollars. Cottesloe, and Claremont experienced similar growth over the same period.

There were several reasons for this increase.

Firstly, real estate markets run in cycles and Western Australia was obviously in line to follow the trends that occurred in the eastern states at the turn of the century.

A second and more important force shaping the West Australian growth in those years lay in the increase in population owing to a natural influx of people from the eastern states who were attracted by the lifestyle and business opportunities here, as well as an increase in population emanating from the demand for resources in Asia, particularly China.

Despite these positives, it was inevitable that the Western Australian market would slow. As the Perth median price gradually increased to $475,000 in December last year, property became unaffordable for first home buyers. This fact, combined with an increase in the number of properties onto the market owing to a series of interest rate rises, took such a toll that by June this year, REIWA reported that the median price had fallen to $446,000.

Whether property will continue to fall is still debatable. Certainly, the fact that the Reserve Bank decided not increase interest rates again at the latest review (and is in line to lower them) should help matters. So too should the current downturn on the Australian Stock Exchange for it is rare for both real estate and share markets to be softening at the same time.

Perhaps the best hope of a speedy recovery lies in positive outlook for the West Australian economy. According to the ABC, 1000 people a week moved to Western Australia last year, including nearly 8% from the eastern states. Secondly, the demand for resources from Asia and the associated economic growth shows no signs of abating, suggesting that the attraction to Western Australia for many will continue into the future.

Exactly how soon the real estate market rights itself is difficult to say. What is clear is that the outlook is much brighter than the media might have us think.

Jamie Harrington (Director, Altus Real Estate)

If I have one rule for readying your home for the market it would be to declutter.

Buyers want to be able to see themselves in your home. Your "stuff" gets in the way of this process.

This is particularly true of personal items. They must go.

One final point on this matter. Just when you think that you have removed everything there is to remove - remove some more.

Happy selling!

Madeleine Jungstedt (Home Stylist, Altus Real Estate)

Since the advent of Google in 1996 the company has been at the forefront of innovation. They’ve done it again. The release of Google Street View recently made a big splash in the US. It’s set to do the same in Australia following its release on Tuesday.

From a real estate stand point, the new view has increased the level of service on offer to a potential property purchaser. Google Street View allows the potential purchaser to take a “virtual walk” from the front of the designated address. Using this tool, consumers can now not only gain a feel for the front of the property, but for the street and surrounding streets as well.

Like most industries, real estate has changed substantially as a result of the internet. Google Street View represents another component in that evolution.

Jamie Harrington (Director, Altus Real Estate)

We believe this is the first real estate blog in WA, and we'd like you to be aware of our 3 simple rules:

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We hope the ALTUS BLOG will become a source of ongoing interest, and keep you abreast of western suburbs real estate market related topics.

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Neil Mattingley

Client Relations
Altus Real Estate

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