Back2005
Security – A Serious Issue 30/12/05
As experienced professional real estate agents we are very aware of the awesome responsibility we have when an owner hands over their keys for us to sell their property. First of all those keys must be kept locked securely in our office and the reference for them kept separately to the keys. Our system with keys means that if anyone finds them, they cannot identify the address of the property.
When we hold an Open for Inspection or take potential buyers through we are always diligent about locking your home securely. As an added security measure we at Century 21 Franzen have two agents present at all Open For Inspections. This is because it is very difficult for one agent to keep a close eye on everything when there are several groups of people viewing at the same time. First, it really makes a difference having two sets of eyes watching over your precious possessions, especially if your property is two storey or large. Second, having two agents help if a prospective buyer needs individual attention, wants to discuss the property in depth, or start negotiations.
Having worked with the two agent policy at Open For Inspections for some time now I certainly would not feel comfortable if I was required to conduct Open For Inspections alone. Of course apart from keeping your property itself secure it is of the utmost importance that your agent takes the issue of security seriously. So it is a good idea to discuss Open For Inspection arrangements with your agent. Finally can I wish everyone a safe, secure and happy New Year.
Until next week…………….God
Bless
Carlene Franzen
Licensed Agent/Auctioneer
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Advertising Dollars – Don’t Waste Them! 12/12/05
Advertising is essential to let buyers know your property is for sale. For 80% of our potential buyers the internet is the first port of call. This makes sense as 75% of our buyers in the past year have been from out of town. This is why Century 21 Franzen posts all its properties on six major internet sites that people can readily access both nationally and internationally. As well our unique 360 degree virtual tours attract a lot of interest and positive feedback as they allow buyers to see your property as if they were actually there. Most agents will expect you to contribute to the cost of advertising your property. If your agent doesn’t ask you to contribute its likely their commission on the sale may be higher and their quality of advertising lower. At Century 21 Franzen we have a commitment to high quality advertising. Just look at the local paper or the agents’ internet site and compare the different quality of the marketing. The timing for advertising is important. Our experience over the last 15 years in real estate in this local area is that the influx of visitors between Christmas and New Year are focusing on friends and festivities and not purchasing real estate. We find potential buyers start looking in earnest from mid January onwards. By all means definitely advertise over Christmas and New Year but don’t be trapped into huge advertising budgets as you will not get a lot of return on them at this time. So the key message is work with your agent to make sure you maximise the impact of your advertising dollars.
Until next week…………….God
Bless
Carlene Franzen
Licensed Agent/Auctioneer
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In the current market where purchasers are taking their time to compare properties for sale before making a decision, improvements that aren’t obvious may not only add dollars to the price of your home, but also determine a purchaser’s choice in favour of your property. In a very active market, purchasers often make decisions based only on a quick analysis of the major features of the home; they don’t always have time to pay attention to detail because they are likely to lose the property to a buyer who is prepared to move faster. When the market slows down, however, they have a lot more time to be fussy about even the smallest details in the effort to ensure they are making a good buy.
Invisible improvements can include things like insulation, sound-proofing, plumbing and electrical work, soil improvements and so on. Purchasers often use this kind of information to help them confirm the soundness of their choice; the quality of the maintenance and attention to detail makes them feel comfortable and secure in the knowledge that their choice is a sound one.
Most agents will prompt vendors to tell them about the improvements they have made over the years, but it is a good idea to have a list ready for the agent’s very first visit, in case you forget something. It also helps the agent to accurately appraise the value of the property in the first place.
Until next week…………….God
Bless
Carlene Franzen
Licensed Agent/Auctioneer
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The Real Estate Industry is one that is highly regulated to protect consumers. Pricing is one of the areas that is carefully monitored. The Property, Stock and Business Agents Act requires that all advertising material accurately describes the property concerned and that the information provided complies with the requirements of the relevant agency agreement and with the Act and Regulations.
In respect to the marketing of property, estate agents should be mindful of particular risks associated with advertising auctions. When quoting prices to potential purchasers in respect to auctions, agents must be conscious of the fact that they cannot quote a price lower than what they have quoted as to their reasonable selling opinion in the agency agreement. When advertising properties by way of private treaty, the agent or sales person must follow their vendor’s instructions as to the price at which the property is to be marketed, however, care should be taken that where, in a situation where a price range is indicated, the range is not excessive and is reasonable in all the circumstances.
When a range has been placed in an advertisement and an offer has been made within that range by a prospective purchaser which, once communicated to the vendor has been rejected then in these circumstances, any future advertising must be amended to increase the sale price as shown in the advertisement to be higher than the rejected offer.
Until next week…………….God
Bless
Carlene Franzen
Licensed Agent/Auctioneer
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I would like to cover the comments made by Aussie Home Loans managing director John Symond in the Telegraph and on Business Sunday over the weekend. For those who are thinking of selling or have their houses on the market the headlines “Home loan giant warns of property price plunge” must have been frightening.
We all know the prices have dropped some 10, 20 even 30% in some cases over the past two years but as John Symond said “prices over the last four years have gone up as much as 100% - more in some cases”. Most commentators agree that this was such a fast growth that it had to come down. This is not a new phenomenon in the real estate market. That’s what the market has always been about. The prices go up and the prices come down. If you look at a graph of real estate prices since records have been taken that’s exactly what it does over a short period but over a longer period real estate always goes up steadily. In my opinion, John Symond’s advice on Business Sunday that Australians should get out of property investment markets on the eastern sea-board, particularly in Sydney and that families should sell investment properties, was not justified. According to a recent article in the Sydney Morning Herald, my view is shared by a range of experts in the real estate industry, including a rival lender, a leading economist and the president of the Real Estate Institute.
In our little bit of paradise we have seen prices fall – everybody knows that. We are also now seeing properties that are on the market at realistic prices selling within a reasonable time frame. At the moment several of our properties are now under offer which is encouraging. These are properties which have been put on the market at reasonable prices and not at inflated prices. People who are serious about selling their properties are also prepared to adjust their price to meet market demand. If you purchased your property two to four years ago there is no point in expecting a 100% increase. You simply won’t get it.
The wise person in real estate will buy in a low market and sell in a high market. That is how a profit is made. It is logical that if you bought when the market was booming and you are selling now, you are not going to make a huge profit. But it is an interesting exercise to actually work out on average how much a property has increased in value over a number of years. Time and again the figures show that real estate comes up as a profitable long term investment. I would say if you were to buy an investment property now, and why not because the market has come down, I suggest looking at around 5 years. Sure, the property market might bounce back and you might decide to sell before then.
But if you are selling in today’s market, my advice is to ‘listen’ to what potential buyers are saying. If you are only getting low offers, or none at all, then the market is telling you to adjust your price to a realistic level. An experienced and professional real estate agent plays a key role in advising you on this. Keep the lines of communication open and you are much more likely to achieve a sale.
Until next week…………….God
Bless
Carlene Franzen
Licensed Agent/Auctioneer
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Real Estate Agents, like other professions, tend to speak their own jargon and just expect everyone to understand. A listing is a property for sale. A new listing, one would think, is a listing that has just come on the market. It is being advertised for the first time, or times. I personally view a listing to be new for the first three to four weeks. That gives it time to be advertised by way of the internet, data base marketing, signs and newspaper. A new listing can bring and hopefully will bring a flurry of activity in the first few weeks if it is marketed well and priced at what the market will accept. This is why the words “new listing” are very positive marketing words. Active Prospective Purchasers are pretty savvy when it comes to keeping track of new listings and Active Agents are likewise pretty astute in keeping track of Active Purchasers. The aim is to sell properties in this “new listing” phase.
The first question Prospective Buyers ask either by email, phone or at an open for inspection is how long has this property been on the market for?
Prospective Buyers ask this question so they can get a history of the property. If the property has been on the market for some months and started off at a certain price and has reduced its asking price is important information to pass on to the prospective purchaser. Often the prospective purchaser will want to know why a property hasn’t sold if it has been on the market for a long time. It may be because of the price or it may be simply because of the property having unique qualities and that special unique purchaser hasn’t seen it as yet.
Prospective Buyers find it off putting when they read the words “New Listing” on a property that has actually been on the market for several months or even years. Often the seller has only changed agents and the property has actually been on the market all the time with another agent or several other agents. This is misleading and in my opinion should be discouraged. I am often asked to market a property that has been previously marketed by another agent. When this happens I do not use the words “new listing”. If I am asked by prospective purchasers how long such a property has been on the market for I explain that I have just taken over the listing from another agent and even though it’s new on our books it has been on the market with another agent. This way there is no confusion.
Trust + Honesty + Truth = Ethics in business and every consumer has the right to expect just that.
Until next week…………….God
Bless
Carlene Franzen
Licensed Agent/Auctioneer
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Time for an Appraisal 31/10/05
The decision has been made to get an agent to inspect your property to give you an idea of what it is worth in today’s market. People sometimes get a little confused and think they need a valuation when, in fact, they need an ‘appraisal’.
An appraisal is when a real estate agent expresses an opinion about a reasonable asking sale price for a property. This is based on their experience in and knowledge of the local market, including recent sale prices for similar properties in the area. Most agents do not charge for an appraisal, so if they make out they are doing you a big favour for free, they are not.
A valuation is a different thing to an appraisal. A real estate agent is not a registered valuer and it is an offence for any other person, other than a registered valuer, to carry on the business of valuing. A valuation is for a specific purpose, for instance if you apply to the bank for financing or re-financing, or if you are going through a divorce settlement, you will need to get a valuation and this must be carried out by a registered valuer.
When you ask an agent to do an appraisal you should not only share ‘good’ information about your property – such as new carpets, central heating, and recent renovations to the kitchen and bathroom. You also need to pass on any ‘bad’ information to the agent – for example, if you have a leaky shower or drainage problems. The more information you can give to the agent the better, and the more likely you are to get an accurate estimate of what your property is worth.
Getting an honest appraisal is an important start to the selling process and one that I never take lightly. Please feel free to contact me at Century 21 Franzen if you would like to know more about appraisals.
Until next week…………….God
Bless
Carlene Franzen
Licensed Agent/Auctioneer
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If you want to know something ask a local 24/10/05
It certainly is so important to choose the right real estate agent to help you sell your home. Let’s go back to basics without the high tech stuff and websites for the moment. There was an interesting report in the Business Review Weekly earlier this year where Australian consumers were asked to rank what was important when choosing a company for service. This wasn’t just Real Estate Agents – it was all business. Trust – being able to trust someone ranked as number one. It didn’t matter if they were the biggest or had the most products – it was Trust that came up as number one. So just how do you know who to trust? There is an old saying “If you want to know something ask a local” So start off by asking the locals. Ask your neighbours and friends if they had ever sold a house and what agent helped them and perhaps more importantly who didn’t help them. Go to your local Supermarket – when you are at the check out who has got a trustworthy reputation. Go to your Newsagency and pick up a local paper. Look through the guide. I’m a great believer in putting our Century 21 Team photos in our advertising – it means people who don’t know us already can see what we look like. Does the agent look friendly and trustworthy or do they look “shonky?” I know that comment is very subjective however it all helps in the decision.
Open up the Yellow Pages. Do they advertise well or are they stuck in a small corner or square with no imagination. If they care about their own advertising it is an indication they will care about your advertising. Look in your local Real Estate Agents windows – are they clean bright and modern or are they full of faded old photos. Phone an agent up – assess how they answer the phone. Are they polite and professional? Are they helpful or sound as if you are just another number. If you get the feeling you are just another number don’t go any further. Ask them questions – see how they answer. Ask do they know your area. Tell them where your house is – a knowledgeable, experienced agent should know exactly where you are. In the past 16 years as a local agent I’ve come to know the area really well. In fact I’ve sold many properties more than once. So how do you find an agent? Basically my advice is check out the agent in as many ways as you can before you make the decision on who to sign up with to sell your property.
Until next week…………….God
Bless
Carlene Franzen
Licensed Agent/Auctioneer
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Exciting news this week with the Franzen Tips. I am now going to be chatting each Thursday on 2EC radio with May Perno at 11:30 am. Feel free to email any questions that you wish to have discussed to franzen@century21.com.au and we will put them to air. Having said that lets talk now about the decision to sell your property. The decision to sell may be for a variety of reasons. For some it may be a happy occasion of being in a position to move forward to a better home or a better location. For others it may not be so happy.
The reason to sell may be due to ill health, family break up, or financial. This can cause much sadness and stress even before your home goes on the market. Before you decide to put your house up for sale really look at why you are doing it, your expectations and your time frame. It is one of the largest decisions a person can make. I suggest you talk it over with your friends and family before rushing in and making a decision.
If you wish to have professional advice from an agent at this stage do call one in but don’t be pushed into committing yourself if you haven’t 100% made up your mind. Choose a local agent who knows the area and has a reputation for being caring and understanding not one who is a bully type. This is where I am very proud to run a local family business – one that is caring and understanding. I as an agent would much prefer you don’t put your home on the market until you are really ready. I sometimes work with owners of properties for several months or even years going through the process until they really do feel that 100% comfortable with their decision.
Until next week…………….God
Bless
Carlene Franzen
Licensed Agent/Auctioneer
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Price the property is to be offered for sale 10/10/05
Your agreement for sale with your agent provides for a price at which your property is to be offered for sale. The agent is required to specify a price of price range as his or her opinion as to the estimated selling price for the property. This price is also used for the estimate for the agent’s commission based on the estimated sales price. It is very important for agents to ensure that they make reasonable estimates which are supported by evidence based on current market values along with a number of comparable sales of like properties in that area. The agent must now record and place this information in your file. They are required to substantiate the estimated figure that they have made and must not make false representations to a seller or a prospective buyer. Agents must not falsely under estimate or over estimate the price of a property. A statement of the selling price in the agency agreement is taken to be a reflection of the agent’s true estimate of the selling price. False representations may be made orally or in writing, for example, when stating a price at an open house to prospective buyers, or in advertising material or brochure. If they price is changed this must be recorded in writing by the seller to the agent and kept in the file. I hope that you have found this helpful and if you have any questions please do not hesitate to contact me.
Until next week…………….God
Bless
Carlene Franzen
Licensed Agent/Auctioneer
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Inclusions and Exclusions 3/10/05
When deciding to sell your property you will be required to inform your agent what is to be included or excluded in the sale. All fixtures, that is, items that are fixed to the property, are included in a sale of the property unless specifically excluded. They are part of the land and title that passes with the land. Obvious examples are light fittings and built in wardrobes. To ensure certainty, twelve of the most common items which may be regarded as fixtures are listed:
1. Blinds
2. Light fittings
3. Curtains
4. Pool equipment
5. Insect screens
6. Clothes line
7. Stove
8. Fixed floor coverings
9. Built in wardrobes
10. Range
hood
11.
Dishwasher
12. TV antenna
Usually your real estate agent will inform your solicitor or conveyancer of these items to be marked on your contract when this is prepared. There is also a space marked “other” on the contract so that additional fixtures may be noted there. Where a fixture is excluded from the sale such, such as a favourite light fitting, this should be clearly marked as an exclusion to avoid any dispute. Prior to signing your contract ensure that the inclusions and exclusions are correct.
Until next week…………….God
Bless
Carlene Franzen
Licensed Agent/Auctioneer
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Do You Own An Investment Property? 26/09/05
Two days at the Best Practice Property Management conference in Sydney with some of Australia’s and New Zealand’s top Property Managers has reinforced just how important this arm of our real estate business is. A large percentage of the properties in our area are investment properties. A number of baby boomers are buying now in preparation for the next few years when they retire. These property owners are wanting their properties managed. They want agents to not just collect the rent but to manage their property so that it increases in value and they have a valuable asset waiting for them when they do retire. Such properties are more often than not the property owner’s largest single investment. It is where their life savings has been invested. It is so important that as Real Estate Agents if we manage property then we keep up with training and trends so that we are truly specialists in this field.
As a result of technology Property Management has changed so much over the last few years. Gone are the days of paying rent in cash over the counter to the agent. Rents are now direct debited into the bank accounts by way of direct deposit or by email. Digital photography allows for condition reports to be an accurate assessment of the condition of the property upon letting and vacating. Condition reports are no longer being hand written. They are now produced on Pocket Personal Computers. Statements are being emailed to Property Owners who wish them to be. Communication to Property Owners and Tenants is not only by telephone and mail but also by way of email and SMS. Property Management is a role for those who are enthusiastic, communicative, technologically saavy and for those who know what they are doing. It is a profession and career on its own merits. One to be proud of.
Until next week…………….God
Bless
Carlene Franzen
Licensed Agent/Auctioneer
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The process for “Shopping” for a new home is not much different than shopping for groceries, clothes, and so on. The first thing you do is make sure you have money available to spend. A lot of homebuyers go about the process backwards. They spend so much time going to open houses, looking at Real Estate ads, searching the net and asking real estate agents questions. These people tend to become very knowledgeable about the market and what is a good buy and what isn’t. Many of them even find their perfect home and make an offer to purchase it subject to finance. Then the shopping spree continues, this time for a loan. For some it’s frustrating because they can’t get a loan because they don’t have the assets or income to back them up. The smart buyer of today shops for the loan first and knows exactly how much they can afford. It is at this time they can confidently shop for properties within their price bracket and make that offer stick. The golden rule is to know how much you can borrow before you take a serious look. Knowing that you can borrow a certain amount is a powerful negotiating tool. A seller feels much more comfortable negotiating with a buyer who has the money ready to go. My advice is if you are thinking about purchasing get a loan commitment first, then find your dream home. It can save a lot of disappointment and heartache.
Until next week…………….God
Bless
Carlene Franzen
Licensed Agent/Auctioneer
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Agent's responsibilities? 5/09/05
Before contemplating the sale of residential property every Real Estate Agent and Real Estate Salesperson should be reminded of their Common Law responsibilities to their Principals. They are as follows:
1. To comply with instructions, perform in terms of the Agreement and act within authority.
2. To act personally and only delegate if authorized.
3. To act in their Principals’ interest.
4. To make full disclosure of any personal interest.
5. To make no secret profit, gain or commission.
6. To exercise due care, skill and diligence.
7. To look after their Principals’ property (including money) as if it were their own.
8. To keep their Principals’ money separate from their own.
9. To keep separate accounts of their transactions and promptly account for moneys received.
10. To preserve confidentiality of any information that they acquire as a result of the Agency Agreement and, when dealing with third parties.
11. To act in a fair and reasonable manner.
12. To refrain from exaggeration, deception or misleading conduct.
If you, as a Principal of a property for sale, have any questions about the above please do not hesitate to contact us.
Until next week…………….God
Bless
Carlene Franzen
Licensed Agent/Auctioneer
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If you have any questions regarding Real Estate you would like answered contact me on carlene.franzen@century21.com.au or phone 4471 2283.
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