RealEstateNews - Drummond Real Estate

R E A L
E S T A T E
RealEstateNews
INFORMATION TO HELP YOU WHEN BUYING OR SELLING | Issue 50 |
EXPENSIVE WEB ADVERTISING DRIVES
OFF MARKET TRANSACTIONS
In this
Issue:
Peter O’Malley - Author of Real Estate Uncovered
page 1
Expensive web advertising
drives off market
transactions.
page 2
Expensive web advertising
drives off market
transactions.
Letter from the Editor
Why Settle for Less?
page 3
The Market is
what the Market is!
Careers Webinar
September
page 4
Testimonials
Real Estate Careers
Real estate agents across the country are
increasingly moving toward off market
transactions. An off market transaction is
defined as one where the agent only markets
the property to their database and known
buyers rather than listing on prominent media
websites.
Given the sophistication of industry Customer
Relationship Managers (CRMs), it is plausible
that an estate agent can expose a property
to the vast majority of active buyers in the
market. But these CRMs have existed for
quite some time. Whilst they facilitate the
effectiveness in off market sales, they are not
the cause of the recent spike in transactions.
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Off market transactions have spiked because
agents and consumers are looking to avoid
the high cost of real estate websites. Start
up companies that were started in a garage
less than 20 years ago are now billion
dollar companies on the back of real estate
advertising. The price that agents and home
sellers have been asked to pay for a web
listing has increased nearly every year for the
past 2 decades.
Agents happily went along with the price
increases because they simply passed the
increase onto the vendor. Now, the vendor
does not want to pay!
Continues page 2
Available 7 Days |(02) 6041 5755 | www.drummondrealestate.com.au
Expensive web advertising drives off
market transactions
“
Continued from page 1
Agents happily
went along with the price
increases because they
simply passed the increase
onto the vendor.
does not want
to pay!
“
Now, the vendor
LETTER
FROM
EDITOR
Thanks for reading this issue of our Real
Estate News.
The world we live in today is changing so
rapidly it’s hard to keep pace. Recently
we all saw the launch of Pokémon Go, a
mobile phone game. What’s that got to do
with Real Estate? Well it’s an illustration of
Augmented Reality – where the real world
meets the digital world. It makes virtual
reality old technology. We as agents and
you as possible buyers and sellers of real
estate need to begin to understand how
these changes may affect how real estate
transactions are carried out in the future.
There is no need for expensive print media
or for that matter digital media campaigns.
Buyers and sellers of real estate conduct
their research on the internet (most likely on
a handheld device – a mobile phone). Every
property that is available for sale, defined by
your search criteria – area, price, number of
bedrooms, etc. is displayed. None get lost
nor does the history of a property disappear
if it has been on the market for a long time.
The digital “footprint” is there for all to see.
That makes the main article in this issue
a particularly interesting read. If you are
thinking of selling, call us for a more in
depth discussion. If you are buying then
let us show you how we can make it easier
for you to buy – call or email us to join our
Buyers Club.
Kind regards
Peter Drummond
and the team at Drummond Real Estate
We are now at a stage where the market
is beginning to reach a price resistance
point. Private sale companies promising
to save the consumer commission
flank agents to the left whilst excessive
advertising fees flank them to the right.
The real estate agent is being squeezed
by a cheaper competitor on one side
and an unjustified expense on the other.
Agents need to innovate to survive.
Agents that have signed lengthy
contracts committing to put every listing
as an upgraded prestige or premiere
listing are feeling the price pressure
the most. Consumers inherently know
that you don’t need to spend $5000
or $10,000 on web advertising to find
buyers. Particularly in a boom.
The vast majority of the money spent
on web promotion is about building
the agents profile or brand. There is
absolutely no research to suggest that
home buyers respond more favourably
to a property because it is or isn’t a
large expensive advertisement.
Home buyers buy homes not real estate
advertisements. Sellers are well advised
to keep this in mind.
If an agent asks you to fork out huge
amounts of money on an expensive
web campaign, tell them you want to
sell your home not buy advertising.
If the agent passionately believes in the
product, they can pay.
It is this push back from consumers
that is inadvertently driving off market
transactions.
The consumer refuses to pay for
expensive web ads and increasingly,
so too are the agents. And off market
transactions are increasingly becoming
the happy medium between agent and
consumer.
It is understandable that consumers will
need to weigh up the potential benefit
of listing on the open market vs trading
off market.
Agents are increasingly building real
and perceived benefits into their pitch
when it comes to off market selling.
The consumer needs to ascertain
whether the agent is simply looking to
avoid the excessive advertising costs
they have committed too.
Why settle
for less?
This FREE booklet shows you
how to get the
Highest Price for your property.
Get the Highest Price for Your Property
shows you how to present your property for sale and gives you tips on
how to select, and work with, a real estate agent.
Whether you are an experienced property seller or a novice,
this book could make you THOUSANDS of dollars.
For some great ideas on how to select a great negotiator, call Drummond
Real Estate on 02 6041 5755 for a complimentary copy of the seller booklet,
How To Get the HIGHEST PRICE For Your Property.
THE MARKET IS
WHAT THE
MARKET IS!
BY PAUL KOUNNAS
When selling what is probably
your most valuable asset, the
family home, it should come as
no surprise that presentation
plays a vital role. The person
responsible for the presentation
of your home is you, just as
the agent is responsible for the
marketing and negotiation.
When your home presents better than
others it will appeal to more buyers and
will increase your chances of selling
quickly and at a better price.
Buying a home is an emotional process
and the feel of a home is usually more
important than the price. Therefore
first impressions can create permanent
opinions and feelings about the home,
so for the best results set a positive
mood for prospective buyers. You want
buyers to fall in love with your property,
so give it that loved look and feel.
Neither you nor the agent control the
market. The market is what the market
is. But you can control the presentation
of your home and your agent can
control the marketing and negotiate
the best price for you. This can mean
thousands of dollars in or out of your
pocket. A good agent will persuade
buyers to inspect your property and to
Once you have presented your home
as best you can, you then must select
a competent agent, one you can trust
to market and negotiate on your behalf.
The final price you receive will then be
the best available market price.
buy it in preference to other properties
on the market.
Don’t allow the state of the market to
affect your plans either. Some people
put their plans on hold waiting for a
better market.
But when you are selling and buying at
the same time it makes little difference
what the market is doing. In a down
market you may sell for less but you
can also buy for less. If you wait for the
market to improve in order to sell for
more you will also be paying more when
you buy.
Don’t waste your life waiting for a better
market, make the move to where you
want to be living and get on with your
life today.
REAL ESTATE SALES CAREER A career of a lifetime
FREE
CAREERS
WEBINAR
Tuesday 6 September, 2016
at 7-8 pm AEDT (9-10 pm NZ)
If you have ever thought
about changing your career,
real estate sales might be
perfect for you.
Successful real estate salespeople come
from diverse backgrounds – migrants,
mature women returning to paid work
after raising their children, nurses, ex-truck
drivers, tradies, solicitors, bankers, people
in their teens (beginning as trainees)
through to their seventies… you’d be
amazed to see who ‘makes it’.
To register visit
Find out what a real estate career could
do for you. Register for the free onehour Real Estate Careers Webinar on
Tuesday the 6th of September.
Registration is simple and you can enjoy
the webinar from any platform, from Smart
Phone to PC.
We will answer all your questions and
give you a good feel for this exciting,
rewarding career.
pittard.com.au/webinar
Testimonials
“
Drummond’s knowledge of the local market and their
individual assessment of each property swayed us not
to go with other agents, their valuation of our home
took into account its character and was higher than
others, who seemed just to compare previous sales
in our area with no regard to the uniqueness of our
property.
We were surprised that within six weeks an offer was
made at exactly the valuation.
We cannot thank Christina enough for keeping us up to
date at all times, and her totally professional approach.
A special thank you to Andy who completed the sale
and all the Drummond staff who we would recommend
to anybody selling or buying a home.
Graeme & Glenda Young | 0408 697 788
Sellers, Vallombrosa Street, East Albury
“
“
“
The team at Drummond Real Estate in Albury are
the best. We have dealt with a lot of other real estate
agents in the past. Can’t beat their service and
attention to detail. Matt is very efficient, excellent
customer service. Will definitely come back to Matt.
S & K Burgess Property | 0423 529 779
Purchasers, Waugh Road, North Albury
“
I was happy with Drummond Real Estate because
after all they got me $10,000 more than any other real
estate agent said my house was worth. Josh Kibble and
Nathan Berry were friendly and explained everything in
detail that they were doing to get the best price for my
home. If you want the best price, go with Drummond
Real Estate.
Rosemary Richter | 0438 242 566
Seller, Chapple Street, Wodonga
“
“
Selling our home (not house) was an emotional
experience. At all times Drummond Real Estate gave us
professional service, in particular Andrew Richardson
the salesman who was looking after us, he was always
available, keeping us informed/updated. We are totally
satisfied with the service given, selling our home within
four weeks, bringing only genuine buyers through. We
can highly recommend Drummond Real Estate to others
who are considering selling their home. Thank You!
Kevin & Maureen Beattie | 0404 841 438
Sellers, Hume Street, Howlong
Have you ever thought to yourself
“I’d be good in real estate”, yet
worried about how you might cope
with working ‘commission only’,
or perhaps feared how others may
perceive you?
We have on offer a Real Estate Career
with a real difference.
A career to be proud of.
You will receive full training, a base
salary package of $85,000 plus
generous commissions.
On top of this, we provide a genuine
team environment, ensuring your
R E A L
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“
enjoyment and success. The more
you succeed, the more our clients
benefit.
What we’re looking for is someone
with a burning desire to succeed.
You must be honest, hardworking,
mature minded and enthusiastic. If
these attributes describe you, then
real estate may be your career.
If this sounds like the opportunity
you’ve been looking for send
an email with your resume
and a covering letter to
Peter Drummond,
[email protected]
Available 7 Days |  (02) 6041 5755 | www.drummondrealestate.com.au
588 Stanley Street, Albury | email: [email protected]
Disclaimer: It is not intended that the information and opinions in this newsletter be treated as advice professional or otherwise. Peter Drummond and Drummond Real Estate do not
accept any form of liability, be it contractual, tortious or otherwise, for the contents of this newsletter or for any consequences arising from its use or any reliance placed upon it. The
information, opinions and advice contained in this newsletter are of a general nature only and may not be applicable or appropriate to your specific circumstances. As there are many
pitfalls associated with buying and selling real estate it is important to get professional independent advice.