Monday, November 30, 2009

How to Attract the Ideal Tenant

Most people looking to rent first look for a property in a great position. For tenants, that would mean a good aspect, close amenities, nearness to work, etc.

The next thing is a property with plenty of storage and a garage.

Following this is a property that’s clean and in good repair with a sympathetic property manager that listens to a tenant’s needs and forwards requests to the landlord. Every tenant wants a landlord that will maintain the property.

Another desire is for privacy, a reasonable rent and fair rent increases.

If a tenant encounters these things, then their next wish is to achieve a long-term tenancy. This translates into a property that will not be put onto the market for sale.

Even with the current shortage of rental properties, the best tenants always seem to have a choice of renting the properties they prefer, simply because property managers feel most comfortable recommending such clients to their landlords.

So if you are an investor who wants good, long-term tenants, then consider providing your tenant with what they want.

The key to the above is to invest in the right type of property in the right location. If you buy where there will always be strong demand fulfilling the above criteria, you will be the most likely to attract the ideal tenant.

If you have a property for rent and would like it to be professionally managed, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles at either Browns Plains 3800 4000, Marsden 3200 4495, Springwood 3808 5544 or Waterford 3299 7733.

Tuesday, November 24, 2009

The Difference between Median and Average Pricing

Real estate data can be quite daunting at times, but to make intelligent investment decisions, it pays to get a grasp of the numbers.

One misunderstood but often quoted statistic is the “median price”. You find it everywhere when housing values are discussed. The method of compilation involves sorting the prices for all the houses or apartments sold in a particular period, from highest to lowest, and then selecting the middle one as an indication of the characteristic price for the area.

But the median price is not the same as the average price. They are two different calculations. If seven properties sold for $180,000, $200,000, $205,000, $215,000, $230,000, $310,000, and $2,500,000 then the median price would be $215,000 and the average price $548,571. That’s quite a difference!

“Averaging produces a figure that isn’t necessarily an accurate representation of what’s going on because it only takes one or two very high or low sales to skew the result,” points out Enzo Raimondo, head of the REIV. “It’s also important to remember that a median price is based only on the properties that have been sold, not all the property that exists in the area.”

The median price of an area should not be used to assess the relative value of a property. Individual streets, for example, can have large variations from the surrounding neighbourhood.

If you have a question about real estate, or would like assistance in locating a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles at either Browns Plains 3800 4000, Marsden 3200 4495, Springwood 3808 5544 or Waterford 3299 7733.

Monday, November 16, 2009

Be Decisive When Selling

Selling a property is like running a business. You need to be decisive.

You are either in the market or you are out. Nothing will happen if you’re half-hearted in your attempt to sell.

Everyone has their reasons for selling. Know what your goals are and your timeline for accomplishing them. Make your agent your business partner. Advise him/her of your plans at the beginning of the sales process. This will help determine how you market the property and will even help shape the final terms of your sales contract.

Keeping your intentions secret from your agent will hinder their success rate. Sellers often get cold feet at the tail end of negotiations and the sale falls through. Don’t let this happen to you. You’ll only lose money and waste your time and theirs.

To help you be decisive it is a good idea to get an appraisal from a couple of local agents) second last paragraph. This will tell you the true state of the market in your locality. You can’t afford to be over-optimistic. You’ll set your price too high and it will sit on the market longer than necessary. In the end, it will sell for less than if you started at the right price.

Give your agent time as well to create interest in your property, and be prepared to listen to what the market is telling you.

If you have a question about real estate, or would like assistance in locating a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles at either Browns Plains 3800 4000, Marsden 3200 4495, Springwood 3808 5544 or Waterford 3299 7733.

Friday, November 6, 2009

How to Make An Offer

Making an offer on a property is a real art. How do you know if you are too high or too low? The first thing is to do your research to find out what the property is really worth.

Once you have determined the worth of the property, what then? In private treaty sales you first have to look at the vendor’s advertised price. You know that this is what they hope to achieve if everything works out for the best.

So now you have to decide on a first-offer price. Is there a rule of thumb on first offers? No. You can offer a ten-percent-discounted offer or even less, but always be leery of offending the buyer or their selling agent. Offending them is not a good idea, because they can walk away from the deal or get hardened in their stance.

So only offer a substantially lower offer if you really believe the property is worth substantially less.

Generally, it’s a good idea not to put your best offer first. There might be exceptions to even this rule if you’re trying to achieve a knock-out blow early on your competition, but, in general, if your offer is reasonable, you may get knocked back, but you can still make a counter offer.

The disadvantage of putting your best offer first is that you can feed the vendor’s expectations which, in turn, might encourage them to hold out for a better offer.

If you have a question about real estate, or would like assistance in locating a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles at either Browns Plains 3800 4000, Marsden 3200 4495, Springwood 3808 5544 or Waterford 3299 7733.

The 3 Keys To A Sale

Real estate agents generally agree that the three most important elements behind a successful sale are smart marketing, presentation and a realistic price. When the market is slow these pointers are even more important. Paying attention to the three keys will maximise your chances of getting the best price for your property.

It’s good to keep in mind that even when prices are down, there are always cashed up buyers looking for a bargain or to upgrade.

Another trend is the increasing savvy of buyers, probably due to the increasing use of the Internet.

The main complaint of agents is that too many homeowners still want 2007 prices for their homes and are failing to put enough energy and attention into presentation and marketing. Instead, vendors should be looking to make their properties sparkle.

No one knows whether the current activity is a sign of a genuine recovery, but agents seem to agree that there are cashed up buyers looking. The challenge seems to be getting enough listings to attract them back into the market.

Presentation is certainly key. It should be 100 per cent with photos being the best possible. Only shoot in good weather.

With marketing, nominate a price. Buyers like to know a price. Then be proactive with showing your property. Show before hours, after hours and maybe twice on the weekend.

If you have a question about real estate, or would like assistance in locating a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles at either Browns Plains 3800 4000, Marsden 3200 4495, Springwood 3808 5544 or Waterford 3299 7733.