Marketing Programme. John Smith 1 Smith Street, Smithton. For the successful completion of your. Prepared By Craig Bellgrove

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2 Submission especially prepared for John Smith 1 Smith Street, Smithton For the successful completion of your Marketing Programme Prepared By Craig Bellgrove Fruit Property Level 1, 60 Liverpool Street Phone Hobart Tasmania 7000 Fax GPO Box 271 craigbellgrove@fruitproperty.com Hobart Tasmania

3 Consultative Selling What is it? There is an old guard and a new guard in the real estate industry. The old guard treats sellers as though they do not know anything and the less they know the better it is for the agent. They don t want to know why you are selling or what you think, instead they tell you what to do, without consideration to the type of market you are in or even your particular circumstances. They don t care! Consultative listing property consultants care a lot about what it is you are trying to achieve. They will spend time with you ascertaining the reason why you are selling, what your time frames are, and what goals you hope to achieve. They will tailor a marketing program specifically for your budget and circumstances. There are variables throughout the sales process, so it is important to be involved from the beginning. Consultative property consultants work with you, not at you.

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5 Make the right choices! There are now dozens of different ways to market your home and the agents out there are all vying for your business... What do you do? We ve asked hundreds of sellers what was important to them. We found that there were six key areas of concern: 1. Choose the right property consultant 2. Set the right price 3. Identify the target market 4. Select the right marketing tools 5. Commission 6. Level of service Remember: It s your home, so you should choose how you sell it!

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7 Choose the right property consultant! The best property consultant is one who listens to your situation and then designs a sales and marketing strategy, taking into account all the options available in modern real estate practice. Never list with a property consultant who does not appear to have all the options available! These property consultants will advise one selling method only it usually involves less work and a faster commission for them! Customer focused companies will ask you what sort of property consultant you would like to work with. Use that, if you already know someone in that company perhaps a trusted property consultant you have used before then go back to them. You must be comfortable with your property consultant, because selling your home can be an emotional roller coaster! Your property consultant becomes your guide The professional, experienced property consultant will cover all the rules in this booklet: There is a checklist in this booklet you can use. The right property consultant will cover all of the points on this list. Having read this booklet, check off the points on the list and if your property consultant gets a tick on all (that s right all of these points). Have confidence and list with them. Choose a successful property consultant who: Can devise a winning strategy Has every resource available to maximise your price and sell in the quickest possible time.

8 Set the right price! Set the right price The property consultant that says the only way to get a high price is to, start high and then come down, this is DANGEROUS! High demand creates a sellers market. Low demand creates a buyers market. We know that the properties that sell, are those that are priced closest (research shows within 5%) to their estimated market value. If you are serious about selling, you must establish the present market value. Your property consultant will do this by using comparable sales in the area (or you can get a registered valuation). Keep your asking price close to the estimated market value. The biggest mistake we see every day... is that you let emotion take you away from the logic of the market! It is emotion that causes sellers to have an asking price too high above the estimated market value. This costs sellers millions of dollars and a lot of time in the sales process. Moving to Double Bay Emotions Building Divorce More than 5% above The market value is too high Selling Zone Market Value Time

9 Set the right price! Let s just try $50,000 more, it can t hurt...can it? If it s too hard or impossible to get the information you need, or the market is rising fast, then you must consider an auction programme. This will ensure you maximise the price. Remember, the guideline is 5% above the estimated value! We know that buyers respond to value not asking price. If you have ever bought a home, you will remember how quickly you became an expert in areas you were interested in buying in. If a buyer sees value, they will pay the price! If buyers see a home overpriced, they vote with their feet, and walk away. That home then becomes stale on the market and is harder to sell. The initial marketing period can be the most important. Priced here misses buyer By the time you drop, the activity has gone activity / price Time (days)

10 Set the right price! Think about it The initial marketing period is when the best buyers are likely to come through the property. Buyers are out there waiting for their dream home to hit the market, so they re ready to go when it does! We now know that if the price is too high, buyers will say, no. They are more likely to move on to other houses, than even try and make an offer. If you are in doubt about the evidence the property consultant is presenting, invest in an independent registered valuation.

11 What about taking the price off altogether? In some markets, it is entirely appropriate that you allow the buyers to come in with their own prices to start the ball rolling. If you believe that buyers dismiss houses because of the price, then it follows that by taking the price off the home, buyers focus on the house and whether it suits their needs. Once they establish that it is the house for them (without the distraction of price), they are emotionally there! They set about working out how they can own it. A property consultant who cannot discuss this or dismisses it off hand, simply does not understand the market.

12 Myth / Truth? Myth 1 If you put your home on the market at a realistic value, buyers will automatically offer you much less to beat you down. The Truth If buyers see value at asking price they will pay it! The research is clear. A property consultant that says, The way to get a high price is to start high and come down! is DANGEROUS! They can cost you both time and money. Myth 2 Not many homes sell at full asking price. The Truth The research shows that homes do sell for the asking price. There are thousand of examples every month in which the asking price (or higher) is achieved. You do not have to over compensate to allow for low offers! The key is to get as close as you can to the market price from the outset. Myth 3 Buyers at auctions would have paid more if they were not an auction. The Truth It is simply human nature, having made the largest purchase of your life, to want to feel good about it. Of course we say, I would have paid more... of course we love to tell people about the bargain we got, but amazingly, the average sale in most areas, stays the same each month, or tracks up or down with the market by a very small amount. The real estate market is bigger than any of us it simply responds to supply and demand.

13 Don t let emotion ruin your chances of a successful sale! Be objective as you can! The facts: Market appraisal Comparable sales presented by the property consultant Registered valuation The type of market you are selling in The number of inspections Buyer feedback Response to adverts Offers made It is a combination of all these points, not just one, that will paint the picture of where your property sits in the current market place. Emotions: We are moving to Double Bay and need all the money we can get A divorce means that we are splitting the proceeds We are building do you know how expensive that is? But we have spent $50,000 on this place in the last 6 months These personal and emotional situations mean nothing to buyers, because buyers simply compare your home with others on the market and very quickly decide if it is good value or not. Do not let emotion take you more than 5% above the market value indicated, as this will cost you time and money.

14 No one marketing strategy will work in all these circumstances! The Different Markets A buyers market Fewer buyers out in the market Larger numbers of homes on the market Prices appear stable to you For sale signs everywhere Average time to sell is longer Offers harder to come by A balanced market Buyers and homes available Prices may be stable in some areas and not much movement in others Some sign up Offers will come with good marketing Sellers market Lots of buyers Fewer homes for sale Prices may be moving Fewer For Sale signs Average time to sell is shorter Offers may be received day 1 or 2

15 Different seller! Seller 1 Not in any hurry Will sell if price is right No deadlines Don t need to attack the market Seller 2 Would rather like to sell but not on a schedule Would stay where they are but prefer to be somewhere else Example: Downsizing. Seller 3 Need to sell in the near future House is totally impractical Aiming to sell as soon as possible but no deadlines Seller 4 Have to sell now Have purchased another home, or are transferring and want to buy elsewhere. Other circumstances may dictate home must be sold. Example: Moving cities, brought a better home unconditionally, estates, divorce.

16 Different buyers in the market! Buyer 1 These people do not even know they want to move yet Until they see the home they have always wanted for sale They see it in an advert and buy it Won t call a property consultant Buyer 2 Will move if they saw another home that suits needs better May visit open homes Rather not call a property consultant 1000 s of sales like this every year Buyer 3 Have made inquiries to property consultants Know what they want and will buy it when it comes up Visits open homes and keep contact No deadlines though May take 1 to 2 years to move May take till next weekend Buyer 4 These buyers have to buy Sold their home transferred Current home totally impractical Most have dates when they must purchase by Example: Sold in Melbourne, arrived in Brisbane with family

17 Different marketing strategies available! Strategy 1 No advertising. Just listed on the books and buyers brought through Any property consultant can do this for you. ANY PROPERTY CONSULTANT! Strategy 2 Some marketing at low levels Sign, tiny adverts Signals low level intensity selling Strategy 3 Serious about selling Some marketing investment to attract buyers sooner or to create competition No deadlines Strategy 4 Must sell now! Total package Marketing and deadline make a decision based on all offers Get decision by deadlines Auction best of these This requires a professional A professional property consultant knows its your home, your money, your choice.

18 Attract the buyers Buyers follow houses! They do not stay loyal to one property consultant no matter what. Imagine that you ve been out all day with one property consultant, and you haven t seen anything you like... Then, in the paper that night, you see an advertisement for a house that sounds perfect, but it s not with the property consultant you have been favouring. Can you imagine saying to yourself, We can t look at the one? probably not. Remember the easiest thing for any property consultant to do is sign you up, bring their favourite buyer around (the one they ve been working with for the last 3 weeks), and then use tough negotiation tactics on you to work your price down to get a sale. If that doesn t work, then there is nothing in place to go to the market with... This is where we see most marketing campaigns going very wrong! It will usually cost you time and money. Warning: Beware the property consultant who says they have the buyers and marketing is not required. Property consultants that tell you not to advertise in the open market, are often trying to get a quick sale with a buyer they ve been working closely with. You must find out if there are other buyers in the market for your property. The idea of good marketing is to create potential competition. Since you are paying the bill, this is a must! You deserve the choice. There are many ways to market your property to attract new buyers. A professional property consultant will use any or all of the agency s resources to do what s right for you!

19 Two reasons homes don t sell! Price and Marketing Any property consultant can take a listing for a long period of time, do no marketing, bring their favourite buyer around, then move on to the next house... No Marketing, no open days. Locked into a contract with no marketing plan! The only thing you can change in this situation is the price. These companies give awards for taking listings on one hand, and then give further awards for Significant Price Reductions! You have no option for marketing and now you are stuck with a company that has a self confessed, low results rate... Easy for the property consultant, but not for you - you pay the price! You must establish a marketing plan and attack the market place! Throw the net out wide, and reach all the potential buyers. The more you invest in marketing, the more buyers you reach. In consultation with your property consultant, work out the best strategy to attack the current market.

20 Select the right marketing This requires a property consultant who totally understands the marketplace and the existing options to both maximise the sale price and shorten the sale time. It also requires that the vendor trusts the logic of the property consultant s presentation How will it help me achieve my goals? The best way to achieve this is auction. It takes more time, more effort and more energy on the part of the property consultant. This is why most property consultants can only handle a small number of auctions at any one time. But these property consultants know that: Auctions reach more buyers Auctions attract buyers in any market It brings the market to a head You can set deadlines Buyers make decisions to those deadlines As a strategy, you get it all: tender, auction and exclusive representation Auction has a strike rate of 93% Auctions require a property consultant who totally understands the dynamics of the market, and who has the strategic knowledge you need. List with the property consultant that understand the auction process!

21 Open days work! Why? Relaxed, casual discussion can take place. Both partners can be together. Buyers can stay and inspect without you there. Any professional property consultant knows that a buyer will not walk into a room when you are there. Without you there, they can get a sense of ownership! If there are other buyers there, they will feel some competitive pressure... someone else may get it before us! Buyers who are only thinking about buying at this stage, may not ring an property consultant, but just come along to the open day. Every year, hundreds of homes sell to these sorts of buyers. You want them all!! Is there a crime problem at open houses? The police have no statistics on any thefts linked to open days! If you re unsure about security, check with your property consultant. Your property consultant should be able to organise the open days as part of the marketing programme... if they can t don t list with them! The market is constantly moving new buyers are always coming on the scene. To be sure of receiving the highest offer, throw the net out as wide as you can!

22 Pay the right commission Yes, of course you don t want to pay heaps of commission! Our advice is not to sacrifice the strategy that will achieve your goals, to save a few dollars of commission. You should take a holistic view of the commission. A property consultant who can do everything we are talking about should not be the cheapest. One free advertisement or no advertising at all and a low commission will not do the job. A low commission but lousy service just won t cut it! A low commission displays a lack of negotiation skills when it comes to sitting down and selling your home! You have to see what the property consultant can do for you then judge the selling fees. Beware the property consultant that leads with the idea that they are the cheapest! These people are only passing through the industry they simply do not have the skills you need. This booklet has shown you the complexity of the real estate market place, a property consultant that can only list by offering a low fee may have neither the confidence nor the skills to help you achieve your goals.

23 Negotiating the sale! Property consultants that suggest one way only (i.e. no marketing, no open days) have access to a limited number of buyers. They have a self confessed low rate of success. Do not let these property consultants become buyers consultants. Buyer consultants end up working for the buyer. You are paying the commission. These property consultants are supposed to be working for you. When is enough enough? When deciding whether or not to accept an offer, take the following into account: What type of market you are in buyers, sellers or balanced? How long you have been for sale? What marketing has been done to attract buyers? How many buyers have been through? What is their feedback? How much higher than the indicated market value has your asking price been? What offers have been before the current one? Is there a valuation and what is it? How does all of this relate to the offer in front of you now?

24 Demand the right service Use this checklist to tick off the essential ingredients for an effective marketing presentation. Has the property consultant: Explained the market you are selling in? Suggested a price, backed up by factual evidence that you can understand? Given you a choice on how you can market your home and explained the reasons for particular methods to be used in your market? Supplied a total schedule of where any marketing money is to be spent? Examples of advertising that will be used? Explained what part of the advertising money will be returned if the property sells quickly? Provided a list of the property consultant s or agency s track record to date? Provided a list (in writing) of things to be done on the home to improve saleability? Demonstrated the ability to write down what you would like noted about the property? (Marketing Assistance Form.) Provided a name of someone you can call (other than the property consultants) if things go wrong, or if you have concerns? Provided references from others who have sold through this property consultant or agency?

25 Consultative selling! Where sellers are consulted and given a choice! If this sound good to you, call Fruit Property. A Fruit Property team member will put you in touch with an property consultant in your area who understands all of this.