Viewing by month: August 2012

Top seven tips for new agents

Starting out as a real estate agent can be a very challenging experience, and while the truism holds that hard work and experience often leads to success, it is equally importance to develop a knowledge-base and network through which you can build your clientele and professional reputation. 

The following seven tips may prove to be useful for agents starting out in the field:

1. Be realistic and set attainable goals: Write down what you would like to achieve each week, month and year, and then work towards implementing steps that will enable you to achieve such;

2. Develop your time management skills: Life as a real estate agent can be both busy and unpredictable and as such, the ability to plan, multitask and order competing priorities can become essential;

3. Take the time to develop a detailed understanding of your local market. This will entail gathering knowledge about your target market’s historical price trends, future development prospects, population demographics and local culture;

4. Begin building a referral network:  Whenever you secure a client, invest consistent time and effort into building your relationship with them so that they have a reason to refer you onto their family, friends and colleagues;

5. Think about different ways to connect buyers and sellers within your market; 

6. Don’t be afraid to seek advice from your colleagues:  most people don’t mind being asked questions and the best way for you to build your skills and expertise is to utilise the knowledge of the people around you;

7. Develop your presence at open houses: these situations can provide some wonderful prospecting opportunities.


2 comments | Posted by Reality Bytes - Real Estate Training Blog on 31/08/2012 at 12:00 AM | Categories:

Catering to the property needs of Australia’s ageing population

A report by the Australian Government’s Department of The Treasury entitled ‘Australia to 2050: future challenges’, estimates that by 2050 there will be 2.7 people of working age for every person over 65. To put this figure into perspective, today there are approximately five people working for every person who is of retirement age. This dramatic shift in the make-up of Australia’s population will unquestionably have some important impacts on residential property markets. As such, real estate agents will likely have to adapt their approaches to listing and selling. 

Australia’s new generation of retirees will consist mainly of ageing baby boomers, many of whom may seek to maintain or improve their current lifestyles. Given such, the following factors may become increasingly relevant for real estate agents:

Baby boomers may look to downsize on their current property to finance a particular type of lifestyle. As a result, it is possible that some retirees may become stubborn in demanding selling prices which do not meet market expectations;

Balancing an enjoyable retirement with access to necessary amenities will likely be a key consideration for new retirees looking to a property. Consequently, peri-urban suburbs and properties, which have traditionally been the realm of working families, may become an important market for ageing homebuyers; 

Baby boomers may look to utilise property investment as a strategy for obtaining extra income and cash flow;

Baby boomers, although experienced, are often receptive to professional advice. Focus on efficient and comprehensive communication to facilitate a property outcome that can deliver them a happy and secure retirement.


0 comments | Posted by Reality Bytes - Real Estate Training Blog on 22/08/2012 at 12:00 AM | Categories:

Tight market conditions can create opportunities

As rents rise due to increasing demand, the real estate world may become increasingly difficult for existing and prospective tenants. In fact, recent data released by RP Data-Rismark revealed that rental prices have increased by 3.3 per cent across all capital cities in the first seven months of 2012 – a trend that if continued, will likely see some tenants reconsidering their housing options.

The substantial yields that can result from a tight rental market may also be attractive to investors, who may want to make use of favourable market conditions. 

In the long term, increased rental demand could lead to further government concessions and stimulus measures within the property market and surrounding industries. We have recently seen the impact that government initiatives can have on property development, with building approvals rising by 27 per cent in May off the back of various grants and tax incentives.

How State and Federal governments choose to address housing supply issues will ultimately impact on the amount and types of properties that come onto the market. Given such, all agents should make a conscious effort to keep up-to-date with developments in government housing schemes and incentives, and illuminate the implications of such to their vendors, purchasers and tenants.


0 comments | Posted by Reality Bytes - Real Estate Training Blog on 15/08/2012 at 3:17 PM | Categories:

Tips for managing listing extensions

“Why didn’t the house sell?” This question will invariably be asked by any vendor who reaches the end of a listing contract with their real estate agent. Often the answer will come down to subdued market conditions, ineffective marketing or excessive price expectations on the part of the buyer or seller.

 

It is therefore important for agents to understand how to answer the question in a way that demonstrates their understanding of why the initial selling approach failed, and to offer a clear and attainable strategy for selling the property at a reasonable price in the future.

 

The following tips may prove useful for agents looking to secure listing extensions:

 

·         A vendor may have initially insisted on a selling price above market value for their property. In such a case it is important to reinforce realistic price expectations, and help the vendor to see that their initial price may have hampered their ability to sell. Be honest, tactful and sensitive, and the vendor will be more likely to stick with you;

·         Demonstrate that your marketing techniques were comprehensive and played no part in the property’s failure to sell (provided this is true, of course). Provide examples of the mediums that were used for advertising, and explain which of these were most effective in generating responses. If the property’s failure to sell is attributable to a misguided marketing strategy on your part, endeavour to show the vendor how your marketing strategy moving forward is rectified or improved;

·         Compile detailed feedback from all of the buyers who showed interest in the property. Emphasise the benefits and features that drew interest, but also illuminate what needs to change in order to spark a conversion;

·         Be proactive and undertake a comparative market analysis to establish a reduced sales price with the vendor. Demonstrate and reinforce that the property is capable of selling if the vendor’s price expectations are moderated according to the market;

·         Always be honest and sincere.


0 comments | Posted by Reality Bytes - Real Estate Training Blog on 10/08/2012 at 11:23 AM | Categories:

Using stats effectively can make you a better practitioner

Any good real estate practitioner must be able to inform vendors and purchasers about what they can expect from the property market, and many agents will seek to equip themselves with the requisite knowledge by gathering data from a multiplicity of different sources.

Despite such, some agents may feel at the mercy of the stats man; whether figures are positive or negative they invariably have the ability to impact on market sentiment, and therefore whether people choose to buy or sell.

Given such, some agents might find themselves ignoring statistics and focusing only on the fundamentals of real estate: confining each listing and selling according to isolated market conditions. Nonetheless, a holistic assessment of market statistics is always the best approach.

Truly proficient agents will gather market-relevant data from a wide range of local, national and global sources to identify and illuminate market trends, potential growth areas and “hot spots” for their prospects and clients. At the same time they will use statistics to shed light on the advantages, disadvantages and dangers of buying and selling at any given time.

Learning to use statistics effectively can ultimately help you to become a more proactive and well informed real estate practitioner, enabling you to find opportunities in any market situation and cultivate a reputation as a smarter, bolder and faster agent. 


0 comments | Posted by Reality Bytes - Real Estate Training Blog on 01/08/2012 at 8:46 AM | Categories: