The emotional drivers behind property purchases.

By Angelo Lambropoulos

I stumbled across a magazine article this morning, titled, “Property Investors are only Human.” The article talks about the ‘interesting new research behind the emotional drivers of property purchases.‘ There is certainly nothing ‘new’ about emotional drivers, simply because history proves us otherwise – Sigmund Freud, Austrian neurologist was the founder psychoanalysis in the late 1800’s – early 1900’s.

Without getting to technical, there is one fundamental concept that you all must remember, emotion is far more powerful than logic. The fact that buyers shop with their hearts (unconscious state of mind) is certainly NOT a new concept. Home-sellers, this is exactly why presentation and ambiance is paramount… study your five senses. Belief’ sells, NOT sales scripts!!!

I have attached a video to this post by Simon Sinek, author of ‘Start With Why’. This is a great psychological breakdown on human behaviour. Are you ready for the truth?

SimonSinek

How to sell without agents.

bgJenmanTopBy Neil Jenman www.jenman.com.au

Consumers are conditioned to believe that buying or selling real estate is difficult. For years we have been told we need agents. But, in most cases, this is not true. In most cases, we do not need agents.

Research shows that nine out of ten consumers do not trust agents. And yet more than nine out of ten of us choose agents to sell our homes. Our greatest asset entrusted to people we don’t trust.

Typically, when selling with agents, thousands of home owners endure one of the worst experiences of their lives. And then, when their homes are sold – usually for less than they expected – these owners are forced to pay thousand of dollars.

The average commission on the average home sale is now around $10,000 – plus expenses. It hurts.

But it doesn’t have to be this way. It is easy to sell without an agent. Much easier than most people imagine. And not only can homesellers save thousands in commission, there is another huge advantage of selling without using a typical agent – a higher price.

If you have ever met an agent and thought you could do a better job yourself, you are right. There is little that the typical agent does that you could not do yourself.

Think about it. What does a typical agent do?

First, the agent places ads in the papers (and usually expects you to pay for these ads). Well, you could do that yourself, placing an ad is not hard.

Second, the agent sits at your home and waits for buyers to show up. You can do that too. You can do a better job because you know your property better than the agent. Most agents can’t answer the most basic questions about the properties they are supposed to be selling.

And, as for the so-called “selling” of the home, what do most agents do? They don’t “sell” homes. The homes sell themselves. Most agents are order-takers. The buyers show up, tell the agent that they want to buy the home and then the agent tells the owner (often urging the owner to lower the price, but rarely offering to lower their commission). And that’s it.

The agent then pockets $10,000 for doing nothing that the sellers could not do themselves.

Sure, some agents do a good job. And yes, perhaps they are worth their fees. But they should only be paid after they have done a good job – never before. And if they don’t do a good job, they should never be paid.

However, because sellers must sign contracts with agents before their homes are sold, the agents get paid no matter what sort of job they do. It’s absurd.

The majority of agents charge far too much for doing far too little. By avoiding these agents, most sellers could save thousands of dollars in commissions, get a better price and avoid terrible trauma.

Just ask any honest agent and they will tell you – yes, in most cases, sellers could do it themselves. And pay zero commission.

It’s time for the real estate industry to stop conditioning consumers into believing that agents are always needed. The truth is that, many times, homes can be sold without agents – and often for a better result, both in price and satisfaction.

Sydney – Market Analysis

hotspottingryder
Figures for the September Quarter gave Sydney a 4.2% quarterly rise in its median house price and an 11.7% increase over the 12 months to 30 September. APM also recorded a 10.2% annual rise in Sydney’s median unit price. Regional towns and cities have been doing well in 2013 also.

A report by Deloitte Access Economics says Asia’s impact on Australia is changing in ways that play to NSW’s economic strengths. Five key sectors – tourism, international education, wealth management, gas and agribusiness – are forecast to grow 10% more quickly than the global economy over the next 20 years. Each of these sectors is bigger in NSW than in any other state or territory, making the next phase of the Asia boom a
perfect fit for the premier state. NSW is “ready for take off”, Deloitte Access Economics says.

A recent study by Deep End Services shows 25,000 apartments are in the development pipeline in inner
Sydney, in 131 projects or stages of projects – 11,000 of these are already under construction. The owner of the Star casino has unveiled a $1.1 billion redevelopment proposal for its Pyrmont site, featuring two new hotels, a rooftop waterpark and luxury villas, in a bid to trump James Packer’s plans for a resort across the water at Barangaroo.

Residex chief executive John Edwards. Sydney house prices were up 7.4% over the 12 months to June, with a median house price of $715,000. Growing consumer confidence in NSW is driving the beginnings of a housing recovery.

The final piece of the duplicated Hume Highway has officially been opened more than 25 years after it was due to be finished. The Holbrook bypass is a 9.5-kilometre stretch of dual carriageway acting as the final link between Sydney and Melbourne. South Coast motorists will be among the winners in State Budget with $200 million allocated to fixing the Princes Highway.

Detailed plans for the WestConnex motorway will be unveiled in weeks, with Tony Abbott’s election victory delivering a swift $1.5 billion funding boost for the project. Costings released by the Coalition show funding for the 33km motorway has been ”accelerated”, with $250 million of federal money to be paid by June 2014 to the State Government.

The City of Sydney has approved plans to build a large aquatic centre – with multiple pools, a cafe and creche – at Green Square, near Zetland. More than $440 million will be spent building roads, parks and the aquatic centre at Green Square, a major development that is expected to be home to 40,000 residents by 2030.

A 4km tunnel from Strathfield to Ashfield and a widened M4 motorway will be the first segment built of the State Government’s WestConnex motorway. This part of the motorway will cost up to $4 billion. Motorists will pay a toll to use it but the amount has not yet been specified. The tunnel will run under Parramatta Road from the start of the existing M4 at Strathfield to near Wattle Street at Ashfield, where it will have to connect to the City West Link and the eastern section of Parramatta Road to the city.

China’s Greenland Group is advancing plans to build a $600 million complex comprising Sydney’s tallest apartment tower and a boutique hotel on the city’s former Water Board site. Greenland Group has applied to Sydney council to undertake site works.

Office towers in the western corridor of the Sydney CBD are coming to market as developers look to buy them for conversion to apartments. Owners of some assets are also looking to capitalise on the strong residential, with $80 million worth of towers to be offered for sale.

Stockland is planning a $900 million residential estate at Marsden Park in Sydney’s north-west, in a joint venture with Winten Property Group. They are hoping to build 2,300 homes on 163ha. The development is part of a rezoning push in Marsden Park the State Government hopes will eventually see 10,300 homes added to Sydney’s residential market.

High-rise towers up to 40 storeys tall and a town square as big as Martin Place would be built at Haymarket. It comes despite calls from the City of Sydney for one tower to be deleted because the buildings are too close together and would overshadow the street, block views and create a “wind tunnel” effect.

James Packer has vowed to make his $1.4 billion Barangaroo high-rollers’ resort “the best thing I’ve ever built” after winning his battle over The Star to secure a second Sydney casino licence. Packer’s Crown Ltd expects to deliver to the State Government $1.4 billion in tax revenue. Crown is expected to lure tourism dollars, pump $442 million a year into the state economy by 2025 and employ 1,250 people.

Mirvac Group has laid out an aggressive pipeline for its apartments business as it seeks to capitalise on demand for units. Mirvac will shortly release the next stage of its 1,250-dwelling Harold Park in the Sydney inner-west suburb of Glebe. Work on the first two precincts is well under way. Mirvac, in joint venture with UrbanGrowth NSW, is also moving ahead with plans to develop 2,000 apartments at Green Square.

Grocon and leaseholder Markham Corporation have lodged fresh plans with the State Government to redevelop the Sydney IMAX Retail and Entertainment Complex at Darling Harbour into a $500 million-plus complex. The proposed tower has been touted as a potential home for Google, though a leasing deal is yet to be signed.

There are plans for a 48-storey residential tower in the Sydney CBD. This latest tower comes as at least seven new residential projects are slated across the city, from the 60-storey Greenland proposal on the site of the former Sydney Water Board at 115 Bathurst Street to the former Coca-Cola Amatil 19-storey tower in the heart of Circular Quay.

The problem of Agents in Negotiations.

1367734637‘When you are planning to buy or sell a house, your agent will undoubtedly tell you that he/she is working in your best interests? But when we look at the situation objectively, it becomes clear that the agent is the third party in the transaction, one whose interests do not perfectly match those of the principal (the buyer or seller).’ 

‘If consumers understand that their advisers and agents have a conflict of interest, they can take the steps necessary to protect themselves.’ 

‘Most people sign a disclosure form and then never again consider the actual conflict of interest between buyer and agent. Instead, they truly believe that their agent is providing objective advice. Research suggests that disclosure could actually increase the problems that result from conflicts of interest. Advisers would have been more honest, and clients would have been more cautious, if there had been no disclosure.’

‘Try to solicit advice and expertise from people who do not have a stake in the outcome and who do not profit from manipulating your behaviour or decisions.’

‘Instead of taking his/her “expert opinion” at face value, try to discover what objective criteria or procedure they employed before making claims. He/she may trust their “intuition”, but there is no reason you should.’

Tips for Refinancing your loan.

The Hills Shire Timesunnamed

1. Ask your lender to help you understand refinancing thoroughly before you begin.

2. Analyse why you want to refinance. This will differ if you are a couple, single or group.

3. Examine your current loan – e.g. extra features, costs and fees associated. Consider whatever equity you may have.

4. Ensure you are set on refinancing before before you start applying for new products. Ensure you have missed no payments and compile a list of debt for the new lender.

5. Current rules under the National Consumer Credit Protection Act require lenders to inquire about your situation. Consider life changes – e.g. starting a family and have your paperwork in order.

6. Try to negotiate with your current lender first before you change.

7. While exit fees are no longer allowed, it pays off to be aware of any costs incurred in changing lenders.

8. Know the upfront costs of getting a new loan as what seems attractive may have hidden expenses in the long term.

9. Be wary of refinancing to include home and investment properties under one mortgage as there might be tax implications. Speak to your accountant first.

Freakonomics

Freakonomics

An analysis of the language used in real-estate ads shows that certain words are powerfully correlated with the final sale price of the house. This doesn’t necessarily mean that labeling a house “well maintained” causes it to sell for less than an equivalent house. It does, however, indicate that when a real estate agent labels a house “well maintained”, they be subtly encouraging a buyer to bid low.

Listed below are 10 terms commonly used in real-estate ads. 5 of them have a strong positive correlation to the ultimate sale price, and 5 of them have a strong negative correlation Guess which are which:

Fantastic – Granite – Spacious – State of the Art – ! – Corian – Charming – Maple – Great neighbourhood – Gourmet.

(Yep, you guessed it… The bold words have a positive correlation).