Beware Low Commission Companies
I sell a lot of property around the Banksia Grove and Wanneroo area. Recently I have started to notice an increase in the number of low commission or discount real estate companies. They come into an area advertising heavily that they can sell your property for a very cheap fee (some as low as $5,000!). Just be aware that a lot of times these companies have numerous extra costs to those fees. So for example they might advertise a selling fee of $6,000 but then they will charge $200 for every home open and charge you for the final inspection. Once you start adding up these fees it can get very expensive.
The other thing to factor in is what marketing plan they are providing for this discounted fee. In a lot of cases there marketing plan will not be strong as the other companies. For example i can get you on 19 different Internet real estate websites, 6 Major shopping centre locations and have 2 exclusive buyer matching systems. If these other companies cannot offer you this then you will not be getting extra exposure to buyers and hence this will reduce your overall sales price.
Also you should factor in the experience that the sales consultant has. Some of them discount because they are new and do not have the same level of experience and skills as other agents.
So overall i am not saying you should not sell your property with these companies just that you should be aware of what they are offering in relation to other agents and make sure you are comparing agents on the overall package they can offer not just on who has the lowest commission.
Free Market Appraisals
Thinking of selling or just want to know what your property is worth?
Then why not give me a call. I can prepare a complimentary market appraisal for you providing you with update to information on the Perth property market and an accurate price for your property in today’s market.
Give me a call on 9405 1999 or 0407 772 475 to organise. Or alternatively email me
Real Estate Agents Attack ‘Green’ Slug for Homeowners
Real estate agents want the Federal Government to abandon plans for a carbon price on every home sold amid claims it could add $1,000 to selling or renting a property. The Government has proposed that every property has to have a rating for water, energy and greenhouse gas efficiency. The move is suppose to alert buyers about the property and encourage more energy efficient house designs. However the real estate industry fears this will be another cost that sellers and landlords have to pay and that buyers do not really care that much about the results.
MY VIEW:
While i agree that we should be becoming more ‘green’ i am not sure that this is the way to go especially if it is going to cost that much money. However if cheaper options are available then i have no issues with the incentive.
Perth Stock Levels Fall But Sales Still Soft
The number of properties for sale in Perth has fallen to under 15,000 which is an 18% drop from the years peak of 18,2000 in mid April. Most of this has come from a 20% reduction in properties for sale. According to preliminary REIWA figures sales volume has increased 1% in September which is at least a step in the right direction.
Negative Gearing Unfair?
According to some economists negative gearing is an unfair complexity in the tax system that allows people to pay less tax and adds nothing to the housing supply. $4.5 billion a year is lost every year in negative gearing allow more people to borrow more and hence pay more interest. This not affect the housing supply as 90% of people who negatively gear purchase established properties rather than new ones.
Negative gearing effectively allows more to purchase property and hence creates more competition amongst property buyers and hence creates an upward pressure on prices. There are calls from people to either have it banned or limited to lower incomes earners or only those who new properties.
What do you think?
