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As property owners or investors, there will be a time when you look at selling your property. One of the key decisions you will have to make is how are you going to sell? Generally, there are 3 main ways of selling: Selling it yourself - manage your own marketing and sales process. Engage an agent on a non-exclusive listing. Engage an agent on an exclusive listing. Unless you are familiar with marking your own property and the entire sales process, engaging an agent to do it help sell your property is probably the only way to go. Finding the right real estate agent is tough. As such, time-poor sellers wanting to engage a good agent, are turning to the services of a vendor advocate to help them source and engage a good agent. You can do it either way, but each has its pros and cons. Here are the key advantages and disadvantages of exclusive vs non-exclusive listings, to help you understand and decide which method of sale is best for sellers. Non-Exclusive (Open) Listing A non-exclusive listing agreement means the responsibility of selling your property is distributed across multiple agents. When the property sells, commission is only paid to the agent who brought in the buyer. Advantages of open listing Creates competition between agents, and heightens the urgency to sell in theory. This is good for properties which are in demand, and which have to be sold in the quickest time. More agents equates to more potential buyers. In theory, each agent and agency will have their own list of potential buyers. However, we all know buyers search across ALL agencies in the area. So, the same buyer will more likely than not, be in touch with all, if not most agents and agencies in the region. AND, there are more serious consequences, which may not be obvious to you. We will cover that in the section below. You are not committed to using only one agent. You can part ways with no further obligations. You are free to market the property yourself as well. And many times, you have to do that, as we will explain below. If you find the buyer on your own, you don’t pay commission to any of the agents. Disadvantages of open listing: Remember, the key advantage of a non-exclusive listing is to allow you to create a competition amongst the agents to sell your property faster. Each agent is, therefore, eager to bring a buyer to you, as you would commonly expect. Now, remember, also, the same buyer will be talking to a few agents in the area. So, two things can happen: You might not get the price you want. Let's assume the best case scenario where the buyer is only interested in your property, out of the hundreds in the market. And if they become aware that your property is being sold by a few agents, a savvy property buyer will be talking to all of these agents. What is likely going to persuade them to buy from an agent instead of the other? PRICE. The lower the price, the easier it is to sell. Yes, you have just created a selling competition, with each agent bidding against each other to find a price (usually lower) that the buyer is willing to pay. High risk of NO marketing from the agents. Consider the second scenario where the buyer is open to considering other similar properties. What would a smart selling agent do? They would usually use an open listing to lure the customer towards their exclusive listings. When this happens, the open listing is usually being painted as the 'lesser' property, so that the buyer will be persuaded to purchase one of their exclusive listings. Why would they do that? They know, their commission is tied to how the selling price. An open listing usually leads to a lower selling price, as there is risk that the buyer will purchase from another agent who can offer a better price. So, rather than actively marketing your property, the smart agent would encourage the buyer to look at one of his exclusive listings, as there is no risk that they would lose the commission. As mentioned above, because agents know you can part ways anytime, with no obligations, they are unlikely to actively market your property. They are also unlikely to recommend your property, knowing the buyers can (and they usually will) approach another agent who is prepared to work against them. I.E, as cruel as it may sound, you are in charge of marketing the property yourself which can be a very difficult task, especially during a down market or if the property is not in demand. Potential purchasers may interpret having multiple agents as a sign your property is difficult to sell, implying there is something wrong with it, or it’s overpriced. It is not unheard of, for agents to prioritise their exclusive listings over the open ones (for reasons mentioned above). This means your property will be on the market for much longer, and in turn this may drive the price down. Not a good idea for a property that is not in demand in the first place. Exclusive Listing An exclusive listing is whereby you grant a single agent and agency the right to sell your property. The real estate agent represents the vendor for the sale, and will work in the vendor’s best interests to get the best price possible for the property. A signed agreement will set out the length of time the agent has to sell the property – 30 days, 90 days, six months or one year - after which the agreement usually rolls into a non-exclusive arrangement, or you can cancel their services with no charge. Advantages of an Exclusive Listing You build a relationship with your agent. Your agent will be someone you trust and they will be working for you, rather than for the purchaser. Working with one agent is much simpler and easier, as there’s only one person to discuss details with. You form a relationship with them, and you will be in constant contact. The agent will be open about how many people came through the property, whether any offers were presented, and whether an offer should be considered. Remember, the agent wants to get a better price for you, not a price the buyer is willing to pay, just to close the deal. The agent will put more resources into marketing, managing and selling the property. The agent is guaranteed their commission, so will prioritise the sale of your property. And it is in their interest that your property is sold at the highest possible price. The agent will go above and beyond to help ensure your property is ready for sale. This could mean they recommend ways to ensure the property is presented in the best possible form, and could mean recommending having slight touch ups, bringing in experts to help stage the property, to furnish and decorate the property. It’s likely you’ll get a higher sale price as the agent is more eager works for you, and will be trying to find the best price, rather than the quickest price to close the deal. The buyer is also unable to shop between agents who are willing to negotiate the best price for them (yes, for the negotiating the best price for the buyer, not for you, the vendor). You have more control over the sale, as your agent is working with you, not against you. Disadvantages of an Exclusive Listing When there is a down turn in the market it can be much harder for one agent to find potential buyers willing to pay high prices. This is also an advantage, as you do not have multiple agents trying to give the same buyer a better price for your property. Sometimes there can be long periods of time without offers, if the property is not in demand, and the productivity of your agent can come into question. If you find down the track you do not like your agent and wish to switch, you’ll usually have to wait until the agreed exclusivity expires to change agents without incurring a fee. You might still be liable for fees, if subsequent agents introduce the same buyer to you. In summary, an exclusive listing allows the agents to work harder for you, not the buyer, as buyers are unable to shop across multiple agents. Exclusive agents are also more willing to put in more work to find the right buyer and the right price, and will not be concerned with just making a quick sale. As buyer's agents working for the buyers, we know which type of listings we would target. Now you know. 😉 If you are planning to sell your property, get in touch to find out more about our vendor advocacy service, whereby we help you select the best agent to sell your property, at not cost to you.

As Melbourne starts to relax its strict stage 4 COVID-19 restrictions, the Melbourne property market has, once again, seen a surge in buying interest. This is not unexpected, given that the Melbourne property market has just emerged from its forced 3 month hibernation. What does this mean for the Melbourne property market? How will this impact the Melbourne property market? What should you do, if you are looking to get into the property market? Savvy property hunters were buying throughout the lockdown. Should you have bought? Is it too late for you? The story so far Just like any other states in Australia, Melbourne property market sprung back to life after the General Elections in 2019. Buying interest was strong, and house prices grew. Unfortunately, COVID-19 got into Australia, and the spikes in COVID-19 infection numbers triggered lockdowns across most parts of Australia. Melbourne wasn't spared. If anything, Melbourne was one of the worst hit cities, and we suffered 2 lockdowns. Real estate inspections were banned in the second lockdown, and the real estate market was put on induced coma for 10 weeks, to limit people movements. Sales were, however, still possible. But with most buyers not willing to buy any properties without physically seeing and touching them, there isn't a lot of property transactions in the 2.5 months. Only a handful of properties were transacted, and we are pleased to acknowledge that one of our clients managed to secure an investment at 20% under market value, through our property buying service. A savings of close to $200,000! Melbourne Property Wrap-up Jul-Sep 2020 If you recall our July 2020 update, we've predicted a rather stagnant property market in the July-Sep 2020 quarter. When doom-sayers and so-called market experts predicted a fall of 40-60% in Melbourne, we've forecasted a price fluctuation of between a window of (+/- 2-3%). We were laughed at, and ridiculed. But we trusted our market analytics, and stood by our forecast. The verdict is out. Have a look at the the infographics released by Corelogic in Oct 2020 above. Prices in Melbourne over the quarter, fell 3.3%. Our forecast were almost spot-on. It was 0.3% off, not 10 or 20 times off the mark. What's going to happen in the Melbourne Property Market for the rest of 2020? The property market outlook for Oct-Dec 2020. The property market outlook for Oct-Dec 2020 is going to be exciting. And exciting is an understatement. It can probably be described as "EXPLOSIVE" in some market segments. We're forecasting a potential 10% surge in house prices in some areas. And up to 20% in some segments of the market. Why so? Oct-Dec 2020 is the traditional real estate buying season in Melbourne (and most parts of Australia, really). Pent-up demand from the strict lockdown. Finance-ready buyers, especially first home buyers who had been locked out of the market during the lockdown, are rushing into the market. Low stock. Seriously low stock level. Many home vendors had been holding off selling their properties, in anticipation of the 40% drop in prices which never happened. Low Stock, Strong Demand. The supply and demand has tilted strongly in favour of sellers. Since the restrictions were relaxed 2 weeks ago, we're seeing buyers willing to pay $100k-200k over the price guidance for good properties. The FOMO (Fear of Missing Out) monster is definitely coming back into the market. This, combined with first home buyers rushing to take advantage of the various first home buyer incentives, such as first home owners grant, first home loan deposit scheme, and the home builders grants, for first home buyers, meant that new or newish properties priced within reach of first home buyers will be snapped up pretty quickly. We've already seen properties being snapped up, at over 20% more than the price guide. These are properties which we have told our clients to "stop chasing". However, the same cannot be said for some segments. Prices in working class suburbs are not likely to enjoy such growth. They are likely to enjoy a much smaller grow in prices of around 3%. What is a good deal in the Melbourne property market? What are the good areas to buy into? It depends on what you are buying, where you are buying and why you are buying. There are some good areas, and some better areas to buy into. Have a chat with us, to discuss your personal situation.

** Almost fully sold! Limited units left. ** Great location, situated right in the middle of Rowville, near shops and supermarkets. This 4 bedroom, 3 ensuite, 2 car garage townhouse is a dream to purchase. It's a great deal, in a suburb where 4 bed townhouses are going for $800k. At this price, this won't last too long. Other configurations: 3 bed 2 bath 2 car - $640k 2 bed 2 bath 2 car - $590k Get in touch to find out more.

Did you know renting can be more expensive than buying? Yes, here in Melbourne, there are suburbs where mortgage repayments are less than your monthly rent. And some are in prime blue chip or inner city areas, such as Southbank, Windsor, Carlton, Toorak, Prahran. Have a chat with us, to find out more. Do remember, if you were to buy, you'll need to factor in purchase costs such as conveyancing, building and pest inspections, and the annual council and body corporate rates, insurance, etc. But you do enjoy the equity appreciation when property prices go up. Is it a right time to buy? Yes. Prices in Melbourne have stopped falling, and in some instances, have risen. Auction clearance rates are well over 70%, stocks are reducing. And with a triple bonus of low interest rates, relaxed lending, tax refunds, prices will only trend up in the coming months. But there are still bargains around metropolitan Melbourne. We regularly list selected discounted properties in our blog : Property of the week Cheaper to buy than rent

If you've been following our blog and posts, we've been telling every to jump in before it's too late for over a month. With the surprise Coalition win in the elections, the rate cuts and the proposed banking relaxation, it's not surprising that competition has heated up. You don't have to feel edged out. Your best strategy is to get a professional property buyer to work for you. We're offering special, discounted fees for the first home buyers. Our full service package will work with you to identify your goals, and put together a plan for you, help you find and buy the property. Have a chat with us urgently. The competition is only going to get tougher, if you wait. https://www.domain.com.au/news/first-home-buyers-report-increased-competition-after-apra-signalling-change-and-rba-rate-cut-846579/

With the 2018-2019tax submission due in 4 months, here are something to watch out for, when filing your tax returns. As usual, be wary of what you can and cannot claim. A good accountant would keep you out of trouble. https://www.domain.com.au/advice/heres-what-the-ato-is-cracking-down-on-this-year-849528/

Some good comments from Mark Bouris. https://www.news.com.au/finance/mark-bouris-the-big-problem-with-australias-struggling-housing-property-market/news-story/93c30a9863a7f0641ba687e13f675fa5

At almost 74%, the Melbourne property market is finally recovering. This is the 4th straight rise since the Federal Elections. Speaking with some buyers it is clear that with the Capital Gains Tax changes off the cards, the easing of lending and 2 consecutive rate cuts, confidence is finally returning to the property market. Investors with foreign funds are also flocking back into the market, taking advantage of the weak Australian Dollar. Stocks are also being reduced, as vendors alwho are inno urgency to sell pull their property off the market, while they wait for the market to rise. Rise it will, if the current trend continues. If you are preparing to get into the property market, have a chat with us. Claim your free property consultation today! https://www.businessinsider.com.au/property-auctions-are-selling-at-rates-not-seen-in-more-than-12-months-as-sydney-and-melbourne-recovery-continues-2019-7

Ok. If you've been following our blogs here and in Facebook, we've been saying the property market is bottoming. Last weekend's strong auction clearance rate is finally the indication confirming that. If you're ready to get into the property market, it is still not too late. If this upward trend continues its only a matter of time before prices start rise again. Have a chat with us. We can help you fast track the purchase. We'll help you get organised and manage the purchase process, from shortlising properties for you, organising the property inspections, conveyancing and settlement. Make full use of our free first consultation to help kick start your process. Book in your appointment on our booking website today. https://www.businessinsider.com.au/australia-property-market-election-rba-apra-home-prices-2019-5

In another move which can invite homebuyers back into the market, banking regulator APRA is reducing the 7pc home loan buffer. This means your ability to repay the mortgage will no longer be assessed based on 7% interest rate. Your serviceability is likely going to be better once this 7% buffer is removed. So, home buyers, be quick! Have a chat with US. Let us work together to define your property plan. We can put you in touch with trusted mortgage brokers, and provide a brief to help them understand the plan. Don't forget, we've a special discount for first home buyer. https://www.afr.com/business/banking-and-finance/apra-scraps-7pc-home-loan-buffer-20190521-p51phr