Frequently Asked Questions - FAQ - Selling Property - Gold Coast Real Estate

FAQ - Frequently Asked Questions

Contents

1. What is the Gold Coast market like at the moment?

2. How long will it take to sell my property?

3. Is advertising the property necessary?

4. When is the best time to sell?

5. How can I increase my chances of a sale at the market price?

6. Should I market the property?

7. How much should I spend on marketing?

8. Why shouldn’t advertising come out of the commission?

9. What about agents who advertise FREE advertising?

10. Do I need to give the agent the key to my home?

11. After a bad experience with Exclusive Listing should I do it again?

12. Is having a sign essential?

13. Is Multi-list a Sole Agency?

14. What is the best method of sale based on results?

15. Is the Auction method successful?

16. Do Open Homes work?

17. How do Real Estate Agencies differ from Property Marketers ?

18. What is being done to stop the practices of the Property Marketers ?

19. Can I negotiate the commission?

20. How can an agent honestly work for both the buyer and the seller?

21. What should I do if someone makes an offer below the price I want?

22. How are negotiations conducted in Queensland?

23. How long is the cooling off period.?

What is the Gold Coast market like at the moment?

The market is particularly active at the moment with excellent sales results. Nerang First National are responsible for a large percentage of the local market.

How long will it take to sell my property?

There is no way to accurately answer this question despite to say that the average property will sell in 3 to 6 weeks when correctly priced on the current market.

Is advertising the property necessary?

Advertising is just about a necessity on the Gold Coast. In other towns and cities if you pay for advertising your property it will give it you an edge over your competition (equivalent properties on the market). The Gold Coast is radically different in that we have a saturation of advertising with a huge real estate section in the local paper, 2 full colour magazines and separate local newspapers and individual office produced advertising newspapers. When the vast majority of the market is advertising it becomes a necessity to advertise to get your fair share of the enquires else run the risk of selling your property for a lower price due to poor exposure and low inspections. 

When is the best time to sell?

Every week of every month right throughout the year is the best time to sell. Without a doubt the period from December to February is conductive to higher sales but this is also representative of more properties on the market. 

How can I increase my chances of a sale at the market price?

List the property at the market price and conduct a planned marketing campaign with your agent and follow the presentation tips.

Should I market the property?

Yes. Code 9 of the Professional Conduct of the Auctioneers and Agents Act states : "It shall be the duty of an agent to advise his principal his opinion of the fair market value of the property to be sold…. The agent shall also inform the principal of every material fact apparently not know to the principal which affects the agents opinion as to the fair market value"

So in all cases an agent acting on your behalf should always recommend that your property be marketed correctly. If a property is well marketed, it has a much higher chance of achieving a higher price in the market place as well as in a shorter period.

How much should I spend on marketing?

If a property is to be adequately marketed it is the experts opinion that a marketing budget should equate to about 0.5 to 1% of the anticipated selling price. Most good agencies will have various marketing programs prepared for various price ranges and property types. Nerang First National have 6 different customisable packages covering marketing investments from several hundred dollars to several thousand dollars.

Why shouldn’t advertising come out of the commission?

As stated in a previous answer, the Queensland commission rate are the lowest in the country already and asking the agent to then on top of this pay for advertising packages which can be around half of the commission that they are going to receive IF the property sells is unrealistic. The commission and marketing costs for most property will be far below that of just the commission charges in other states. Even in those r states you still have to pay for your own marketing costs for your property. Remember marketing is not compulsory, it is an option that you as the seller decides on, however it will substantially increase the numbers of inspections on your property and maximise your ability to get the higher price for you home. Most homes marketed achieve sale prices that return them many times more than what was originally invested in the marketing costs. Commission is a selling cost and is not related to advertising your property.

What about agents who advertise FREE advertising?

How many times have you heard the saying "Nothing in Life is for Free". Same goes for advertising. The vast majority of these agents have in smaller print on their offers that you will pay nothing for advertising until the property sold, therefore the use of the word free is being creatively attached to their promise such that if your house does not sell then it is free. What you wont get though is the same level of advertising in a dedicated marketing campaign through a professional real estate office. Remember a correct marketing package can be around half of the commission that they are going to receive IF they sell property. Stands to reason that they could not provide you the same sort of level of marketing if they have to take the gamble on your house selling or not. Of course there is a catch to all of this. If the property does indeed sell you have agreed to pay them a set amount regardless of what advertising is actually done. Like most agencies that dabble in this practice they will enter only brief and inexpensive advertising on your property ( small run on one line ads that probably cover half their properties). So if your property does indeed sell within the period chances are that you would not have got your highest price, only received under $100 worth of advertisements and still have to pay maybe a $1000 in marketing costs.

It is fairly clear that most professional and ethical agencies do not entertain such practices. In fact Code 3 of the Professional Conduct of the Auctioneers and Agents Act states : "An agent shall have a knowledge of the duties at law and in equity of agents to their principals. In particular an agent shall be aware that his obligation to his principal is one of utmost good faith and requires the agent not to put his duty to his principal in conflict or likelihood of conflict with any interest of the agent or of any other person." This highlights the agents "fiduciary relationship" to a client. The agent under this relationship must act as a third party broker, advising the client on matters relating to their property. When an agent subsides or pays for any service relating to the sale of a property this relationship has been seriously compromised. How can an agent act on your behalf with his best interests when you now owe him money and the only way he can get paid is to ensure you sell your home. When the agent has paid out a lot of his own money to fund the advertising (each property may only receive a small amount of advertising but when you hold 200 + listings this totals a lot of money) the only way he can ensure a cash flow is to "crunch" a sale. The professional agency relationship has been compromised to one of "secure a sale at any price because I want my money out of this property’.

Do I need to give the agent the key to my home?

YES - Some inspections can be arranged with 24 hours notice but the majority occur with only an hour or two's notice. The sale could be lost because a buyer could not view the property when they wanted so they found something else, just because you had gone up to the shops for 10 minutes. Please note that all responsible agents will security code each set of keys for protection.

After a bad experience with Exclusive Listing should I do it again?

YES - please do not blame the method of sale as the cause of your bad experience. Most likely it was due to a poor selection in agents to represent you and/or a too optimistic asking price in excess of what the market will pay.

Is having a sign essential?

Yes - Any enquiry off a sign is treated with the utmost attention as it is clearly obvious that the prospective purchaser is attracted already to the properties exterior and the location. All that they need accept is the price and the interior of the property. Sign enquires are like gold.

Is Multi-list a Sole Agency?

YES and NO - In Queensland, Multi-list is an organisation run by the Real Estate Institute of Queensland (REIQ) and is in fact a sole agency with a couple of twists in the marketing only. In other states an open list whereby the owner lists with different agents is also called a Multi-list.

What is the best method of sale based on results?

The answer will differ depending upon what area you live in. In our area that we operate within, the Exclusive Agency far out performs any other method of sale. 

Is the Auction method successful?

If an auction is done correctly it is a very powerful way to sell your home however some agencies use it when a vendor is unrealistic in his price so as to educate him to the market. Because auction programmes cost thousands of dollars if your agent is only recommending an auction to "educate" you it can be a very expensive lesson. Once the auction has been held the listing converts to an exclusive listing and the new "educated" price then sells the property after auction. With correct advice from the beginning the owner will save thousands in wasted marketing prior to the auction. Auctions are particularly successful in a rising market.

Do Open Homes work?

Again a yes or no answer. For a home that presents very very well from the street it can result in good inspection numbers. If your home is of only average presentation or below from the street an open house will only bring sticky beak neighbours, and other people who are just out for a Sunday drive and have no intention of buying, let alone even selling there own home. 

How do Real Estate Agencies differ from Property Marketers ?

Property Marketers are not licensed Real Estate Agents. They sell new townhouse complexes and special residential projects for inflated prices by telemarketing operations. The do not operate under the Queensland Auctioneers and Agents Act that covers and protects out industry nor do they operate a trust account or covered by an indemnity fund. Dealing direct with the developers they sell the property on their behalf and get their income not by commission but by earning huge marketing fees which push prices to far in excess of the market value of the property. They use pushy and aggressive sales tactics to exert high pressure on prospective purchasers. During their pitch, primarily to Interstate and Overseas investors they ensure that the purchaser is not allowed to view other property (other than they select) to do any sort of market comparison. Property Marketers seek out gullible investors by way telemarketing and seminars on property investment. They then proceed to show fantastic "figures" supporting their stock of property. Any purchaser of real estate, or anything for that matter should investigate any purchase fully to ensure they are paying the market value of what they are buying. Some of the Property Marketers have been known to sell properties for up to $100,000 over its realistic market price.

What is being done to stop the practices of the Property Marketers ?

The Queensland Government seem to have had enough of the Property Marketers and has enacted legislation to ensure that they start to conduct their business on a more fair basis. This has been the result of a long period of lobbying by the Real Estate Institute of Queensland as unfortunately the victims of this type of business has blamed the Real Estate Industry as a whole. This is not the case and these Marketers are not part of the "Real Estate Industry" but work direct for the developers.

Can I negotiate the commission with Nerang First National?

No– In Queensland the commission on residential property is capped by the PAMD Act (at 5% of the first $18,000 and then 2.5% thereafter plus GST) so whilst it can be negotiated below the capped rate Nerang First National will not negotiate a lesser commission rate. Commercial property commissions is often negotiated but unless the sale price is in the multi million dollar range it is likely that the commission rate would be higher than that for residential sales. Please understand that the commission rate for residential real estate transactions in Queensland in the lowest in the country. If deregulation is brought into Queensland then more than likely the commission rate will increase just like the other Australian states have experienced.

How can an agent honestly work for both the buyer and the seller?

Legally the real estate agent’s client is the vendor (seller) in that we are acting on their behalf in selling the property (a similar relationship to that of a solicitor or stock broker to their clients). The relationship with a buyer is different in that it is one of a Seller (or really a sellers representative) to a customer, similar to a store. Numerous government acts and regulations ensure fair treatment and protection in both of these relationships. Besides the legal requirements most good agencies are members of the Real Estate Institute of Queensland (REIQ) whereupon they are also bound by moral and ethical guidelines.

What should I do if someone makes an offer below the price I want?

You agent will be able to assist with your next move as each case will be different. Varying factors will include how ambitious your asking price was, difference in the offer and the conditions of the offer. You will will always have three options to proceed with. 1/ Accept the Offer. 2/ Decline the Offer. 3/ Countersign the Offer.

How are negotiations conducted in Queensland?

Very differently from other parts of Australia. All offers are made in writing with all paperwork finalised before being sent to the solicitors. Verbal offers are not considered seriously in Queensland.

How long is the cooling off period?

The cooling off period in Queensland is Five Business Days with the day of signing being considered as day 1 if it is signed on a business day.

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