Investment property in Perth is right at the beginning of a seller’s market. The WA economy is set up perfectly for a lot of property movement in the next year. Thanks in no small part to the continuation of the mining boom, the WA economy is very healthy right now.
Property values have been the last thing to catch up to the rest of the economy, but prices are rising daily, as pent up demand and low interest rates are starting to push the market upward. This has produced unprecedented opportunity on both sides of the fence for property investors; buyers are assured that they will make money in the long term, and sellers have a chance to finally turn a profit on properties they bought before the GFC.
If you are selling your property, it is essential that you hire a real estate agent who can get the highest price out of it. Failure to do so can leave thousands of dollars on the table, which could have been used for your retirement, or to buy more property.
We have four rules for our agents that help them capture the highest ROI for our clients.
Don’t be afraid to spend money on marketing.
In today’s volatile market, there are plenty of buyers. However, if you want to command the highest possible price for your property, you must put your house in front of qualified buyers. Then, it is absolutely essential that you create competition for your house.
Don’t take the first offer from the first buyer.
At the very least, you must have at least one home showing to get qualified buyers bidding on your house. When it comes to selling your house, “one” is the most dangerous number you will ever know. You have to have at least two and preferably more qualified buyers bidding against each other for your house.
The best scenario is a bidding war. The worst scenario is one buyer making a bid without knowing if a higher price is out there. Which side of the fence is more comfortable for you?
Don’t be afraid to negotiate.
While location often determines your property’s market value, there is no guarantee that you will actually get full market value for your property. Nor is there any rule that says you can’t sell it for more than your market value. You need to use people and negotiation skills to create competition between two or more qualified buyers. Most of all, this must be done tactfully, so that the qualified buyer doesn’t “walk.”
Market to your ideal buyer.
Sometimes, in a seller’s market, an agent will put up a terrible ad with no relevant text and some shoddy photos from his smartphone, and get the asking price for a property. This is not skill; a monkey in a suit could do that. You cannot afford to allow luck to determine how much a seller will get for an investment property in Perth.
You must identify your target buyer, and then market to them as if you were talking to them face to face. Then, capture their attention and engage their emotions. You must have ad copy that talks directly to the perfect buyer.
In this market, you can’t afford to leave money on the table.
Jarrad Mahon is the Director of Investors Edge Real Estate. Investors Edge specialises in all facets of investment property in Perth. Whether you need to buy, sell, or require property management in the Perth area, Investors Edge has the experience and the “know how” to maximise your ROI.
Call 1300 472 427 or visit their website: https://www.investorsedge.com.au/