E d w a r d s Wi n d s o r
RealEstateNews
INFORMATION TO HELP YOU WHEN BUYING OR SELLING | January 2015 |
Believe Me When I Say...
By Peter O’malley - Author of Real Estate Uncovered
In this
Issue:
page 1
Believe Me When I Say...
page 2
Letter from Editor
Choose, Choose, Choose
page 3
Commercial Gain
Property Sellers
page 4
Best Value Real Estate
Agent in Hobart
When you are interviewing agents to sell
your home, many will make appealing claims
and promises. It may be the promise of a
high price or the claim of superior customer
service.
‘If you run the right advertising campaign
we could get...’
‘We could sell this in two weeks!’
‘There will be no problems
selling this one!’
Consumers often experience a large gap
between the promises made by sales people
and the actual service provided. If you sign
with an agent on the basis of certain claims
they make, it’s only fair that you can hold
that agent to account in the event they fail to
deliver.
To ensure that you don’t fall victim to an
over promising sales person, get all verbal
promises in writing, before signing an agency
agreement. If the agent’s price quote seems
high, simply say to the agent, ‘that sounds
good, can you guarantee it in writing?’
This is not to be confused with you as the
home owner asking the agents to guarantee
an extreme request, such as a sale 30% above
market price. No agent can be expected to
guarantee a fortunate outcome, whether it’s a
sale at above market price or a sale in under
two weeks.
You are simply asking the agent to guarantee their
promises in writing; the unsolicited promises the
EDWARDS
WINDSOR
agent made to you. Most people would agree that
this is fair.
The best agents are more than happy to back
up their verbal promises in writing. If an agent
won’t guarantee the price they quote you, you
need to ask ‘why not?’ before signing.
The best agents are more than
happy to back up their verbal
promises in writing.
To verbally promise a service or result and then
back away when asked to commit in writing
fails the fair dinkum test.
It is very difficult to hold someone to
account on a verbal promise, yet easy to
do when everything is in writing. When
employing an agent to sell your home, you
have the most power and control before you
sign an agency agreement. Use it wisely.
Open 7 Days |  (03) 6234 5500 | www.ewre.com.au
Choose
Choose
Choose
Choose
Choose
letter
from
editor
Welcome to the first edition of Real
Estate News for 2015. We trust you
had a safe and enjoyable Christmas
and New Year period.
In this edition we have a few articles to
help you select an agent. Remember,
if an agent has buyers ready for your
property then they don’t need you to
sign a 90 day listing authority.
Should you be thinking of investing in
commercial real estate then there is an
article that might be of interest to you
or, further still, just call and ask to speak
with one of our commercial agents.
Choose skill, not opinions
Some agents tell lies to win your business. Be very careful that you do not
choose the agent who tells you the biggest lie about how much ‘you will get’ for
your property. This is called ‘buying the business’.
Unless the agent is prepared to buy your
property, his opinion is irrelevant.
If you choose agents based on the selling price they quote you – their opinions
– you may be badly disappointed, and may even wind up in financial difficulty.
If you suspect that an agent is attempting to buy your business with an inflated
sale price estimate, insist he give you his estimate in writing.
Insist, also, that he charges you nothing if he sells for less than the price he
estimated. This will identify the agents who are enticing you with false quotes.
Choose skill, not the cheapest
Cheap agents get cheap prices. Be careful choosing an agent based purely on
their fees.
If agents give their own money away what do you
think they will do with your money?
It may be better to pay an extra one percent for a selling fee than to receive ten
percent less on your selling price.
Good negotiators rarely give big discounts on their fees. If they get you the best
market price, they are worth a fair fee.
Choose NEGOTIATION skill!
If you have spent much time interviewing real estate agents, you may have
noticed that they talk endlessly about the advertising they do, but few talk about
the one thing that is most important to you – their negotiation skill.
Poor negotiators can cost you a lot of money.
Negotiation skills are vital to ensuring you get the highest possible price.
A good negotiator can achieve up to an extra ten percent on your selling price.
This can mean thousands of dollars.
If you have an attractive property you don’t need a salesperson as much as you
need a negotiator.
Ask your agent to PROVE his or her negotiation ability to you. Most won’t be
able to do so. These are the agents you should avoid.
This article is adapted from the seller booklet, Get the HIGHEST PRICE for Your Property.
Whatever your property needs are in
2015, from Commercial to Residential,
Sales, Leasing and Business Broking
to Property Management, Edwards
Windsor can be of assistance.
With the expectations that interest rates
look to remain low for most of 2015, the
team at Edwards Windsor, would like
to wish everyone a prosperous 2015 in
property.
Best Wishes
Colin Fulton
All of us from
Edwards Windsor Real Estate
would like to wish you a
safe and prosperous New Year
COMMERCIAL GAIN
By Peter O’Malley, Author of Real Estate Uncovered
Where do you invest your money?
It’s the question that has investors
stumped. Returns on bank deposits
are nonexistent, residential investors
are faced with net returns of 2-3%
as home buyers drive prices up and
share prices look fully loaded.
There is one asset class that has been
quietly but steadily yielding an interest
return of 6-10% - it’s commercial real estate.
Coming out of the GFC, banks were happy
to lend into the residential market but were
highly cautious of commercial real estate.
They imposed tougher lending criteria
on commercial property, which kept a
lot of money flowing into residential.
The risk that banks and investors
factored into prices from 2008 to 2012
meant that commercial returns were
running around 10%.
The gap between the return on
commercial real estate and residential
widened to the degree that commercial
real estate has now become compelling.
Experienced investors, retirees and
superannuation money have all poured
into the commercial real estate sector
in recent times, with great success.
As money has flowed into the sector,
buyers have become more and more
comfortable with lower yields, meaning
the asset prices have risen and are
still rising.
Commercial real estate is not really
known for capital growth in comparison
to residential, but there is no doubt prices
are rising on properties with solid leases
in place. This gives anyone that bought
in the dark days of the commercial
market a double benefit, being strong
price growth and above average yield.
tenants. Furthermore, vacant commercial
real estate attracts GST whereas leased
commercial is sold free of GST, as a
going concern.
Commercial real estate is not
for the novice investor,
nor is it without risk.
The quality of the tenant and the lease
is a large determinant of how the market
responds to a commercial property. In
Main commercial real
estate segments
• Retail
• Industrial
• Office
• Development
• Rural
fact, it’s more important than the actual
yield on offer. Given commercial tenants
are a lot tougher to find than residential
tenants, a quality tenant on a lengthy
lease is absolutely crucial to a successful
purchase.
Good research will show that there are
many listings nationally that have ASX
Commercial real estate is not for
the novice investor, nor is it without
risk. Indeed, the investor market is
only showing an appetite for leased
properties. The economic environment
is tough to get a new enterprise going,
making vacant commercial property a
different equation to a leased one.
listed companies as tenants, on lengthy
Vacancy rates are high in many sectors
of the commercial market, suggesting
landlords don’t want to lose good
out of favour, cheap industrial land
secure leases. These leases offer net
returns anywhere between 6-10%. The
yields vary depending on a combination
of factors such as location, profile of
tenant, income and lease tenure.
From a development perspective, many
savvy
and
developers
converted
it
have
into
purchased
residential
developments in recent years.
Property Sellers
When only the best will do!
All agents say they are good negotiators. But when it comes
to selling your property, do you want GOOD, or do you want
the BEST?
You can get thousands of dollars more with a good negotiator.
Get the HIGHEST PRICE for Your Property shows you how to
A book that
could make you
THOUSANDS of dollars.
Yours FREE!
present your property for sale and gives you tips on how to
select, and work with, a real estate agent.
It’s yours FREE – no charge or obligation. Contact us now and
we will home deliver your copy.
Edwards Windsor Real Estate 03 6234 5500
Who’s the best value
real estate agent in Hobart?
We reckon we are!!
At Edwards Windsor, our team is trained in negotiation.
We don’t pop an ad in the paper and sit at your home waiting
for a buyer to turn up and say ‘yes’, so that we can say, ‘Sign here’.
From the moment you greet us, until the moment we wave
you goodbye when your home is happily sold, everything we do at
Edwards Windsor is vastly different and represents great value.
Give us a chance to show you why we’re often called…
“The best value agent in Hobart.”
6234 5500
www.ewre.com.au
An agent you can trust
EDWARDS
WINDSOR
Level 2, 89 Brisbane St, Hobart
Open 7 Days |  (03) 6234 5500 | www.ewre.com.au
Level 2, 89 Brisbane Street, Hobart | email: rsales@ewre.com.au
Disclaimer: It is not intended that the information and opinions in this newsletter be treated as advice professional or otherwise. Colin Fulton and Edwards Windsor Real Estate do not
accept any form of liability, be it contractual, tortious or otherwise, for the contents of this newsletter or for any consequences arising from its use or any reliance placed upon it. The
information, opinions and advice contained in this newsletter are of a general nature only and may not be applicable or appropriate to your specific circumstances. As there are many
pitfalls associated with buying and selling real estate it is important to get professional independent advice.