South-west strategy: avoid gimmicks, create market certainty
WITH the South-west still experiencing population growth, JMW Real Estate principal Joe White is expecting the local market to show some signs of improvement in spring.
“Population growth underpins the South-west property market and traditionally it has been fuelled by Perth or metropolitan residents looking for a sea change,” he said.
“I don’t see any reason why this will change; if anything technology, NBN and the airport may see a greater stimulus for population growth rather than a diminished one as, if people’s jobs are portable and they can choose to live where they ‘want to’ rather than ‘have to’, it is likely that more people would choose to live in the South-west.”
When it came to market demand and sales, Mr White said the range of property types in his agency’s recent sales suggested a broad market.
“Several recent sales where results were achieved quickly paint an interesting picture,” he said. “A three-bedroom, two-bathroom home at 4 Lenamont Court, Dunsborough was under offer in 10 days; it was previously listed for auction with another agent.
“We re-listed it with a declared asking price, went to the market and had two buyers, one of whom paid slightly above the asking price.
“The lesson is that in an uncertain market, the best thing to do is create as much certainty as you can with the marketing program, so a declared asking price that is competitive, combined with quality photos and good internet coverage and database management will manifest in an excellent result.
“My advice at the moment is to avoid gimmicks like price ranges, asking prices ‘From’, set date sales etc. as all these strategies create uncertainty, which in turn create frustration, and frustration in the eyes of a purchaser will be taken out on the seller, so it makes sense not to be too cute with your marketing strategy.”
Mr White said other recent examples included four-bedroom, twobathroom 6 The Enclave, Dunsborough, which was under offer within 24 hours and two lots of vacant land at 206 Quedjinup Drive, Quedjinup went under offer in 10 days.
“Once again, these properties were sold quickly through an adherence to doing the basics well,” he said.
“Quality photos, pre-prepared contracts, proper database management where properties were released to all possible purchasers at the outset to maximise the competition, plus opening the market to all agents via conjunctional offerings in addition to ourselves.
“All properties were listed at a touch above where we genuinely believed they were likely to sell, and they sold within days.”
Highlighting the range of interest in the market, Mr White said 19 Dunn Bay Road, Dunsborough, a 1012sq m duplex site, was under offer in two weeks.
“When development sites start selling, it is a sure sign that developers are seeing a better future than they are a past, hence their willingness to have a bet on what the near-term future holds,” he said.
Mr White said it was important to choose a selling strategy that suited the property, not the agent.
“More than ever before, we are finding transparency, quality information and openness are what buyers are looking for and they are showing a willingness to pay very good prices for all types of property providing the properties are well presented, priced close to market and all the relevant information is presented so that the risk and guess work is taken out of the buying decision,” he said. ■
This Dunsborough home went under offer in 10 days.
JMW Principal Joe White.