Why is it that some homes sit on the market for a year while others sell like hot cakes? Frustrated sellers will blame a bad market, while a good real estate professional will tell you that many times, a slow sale is often attributed to the listing price.

If a home is overpriced, buyers will stay away. But, if the price is competitive with similar homes in the area and ‘shows’ better than the competition, it will have a better chance of being sold quickly.

The secret to pricing a property correctly is perfecting the technique of comparative shopping.

Although comparing houses with different styles, square-meteridge and locations is challenging, it’s still one of the best methods to use when determining a home’s market value.

A home’s worth is most effectively evaluated through a process known as Comparative Marketing Analysis. Taking a look at assets, such as a swimming pool, bigger than normal living spaces, a fantastic view, adjacent city parks and other attractions, your home can then be compared with similar properties that have sold in the area within the last six months.

Typically, the agent is able to recommend a realistic price range that will ensure you top dollar and a reasonably good response.

It is suggested that factors such as the amount of time needed to sell your home can alter the agent’s price recommendation dramatically. If you’re under time constraints because of unexpected job changes or moving agreements you’ve made on another property, this will narrow your chances of selling the home for top dollar in the market.

Assuming you have sufficient time to market the home, here are a few small steps you and your agent can take to finding the right price for your property.

* The best comparisons can be made with similar homes that have been sold within the last 45 days. Any longer and other factors, such as the economy, could cloud your view of how much your home is really worth.

* Another good benchmark is to review the selling prices of homes that have just been sold and are pending closes. This is information that most real estate agents should be able to share with you.

* Being open and honest about what you see as the home’s greatest strengths and biggest weaknesses will also help an agent get a better feel for how to best evaluate (or assess) and market your home.

* Think of your home as if you were the buyer. If your home is listed at the right price, you’re well on your way to a speedy and fruitful sale.

* When evaluating development sites you need to remember one key thing – always leave enough in for the other guy. Development is a business, based purely on the numbers, cash on cash return, ROI, annualized return are all important as are risk profiles etc. If you have a property with development potential, you need to start with the end in mind. What is the end product? How much will it sell for?

This figure can be derived by applying the previous process. Once you have established what your end product is and that you have a market simply subtract all expenses. This is where most people go wrong, they are simply not aware of all the costs, more oten than not they under estimate by hundreds of thousands of dollars. This is obviously extremely dangerous and no development should be entered into lightly.

Thorough research and analysis is required, as well as the project needing to be driven hard and on time. As time is money in development and time blow outs will eat into your profits.

The best thing to do is seek professional advice. The team at Plan Assist will help you with any aspect of your real estate needs, visit  www.planassist.com.au

Melbourne’s real estate market is getting hotter.

According to the Real Estate Institute of Victoria’s weekly auction & sales results, the performance of the residential auction market improved marginally with a clearance rate of 72% compared to 67% last weekend.Of the 525 auctions reported, 379 were sold, 146 were passed in with 91 of those being passed in on a vendors bid.The most listings over the weekend were recorded in the suburb of Frankston, where all 24 properties on auction sold.The report stated that the numbers indicate that demand is still healthy and buyers are still active.

The REIV has also reported that Melbourne’s median house prices have increased 8.5% to $559,000. Dandenong, Rosebud, Broadmeadows, Footscray and Glenroy recorded the biggest increases.

(By Andrea Cornish | 19 Jul 2010)

If you find yourself asking this question, it’s time to learn the answer.

The lizard brain (quick) answer is: No. Stop listening to the fear tactics of politicians, and start thinking for yourself.

The brain surgeon (long) answer is: Interest rates are set independently by the RBA Board each month in response to economic conditions such as inflation, unemployment rate, global trade, property markets, currency fluctuations, and a crystal ball.

There is a small influence from the government in the fiscal and monetary policy such as stimulus into the economy. i.e. baby bonuses, pensioner handouts, first home owner grants. Generally speaking, we are in a time of political stability and there is not much difference in policy between the two major parties in Australia, and no radical sweeping changes that will change the nation, like a GSTax or floating the dollar.

So, if you were to ask us the question: Will interest rates be higher or lower if this party wins, the simple truth is interest rates will be the same despite who wins next month’s election.

For more info, read this article 21/07/10

Sydney’s costs are high, with a new state tax making it less like a short-term profit centre for developers / File

·         Big developers head to Victoria

·         Not fazed by worsening affordability

·         Sydney shunned due to high costs

SYDNEY is being shunned. The big residential developers are pinning hopes of future profits on Melbourne, Perth and Adelaide. Brisbane has also fallen out of favour.Researchers constantly identify Sydney as the city of opportunity due to a undersupply of housing and rising prices, but the city’s costs are high, it is being stung by a new state tax and it is looking less like a short-term profit centre for developers, with the result that the undersupply looks set to worsen, The Australian reported.

Stockland’s investor update yesterday focussed on recasting its product to the affordable end of the market, and on the boom market of Melbourne. Australia’s biggest residential developer also announced $250 million of new land acquisitions, in Victoria and WA.

They will generate 4750 new housing lots. There were no announcements of new Sydney sites.

Billionaire developer Lang Walker is focusing on Adelaide and Melbourne, and many other big developers are treading a similar path.

David Keir, the new chief executive of Queensland-based residential developer Devine, said it was looking for new sites in Victoria, Adelaide and some Queensland regional centres such as Gladstone and Townsville.

Three to four new site purchases are under “serious consideration”, Keir says.

Melbourne’s raw land prices have surged — Keir notes prices increased from between $600,000 and $800,000 a hectare to $1.2m a hectare over a six- to nine-month period — but it is still one of the most desirable markets.

Developers do not seem fazed that worsening affordability may crimp demand in Victoria. There will be some respite, with the state government widening the city’s urban growth boundaries.

The Housing Industry Association and Commonwealth Bank housing affordability index released this week showed Victorian property slipping from the grasp of many prospective home owners.

Housing affordability in Melbourne and regional Victoria worsened 10 per cent and 16 per cent respectively for the March quarter, compared with 4 per cent nationally. Despite this, one startling figure in Stockland’s market presentation yesterday will override many concerns.

(By Turi Condon,The Australian,May 20, 2010 8:55AM)

Property values in Sydney suburbs with rail links to the CBD have outstripped those in suburbs without, says new research.

PRDNationwide has discovered that prices in suburbs near railway stations leapt by 12% in 2009 – whereas those in areas without rail links only grew by 8%.

“Population growth continues in Sydney and this has prompted a high demand for places located near public transport facilities as the capacity of roads to cater for the influx of residents, particularly during peak traffic times deteriorates,” said PRDnationwide managing director Jim Midgley.

The research says the median sale price for properties near railway stations increased to $730,000 during 2009. The highest median price was recorded on the North Shore Line Line, with $1,325,500 recorded over the same period.

However, PRDNationwide points out that while growth has been impressive in the short term, both suburbs with and without train stations recorded equal median price growth 3.1% over a five-year period.

Source: Kevni Eddy 6/7/10 www.brokernews.com.au