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Understanding the Campaign

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Transcript

When you see a property listing, there’s so many different aspects of it that you can go into but “this time”, “distress levels”, “pricing coming down”, but when you look at the Campaign as a whole then there’s lots of variables to check.

But how about we deep dive into the campaign just in a few specifics where we start going ”What’s the real estate agent saying their tone? What are some of the reasons they’re sharing for the sale of the property as well as what are some of the things that you’ve noted on the listing and the information you’re easily able to get and is the property rented or perhaps it’s vacant or perhaps even it’s the owner occupier living there”. There’s so many aspects of it. But let’s go through a couple of things now that can help you in better understanding the Campaign.

We often look for distressed/deceased, keywords that come up in some of the listings and why that’s important is this can give you some ways to think about perhaps how quickly someone wants to move it on. Now just because these things are here doesn’t mean that things necessarily sell cheaper, it can just be as part of a result of speed that they’re after. Now if the speed is there while it means, ”Okay. Well there might be willing to take a little bit cheaper to get the deal done”, but imagine how many others there are that are looking for it as well.

That distressed or deceased may actually propel many people to come to this listing and start actually bumping up the price to compete for it. But just to pick up what they might think is a bargain which actually isn’t always the case. Other parts of the campaign to understand is what’s the outside of deceased or distress? What’s the motives for the reason to sell and how many parties are involved? And if you’re looking at these sorts of things, sometimes they can be in your favor, but it’s all situational.

If you have multiple parties involved, It could mean that you should be prepared for a lengthy negotiation. They may be the agent who now has to please multiple people. They may not be able to respond to you as quickly or in the opposite there may be multiple people who can each take a clip of what they are looking to sell for and the impact of $10,000 as discount might be 2500 over for people. Now, sometimes that can work out in your favor but in the opposite end if there’s four people investing money or four people putting in money into the campaign for things like staging, for things like special advertising on Domain, premium listings.

It’s important to ask how many of these things were done. By knowing these things as well, you can understand when they were done in the campaign period and how that’s likely to change the price expectations. To give you a perfect example, you can have a property where maybe it hasn’t been staged throughout the listing. It hasn’t had any premium listing throughout its campaign. It stayed on market for some time and had you attack it during that period you would have been in a position to go ”Well, they haven’t spent so much”, They don’t feel the sell as expensive their expectations might not be as high.

All of a sudden though, they start, making some changes throughout the campaign and real estate agent convinces the seller to go ”Look I need you to Stage this property. I need you to advertise it with premium listings and bring it to the top of the main and all these new photos and get them redone” What you might not realize is whilst it might look sharper and everything but the actual seller is putting in more money to do this. So imagine how that conversation goes down with the sales agent, ”All right, we’ll go do this, but we’re expecting this now because you told us to spend all this so we need that plus more.”

So now imagine the same property is starting to now cost more from your angle as a buyer because you may need to now fork out more if that’s the expectation. Doesn’t mean you have to always meet it but understanding the campaign to these deep and granular levels will help you decide on best approaches.

Other parts can actually be the off market and non-market parts of the campaign. Sometimes the off-market property in having access early can actually come in as a disadvantage because you start to get a property where the vendor is giving them “Hey, look I haven’t even listed it and sales agent you board on this person to buy from us.

I personally think I could get more if you put it on market” and if that’s that thought process that goes through the sellers mind you start to be in a position where you’re paying unreasonable prices just to get access to off-market property.

So it’s important to deep dive in this campaign into more detail – reasons for selling motivations behind it, what’s the campaign made of what sort of expenditure occurred during that selling and just going into a really deep to better understand the campaign So you can start to put together your successful offer or your soon to be successful offer if that’s the case.

Now, sometimes when considering this obviously these do not replace your comparable sales land size and conditions and so forth. Those are the core functions but these are little things to help you as part of your journey when considering discussions and agents.

That’s it from us here at InvestorKit, The Experts in Wealth Creation, helping you take action.