Real Estate News


Pennisi Real Estate Company Response to Coronavirus (COVID-19)


  First and most importantly, I hope this message finds you safe and healthy as the world combats the horrible spread of the Coronavirus. Our thoughts go out to those impacted by this tragic situation.    I want to personally assure you that Pennisi Real Estate is taking all the necessary measures to ensure the health of our team, our customers, our organisation and our community during these troubling times.   Due to the difficult conditions and uncertainty, we are adapting our work practices to meet the requirements both mandated and recommended by government and health authorities.     PROPERTY MANAGEMENT   Mid last year we advised our Landlords of some improvements we were making to our property management systems and structures. At the time, our aim was little more than to further improve on the management of your assets and the service we offer.    While changes always come with some teething challenges, the u...


Why Auctioning Your Property is a HUGE Mistake


    Never mind what typical real estate agents tell you. Never mind what you read in the papers. Auctions are a stressful, financial minefield for consumers. Despite the booms we've had in many areas, there are still thousands of sellers who don't realise, until it's too late, what really happens to them at auction.     Reserve Price   The reserve price is the lowest price a seller is prepared to accept, after 6 weeks of intense torture and conditioning. And that becomes the central focus of the auction. If you are trying to get the highest price, do NOT choose an agent that’s focused on your lowest price.   There are two parties in a sale price negotiation: a seller and a buyer. Each has their “final price” or their “limit”. The seller's final price is the reserve – that’s the lowest the home will sell for. The buyer's final price may never be known.   There is no procedure at an auction for determi...


Flawed Real Estate Strategies


  False Price Strategies    False price strategies include both the ‘offers above’ method (illegal in some states) and any of the price-range strategies. There are many variations of these strategies: ‘offers from $500,000-plus’, ‘offers above’, ‘offers between’, price range or even price indication. All variations work on the assumption that the owner may not accept the lowest price quoted but will consider a figure above this amount.   In 2016, New South Wales passed laws prohibiting the use of the ‘offers above’ or any similar method, with Victoria following suit in the same year.   This legislation was enacted to protect buyers from investing time, money and energy into a property they can’t afford. By advertising a price lower than market value with ‘offers above’, buyers are encouraged to enquire. However, being far below what the seller will accept makes this advertised price f...


The Upside to Buying in a Down Market


Property prices across many parts of Australia are falling, of that there is little doubt. The prevailing sentiment would have you believe that the falling prices are terrible for all concerned. Admittedly, the net result of those trading in a falling property market is probably to the downside. Make no mistake though, there are still plenty of people who manage to improve their position in a falling property market. Understanding and accepting where we are in the property cycle is crucial to trading better and smarter. There are five trading opportunities to those prepared to act in the current market: First Home Buyers First home buyers were locked out of the property market during the boom. At one stage, baby boomers wondered if their children would ever be able to buy into the housing market. Now is the best buying opportunity for first home buyers since the GFC in 2008. Sure property prices were lower in 2008, but mortgage rates were significantly higher. Every percentage poi...


The Awful Truth Behind Those Glossy Real Estate Magazines


  Real Estate magazines that promote one or two homes in each suburb across an entire metropolitan area are the ultimate example of hit and miss advertising. A buyer that wants to buy in Moonee Ponds is not considering Sunshine as an alternative and vice versa. Whenever you see mass wastage taking place, it's always good to examine the motive and identify the person who carries the burden of the waste.   Agents will tell you that their in-house marketing is all powerful and has massive reach. Printing 15,000 copies of the magazine each week gives the magazine a potential circulation (mainly via cafes and shops) of 15,000. Paying hard earned money to advertise in one of these magazines does not give you access to a database of 15,000 buyers as is often claimed. A database is where the real estate agent has the full contact details of the potential buyer on file. Trying to advertise your home to Joe Nobody in a cafe whilst he drinks coffee is not marketing your home to a home b...


Don't be an Auction Bunny - Reading the Play When Buying at Auction


 Auction bunnies are home-buyers duped into bidding at auctions when they have no chance of being a successful buyer. The auction bunny reaches their maximum price at the auction before the price even hits the seller's reserve. Not only do these poor bunnies often get their hearts broken, they also lose thousands of dollars in 'due diligence' expenses - such as building reports, pest reports, strata reports and legal expenses.   Here's what happens: an auction bunny asks the agent, "How much will this property sell for?" The agent gives the standard bunny-trap reply - they quote a price around 10 to 15% below the seller's reserve price. For example if the seller want a million dollars, the auction agent will say "We're expecting bidding to start from around $850,000". If the auction bunny pushes the agent, saying something like, "Are you sure? Do you really think it will sell for such a low price?" the agent will say something like, "The sellers are keen and will meet th...