I’m impressed with Michael Ruzzi at pfr.com.au. Ever the innovator, he’s listed a property for sale on Facebook Marketplace. Whilst Facebook is primarily a social networking platform it’s easy to see how clever real estate agents might use Marketplace to advertise their properties and their own services. What’s going to be interesting will be the new ways customers will interact with agents who are displaying a much less formal, less contrived version of themselves on line.
Is this the death of boring corporate and the start of Gen Y real estate?
I wonder when we’ll see the first real estate agent using Twitter as a way to keep their clients up to date with what they’re doing about selling their property?
Anecdotal evidence about the level of wages now being paid to property managers and settlement clerks suggests that agents are under significant pressure in attempt to run viable businesses - particularly in a competitive market. With discounting rife, it’s difficult to know how some small agents are making a dollar. Stories are emerging that some senior property managers are being paid $75 000 to manage a big portfolio - and that’s without relying on a complex incentive system that some of the larger companies have structured. In the world of settlements, sources indicate that salaries ranging from $55 - 75 000 per annum are common for an experienced conveyancer. But the extra money comes at a price with agency bosses demanding high levels of performance and productivity in order to justify paying these sorts of salaries. To achieve the top end of the salary range, property managers would be expected to manage over 200 properties - and that’s a big ask. Whether clients are getting the optimum level of service under this arrangement is open to debate. But one thing is certain - the property manager would be working long days. And while ever the squeeze on the labour market remains as a result of the mining boom - the situation won’t change soon.
How is your business handling the tight labour market? Has your salary changed much over the past couple of years?
Real estate sales in South Perth (population 10 763, average growth last 12 months
35.9%) have never been better according to sales executives, Adam Piller (pictured left) and James Thompson (pictured right). Operating as a real estate partnership from the recently re-badged offices of Alan Bourke Real Estate on Canning Highway, the sharply dressed duo propose that a combination of plenty of listings and strong demand is the perfect recipe for a buoyant market. “We’ve listed eight properties in three weeks”, they enthusiastically claim. And this is a credible effort for the dynamic young operators - especially considering the quality of the competition in the South Perth area. They observe that the market is flush with demand from investors, keen to jump out of the stock market and into the traditionally safe haven of real estate. “We’re finding that properties above $800 000 are being snapped up”, they comment, noting too that they see very few first home buyers through their homes open. “It’s just not the right area for first home buyers - probably too expensive”, is their assessment.
It’s little wonder that these young, dynamic, enthusiastic real estate operators are doing well. They possess a unique combination of youthful enthusiasm, professional polish, and business savvy that will see them continue to be highly successful, even in a competitive market place, for years to come.
If you have a comment to make about Adam or James, or if you wish to share a story about an agent, please click on the comments link below.
The inner-city suburb of Victoria Park (population 7000, ave growth last 12 months 25.8%) is performing strongly according to prominent local LJ Hooker agent and auctioneer, Craig Wildman. The burly body-builder, local resident, and member of LJ Hooker’s prestigious Captain’s Club, should know - he’s been one of the area’s most active agents over the past five years. “Properties above $800 000 are very sought after and are selling quickly”, he said. However, he suggests the market is also bustling with first-home buyer activity with the majority seeking property under $500 000. A keen observer of the real estate market, his opinion is that prices in the area have not been affected by increases in interest rates, or the recent uncertainties in the stock market. To the contrary, he suggests that inner-city suburbs tend to be immunised from the wild fluctuations experienced in outer-lying suburbs thanks to the underlying demand from a broader cross-section of buyers, including investors and developers.
Wildman maintains a passion, focus and enthusiasm for his craft - which he claims he still loves - that is abundantly evident. At the end of our conversation he quickly collected the takeaway sandwich that was to be his lunch, and, with file in hand, dashed out the door. It was almost certainly to secure his next deal.
How is your suburb performing? What impact has recent media stories on the US credit squeeze had on home open numbers? Let me know by adding a comment here.
Interest in home opens in Thornlie has all but disappeared and the number of new properties hitting the market has slowed according to Ron Padua, Operations Manager, of The Professionals, Property Plus Real Estate in Thornlie. “Home opens are pretty much dead”, says Padua, who works on the coal-face of real estate. With the preliminary median price of real estate in Perth dipping by 3.8% in the June quarter to $446 500, and the median price of property in Thornlie being just $358 500, it’s easy to see how attractive his market is to first home buyers - and Padua is in a prime position to comment on the real state of the market. His observations call into question the calming tones of REIWA’s recent upbeat assessments on first home buyer numbers, and harsh relief to the problems that may be confronted by home owners following the recent rise in interest rates by the Reserve Bank, and the economic problems caused by the sub-prime mortgage crisis in the US. Just what affect the dual issue of slowing demand and slowing supply will have on prices is yet unclear. Only time will tell. For the moment, though, there’s not a lot of good news on the horizon.
Real estate franchise, Raine and Horne, is aiming to raise at least $100 000 for the Starlight Foundation over the next 12 months through corporate fund-raising. Following the success of their inaugural annual corporate golf day, where enough funds were raised to purchase an entertainment unit for sick children at Princess Margaret Hospital, Raine and Horne are now planning to use this years golf day to launch a much bigger fund raising event to be held in March next year at Adventure World. The Adventure World event will be a corporate fund raising day where the whole of the theme park will be closed to the public to cater for the event. Set to become a key date on the corporate events calendar for the organisation, the efforts being made by Raine and Horne set a tangible, common-sense lead to other major industry players to become involved in philanthropic activities.
Their upcoming corporate golf day will be held at Collier Park Golf Course on Friday, October 5th, 2007. Entry fees are $140 per player which includes a generous lunch, 18 holes of golf on one of the states best public golf courses, motorised cart, dinner, prizes, and an auction. To book email Glenn Grantham or call Glenn on 0418 803 222.
If you have a fund raising event or some other industry news for publishing please let us know by going to the About page on this site.
With interest rates the lead article on all of the major commercial stations this evening, it’s not hard to imagine that some first home buyers are going to be putting their plans on hold - at least for the moment. Aussie Home Loans boss John Symond suggests that it won’t be long before banks and finance companies with a heavy exposure to the now troubled US sub-prime lending markets will probably start putting up interest rates ahead of the Reserve Bank’s official rates. Others are suggesting that the increased cost of funds will force lending institutions who specialise in the non-conforming loans market (read poor credit rating, high loan to valuation ratio), such as Bluestone, are facing an even tougher time and may be amongst the first to move rates; and this is may well cause problems for clients already struggling to service high debt levels. Should a rash of mortgagee sales occur, the inevitable negative press could well trigger a short term collapse of the housing market in susceptible areas.
Indicating the extent that financial markets perceive this problem to be, mortgage provider RAMS Home Loans closed down sharply at $1.41 after listing on July 27 at $2.50.
High profile Thornlie agent, Andy Brown, of Brown Murray Real Estate reports near record-breaking sales activity despite the market slowdown. Possibly because his office is in a mortgage belt area he says that the usual Mum and Dad investors have all but left the market. “But good properties continue to be snapped up quickly with prices off by about 10% from the peak of the boom”, he says. In his opinion this activity is being driven by first and second time home buyers that are providing the underlying demand. He further suggests that he’s now carrying much more stock than at the peak of the market - and this he believes is a good thing. Along with the extra stock comes a reluctance on the part of agents to discount their fees, so when sales do take place often the commissions are greater.
There is a growing demand amongst property buyers for homes in generational suburbs according to Joe Mucci, Director of pfr.com.au.
Mr Mucci said generational suburbs are areas where all generations of the family can live close together.
“My own family is a good example of a family that lives together in a generational suburb of Lathlain. My grandmother, Anna, has lived in the suburb for the past 40 years and my parents moved back into the suburb nearly 20 years ago to be close to her. In addition, my mother’s brother also lives in the Lathlain, and I live nearby in the suburb of Victoria Park.
“Advances in medical care have meant that people are now living much longer and have more active lives later in life. Rather than moving to a retirement village, older people want to live in their family home with their relatives nearby.
“Recent ABS research figures show that the life expectancy in Australia was now 76.2 years for male and 81.8 years for females. (more…)