Not So!

We sell properties across all 4 Methods of Sale. Which are:

In fact, when one looks at the mix of recent residential sales* that occurred in the Auckland area. Here’s how they pan out.

27% Were Sold by Auction
1% Were Sold by Tender
72% Were Sold by Price & By Negotiation

*Source:REINZ

Another Myth Busted!

The reason some sellers prefer the Auction system is it’s the only way they can be assured of a “clean” unconditional offer on their property “without strings” attached [i.e. Not Subject to Finance or Sale of another Property etc., etc.,]. The Auction process also provides vendors an opportunity to achieve a price above market expectation, if there are multiple bidders and the entire process happens within a tightly defined time-line, usually 3 to 4 weeks.

Don’t we all!

Value is a relative concept.
It is entirely dependent on whether you are standing on the sellers side of the fence or the buyers side.

Research Studies have found that we tend to value things we own, more highly than they are worth. So, just for a moment, stand back and ask yourself this “Killer” question: “If I didn’t already own this property, how much would I be prepared to spend, to buy it.”

Ultimately, the worth of any property is based on what someone is prepared pay for it. Not what we think it is worth.

Appraisals are simply an indication of a property’s possible value in the current marketplace.

The setting of realistic and a reasonably accurate price range should be based on fact, historical data, statistics and some science. Not guesswork, or someone pumping up the value, to try and get a listing.

You can list it where it sits,
or you can list it, where it sells.
Which works better for you?

Life Lesson No. 10:

In reality, no one gets something for nothing. Even if it appears to be FREE, there is always a cost involved. At some point in the process you will end up paying, one way or another. There is always a cost associated with every decision we make – even FREE ones. Often referred to as “Opportunity Cost” – a key concept in Economics Theory.

Other companies simply don’t have the market share that Barfoot’s do – they find it harder to get listings and they don’t have the distribution network or the people on the ground that we do – consequently, they have to resort to tactics such as this, by giving stuff away as an incentive for people to go with them.

Experience, has proved time and time again - anything “free” is at best limited in its exposure. Ultimately, all they achieve, is under selling your property. Because the agent doesn’t want to invest what needs to be spent – and they are only looking for a quick fix and to get their money back as soon as possible.

What a surprise.
And, just how do they propose to do that? What supporting evidence did they base this piece of theory on? Furthermore, have they outlined to you what their strategy is to make this happen? I suspect not!

All my proposals and appraisals are based on documented fact. What data has the other agent provided to you that indicates they can achieve a better result than us?

Words are cheap. Agents often say whatever they think you want to hear, and they usually do. The question you need to ask yourself is - can these people actually deliver on what they claim?

At the end of the day, the buyers are the ones who will end up deciding the price of your property, not another agent from another company.

As they say:

Not So!

But it is a popular misconception.

If price was the key factor in deciding who to give your property to sell - logic woudlsuggets the cheapest guy on the block would get all the business - but it's not. Other factors come into play.

The service we provide has a value, so we don’t under sell our services. Just as we won’t discount your property come sale time. Surely, getting the best price is of more importance to you than any discount you may be offered.

Here’s the real story – of all the major Real Estate Agencies that account for more than 90% of all property sales in the Auckland Region – Barfoot’s has one of the most competitive commission rates in the market.

An Example – to prove the point on commissions* and make the process easier to understand, three values have been randomly selected. Commissions include GST.

Please Note: *The calculated commission rates include admin fee, GST and are based upon information believed to be correct at the time of collection. While every endeavour has been made to ensure accuracy, we do not accept responsibility for individual variations to these fees.

Of course, they do! And I believe in the tooth fairy.

This is an old Agents ploy designed to get you signed up. Then everything reverts back to the Status Quo.

Buyers are moving through the sale process everyday – they are not sitting around waiting for a Real Estate agent to call them back, if and when they find something of interest.
Funny thing about Buyers, they have no loyalty to an agent or company, they will come to see a house because they are attracted to it, when it is presented to them.

So, if they say they have the buyers – give them the Agency for one week. No More. Then when it still hasn’t sold – give me a call, that’s how confident I am.

I can appreciate your loyalty – it is a quality that I respect in a person.
But equally, has there ever been a situation when you thought you could see the benefit of having someone else come over to give you a second opinion? It could well be to your advantage.

Discounting is an act of desperation. Other companies do it because they don’t have the listings, they don’t have product range, they don’t have the distribution, they don’t have the people on the ground and they don’t have the buyers.

Because other companies don’t have the market share, they have to resort to discounting tactics, simply as a means of gaining business – we don’t have to, because the service we provide clients has a value.

Barfoots fees are already among the most competitive in the market. But, let’s face it – if the lowest commission rate was the overriding reason why vendors placed their property with an Agent – logic would suggest all the available business would go to the cheapest guy on the block. But it doesn’t. Confidence, Trust, Results, Knowledge, Service Levels, Rapport, Consistency, Credibility and Market Share are some of the key factors that also come into play when deciding which company to go with.

The other thing to remember is – if this other agent is prepared to “drop their pants” this early in the process, even before the listing is signed – Imagine how fast they’ll be dropping them come sale time for your place.

Seriously, do you really want to work with someone who is that desperate?

The answer to that question is quite simple. We are No.1 in this market for a very good reason - we do property better than anyone else in Auckland.

North Shore is my focus – Auckland is our patch, and we know Auckland better than anyone else.

Also, the importance of market share shouldn’t be ignored. Because it is a barometer of Consumer preference for a company over its competitors.
Don will work with you to help to get you the best results possible, irrespective of whether you’re wanting to sell – or looking to buy a new home.

[Check out what people have say about Don] [Testimonials]

Another reason is, we can deliver more potential buyers to your property – on a scale the others simply can’t match.
We are a “must visit” for potential Buyers because we have a greater choice of properties available for purchasers to view than anyone else.

When you’re thinking about selling your home and considering who to place your prized possession with, it's easy to run to the nearest emotionally charged people in your life for help – often, friends or family.

From an outsider's perspective, it’s also easy to tell you, that it's a really, really bad idea, despite the fact that it might seem right at the time. Hiring anyone you have a personal relationship with – comes with a number of inherent risks.

The reality is that it’s really challenging to hire a family member or a friend and the result of failure will likely negatively affect those relationships long after your house has been sold

Here’s another thing: just how much of your personal affairs and business do you want your friends or family to know about you? That’s another good reason not to involve them.

Hiring friends or family can be a lose-lose situation. Often times, the day you hire one will also turn out to be the day you’re no longer friends – no matter how well-meaning each person in the relationship is.

The relationship with your Real Estate Agent should be professional - one that is based on a business-like footing. One that is also based on mutual respect, not an emotional attachment – real or perceived.