As Melburnians adapt to changes again, it feels like this or a version of this current environment, will be our Inner Melbourne high end market going forward.
Even if we move out of this well in 6 weeks, there will be an underlying concern that remains with us for some time.
Nonetheless, we feel you can get solid buying and selling results and this week we will prove that with a real life Covid positive.
How to improve your buying or selling result?
What we consider in selling and buying deep into these Covid waves?
1. Mindset/Expectation Management
3. Teamwork Strategy
Covid fall or Covid rise
In many ways mindset, goals and teamwork are interconnected.
If they are not, then you increase your chances of a Covid fall.
If they are, then you increase enhance your chances of a Covid rise – buying and selling.
Covid positive - $1m more on a $3m home
Below is a freshly baked story, less than two weeks old.
It’s a positive one, we feel due to:
Strategy of teamwork
Our clients managed to buy and sell – $1,000,000 EXTRA, in their pocket tax free on a $3million buy and sell – PROVEN this last fortnight
Two same homes – one made $1million more
We are comparing two buys and sells (our clients and another)
Same location – 300 metres apart in Camberwell
Same buy and sell 9 year period. (2011/12)
Same land size – approx. 650 sqm
Same condition – ready to move in
Same 4 of 6 comparables – according on a Big 4 Bank Values report.
Same value $1,800,000 in 2012
(one bought in 2011 for $1,875,000 and then the market went down, one bought in 2012 for $1,780,000)
$1million difference in Covid sale
- One sold for $2,300,000 in April 2020
- One sold for $3,300,000 in June 2020
Why? Goals, Mindset and Teamwork
Here is an abridged reference from the seller/buyer dated Friday 3rd July 2020 for the $3.3m home
Covid-19, stock market crashes, uncertainty in the real estate market, social distancing, limited open for inspections, a conditional buy and sell – these are just a few of the factors that faced us when we wanted to sell our property in Camberwell and purchase one specific property on the Mornington Peninsula.
For the second time, we turned to Mal and Gina.
Having used their services about 9 years ago for the purchase our Camberwell property, it seemed a natural choice to turn to Mal and Gina again to navigate our way through this complex buy/sell process.
Mal quickly understood our situation, must-haves, like-to-haves and the limitations on achieving our goals.
He recommended an agent to work with, a strategy and a process to work through.
……… He calmed us down when we became anxious and kept us on track…….
Mal and Gina managed both the selling agent on the sell and selling agent on the buy …….. within our financial limitations – a result that seemed impossible 10 weeks earlier……
Malcolm & Robyn
Work with, not against your team!
Our reference we would write for Robyn and Malcolm,
You are good clients to work for.
You were open to our Covid ideas, willing to take a few risks, didn’t blame and were prepared to change when things didn’t go right at first.
You challenged us and we you and yes, things got a bit interesting at times – but you listened, and we listened to you and together we found a way forward.
It was a real team effort under difficult circumstances.
In a way we backed each other and yes your result had some luck, but all great things have that element – the question we always ask is – are you prepared to do what it takes to put yourself in that position to enable the possibility of something special?
Thank you, Robyn and Malcolm, it was great to work for and with you.
Mal and Gina
We bought in a falling market. We sold in a fallen market.
Our role was to manage the buy and manage the sell.
Coincidentially same selling agency was involved in both transactions on both homes – so goals, mindset and strategy direction was a real provable factor between the two homes.
Another Covid Positive
If you didn’t want to focus on the two homes, then you can make a case to say our clients made $550,000 during the buy sell in Covid times AND managed around the bank issues.
Whilst they sold their home above for $1,000,000 more, they also bought their next dream home at the same time – it had to be, or it couldn’t have worked for the banks.
Sold at the top of the agent quotes
Bought at the bottom of the agent quote
If it was reverse (sold at bottom, bought at top) then that is $550,000 LESS
The agent quotes were not rubbish – our client’s sale on an average home was the highest price this year (including pre Covid) for the area – yet the home was an average price for the area when bought 9 years ago.
This is not any one thing – it’s many things – it’s a team effort.
Not all transactions have this level of outcome.
And that’s Ok, as long as the parties understand their options during the decision-making process.
In the same fortnight, we had a buy and a sell client that did not have this sort of financial success – but the emotional goals for those clients were very different, the timing very different and the home’s PPP’s very different.
Summary for buying and selling in Covid times.
One: We are in a Covid buy sell market – you are not immune. However, buying and selling can work well, with good and flexible Covid strategies enhancing your chances.
Two: We have found clear realistic goals, a good team and decisive actions help in any market – Covid has simply heightened our view on these – granted an element of luck helps. However, the smarter one thinks and acts, the luckier one gets.
Three: A longer journey can reduce the element of luck required, however it needs patience and teamwork. Notwithstanding this, starting well should be uppermost in your mind as we recommend limited good movements, not movements for movements sake.
We feel Covid is NOT simply about commissions, marketing, which agent, auction or not and then it gets done.
There are negatives in this Covid buy sell market, especially for new and infrequent players and we genuinely feel for many people out there.
However, this does not mean you personally cannot navigate around those issues and find a Covid – positive result.
Thank you for your time
Mal and Gina
Please note for simplification of argument purposes we left out a resale during the example period by the other home and a cosmetic update by our client. We consider neither is relevant to the point we are trying to make. Resale cost to other home ($325,000 loss plus stamps $140,000) and pool, fence and garden cosmetic update by our client ($250,000).
You could make a case it was actually significantly greater difference than $1million between the 2 over the 9 year period. Both addresses can be referenced in any private discussion.