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Promoted by Before You Bid.
As appealing as a home may look from the outside, there are often unseen defects that can impact a successful sale. Major defects can include structural issues or termite infestations that are costly to repair, or minor problems that buyers may use to negotiate price.
In the last 12 months, Before You Bid, the home of property compliance and due diligence, has sold over 97,000 inspection reports – an example of the growing awareness and value held by buyers. This growth is driven by real estate agents operating under best practice, with 85% of report purchases linked to reports arranged on properties before they were taken to market.
During a ‘hot’ property market it can be difficult for vendors to differentiate one agent from another, with a view that agents just list on the major portals and sell it. An agent’s value is first presented in a listing presentation by revealing their unique strategy to (1) reduce a client’s exposure to risk and (2) maximise the sale price of the property. As a point of difference, agents are organising independent due diligence reports (building & pest, and strata reports) to prepare for all variables ahead before the listing goes to market. This is a practice held by 15 of the REB Top 20 Agents in Australia (2021), who routinely organise due diligence reports upfront for their clients through Before You Bid.
Minimising risk is achieved by knowing all the information about the property before anyone else, taking the opportunity to rectify any issues and having a report available for buyers when requested. If the agent is aware of any issues, they can defend the clients reserve with ease. “For the vendor, having an upfront Building and Pest report allows them to address any problems before going to the marketplace. This ends up being a time-saver down the line and reduces any delays in the campaign”, Duncan Gordon of Raine & Horne, Newtown NSW.
Maximising the sale price of the property is possible by progressing as many buyers to be interested and making an offer as possible. Before You Bid clients have estimated an extra 0.5 qualified buyers arrive at an auction per property when an inspection report is available upfront. This can be the difference in reaching reserve or materially exceeding client’s sale expectations. “We want to remove the objections that buyers have, and that’s what having a due diligence report ready does. Once we remove the objections, then we can push the buyer forward on price”, Mark Foy from Belle Property Surry Hills NSW.
In a competitive market, buyers are missing out on properties more than ever. To provide a great customer service, real estate agents are helping buyers save money on inspection reports, while giving them the confidence to bid to their maximum. When the market does stabilise, having due diligence reports ready is just as crucial to transact quickly with the difficult-to-find buyer. Buyers naturally become sellers and referral network, so this is great practise to be transparent about a property’s defects and help clients save money along the way.
Before You Bid is the platform for independent reports for sales agents, homeowners, and buyers alike, and a marketplace for professional, insured inspectors, working to bring transparency to real estate.
