Goulburn Real Estate Blog

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April 12, 2019

The internet records everything and forgets nothing

By Andrew Trim  
Author of Real Estate Dangers

Before the internet, properties were mainly promoted via newspaper advertisements, flyers, signs and agents’ windows. These locations had a remarkable and often overlooked advantage over modern forms of advertising: they left no easily traceable marketing or sales history.

There is an old saying: ‘Nothing is as useless as yesterday’s newspaper’. In the newspaper age, a property owner could dip their toe in to test the waters. If they didn’t like the result, they would take the property off the market or reduce the price. With no digital footprint, there was very little long-term harm to the property value. The marketplace quickly forgot.

Now, the rules have changed: the internet records everything and forgets nothing.

Properties advertised in Australia appear on several real estate marketing websites, which advertise almost all properties for sale in Australia: realestate.com.au and domain.com.au.

Before the internet, the only indication a property had been on the market for an extended period was a faded card in a real estate window or a crooked, worn sign in the front yard. Once these were removed, the attempt to sell faded quickly from the marketplace’s collective memory.

That’s no longer the case. The internet creates a digital footprint: a visible record of a property’s advertising and pricing history.

A digital footprint intensifies the danger posed by an extended marketing period. If a property is launched on the main real estate websites at an inflated price and doesn’t sell, this can cause significant damage to the property’s recorded history – and thus the eventual selling price. Buyers use this as a negotiating tool, at the vendor’s expense.

Many websites provide easy options for buyers to explore information that was previously hidden. On realestate.com.au, one click shows the number of page visits, giving a buyer an early idea of a property’s time on the market and desirability.

The greater the exposure, the greater the risk. The consequences can eventuate in the form of a lower selling price, getting the price right from the start of your property campaign is crucial.

 

Are you interested in reading Real Estate Dangers by Andrew Trim?  Contact us to receive your free copy. Email: mail@goulburnre.com.au or call 02 4822 8711