In the world of real estate, we often hear ‘location, location, location’ as a catch cry for value. It implies a dress-circle neighbourhood, quality, credibility and desirability – many of the things that will help drive good resale value.

However, within the context of selling a strata property, the criteria more often than not is, ‘reputation, reputation, reputation’.

After all, in the strata community, having a reputation as a well-managed building or complex acts as a currency that can greatly influence property values, marketability and overall owner satisfaction.

On the contrary, a tarnished reputation can have the opposite effects on property prices and hinder future growth.

In this article, we provide some key perspectives from a leading real estate agency along with McCormacks expert legal and financial perspective as well. Together, we hope to provide a framework for strata committees to better guide owners to maximise property values.

So, exactly what is strata reputation, and why is it so important? And what are the risks of not being ‘reputation ready’ for property sales that may happen at any time, by any owner in a building.

After all, other sales in the building influence your property’s price in the future.

Our Interview With Helen Wilson, Partner At Belle Property

Helen Wilson has 20 years in the real estate sales industry, and has worked with vendors of many high end strata properties in Sydney, and she’s passionate about the importance of a well-run strata and outlines the huge impact this can have on driving property interest, and selling price.

“It is something that hugely impacts owners selling and whether a buyer will buy a home. Sometimes it a price negotiation and sometimes a flat out deal breaker” – Helen Wilson, Partner Belle Property.

Watch the interview below.

Interview with Helen Wilson, Partner Belle Property

McCormacks Strata Management Perspective

Effective strata management bolsters any strata’s ability to address emerging challenges, adapt to changing needs, and ensure the long-term sustainability of the strata community.

A strata’s reputation is closely linked to the quality of its governance and leadership. A well-managed strata complex, characterised by transparent decision-making processes, effective communication, and fair enforcement of bylaws, builds trust and confidence among residents.

Buyer Due Diligence Matters

Prioritising effective communication, transparency and responsible governance is essential for nurturing and preserving a positive strata reputation.

When buying a strata property, owners should be aware that prospective buyers will do their research and due diligence.

The checklist that will determine the strata’s value from a potential buyer’s point of view are:

Legal, Financial and Governance

There are numerous areas to interrogate prior to purchasing a strata property. In the strata report, savvy potential buyers will be evaluating:

Summary Recommendations

What is your strata reputation worth? In the world of strata living, a positive strata reputation has a direct contribution to higher property values, marketability and overall resident satisfaction.

A positive reputation differentiates your strata from others, making it more appealing to prospective buyers, investors, developers and financial institutions, too.

We advise an approach where the strata community works together towards the common good, to enhance your strata’s reputation:

  1. Build trust and transparency between strata members and residents, as this will build a more cohesive strata for better decision making.
  2. Be proactive in addressing concerns, foster community-building and ensure fairness in the decision-making process.
  3. Build effective communication, timely decision-making and adherence to strata bylaws, which are crucial elements that contribute to a favourable reputation.
  4. Keep perspective and trust that ideas and decisions made today should have a positive impact your property investment and its growth in the future.

A positive Strata complexes that strive to maintain a reputable track record, is simply a safer and more reliable investment all around.

If you have any questions or for a consultation, talk to McCormacks today.