REAL ESTATE - THINGS TO KNOW

What do I need to consider before I put my house on the market?

Timing is the first thing . . .  Does your property have greater appeal at a certain time of year?  ie Seasonal.  Is there a better time of day that shows your homes features off better?

Can I sell privately?

Yes you can . . . However choosing a professional agent and agency will help expose your home to an expansive buyer pool.  Your choice of agent will also have a bearing on the result your home will achieve.

How do I choose my agent or agents?

The right agent is not easy to find . . . You need to choose an agent that possesses a comprehensive knowledge of the local market as this is imperative to have when selling the benefits to buyers that are unfamiliar with your area.  It is also wise to ascertain the agent and agencies success rate, this can be done by asking for past sellers references or letters of recommendation.  Most agencies will be happy to furnish you with these.

What is a “General” Agency?  

This is a form of listing that provides for multiple agents to participate in the sale process as well as the seller also retaining the right to sell privately.

What is a “Sole” Agency?

This is a form of listing whereby you appoint only one agent to represent you on an “exclusive” basis, and armed with the knowledge that they are in control and are responsible for the success of the sale, your chosen agent should present your home fully to the market as well as their qualified database of buyers.  This coupled with a planned marketing strategy implemented by the agency and assisted by the seller, will see your home sell faster and at a greater more satisfying price.  The greater responsibility and accountability of the agent and agency will almost guarantee this outcome.

INVESTMENT

My husband and I are looking to buy our first investment property, can you tell us what we need to look for?


Well firstly we need to ascertain what is important to you and what type of investor you are.  Let me explain:

Some investors are only focussed on a high yielding investment (yield:produce or furnish;payment profit or interest) income or return of a property without nessesarly being focussed on location or type of property.

For most first time investors we recommend they look at a number of variables which have a strong bearing on the overall performance of your investment.

Let’s recognize some of these variables  and see how they could impact on your investment.

Location: Just remember that your market (the tenants) are the same as you and I, and have the same needs... So... Does the location work for you? Are there local amenities at the tenants disposal? Is transport close? Shops and schools within walking distance and within a safe radius of your choice of investment?

The home: Does the home present well or is of an acceptable standard that a tenant and their family could be comfortable in? This fact will be high on the tenants priority list, so it needs to be high on yours. If the home presents well it means that it negates the need for immediate or soon to be scheduled maintenance. The last thing you need when you have outlaid all the money to buy a home, is to have the addition of  a hefty maintenance bill to add to your bottom line.

Features and facets of the home: Over many years of managing investment property for our clients we have analyzed which properties regularly out perform others and have recognised what these keys facets are;

The homes promotes a safe family enviroment, is fenced, is located in a quiet area, has a security system installed and has good garaging, always proves popular. 

The homes insulation and heating sources are top of mind with Tenants at present as these issues add to the running costs of their home and is a contributing factor to the the families well being.  If these things are present we find that the tenure of the tenant is considerably longer than houses that don’t have these features.

These are just some of what are important facets of a rental property purchase. All of the above will assist in attracting a quality long term tenant and the longer a tenant is insitue means a consistent stream of rental income is assured.

Last but not least choose a rental manager that has the right level of experience, knowledge and set of skills to maintain your property and tenants performance at it’s optimum level.

AUCTIONS

I have noticed that there are alot of Auction sales at present, they scare me a little.  I don’t know much about them so can you take a little of the mystique away for me?

There does seem to be a bit of a push from some of the marketing groups towards Auction at present so, I do agree they are more prevalent in the market at present.

It shouldn’t be all smoke and mirrors with an auction because, in real terms it is the most simple form of selling there is.  This process has been around for centuries and was the most common form of selling goods and property.

In simplistic terms a date for Auction is pre-determined, advertised for
inspection, the buyer views and considers the homes suitability for their families needs and
decide whether to buy it or not.  Should the home suit their needs they determine the properties value to them and set a figure in mind that they are prepared to pay.

The seller undertakes the same process but in reverse and sets a minimum price that they would be prepared to accept. This  is called a reserve. Should the
purchaser meet reserve or the seller agree to alter the reserve price to meet the purchasers ability to pay, then the property will be sold. In simple terms it is an open forum for negotiation as things must be done in a transparent manner.

So what is different to a normal method of selling real estate. As a purchaser of a property under normal circumstances you have the ability to purchase the property
conditionally. These conditions are inserted to protect your rights as a consumer in the market using conditions such as obtaining suitable finance, maybe a building
inspection, a LIM report ( Land Information Memorandum) and the like. With public
auction you must sort these issues out before you either make an offer or compete at
auction, in other words your offer must be unconditional. In this instance we would
recommend that you seek independent legal advice before you proceed with the offer process.

Mortgagee Auction is different again whereby the sale has a predetermined set of conditions which set greater limitations on you as a purchaser. You need to be more diligent in your pre purchase process and understand that you are buying the real
estate and not much more. For example the chattels that would normally form part of a sale are not included in a Mortgagee sale property, and there can be issues with the taking of  possession. These and other issues can be explained to you by the real estate agent and can be confirmed by your solicitor or legal representative.

With any purchase the real-estate agent must offer you the opportunity to seek independent legal advice before signing a sale and purchase agreement of any sort and it would be our advice that you avail yourself of that opportunity.

Good luck with your housing and may the force be with you in the auction arena.