Archive for the ‘Selling Real Estate’ Category

Watch Raine & Horne SA CEO; Kevin Magee’s latest video of South Australian residential housing figures for August.

See what happened to property values in South Australia last month…

This video is brought to you by Raine & Horne Glenelg, your Glenelg Real Estate Agents and Glenelg Property Mangement Experts.

It’s every vendor’s dream to sell their property in a sellers’ market.

“But while catch phrases like sellers’ market are easy to bandy around, people don’t always understand what makes a market work in a seller’s favour,” Monika Bonet, Principal of Raine & Horne Glenelg said. “Media headlines heralding surges, explosions and booms can be misleading. Like any other market property is subject to supply and demand and the market that makes life more predictable for a seller is one where there is a greater number of purchasers than properties for sale.”

According to Ms Bonet when there are more buyers than sellers, buyers are forced to compete for what’s available. Conversely, when there are more properties for sale, purchasers can pick and choose and drive a harder bargain.

“The most obvious result of increased competition is that vendors are in a stronger negotiating position and can often hold out for a higher price,” Ms Bonet said. “But there are also many side benefits like getting more inspections over a shorter period of time thereby avoiding the stress of wondering where the purchasers are and whether the property is likely to sell or not. A buyers’ market is very stressful for vendors because the selling process drags out over a longer period of time.”

Ms Bonet said that in a buyers’ market purchasers are more likely to quibble over building reports and be picky about decors when even easily changed qualities like colour schemes don’t live up to their wish list.

“They procrastinate for longer and crucial psychological momentum is often lost ultimately decreasing the chance of a sale occurring,” Ms Bonet said. “Whereas in a sellers’ market purchasers are more likely to be grateful to have found something that meets their bottom line criteria.”

Ms Bonet said that another benefit of selling in a sellers’ market is that fewer sales fall through because purchasers may have already missed out on one or more other properties and are aware of the difficulty of locating then securing the home they want.”

“Here in Adelaide we are currently experiencing a classic buyers’ market with sellers outnumbering purchasers,” Ms Bonet said. “It’s a scenario that proves that the majority is not always right. If you wait to sell your property when everyone else is selling, chances are the cycle will have turned to favour buyers rather than sellers.”

This blog post is brought to you by Raine & Horne Glenelg, your Glenelg Real Estate Agents and Glenelg Property Management Experts.

Fixtures: Items that are fixed or part of the property, for example, carpets, down lights and built in robes. Sometimes sellers specify fixtures they may wish to keep (say, an antique light fitting that belonged to their grandparents). To avoid confusion about what stays and what goes, fixtures can be identified as a special condition in the offer and acceptance document.

Foreclosure: The process by which a lender sells a property given as security for a mortgage, usually as a result of the borrower’s failure to repay the loan.

General Conditions: These deal with important contractual obligations for both buyer and seller including such matters as the paying and holding of a deposit, settlement, adjustment of any outgoings and any other payment responsibilities. It is possible to vary the contractual obligations. You can for instance, delete or amend existing contractual obligations that form the General Conditions, but the seller would have to agree with the changes if the contract is to be binding.

Home Equity Loan: A home equity account gives you a revolving line of credit secured by the value of your house. This allows you to use the funds for other purposes such as the purchase of a second property, shares or other investments. The interest rate is generally higher than a standard variable rate, and these loans should be treated with caution.

‘Honeymoon’ Rates: “Honeymoon” or introductory rates are offered to entice borrowers with a low advertised rate for the first six to twelve months of the loan. After this the loan automatically reverts to the Standard Variable Rate offered by that lender. Use the ‘Comparison Rate’ to better understand the costs associated with such loans.

Joint Form of General Conditions for the Sale of Land: (the General Conditions) are a standard part of any contract to sell a property and deal with many issues that arise between a buyer and seller entering into a contract. When an offer is made, a printed set of General Conditions is presented to both the buyer and seller.
Joint Tenancy: The ownership of property by two or more persons where there is a right of survivorship, that is, where on the death of one joint owner, the share of the interest of the deceased goes to the surviving owner(s).

‘Low Doc’ Loans: ‘Low-Doc’ or Low Documentation Loans are designed for the self-employed who don’t have the documentation required to get traditional home loans. The interest rate is higher than the Standard Variable Rate and Low-Doc loans usually require mortgage insurance, adding to their cost.

LVR stands for ‘Loan to Value Ratio’: LVR refers to the maximum amount you can borrow against the value of the property used as security for your home loan. For example a lender may approve a loan for 85% of the property value, while you will be expected to provide the remaining 15% plus costs and insurance.

Mortgagee: The lender in a mortgage agreement

Mortgage Offset Account: Offset accounts can help reduce your tax by offsetting taxable income from deposit accounts against interest paid in after tax dollars on mortgage repayments.

Mortgagor: The borrower in a mortgage agreement

In next week’s blog see Part 3 of the A- Z Jargon for Home Buyers…

This blog post is brought to you by Raine & Horne Glenelg, your Glenelg Real Estate Agent and Glenelg Property Management Expert.

As a vendor, it’s worth remembering that the relationship between vendor and agent works best if there is an open line of communication. If the relationship breaks down, the sale outcome is usually affected and at this stage vendors often blame agents for a host of small things that could have been remedied early in the relationship.

Professional agents will encourage vendors to be frank from the outset, as the first two weeks of marketing can set the scene for a positive relationship – or its opposite. The problem is that many of the issues that arise seem at the time too small to mention – the signboard is in the wrong spot or is crooked, the agent keeps bringing purchasers in through the side balcony door instead of the front door, or perhaps s/he turns up with a purchaser with only sixty minutes’ notice instead of several hours. These issues may seem too small to worry about at the time but often add up to lack of confidence in the agent, especially if the market is quiet and there aren’t many inspections.

Many people prefer to grumble amongst themselves rather than confront the agent with so small a misdemeanor, but professional agents will want to get it right and will appreciate your input.

Agents understand that although they sell houses every day, most of their clients will do it only a few times in a lifetime and that they find it very stressful.

Many people find it hard to be critical until something happens that is serious enough to make them lose their temper – and by then the relationship is hard to salvage.

While it’s up to the agent to check whether the vendor is happy with the way the inspections are progressing, vendors can help by mentioning the little things and giving the agent a chance to get it right in the long term interests of a successful sale.

This blog post is brought to you by Raine & Horne Glenelg, your Glenelg Real Estate Agent and Glenelg Property Management Experts.

Moving inter-state or from country to country is harder than moving round the corner in the same suburb, or to another suburb in the same town, which is one of the reasons most people don’t move far when they move house.

Some people lose money, especially if they move from an upwardly mobile area to one where prices don’t change much, and find themselves unable to buy back into their original location if they change their minds. What steps can they take to make this process more financially secure?

Many people like to buy their new place of residence before they make the transfer. This way they experience a smooth transition from one home to another – with the emphasis on ownership and avoidance of renting at all costs. They see no problem arising from selling their old home and cutting their ties with their old life.

While such a strategy may be organised and efficient in the short term, it doesn’t always turn out to be the most successful in the long run. Many people find it hard to carry out property inspections when they live far away. Often they give themselves too little time to find a new home. They forget that moving round the corner means that a lot of the market knowledge they need is already taken for granted. (Busy roads, proximity of services, exposure to adverse season-dependent weather conditions to name a few.) Many find that the property they bought to start with seems less desirable as their local knowledge deepens.
Others find it harder to settle into a new life than they anticipated. The schools aren’t as good as the old ones, clubs and other networks don’t exist or simply don’t seem as familiar as what they left behind, the weather is too windy, wet, hot, cold – or any of the hundreds of reasons people find for not settling into a new place that is simply not “home”.

Those who have no choice – the ones who have to stay because they have been transferred and are under contract – eventually settle in, but just as many are in a position to change their minds and many of those wish they had kept their options open.

Those who decide to move back to where they came from could have reduced the financial cost of moving by not selling their home and buying another one – only to do it all over again when they return to where they came from. In hindsight, many realise that they could have chosen to rent temporarily while they explored their new territory.

Selling up before moving becomes especially likely to cause heartache if the area left is an area of greater capital growth than the area of re-location. Buying back in becomes difficult if prices go up faster in the original location than in the new one.

Naturally, not everyone decides to move back to where they came from. Some simply realise that in the hurry to get settled they chose the wrong house or the wrong area in which to buy, that round the corner or in the next suburb would have been more convenient, more appealing, more likely to go up in price.

Of course, retaining a home, renting it out and eventually selling it at a distance poses its own set of challenges. But many people find it’s the conservative option – the one more likely to maximise financial success and offer the greatest number of options further down the track.

This blog post is brought to you by Raine & Horne Glenelg your Glenelg Real Estate Agents and Glenelg Property Management Experts

The phrase market volatility is often used to explain why some types of properties appear to vary more in price than others regardless of the market. Properties subject to low market volatility are those whose prices can be more easily predicted than others; the prices of properties that are highly market volatile can’t be so easily predicted.

This predictability is not in itself the cause of the volatility but a result of the way the market responds to different types of properties. So how does this work in practice?

If your home is a typical two bedroom apartment that is one of many in a block or blocks of apartments that are all very similar, the price can be easily predicted by recent sales in the building. If you try to hold out for a higher price, chances are your purchaser will simply find another apartment in the same block or one down the road.

Similarly, if you are selling a three bedroom house in a row of houses of similar age and construction and size block – such as a housing estate – then a similar predictability is likely. In other words, these properties are not subject to great variation in prices achieved. They don’t experience great market volatility.

On the other hand houses that are more unusual – perhaps unusually large and of unusual design or owned by a celebrity or have a special view or a private jetty – such houses are subject to much greater market volatility in that it is much harder for buyers to find something similar once they have set their heart on a particular property. In such cases, it is not unusual for demand to drive prices higher than would be normally anticipated if there are several interested parties – or conversely prices to drop at time of low demand.

Properties with high market volatility tend to do well at auction where bidders are competing for something that – once they miss out – will be gone forever, while those with a lower market volatility, that can be easily replaced often don’t always create the level of competition necessary for a successful auction.

This blog post is brought to you by Raine & Horne Glenelg, your Glenelg Real Estate Agent and Glenelg Property Management Experts.

A fast sale at the right price is every home owner’s dream… however careful planning and staging of your home is the springboard to success.

Monika Bonet, Principal, Raine & Horne Glenelg, believes that creating a pleasant and inviting atmosphere when showing a property can add to saleability.

“There is nothing worse than having a home open for inspection when there is an odour in the home, be it from cooking, chemicals or animals or even just a musty odour,” she said. “This can turn off buyers when they visit a property.”

“Always try to freshen up the feel of your home by buying some fresh flowers to provide a pleasant natural aroma, and airing the home out prior to the viewing time. Also, plug in air fresheners are not pleasant to everybody’s tastes. If you have pets, remove their litter trays from the house prior to airing the house,” said Ms Bonet.

Landscaping and removing clutter are essential factors in this market.

“De-cluttering and minimising furniture create a more spacious environment and often rooms look much bigger. Clutter and mess  distracts potential buyers, as they often can’t imagine the space as their own,” Ms Bonet said.

Market intelligence is also critical to a speedy sale.

“Our experience in the upper end of the market, is that buyers expect everything to be done, otherwise buyers won’t make offers. We advise our sellers to take the time to clean up around the property, finish off all the little jobs and things you’ve been prepared to live with, especially painting, garden beds, lawns and edges in front and back yards.”

Ms Bonet is also a big believer in the power of first impressions.

“Prospective sellers need to understand that first impressions are everything when selling a property,” she said. “Buyers look at multiple properties and if your front lawn is getting a bit long, and the paintwork is personalised to your tastes, then there’s more chance buyers will lose interest fast or won’t even bother inspecting the property any further. Amazingly most buyers can’t see past the cosmetic work that needs to be done.” Ms. Bonet said.

Always remember that an eye for detail makes the difference when selling your home.“It’s the small things that buyers notice when viewing a home,” said Ms Bonet.   “Repair any broken windows, leaky taps and torn flyscreens and missing door handles. And don’t forget to look up at your ceilings because your buyers will, they will always see dusty ceiling fans, spider webs and dirty ceiling vents

Lastly many buyers, namely professionals, are looking for a property that they can move straight into with minimal work. “Fixing faults, a fresh coat of neutral paint colours and some landscaping will make an enormous difference to the final price and the amount of time the home is on the market,” she said.

If you’re thinking of moving soon, call Monika Bonet today to arrange a FREE no obligation and independent consultation of how you should prepare your home for sale.

Call Monika today on 8376 8844.

Quick… watch this Youtube video and be the first to inspect before it’s open to the public…

Come and inspect this stunning three bedroom two story residence executive residence at 45 High Street, Glenelg. Situated in the heart of thriving Glenelg. This residence offers smart, sleek & exceptional living just a few steps away from Jetty Road &, Glenelg Beach.

This property is presented by Monika Bonet, Principal of Raine & Horne Glenelg, your Glenelg Real Estate Agent

Discreet and professional use of signage is an accepted results driven practice utilised by most professional real estate agencies, when marketing Glenelg real estate.

“Research conducted throughout Australia and New Zealand shows that, on average, twenty eight percent of sales enquiry comes from signboards, Monika Bonet, Principal of Raine & Horne Glenelg said “It’s an important part of a good marketing programme. However the definitions of the words “discreet” and “professional” obviously vary from agent to agent.”

According to Ms Bonet, “What a discreet and professional signboard should be aimed at is selling the property, not selling the agents branding”. Ms Bonet said “Over the past couple of years, increasingly there’s a growing narcistic trend that many agents use their vendor’s signboards to sell themselves, rather than sell their vendor’s property.”

“The improper use of signboards for self promotion does nothing to attract buyers” Ms Bonet said.

“As a vendor it should be a concern for you, to pay for an expensive signboard to be erected out the front of your property, only to find that the artwork is entirely centred around selling the agents branding, rather than selling your property”.

“When I see inappropiate use of signboards by agents, I just cringe as I feel this is disrespectful of the hard work that the vendor has put into getting their home on the market. Most vendors paint and do repairs and take the time to keep their homes tidy for weeks sometimes months on end. All of that vendor’s hard work is then undermined if the overall impression is not captured by some good photography on the signboard.”

“The better real estate agents are sensitive to the needs of their vendors and make sure that the signboard artwork reflects a welcoming image to entice buyer attention,” Ms Bonet said.  “These agents are solely focussed on attracting buyer interest,” Ms Bonet said. “Discreet and professional signage isalways  tastefully aimed at displaying the home’s best presentation only, to entice buyers to come along to inspect the home.”

“After all if agents are using you signboard to just promote themselves, what are they going to be like when selling your home?” Ms Bonet said. “So the next time you’re out driving, look at signboards you see and ask yourself the question; is that signboard erected to sell the house or is it actually designed ot just sell the agent’s branding?”

This blog post is brought to you by Raine & Horne Glenelg, your Glenelg Real Estate Agents and Glenelg Property Management Experts.

When media reports start talking about static or falling home prices, many homebuyers think that it’s a good idea to watch the market and wait for it to reach the bottom. They feel that if they postpone their purchase long enough, they are likely to see prices fall further and snap up a ‘real bargain’. 

While bargains do exist, of course, for people who are in the right place at the right time, there are often more people who miss out by using this strategy than gain.  Most homebuyers buy their family home and live in it for, on average, seven to ten years.  And when we’re looking at averages, the property market continues, in the big picture, to rise. Based on historical property cycles, property may undergo periods of static growth and periods of galloping growth, but on average, well-located, well-selected residential property doubles in value every ten years or so. Certainly, if we could always pick the lowest time to buy and the highest time to sell we would do very well indeed, but the only buyers who need worry about the immediate state of the market are the real estate speculators who wish to buy then sell again straight away, or those who are too highly geared or who have entered into unrealistic amounts of debt. For everyone else, the chances of strong long-term capital gain are virtually assured, provided they buy well-selected property in well-selected locations.

It’s famously difficult to pick the ‘bottom’ of the market. Often buyers who wait find themselves having little to choose from as listings get scarce – and a sudden flurry of competition for the few desirable properties actually on the market for sale often causes them to sell for higher prices than expected, even in a market described as a difficult one for sellers.  Buyers end up paying more than they bargained for if they  keep on watching and waiting;  because the ‘flurries’ they waited out were signalling an upturn in the market or the end of the halcyon days for buyers.
 
Purchasers who wait too long for a ‘bargain’ or the ‘lowest point of the market’ often only realise that the lowest point has already been reached once they can look back on it with the 20/20 vision of hindsight.

This blog post is brought to you by Raine & Horne Glenelg, your Glenelg Ragement Expertseal Estate Agents and Glenelg Property Management Experts.