BUYING,

SELLING OR 

INVESTING?

Things you need to know when buying your first home.

 

Being practical

Remember to look at all aspects of the property. It is about balancing the pros and cons as no property will ever be perfect.

 

Consider who your neighbours are going to be, parking availability, any repairs or renovations needed, future development planned for the surrounding area, proximity to amenities like shops and transport, noise pollution from traffic and aircraft and the overall street appeal.

 

Choosing the right area to buy in is important and not just from a capital growth point of view. Where you live becomes a big part of your life and essentially forms the lifestyle you live. Consider the distance you are prepared to travel to work every day, is there a direct public transport route? Are there adequate amenities for your needs and your family? Find out where the nearest hospitals, schools, shopping centres and recreational spaces are all located. These things all have an impact on your everyday life and happiness.

 

Be prepared to act quickly, especially once you have found the property you want. Whether it is the first property you spot or you’ve been looking every weekend for a year, if it feels right, is in your price range and you’ve done the necessary checks then go for it before someone else beats you to it.

 

If you are interested in a property, keep up communication with the agent. Make sure they know you are interested so you don’t miss out to another buyer who was more proactive. Give yourself every chance of buying it.

 

Try not to let your emotions get in the way, which is sometimes easier said than done. If you feel you have become too emotionally attached to a property, ask a friend or family member to bid on your behalf.  It is better to play it safe and always consider future events that could impact on your ability to repay your loan, like job security, interest rates rises, health and starting a family.

 

Know when to compromise, when to stand your ground and when to walk away. Waiting for the perfect property to come along could take forever, settling for less than perfect now could mean moving up the property ladder a whole lot quicker.

 

Do your homework

Obtain pre-approved for a loan so you know exactly how much you can spend before you even begin your search

 

You may have fallen in love with a property but be sure to do your research before getting too attached or making an offer.

 

Understand the market you want to buy in. Websites like www.apm.com.au, www.rpdata.com.au, www.ljhooker.com.au, www.realestate.com.au offer fantastic resources when researching the property market.

 

Understanding the practicalities of buying a home and the sales process prior to making an offer or bidding at an auction. Read up on how auctions work and tips on bidding, the same goes for making an offer on a property for sale by private treaty.

 

Create a list of all the properties to keep track of what you’ve looked at, the features of each property and the asking price so you can compare the pros and cons of each property and what you may need to compromise on

 

Protect yourself

Never buy anything without getting an independent building and pest inspection report done, as well as a strata report if you are buying an apartment.

 

For apartment buyers, a strata report is a must and will show you the records of the strata scheme, which can include any special levies proposed in the future that you may be required to contribute to, a history of the building’s maintenance work, as well as the amount of money in the sinking and administration funds.

 

Never sign anything you do not understand. It is best to have your solicitor or conveyancer review the contract before you sign an offer to purchase or exchange.

 

 

 

Things you need to know when selling your home.

 

Tips on different ways to sell your house with Selling by Auction

An auction by nature creates urgency as there is a definitive time in which the buyer must act or they risk losing their opportunity to buy the property. Setting an auction date, groups all interested buyers together at the one time, creating a competitive environment and the greatest chance to achieve the highest possible price. The theory of an auction is that your home will sell at true market value at that particular time.

 

Unless the property is passed in and consequently becomes listed ‘for sale’, the seller knows exactly when a sale and settlement will occur. The benefit of this is being able to plan ahead with your next move.

 

During the marketing campaign, buyers are usually given a price guide which can vary throughout the campaign depending on the amount of interest in your property and feedback received from buyers. The great thing about auctioning your home is that there is no price limit only a minimum amount that you decide you are prepared to sell for, which is called the reserve price.

 

Setting the reserve should be an analytical decision based on buyer feedback obtained by your agent during the campaign as well as comparable sales in your area. By now you should have a good idea as to how many buyers are genuinely interested and how they feel about your home in relation to the price that has been quoted to them.

 

The marketing undertaken for an auction property needs to be more focused and can often cost you more. A date is set and you need to create strong buyer interest in a short amount time. Your agent will recommend using a multi-faceted approach, whereby you advertise across a number of different mediums each week until auction day.

 

Once the hammer falls, the property is sold and there is generally no cooling off period for the buyer or the seller. Buyers need to conduct building inspections and ensure their finance is approved prior to bidding at the auction. If the property fails to sell at auction, you can continue marketing the property with an asking price. It is likely that one of the buyers, often the highest bidder will come forward and negotiate a sale with the agent on your behalf

 

Selling by Private Treaty

Sale by private treaty requires the seller to set a price from the beginning of the campaign. Your agent and our tips on Property Value can help you with this process. Many sellers have a tendency of initially setting a higher price as they think buyers are likely to negotiate the price down. Doing this can be counterproductive, so this is when an experienced agent becomes a vital source of information. Ask for their guidance when establishing your asking price and refer to comparable sales in your area.

 

In general, sale by treaty gives the seller greater control over the sale, more time to consider offers by potential purchasers and the ability to extend the time the property is listed on the market (although this often leads to potential purchasers wondering why the property is not selling). Plus potential purchasers must make offers on your property 'blind', this means without knowing what other buyers are willing to pay.

 

Generally, private treaty sellers can negotiate the price and sale terms with the buyer. Private treaty sales usually have a cooling off period (5 days in NSW, 3 business days in Victoria, 5 days in QLD, 4 business days in NT, 2 business days in SA ), this means that once a price has been agreed between buyer and seller, the sale is still subject to conditions. For example the buyer may have requested a building and pest inspection or may require finance approval.