RBA leaves cash rate on hold at 1.5 per cent

RBA rate hold: 1.5%

CENTURY 21, a real estate organisation with over 100,000 staff in 78 countries, believes the Reserve Bank’s decision to leave the cash rate on hold at 1.5 per cent is prudent in light of disparate conditions across Australia’s property market.

The Chairman and Owner of CENTURY 21 Australasia, Charles Tarbey, said that while he believes some states would benefit from an interest rate cut, others would not. 

“While Canberra, Hobart, Sydney and Melbourne posted strong price gains in February, Darwin, Perth and Brisbane registered declines,” said Charles Tarbey. 

“This thematic seems to be becoming more pronounced and in terms of the property market, the RBA’s decision might be the best middle ground solution moving forward. 

“The general market outlook appears to be relatively buoyant, however I advise Australians not to rely on headline market figures without researching local market dynamics to ensure their financial commitments are realistic and sustainable,” said Charles Tarbey. 

CoreLogic data has reported a further rise in the value of capital city dwellings in February, with values rising 1.4 per cent over the month.  The strong capital gain over February was led by Canberra (+3.2 per cent) and Sydney (+2.6 per cent). In contrast, dwelling values were down over the month across Darwin (-4.3 per cent), Perth (-2.4 per cent) and Brisbane (-0.4 per cent).

These February results mark a new high point in the current growth cycle, with capital city dwelling values increasing by 11.7% over the past twelve months. 

CENTURY 21 encourages potential buyers who are looking to purchase real estate to ensure they have obtained the appropriate professional property and finance advice before doing so.

With over 3,000 offices, CENTURY 21 is the largest real estate sales organisation in the Asia Pacific region, a region vital to Australia’s continued economic success.

Click here to find out more


0 comments | Posted by Administrator on 06/03/2017 at 7:06 PM | Categories:

How To Invest In Property At A Young Age

You may be young and priced out of the first home buyer’s market in your locality, especially if you live in Sydney or Melbourne. Learning how to invest in property elsewhere could be the solution, allowing you to get a foot on the property ladder and work towards owning your own home in the long term.

Many millennials who despair of saving a deposit for a home of their own are turning to ‘rentvesting’ to secure their financial future. This refers to renting close to work and purchasing an investment property in a more affordable location. There are plenty of regional towns in Australia, for example, that still have affordable homes for sale for under $300,000 and units for under $150,000 and offer good rental returns for savvy young investors. Buying a vacant block of land is another option to consider.

Buying an investment property is very different to buying your own home. Firstly, you are looking for a property with a good rental return that is preferably low-maintenance and has good prospects for capital growth long term – not something that suits your own tastes. That ramshackle cottage may be charming but could need major work and expense you need to avoid.  Secondly, investment loans are often available with as little as five per cent deposit and are generally interest-only for the first three to four years, making the initial repayments much lower than a home loan. Choose a property wisely and the rent should cover your repayments.

As you are unlikely to have any large assets for your lender to use as security, you may need a guarantor (such as your parents or another relative) who owns substantial assets in order to get approval for an investment loan.

If you think property investing could be for you, here are some investment tips and the first steps to take:

1.     Prepare your finances

Prepare a document outlining your assets (e.g. your income and car) and all your regular expenses and take it along to a mortgage broker or your bank to see if it would be possible for you to qualify for an investment loan and how much you could potentially borrow.

2.     Save that deposit

Use an online budget planner to work out where you can make savings, set a budget and stick to it. Work out how long it will take you to save for the deposit on an investment property and look forward to the day when you will reach your target!

3.     Do your research

Haunt the internet property sales sites to identify a couple of areas where there are solid properties in your price range that offer good rental returns. Speak to the Century 21 agents in these areas to ask their advice on rental returns and growth prospects in the regions you are researching. Get to know them, visit them in person if possible and they may alert you to suitable properties soon to come on the market that are not yet advertised.

4.     Get your loan preapproved

Once you have saved sufficient deposit plus costs for stamp duty and other additional expenses and are ready to make your move, revisit your bank or mortgage broker and get your loan preapproved so you are ready to buy as soon as the right property comes on the market.

5.     After purchase

While you are waiting for settlement on your purchase, speak with the local Century 21 property manager to arrange to rent out the property. He or she will carefully vet potential tenants and inspect your property on a regular basis.

Also, visit your accountant so he or she can fill you in on all the tax implications of owning an investment property, including expenses you can claim.

Now you know how to invest in property, you can get started. Investing in property at a young age can become a reality if you are determined and willing to save up for that deposit, do your research and seek plenty of advice. One of your very best sources of advice as a first-time investor is the network of Century 21 real estate agents located around the country. Their wealth of knowledge on their local markets is an invaluable resource for all property investors.


0 comments | Posted by Administrator on 01/03/2017 at 3:02 PM | Categories:

CLASSIC DESIGN TRENDS BUYERS LOVE

In capital city markets, particularly Sydney, home stylists (or home stagers) are in hot demand. These experts are not just about making your house look pretty and presentable when it goes on the market, they study the local real estate market closely, identify the buyers most likely to be interested in your property, then work their magic by introducing the right interior design trends to ensure your property is simply irresistible to those buyers.

Experienced property stylists claim that, at a cost of one to three percent of the current value of your home, a well-staged property will sell for seven to 15 per cent more at close of sale. Now that makes it well worth while taking into account the classic interior design trends that will appeal to a wide spectrum of potential buyers for your home.

A property stylist will first advise you to declutter and depersonalise your home, fix anything that isn’t working properly then give the interiors a fresh lick of paint in neutral tones. Most of your furnishings will then need to be packed up and sent into storage. Your stylist will then bring in hired furnishings, artworks and decorative accessories carefully selected and coordinated along a theme that will appeal to your potential buyers and that will maximise the sense of space.

Juliana Gowen, of Urban Chic Property Styling in Sydney, is a big fan of Hamptons Style as a classic interior design look that appeals to a wide spectrum of buyers.

“The Hamptons Style hails from the upmarket beach houses of New York’s Long Island,” says Juliana. “It’s elegant and sophisticated yet relaxed and beachy with lots of white timber, classic furniture and nautical touches that make it very appealing to a wide section of the Sydney real estate market. Whether your home is traditional in style or contemporary, you really can’t go wrong with this appealing look that buyers love.”

Another interior design trend Juliana recommends, especially for modern apartments and townhouses where creating a sense of space is imperative, is Scandinavian Style. “The white or blonde timber floors, lightweight timber furniture and natural materials and textures of Scandinavian Style create a fresh, modern ambience and feeling of space and light that buyers love, especially younger buyers,” says Juliana.

According to Juliana, other classic design trends that draw buyers like magnets include:

·         A neutral palette

“Choose a neutral palette for walls, ceilings and trim,” says Juliana, “and you can’t go wrong.”

·         Hardwood floors

Polished timber floors are still on trend. “Buyers just love them,” says Juliana, “They look great and are easy to maintain. They’re also attractive to people who have concerns around asthma.”

·         A luxury bathtub

“Designer freestanding bathtubs look luxurious,” says Juliana. “They’re both visually appealing and practical.”

·         A pantry

“A walk-in pantry in the kitchen is always a big hit with female buyers,” says Juliana. “Good storage in the kitchen is really important to them.”

·         Built-in storage

“Add well-designed built-in storage, such as understair storage, wherever you can,” advises Juliana.

·         Marble

“Marble benchtops in the kitchen and Carrara marble in the bathroom are hot luxury touches that attract buyers,” says Juliana.

·         White kitchens

“A white kitchen is timeless,” says Juliana. “It will always look fresh and doesn’t date.”

·         Outdoor stripes

“It’s important to decorate your outdoor areas as well as your interiors these days,” says Juliana. “Striped upholstery and cushions always look effective on outdoor furniture. Or try a pair of white Adirondack chairs on the lawn with navy and white striped cushions.”

·         Fireplaces

“A fireplace is always a big drawcard for buyers,” says Juliana. “If you don’t have a traditional fireplace the new bioethanol fireplaces have visible flames without the need for a flue or chimney.” 

·         Create a focal point

“Every room in your home should have a focal point,” advises Juliana, “be it an interesting chair or an artwork. It draws buyers’ eyes into the room.”

·         Add greenery

“We use a lot of greenery when staging homes for sale,” says Juliana. “It energises a room and looks great for the sales campaign photography. Touches of greenery can really add to the appeal of a bathroom, so be sure to use some there as well as in the living spaces.”

·         Mirrors

“Mirrors are great for bringing light into a room and expanding the sense of space,” says Juliana, “but I always advise homeowners to be careful to check what the mirror reflects.

Juliana emphasises that, with rising property prices, buyers are looking for value. “How you present your home for sale is more important than ever,” she advises. “With these classic interior design touches you are likely to attract more buyers to open for inspections and help your property sell for the best possible price.”

 

If you’re looking to get the maximum result for the sale of your home, your local Century 21 real estate agent can advise you on what design trends most appeal to buyers in your local area. 


0 comments | Posted by Administrator on 13/02/2017 at 3:00 PM | Categories: Renovating - Building -

Stamp Duty: A Comprehensive Guide

When purchasing a property, there are many additional costs to consider on top of the agreed price. The biggest of these additional upfront costs is stamp duty, known in some states as land transfer duty. The cost of stamp duty will need to factored in when you apply for your home or investment loan and, be warned, we’re not talking a few hundred dollars here but a sum in the thousands.

A state government tax based on a percentage of the purchase price of the property, stamp duty covers the cost of changing the title of the property you are purchasing, and the ownership details.

How much is stamp duty?

How much you will pay in stamp duty depends on the state or territory you are buying the property in, the amount you are paying for the home and the type of property you are buying.

If you are a first home buyer, you may be eligible for stamp duty exemption or concessions, but again this will vary from state to state. Pensioners and health card holders may also be eligible for concessions or stamp duty exemption in some states.

Below are links to stamp or land transfer duty online calculators for each state and territory. Explore the site relevant to your property purchase for details of any first homeowner grants or stamp duty concessions you may be eligible to receive. You don’t want to miss out on what could be a considerable saving!

·         Australian Capital Territory

·         New South Wales

·         Northern Territory

·         Queensland

·         South Australia

·         Tasmania

·         Victoria

·         Western Australia

Legally, you will be required to pay stamp duty within 30 days to three months of settlement, again depending on the state or territory, on the property you are purchasing.

How stamp duty is calculated

In general, stamp duty will be calculated on the price you are paying for the property or the market value of the property, whichever is greater.  This means that if you are paying $550,000 for the property, but its market value is calculated as only $500,000 then you will pay stamp duty on the higher amount of $550,000.

How to minimise stamp duty

If the market value of your intended property purchase is calculated as lower than the price you have agreed with the vendor, you may be able to negotiate a lower price for the property based on this, thereby lowering your purchase price and the amount of stamp duty you need to pay.

If you are building a new home, it could be worthwhile to lower your building costs (by choosing cheaper finishes and fixtures, for example) in order to save on stamp duty.

Another option to consider, especially if you are investing in property or willing to relocate, is to purchase your property in a state with lower stamp duty or stamp duty exemption for first home buyers.

It’s also worth visiting the above websites to see what the stamp duty thresholds are like in your state. For example, in most states homes worth more than $500,000 attract considerably higher stamp duty than properties below this threshold. If this is the case, you could consider only looking at properties below this threshold.

As you can see, researching stamp duty carefully before you go ahead and purchase a property is definitely a worthwhile exercise that could save you thousands of dollars. Even if you don’t save money, you will be prepared prior to searching for a property for this major additional cost.

If you have any further questions regarding stamp duty or land transfer duty, stamp duty on houses you are considering for purchase or stamp duty exemption, don’t hesitate to consult with your local Century 21 real estate agent for an expert opinion.


0 comments | Posted by Administrator on 09/02/2017 at 9:19 AM | Categories:

Reserve Bank of Australia keeps cash rate on hold at 1.5 per cent

RBA rate hold: 1.5%

CENTURY 21, a real estate organisation with over 100,000 staff in 78 countries, believes the Reserve Bank’s decision to leave the cash rate on hold at 1.5 per cent will continue to support sustainable growth in house prices.

“Many pundits are predicting stabilising market conditions over the coming months and whilst capital city markets around Australia remain relatively buoyant, the dynamic between buyers and sellers in some areas may begin to shift,” said Charles Tarbey, Chairman and Owner of CENTURY 21 Australasia.

“Buyers may be placed in a better position to negotiate a good price, but should continue to be wary of overextending themselves as future rate rises are not out of the question.

“Even a slight upward movement in interest rates can significantly increase mortgage repayments, so buyers should ensure they adhere to a pre-determined budget and factor in contingencies for any changes that the year could hold,” said Charles Tarbey.

According to CoreLogic Home Value Index results for January, capital city dwelling values posted a 0.7% rise across the combined capital city regions with Hobart, Sydney and Melbourne leading the monthly gains.

CENTURY 21 encourages potential buyers who are looking to purchase real estate to ensure they have obtained the appropriate professional property and finance advice before doing so.

With over 3,000 offices, CENTURY 21 is the largest real estate sales organisation in the Asia Pacific region, a region vital to Australia’s continued economic success.

Click here to find out more


0 comments | Posted by Administrator on 07/02/2017 at 1:48 PM | Categories:

6 FIRST HOME BUYER MISTAKES TO AVOID

Buying your first home is an exciting prospect, but the process itself can be daunting. First home buyers need to understand that buying a home, and taking on a mortgage, is a huge commitment, and mistakes can be costly.

If you feel you are approaching the time when you will be ready to purchase your first home, be prepared to take your time and do your homework in order to avoid the following common first home buyer mistakes.

1.     1:  Not getting pre-approval for a home loan

Before you even start looking at potential properties you need to know exactly how much you are able to borrow. Go to several lenders or mortgage brokers to find out how much you can borrow so you know the upper limit property price you can afford. Make sure you get pre-approval from a lender for a home loan before you put in any offers on a property so you know exactly where you stand.

Having your finance pre-approved also puts you in a stronger position when you place an offer on a property. If you place an offer ‘pending finance’ someone else who has their finance pre-approved could beat you to the punch.

With so many properties going to auction these days, you also need to be aware that you will be unable to bid at an auction unless you have your finance pre-approved. You need to be ready to exchange contracts and pay the deposit on the day if you make the winning bid.

2.      2: Not preparing before applying for a home loan

Well before you apply for a home loan you need to get your financial house in order. Check your credit rating to ensure you don’t have a negative listing that could prevent you getting a loan approved. Pay down credit cards and personal loans as much as possible. Make sure your tax returns are up to date. The lower the risk you present to a lender, the more likely your loan approval will proceed smoothly.

3.      3: Not accounting for additional expenses

Saving for your deposit is a big achievement, but you’re not there yet. On top of the deposit you will need additional funds for building and pest inspections, stamp duty, home and contents insurance, legal fees for conveyancing and moving costs.

Make sure you have carefully researched and added up all these additional costs and that you have them covered before you approach a lender for a home loan.

4.     4:  Not researching your home loan options

Home loans come in a variety of forms. Make sure you know what these are and which options are best for your circumstances. Would fixed rate or variable interest be best? Would you benefit from features such as a redraw facility or an offset account?

5.      5: Not doing your independent research

Do as much research as possible into property values in the areas you are looking in to ensure you don’t overpay for a property and, obversely, that you can spot a bargain, or at least the home that offers the most value for money, straight away.

It’s easy to do this online by looking up recently sold properties on the major real estate listing sites.

6.     6:  Not keeping a cool head

If you’ve done your independent research into property values, you will also be able to look at each property you view with a critical eye rather than a purely emotional response. When you find a property that offers good value in the current market, suits your budget and is likely to prove a good investment over time you will be ready to pounce – just don’t show your excitement to the selling agent. Keep your cool and hold your nerve throughout the whole negotiation process and be sure to set yourself an upper limit for what you are willing to pay for the home.

If you are not sure that you can make an informed decision on buying a property yourself, consider engaging the services of a buyer’s agent. Buyer’s agents specialise in locating and evaluating properties and can negotiate the purchase on your behalf.

If you prepare carefully and heed these mistakes to avoid, buying your first home might take longer but you will be in a stronger position in the long term. Don’t be among the first home buyers who rush in too soon, don’t do their due diligence and end up over-stretched and over-stressed.

To avoid making a costly first home buyer mistake, speak to your local Century 21 agent today.

 

 


0 comments | Posted by Administrator on 31/01/2017 at 4:20 PM | Categories:

21 housekeeping hacks you need to make habits in the new year

Here’s our round-up of surprisingly simple household hacks to take into 2017. ‘Cos when it comes to cleaning, the less time we spend doing it, the better!

1. Unload the dishwasher before breakfast

That way, you can pop your dirty cereal bowl straight in when you’re done. No dishes piling up by the sink! Turn the dishwasher on before you go to bed so it’s ready to clear come morning.

Add a drop of dish soap to aluminium foil and use it to tackle stubborn bits on a baking trays, glass pans and even the oven rack. 

Add a drop of dish soap to aluminium foil and use it to tackle stubborn bits on a baking trays, glass pans and even the oven rack.

Photo: Stocksy

2. Polish your silverware

Want to entertain more in 2017? Be the best host by presenting your guests with spiffy silverware. Bring one litre of water, one tablespoon of baking soda and one piece of aluminium foil to a boil. Drop your cutlery in the pot for 10 seconds and then remove with kitchen tongs. The tarnish transfers and you end up with magically sparkling silver!

3. Store linen sets together

Hate sorting through individual sheet sets? Here’s a hack for organising your linen closet. After doing your laundry, keep your sheets and corresponding quilt covers and pillowcases together by taking one pillowcase and bundling the rest to create a neat and tidy packet.

4. Clear the desk clutter

Notice how clutter always seems to sneak its way into your workspace? Keep frequently used items in close reach, then store things such as extra printer paper, cartridges and rarely used reference books and folders on shelves and in drawers. And invest in a cable organiser.

5. Always pull up your quilt

Even if you don’t completely make your bed, pull your quilt up to meet your pillows. Your bed takes up a lot of space, so doing this instantly makes your bedroom look a whole lot neater.

Photo: Habitat. 

6. Dry your sink

Keeping your sink dry helps beat bacteria build-up and stops stains from forming. Once you’ve done the dishes, soak paper towel in an antibacterial kitchen cleaning solution and wipe the surface clean. Don’t forget the tap, trap handle and drain stopper.

7. Organise your garage

Consider the layout of your garage. Divide into areas covering themes such as sporting equipment, garden care and tools. Then place frequently used items so that they’re easily accessible and less frequently used items in harder to reach places. Anything seasonal, for example, can be stowed away.

8. Don’t waste leftover wine

Instead of pouring it down the sink, freeze in ice-cube trays (one cup = 8 ice cubes) to add flavours to sauces and stews. White and sparkling wine works in chowders and creamy dishes, while red wine works in tomato and beef-based dishes.

9. Take care of your wooden floors

Fix scratches with a mixture of distilled white vinegar and canola oil in equal parts and remove scuffs with a Magic Eraser. To prevent dents in the future, avoid wearing heels in the house and cover table and chair legs with socks when rearranging the furniture.

10. Gather small toys with a dustpan

“I hope you step on a LEGO,” has become such an apt curse that it’s now a meme. Save yourself the pain by keeping a dustpan handy to sweep up blocks and puzzles at the end of playtime.

Photo: Rotten ecards.

11. Clean rugs with a shower squeegee

Vacuuming stray hairs from carpet rarely makes a difference, so try scraping a dry squeegee across it in overlapping rows. Doing so creates static electricity, drawing stubborn pet and human hair from the carpet. As you create clumps, pick them up with your hands and pop them in the bin!

12. Use more chemical-free cleaners

Keep your clean green with everyday products such as distilled white vinegar, bicarb soda, lemon, salt and even vodka! They boast myriad uses, are cost-effective and won’t harm your housemates.

13. Deglitter your crafty kids

Did your kids manage to glitter bomb your entire house? The sparkly stuff sticks to just about everything – but you can use a sticky roller or ball of Playdoh to clean up surfaces and clothes.

14. Don’t leave baking trays soaking in the sink

The longer you leave it, the more the food scraps will harden and stick to the edges. Add a drop of dish soap to aluminium foil and use it to tackle stubborn bits on a baking trays, glass pans and even the oven rack.

15. Eradicate rust

Remove rust from metal surfaces by wiping them down with a cloth or brush soaked in lemon or lime juice. The citric acid naturally loosens the rust so you don’t have to scrub as hard.

16. Organise your plastic bags

Do you haphazardly stuff plastic bags under your kitchen sink? Why not turn an empty tissue box into a handy dispenser? Simply tie each plastic bag into a large loose knot so that when you pull one out, the next will follow in succession like so.

17. Make better use of your dishwasher

Consider it your cleaning BFF! Beyond dishes and mugs, you can throw in your greasy oven knobs, shower heads, tap handles, sink plugs, vent covers, dustpans and even your microwave tray.

18. Keep your knives sharp

Consider yourself a contender for MasterChef? Then you better look after your tools! Grab a ceramic bowl, flip it over and rub your knife blades up and down the ring to keep them sharp.  

19. Remove water rings

All you need is a dollop of mayonnaise on a towel. Buff in a circular motion and voila, that wooden coffee table is back to being heirloom-worthy.

20. Deodorise your mattress

Though often overlooked, you should clean your mattress every season – especially in summer when you tend to sweat more. Spritz it with vodka and leave it to dry before making the bed. Vodka is an odourless disinfectant that evaporates fast.

21. Carefully store Christmas ornaments

Tired of opening your Christmas box every December only to find a few of your treasured ornaments cracked or shattered? Carefully store your Christmas baubles in cardboard egg trays, which were made for easy stacking.

 

Original article appeared on domain.com.au 


0 comments | Posted by Administrator on 24/01/2017 at 7:04 PM | Categories:

Did you know that when done well, a kitchen renovation can increase the value of your home? Browse the Century 21 blog now to find out how to do the same.

How to Add Value to Your Home with a Kitchen Renovation 

If your kitchen is looking outdated, tired and past its use by date, it might be time to plan a kitchen renovation.

The kitchen is the heart of the home and needs to function well for daily life as well as for entertaining family and friends. In most homes these days, the kitchen is also part of an open plan living and dining area so it also needs to look good and be well-integrated into the space.

There’s no doubt that a smart, fresh, functional modern kitchen adds value to your home and attracts buyers when the time comes to sell. Just how much a kitchen renovation will add to your home’s value depends on getting your budgeting right.

If you are planning to stay in your current home for some years to come, then what you spend on your kitchen renovation is up to you. It’s about improving your lifestyle more than resale value. If you are approaching time to sell, or renovating specifically for resale, then you need to be very careful about how much you spend on replacing or improving your kitchen.

When making improvements to a home specifically with the aim of maximising the sale price, the general rule of thumb is to spend no more than one to two per cent of the home’s current market value on improvements. If your home is currently valued at $500,000 this means you can safely spend $5000 to $10,000 on improvements without over-capitalising.

To find out whether a kitchen renovation would be worth the cost and disruption in order to add value to your home, ask your local Century 21 agent for a free appraisal of the current market value of your home and speak with him or her about what improvements to your home could add value in the current local market without over-capitalising.

From this conversation, you can then work out your budget and determine whether you should do a full kitchen renovation or simply improve some aspects of your current kitchen.

According to Domain, the cost for a budget kitchen starts at $10,000 and can go up to $25,000. A mid-range kitchen will set you back $20,000 to $45,000 and a luxury kitchen from $45,000 to $100,000 or more.

If you’re looking at the budget end of the scale, spend the bulk of your budget on quality construction of the cabinetry then compromise on finishes and fixtures such as tapware and cupboard handles and choose budget rather than high end electrical appliances. Keeping all the plumbing fixtures and electrical fittings in their current positions will also save money.

Use an online home renovation costs calculator to get a feel for prices before getting quotes for your new kitchen.

If you are renovating for resale, also be cautious about incorporating anything overly trendy. Keep the overall look fresh and timeless and limit trendy touches to easily replaceable items such as lighting.

If your budget won’t stretch to a complete kitchen renovation, then look at ways you can spruce up your current kitchen inexpensively. Cupboard doors can be painted using specialist laminate paint or marine paint and new handles added. An outdated or damaged tiled splashback can be replaced with an inexpensive acrylic splashback. Lighting can be replaced for a more contemporary look.  Simply replacing the stove and rangehood could be an option.  A single sink could be replaced with a double sink and new tapware.

Whether you choose to do a full renovation or simply some strategic improvements, a kitchen update will be well worthwhile come the time your home goes on the market, as long as you use your budget wisely.

Come the time for photographing your home for the market and open for inspections, ensure your kitchen is scrupulously clean and uncluttered, let in maximum natural light and add a few attractive accessories such as a bowl of fruit, potted succulent or a beautiful new cookbook on a stand. You’ll increase buyer interest and help ensure you get the best possible price for your home.

 

If you’re looking to sell your home, speak with a Century 21 agent well ahead of time to get the best advice on whether a kitchen renovation will add value to your home and how much you should budget in order to maximise your sale price. 


0 comments | Posted by Administrator on 21/12/2016 at 2:09 PM | Categories: Renovating -

Auction Versus Private Treaty – Which is Best?

When selling your home, one of the first details to discuss with your real estate agent is whether to sell at auction or via private treaty. Both sales methods have their pro and cons and your agent will advise you on which is best for you in the current market.

Here are some details on how both sales methods work to help you make an informed decision.

Selling via private treaty

A sale by private treaty is a standard residential property transaction where you work with your agent to set an asking price for your home and your agent then negotiates with prospective buyers.

When a prospective buyer makes an offer, you can make a counter offer via your agent and negotiations continue until the prospective buyer drops out or you reach an agreed price.

Once an agreed price is reached, contracts are exchanged and a settlement date is set (usually eight weeks but this is negotiable). After contracts are exchanged, there is a cooling off period wherein the buyer can pull out. This period varies from state to state.

Pros

Selling by private treaty is generally less costly then selling at auction. It also allows for a larger pool of potential buyers as terms can be more negotiable such as length of settlement period and buyers can place offers subject to finance or subject to sale of their own home. 

Selling by private treaty is also less stressful than an auction sale – for both you and your potential buyers.

This method of sale is best in a slow market, where an auction may not attract any bidders, and for those who do not have an urgent need to sell.

Cons

A private treaty sale may mean having your home on the market for a lengthy period – meaning a lot of work each week keeping your home picture perfect for open inspections each weekend and private inspections as requested during the week.

The cooling off period after contracts are exchanged could lead to a buyer changing their mind and dropping out just when you think the whole process is coming to a close.

You will also be starting at the asking price and negotiating down, as compared to an auction where the sale price is negotiated upwards. With an auction, there is far more possibility you could achieve or even exceed the asking price in a lively market.

Selling by auction

When selling by auction your agent will set a date for buyers to come together to bid for your property and will book an auctioneer for the day.

On the day, you and your agent will set a reserve price. When bids reach this amount, the property is said to be ‘on the market’. The highest bidder over the reserve price becomes the successful buyer.

Pros

An auction campaign can be very quick and your property could be on the market for as little as five weeks. If your agent advertises that you are open to offers prior to the auction you could even sell beforehand. If the sale passes in on the day (i.e. bids do not reach your reserve price) then you can still negotiate with potential buyers, starting with the highest bidder.

An auction creates a sense of urgency and flushes out serious buyers who need to act quickly if they really want to secure your property. Contracts are exchanged on the day and there is no cooling off period.

Cons

An auction generally requires a more expensive marketing campaign than a private treaty sale, plus you have the additional cost of hiring an auctioneer.

In a slow market an auction campaign can fail to attract any serious bidders, meaning additional costs for a new marketing campaign for a private treaty sale.

Selling at auction is stressful as you will be in the background on the day and your agent will be in contact with you throughout the auction for you to make instant decisions. You need to keep a cool head and have complete faith in your agent and your auctioneer.

If you’re thinking of selling in the near future, ask your local Century 21 agent for a free appraisal of your home and discuss what sales method would work best for you.

 

 


0 comments | Posted by Administrator on 14/12/2016 at 2:00 PM | Categories: Selling -

Making An Offer On A House – Where To Start | Century 21

Not sure where to start when making an offer on a house? Century 21 has you covered with the basic know-how. Browse now for more information.

You’ve been spending Saturdays driving around to open inspections. You’ve weighed up the pros and cons of each house you’ve looked at. Now you’ve made your decision and it’s time to put in an offer.  Where do you start?

Making an offer on a property you have set your heart on can be nerve-wracking. Just like any negotiation process you have to start somewhere but you don’t want to put in too high an offer and pay more than the house is worth, nor start too low and possibly miss out.

Before you put in your offer

Before you even make an offer on a house, be sure to do some legwork. Research the property thoroughly online to determine a fair market price. Look at how long the property has been on the market and check out recent sales of comparable properties in the same area.

Next, ask the selling agent who showed you around the property for some more information. Ask him or her about any previous offers and what price they think the vendors will accept. Ask why any previous offers were rejected. Request a second property inspection to be sure this is the house you want and also to get to know the agent and show serious interest.

Once you are sure you want to put in an offer, decide on the maximum price you would be willing to pay for the property and ensure your lender has preapproved a loan for this amount.

Conditional and unconditional offers

Most vendors selling by private treaty, rather than auction, set a sale price above the price they will actually accept to leave some wriggle room for negotiation. If they have a good selling agent however who has advised them wisely, this will be very close to a fair market value.

Having done your research, you will know whether or not this is the case and can decide on a fair first offer accordingly with room for the vendors to negotiate down and for you to negotiate up. It’s not advisable to put in a very low offer that could offend the vendors and stop them from negotiating with you further.

Offers can be either conditional, where you put conditions on the offer, or unconditional. It’s highly advisable to make your offer conditional on certain requirements such as obtaining finance or subject to the results of building and pest inspections. If any problems arise after you have had the inspections done, then you can use these to negotiate lower on price.

Put it in writing

Not all states require that your offer must be in writing but it’s advisable to do so anyway in order to have a record of the negotiations and what each offer and its conditions are.

This should take the form of a formal offer in writing (either letter or email) to the selling agent outlining the price you would like to offer and any conditions.

You can also offer favourable terms to the vendors such as a shorter or longer than average settlement term to sweeten your offer.

The waiting game begins

The selling agent will pass your offer on to the vendors. Be patient, wait and see the vendors’ response and whether they come back with a counter offer. Negotiations can go back and forth for some time, so consider each of your responses carefully and keep your top price in mind.

Keep the tone of all negotiations formal and neutral. Aim for a win-win for both yourself and the vendors and the process should go smoothly.

If negotiations reach your top price, then spell out that this is your limit and you are unable to go any higher. At this stage, the selling agent will likely advise the vendors to accept your highest offer.

Once a price has been agreed, you are on your way to owning your own home. The contract can be finalised and, once signed by both parties and the deposit paid, the deal is completed!

With over 3,000 offices, CENTURY 21 is the largest real estate sales organisation in the Asia Pacific region. We’ll help you purchase the property of your dreams. For more information on making an offer on a house, buying or selling, please get in touch with a local member of our team now.

 

 

 


0 comments | Posted by Administrator on 07/12/2016 at 3:30 PM | Categories: Buying - Investors - First Home Buyers -