Archive for category: Selling

How to Improve the Presentation of a House that Won’t Sell

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home for sale sign

It seems that, regardless of how the real estate market is performing, there are always some houses that just will not sell. Even in extraordinary times like those we are currently experiencing, with the demand for residential real estate continuing to rise, some properties languish on the market.

Helpful Suggestions to Get a Sale

If this is the situation you are in, some suggestions from experienced real estate agents may help to identify issues that are holding back a sale. By accepting and acting on their advice, you could soon have willing buyers queuing to inspect and make offers on your property.

Sellers should understand that buyers look at your property differently than you do. While you love having the family photos, children’s sports trophies, knick-knacks you picked up in Bali and other precious reminders on display, potential buyers will see an indelible imprint of your memories. Remove personal mementos and put them in storage.

Clear Out the Clutter

Now continue to de-clutter. Buyers want to see how much space there is, and that is difficult when choked with unnecessary furniture. Don’t make the mistake, however, of stripping the

rooms bare. Some furniture is needed so buyers can visualise how much will fit into the space.

Fix Minor Repairs

Check every room for minor repairs you may think are trivial. A cupboard with one unsecured hinge, a corner of the carpet that sticks up, or an off-centre bathroom tile are all things that you accept and overlook, but to a potential buyer they show a lack of maintenance. This makes them question what else may be hidden.

Present a Clean and Tidy Property to Buyers

This next suggestion seems obvious, but it is common for cleanliness in homes to range from magazine quality to non-existent. Some sellers don’t see keeping their home clean and tidy as a priority, but if the property is dirty and littered with rubbish, many buyers will be unable to see beyond the junk. Clean it up and keep it clean.

The same applies to the exterior. If the backyard is a dump, clean it up. Mow the lawn regularly, trim overhanging trees and out-of-control shrubs, keep fence lines and pathways clear of grass and weeds. Remove any unnecessary clutter from the approaches to the front door. First impressions are important.

These are some of the suggestions our sales agents at Bunbury Real Estate have made to clients who believe they should leave any changes for the new owners. Our advice is always to present the property in its best light. We are not suggesting over capitalising the property, but it should look inviting and habitable.

Is There a Knack to Successful Property Investment?

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two people holding sold sign

In a national property market that appears to defy all common sense, first-time investors are looking for some guidance before they take that first step. Residential property prices are at an all-time high, and interest rates are also at an all-time low. Understandably they are torn between the two extremes.

Do they take advantage of low interest rates and buy now at top prices? Do they wait to see if the market drops and take the risk that prices won’t climb higher, pricing them out of the market? What if they buy now and current market prices take a massive dive? They are then locked into a huge mortgage on a property that has lost significant value. How will that affect their overall financial position?

There is so much conflicting advice, and past property booms and busts have shown that even the experts can get it wrong. However, many successful investors believe that, just like any other important undertaking, planning is the secret to negotiating the property market and its quirks and variances.

Most investors already in the market started their investment plan by looking for a property that offered capital gain. The rental income paid most of the mortgage, and the expenses generated by the investment were claimed as a tax deduction. Their plan was to wait for the market to rise, thus creating equity. When there was enough equity in the property to cover another mortgage, they purchased another investment property.

The capital growth part of the plan allowed many people to build sizeable property portfolios, but for those looking further to significantly increase their cash flow the next step was to invest in commercial and industrial properties that offered lower capital growth but higher cash flow.

None of this is really a secret, but rather a considered strategy depending on the needs and goals of the individual investor. The most important part of the plan is to select the right type of property. This involves careful investigation of the properties on the market, and most importantly, their location. All this is time consuming, especially for the investor who is starting out and still needs to work to pay the bills.

This is why the best part of the plan for an investor is to find a real estate company whose sales representatives know the market. Here at Bunbury Real Estate, our professional sales agents have many years of experience at finding suitable properties, negotiating sales contracts, and assisting our long-term clients to build their property portfolios. Contact us if this could be you.

Buying First Or Selling First – A Constant Conundrum

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buy a house first or sell first

One of the regularly debated issues in residential real estate is whether it is best to sell first before buying another property, or better to buy something else before selling. This is the dilemma most sellers face once they have made the decision to place their home on the market, and unfortunately, there is no definitive answer. It depends on individual circumstances.

When Buying First There is No Urgency to Sell

When sellers plan to buy another property first, there is no urgency for them to sell their current property. They still have a comfortable place of residence from where they can search for their ideal next home. They are also in an excellent negotiating position, especially if the seller is under pressure to get a quick sale.

Buying first means no regrets for a missed opportunity. And if the circumstances are right, there is also the option for capital gain on both properties in a rising market. It also means that there is no nightmare rush to vacate the original property before settlement. This allows for a leisurely and stress-free move to the new property.

Buying First

However, there are some traps when taking this route. For example, securing a loan for the second property will place sellers in the position of having two mortgages. If the original property should be slow to sell, the financial strain may force a sale at a reduced price. Also, sellers may not have the option of buying first if their lenders require that the original property be sold first.

Our sales professionals at Bunbury Real Estate deal with these issues every day. They know whether market conditions are weak or strong, and if the type of property the client is looking for is available in their search area. Clients researching the pros and cons of buying first or selling first should discuss their situation with one of our sales professionals so they can make informed decisions.

Selling First

Selling first gives the owners time to research the market and settle on a price, and to prepare the property for sale. They have the flexibility of considering offers and negotiating settlement terms that suit them. Financially, they would be more attractive to lenders when applying for a mortgage for their new property.

Don’t Wait Too Long

Regardless of whether the market is moving or stable, the golden rule in this situation is, if possible, to buy and sell in the same market and not wait too long to secure the next property. If property prices rise sharply, sellers could be left unable to afford the homes they had hoped for. Neither choice of selling first of buying first is wrong provided all circumstances are considered before deciding.

Is Selling Your Property Privately Really Worth the Effort?

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property private sale

When property owners make the decision to sell their real estate holding their reasons for taking this step will not all be the same. Some may need to free up cash, some may be moving interstate or downsizing, and some want to pursue other investment opportunities. While there are many reasons, the one thing they all want is the highest price possible in the market at the time.

Is It Legal to Sell your Home Privately?

Sellers pay legal fees, advertising costs and selling agent’s commission. Some sellers look to avoid this commission by selling their property privately. This process is legal, although the method can differ from state to state. If you are contemplating this move, check first with your state regulator.

The Selling Process in Brief

In Western Australia, for example, your contract of sale should be drawn up by a solicitor or conveyance before advertising the property. Be careful when setting a sale price as there are potential illegalities involved. Obtain a valuation from an independent property valuer, a real estate agent or an online selling source. Note that there is a difference between valuation and appraisal.

You must then be available for property inspections from prospective buyers. If you accept an offer in the approved format, and take a deposit, this must be held in a solicitor’s trust account. Settlement is the final step. The date is usually 30 to 60 days from the date of exchange of contracts. The balance of the money is paid and the  documentation made available to the purchaser or the solicitor.

The process may sound relatively simple. However, we know from experience that things can go wrong at any time. Our Bunbury Real Estate sales agents have dealt with buyers who are shown properties with all the attributes they request but decide they don’t want these things after all. We have also seen buyers who book in for inspections then fail to attend. There are also buyers who arrange to buy a certain property, then change their minds at the last minute.

What Do Sales Agents Actually Do?

Sales agents carefully screen buyers to eliminate those who are not genuine. They keep their clients informed on both queries and physical inspections. More importantly, sales agents know market conditions in their local area. They really show their skills when negotiating the selling price and sale conditions between the seller and the buyer.

The Crucial Last Step

This is the most important part of the process for sellers who want the best price and settlement conditions for their property. To lose the sale now through inexperience is a waste of effort for someone selling a property privately, and it is where the sales agents earn every cent of their commission.

How Property Market Trends Affect Pricing

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property market trends

In a depressed property market, the biggest frustration for sellers is that they won’t be able to sell their home unless they sell at any price. However, once the market starts to move in either direction, it is essential to monitor the trends before changing the price. It also equally important to seek professional advice when pricing your property.

Check Market Trends Before Changing Pricing

It is the same situation in the rental market. Most lessors look to the end of any tenancy as an opportunity for a rent increase. However, if the rental market is depressed and vacancy rates are high, good tenants are hard to find. Again, monitoring the property market is vital before tinkering with rental prices.

Does Supply and Demand Really Rule?

Like most sectors of the economy, movements in real estate are driven by supply and demand. According to market economic theory, as a commodity becomes scarce, prices rise. This prompts more suppliers to enter the market to satisfy demand, which in this instance is real estate. As prices continue to rise beyond the capacity of the market to pay, demand weakens, suppliers leave the market and prices fall.

Swings and Roundabouts

Some markets are much more volatile than others, with large swings back and forth depending on trading conditions. Some parts of our agriculture industry, for example, can have trends that range from high to low in one or two growing seasons. Thankfully, the trends in the real estate industry are more long term. But this does not mean that we can ignore the market.

As both selling and letting agents, our ability to respond to property market trends is part of our service . The staff at Bunbury Real Estate keep up to date with property market statistics. This allows us to advise both our clients if they need to adjust their rents or sale prices.

Additional Advice to Keep Everyone Informed

We also like to clarify to clients that there is no Australia-wide property market. Even within the same state, there are differences between regions. For example, the market in a capital city will be different from an inland market with corresponding differences in pricing. It would be unrealistic for a seller in a regional town to expect the same price for a comparable property near the beach.

The current overall market trend in all states shows strong buyer activity and low levels of quality housing stock. Along with low interest rates, improving business and consumer confidence, a growing economy and COVID vaccinations being rolled out, our industry should be stable for some time.

Communication the Key to an Accurate Property Appraisal

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mangnifying glass on notebook

If you have been thinking about selling your property, you likely have an amount in mind that you would like to achieve. You should remember that your preferred asking price and what the market will pay may be different. To get a realistic figure, you need a property appraisal by an experienced real estate agent.

How Does an Agent Perform a Property Appraisal?

A property appraisal is an estimate of the price you could expect to get in the current market. To do this the agent does a market analysis of properties that have sold in the area within the past 90 days. An accurate appraisal will match your property against properties that are similar to yours in location, style, and features.

An Inspection is a Must

There are several things that home appraisers inspect during home appraisal. These include the location, land size, the floor area of the home, room sizes, outdoor spaces and features, vehicle accommodation and gardens. The number of bedrooms with en-suites and built-in wardrobes, and additional outdoor storage, such as sheds, are also included.

Be Ready to Answer Questions

Most real estate companies will do a property appraisal on request at no cost to the seller. Simply make an appointment with a local agent who will inspect the property and ask questions. For example, the agent may ask for details about any renovations that have been done and what fittings are being sold with the property. This is your opportunity to point out the best features, and to also answer the questions with honesty.

Our advice to sellers is to always use a local agent for a property appraisal. At Bunbury Real Estate, our sales staff are out and about every day in our area, observing the market, keeping tabs on properties that are changing hands and gathering local information about items such as planning approvals, infrastructure improvements and other changes that may affect property values.

Now It Is Your Turn

The appraisal inspection is also the perfect time for you as the seller to ask questions of the agents. Ask about the market in your area, and what the agents think of it. Also, ask what method will be used to sell your property, and why they think a particular approach would be the best.

You need to know about advertising and how long they expect your property to be on the market. Ask for an interim selling price. This will give you some idea of where the property sits in the current market. Just remember the old saying: if the price is too good to be true, then it probably is.

Should The Seasons Dictate When To List Your Home For Sale?

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It has long been real estate wisdom that the best month to put your home on the market is the beginning of spring and in Australia, that means September. The thinking is that gardens emerging lush and colourful from the bleakness of winter, plus extra light flooding living spaces, combine to present the dwelling at its best.

Study the market during holidays – get ready for autumn

People generally become more active outdoors once winter is over as the days are longer and the weather more accommodating. It’s an excellent time for buyers to plan a weekend of open house inspections. However, this is not the end of the story as some people prefer autumn, that is, March to May, to house hunt. Cooler than summer and not as busy as spring, it’s the perfect time for buyers who have spent their summer holidays checking market prices.

There are some traps, nevertheless, in following this accepted logic. At Bunbury Real Estate we also see spring as a time for increased market activity, but this should not be the only consideration if you are getting ready to sell. We recommend that our clients consider other aspects of the market when deciding to list their properties.

Always respond to market information

Our selling agents, for example, regularly check market activity to see which areas are popular with buyers, which are oversupplied or undersupplied with housing stock, the types of properties that have recently sold and the prices being achieved. Often, none of these aspects have anything to do with the passing of the seasons.

Life issues trump seasons if selling is a must

Other examples that affect when someone decides to sell their home are more personal. Life circumstances such as a property settlement following a divorce, a career move to interstate or overseas, upsizing or downsizing, financial stress or any number of other personal issues can occur at any time of the year.

Don’t write off a slow and lazy summer

For sellers still keen on sticking with the seasonal approach, summer may work for houses that are bright and breezy, or are close to water, whether it be the beach, a river, a canal or a lake. Once the Christmas rush is over, January is holiday time for many people, and they may like to squeeze in some open-home inspections. Also, the slower market at this time of year is usually short of good properties, so it’s the ideal opportunity for advertising to grab buyers.

Listen to the experts

The most important thing, regardless of seasons, is to have your property well-presented and priced to meet the market. Follow the advice of your selling agent and you will have a sale that will allow you to move onto the next phase of your life.

Key Attributes Of A Good Tenant

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Many people are now making a conscious choice to rent rather than buy, so it is more important than ever for prospective tenants to have a good reputation. The competition for desirable properties is intense, with renters reporting that there are many others putting in applications to secure the same property.

How to Stand Out from the Crowd

With owners and property managers being able to pick and choose, what are the attributes that a tenant needs to secure the property of their dreams? While paying your rent on time is the obvious and most important one, there are others that will identify you as an ideal tenant when you present your landlord reference to the next property manager.

Did you know, for example, that the relationship you build with your property manager is one of the most important you can foster? How do we know this? At Bunbury Real Estate, our property managers go out of their way to make life easy for both tenants and owners, so when a tenant returns the favour, they don’t forget.

Take Care of Your Rental and Keep it Tidy

It really is as easy as taking the same care with your rental as you would if you owned it. If you live in a free-standing home, keep the yard and footpath mowed and the gardens tidy. In a unit or apartment complex, help to keep the common areas tidy and other people who live there will appreciate your efforts, whilst you will make some great friends.

Report Breakages Truthfully

Don’t intentionally damage the property, and if you break something accidentally, report the damage and the circumstances immediately. This helps the property manager to arrange better repairs and services and gives the owner the chance to claim on insurance.

Don’t Authorise Repairs – Leave it to Your Property Manager

If there is a Repairs Policy at your agency, make sure you know what it entails. Report any breakdowns or needed repairs, then follow the process in the policy. You should not spend your own money or authorise repairs or alterations without approval. Sometimes things may seem to take too long but be patient and keep in touch with your property manager.

Enjoy your Rental While Respecting the Rights of Others

Respect the rights of your neighbours to peace and quiet, especially if you have parties or regular guests who may create excessive noise or cause parking problems. These days, many people work irregular hours. Check in with others to make sure you are not imposing on their rights.

Protect Your Hard-Won Reputation

If you abide by all the terms of your rental agreement, you will soon be the most desired tenant at your agency. Also, when you want to move on, that good reputation will be your best friend.

Helpful Hints To Getting The Right Agent For Your Property

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When you are looking for an agent to sell your property, or to find you a suitable place to buy or rent, choosing the right agent for your needs can be a bit like buying a lottery ticket. There is usually more than one real estate agency with an office in the local area, as well as multiple agencies dipping their toes in the market via the internet. How can you possibly sort through all the possibilities and choose the right one for you?

Professional Industry Body Generates Confidence

Fortunately, there is a solution. The Real Estate Institute of Western Australia (REIWA) is the peak body for all real estate professionals in the state. This member-owned organisation was established in 1918 and today it represents over 90% of the agencies operating in Western Australia. When you choose a member agency, there are protections and benefits that come with that choice.

As a member organisation of REIWA, we offer our clients a superlative level of service, specialist employees who work together as a team and in-depth knowledge of the local market. When you choose Bunbury Real Estate, you get the benefit of our membership and all that it entails.

Member Benefits – Access to Latest Market Information

Firstly, we have access to the latest market information and sales statistics. You can be confident that when we do an appraisal of your property and suggest a pricing structure, we are using up-to-date figures. This allows you to get the best possible price for your property relative to its style, condition and location.

Standardised Contract and Settlement Documentation

Secondly, the contracts and other documentation we use when we act for a client are all owned and controlled by the REIWA. This means your transaction is being conducted using industry-standard documents that have been thoroughly checked by legal experts, so there should be no complications during the sales process.

Ongoing Staff Training Keeps Agents Up-to-Date

Further benefits to clients are that our staff members are required to update their education continually through various training programs, so that we can provide you with better advice and service. For example, our agents would be expected to ask questions about things such as easements, access to private lanes, the existence of resumption notices and other issues. They are also up-to-date with legislative changes.

Maximum Exposure on the Web

We also list properties on the REIWA website as well as our own, giving our clients maximum exposure to interested buyers. To get the best possible result for your property, choose an agent that is an REIWA member and also who also has a presence in your area of interest. The combination of professional knowledge and ethics, as well as local detail, gives you the best chance for a top result.

Real Estate Stories – Fact or Fiction

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Whether you are a buyer, seller or renter, it seems that everyone has an opinion about real estate. As a result, there are more myths attached to the real estate industry than Stonehenge or the Great Pyramid of Giza. Are they doorways to an alternative universe or evidence of alien visitations? We can’t answer those questions, but we do know that many real estate myths are easily busted with some reliable information.

I Don’t Need an Agent – I Have the Internet

One myth created by the internet is that you don’t need an agent to sell your home. Listing your property on the internet is easy, but the agent’s role is more complex than uploading a photo of your house. The agent is the property market expert for your location. Agents know which properties have changed hands for what price, how long each property was on the market before it sold, and what buyers are looking for in the area.

This information is critical for the seller, especially one who has an inflated price expectation. At Bunbury Real Estate, our agents advise clients on realistic prices that will attract buyers so their properties will sell in the average time for that location. We also supervise inspections, keep contact details of who attended and they negotiate the best price and settlement terms for our client, the seller.

Why Pay for Print Advertising? It’s all Online These Days

Online advertising costs little and reaches a huge audience, but in real estate, this is not as effective as it first seems. Firstly, online searches are very specific, so if buyers don’t filter searches correctly, your property will be competing against thousands of irrelevant searches. Secondly, in most housing markets, the majority of buyers are locals. Advertising in the local newspaper is worth the cost. In fact, only 27% of buyers look exclusively online, while 59% of buyers use both print and online to find their perfect property.

Before-sale Renovations Will Make our Property More Valuable

This is a very common misconception. Renovations may increase the value, but only if the seller does some research first. Get a realistic value of the property as it is, then work out what renovations will cost. Add the two together and then ask your agent if the new price is within market expectations.

Things like tidying, rubbish removal and maintenance will not usually get you any more money but they improve the presentation. Electrical, plumbing and structural changes must be done by experts and many buyers will expect to see the paperwork, so do-it-yourself could cost you a sale.

These are just a few of the common myths we regularly face as selling agents. There are many more, so if you are unsure about anything you have heard, just ask us.