The 4 Property Phases You Need to Know

Never one to shy from giving his opinion on the property market, Sunrise presenter and financial journalist David Koch, believes that the property market moves in cycles of between seven to 10 years.

However, within the overall market cycle, each city and even down to the city block can be in its own cycle, which investors need to understand so they buy at the right time.

"Knowing where you are on a property cycle means following a strict process of understanding the macro and micro elements affecting your decision," writes Koch in an advice column for news.com.au.

For example, while the overall housing market is considered to be undergoing a moderate recovery, Kochie believes the Gold Coast is oversupplied with apartments - many of which have been on the market for a long time - meaning there are bargains to be snapped up by investors.

He suggests astute investors make themselves aware of such things as "local influences" such as new infrastructure in the works or the release of plans for new housing, "property condition" (the extent and cost of any future improvements), "city variances" (local economic and demographic factors) and the overall economic indicators like consumer confidence, interest rates and unemployment, which can all impact on demand for property.

Most importantly, Kochie says investors must understand the four property phases, which he labels as:

1. Opportunity Phase:

This he says is the best time to buy, at the beginning of cycle when the market has bottomed out (not always easy to pick)

2. Growth Phase:

This is the point when investors are most confident and prices start to rise.

3. Peak Phase:

When the best gains have been achieved, this is the point, says Kochie, when "inexperienced and timid investors pile in".

4. Correction Phase:

This he says is when buyers over extend themselves and banks start to tighten credit, making it harder to get a mortgage or refinance.


By Larry Schlesinger

Read More: http://www.propertyobserver.com.au

Can I Do the Renovations Myself?

You may decide you will be the one to complete or oversee the renovation. Doing the renovations yourself means you have complete control over timing, costs and scheduling as well as saving on labour costs along the way. It can be a great way to go if you have plenty of time, knowledge and skill.

However, if you haven’t renovated before there’s a good chance that you might underbudget the true costs and go well over time. Trying to learn on the job can be pretty tough and even though you can temporarily stop the job when you run out of money, it’s very hard to profit from renting or selling a half-finished property. It might even be worth less than what you bought it for.

My tip is to double your expected cost and double the time frame, and then work out if you’re still going to make a profit. Most of the time, it works out more efficient from a time, cost and stress perspective to outsource the renovation to the experts.

I once had a client who wanted me to buy him a property to renovate as a retirement project. When the time came to renovate, my client asked me to outsource big jobs like the kitchen and bathroom, as they’re best done by specialists who would do it in a fraction of the time.

We then agreed that tiled flooring was best left to an expert and built-in wardrobes left to a different specialist. Five minutes later, the only non-specialist job that he had a hope of completing himself was the painting.

What if I don’t want to do it myself?

If you’ve decided to put your renovation into the hands of the experts, finding a good team of tradespeople and other professionals can be the most challenging part of the job. They often have a different mentality and style of working to other relationships you have in your work roles, so it’s important to build a bond.

A great place to find good tradespeople and other professionals is through recommendations. Ask family, friends, real estate agents, mortgage brokers and buyers’ agents for referrals.

Recommendations from property investors who have completed a number of successful projects are especially valuable.

When dealing with any tradesperson, it’s important that you always ask for details of the insurances they hold and names and numbers of previous customers they’ve worked with. Make sure you actually check these referees to see if the work was carried out to their satisfaction. I often go and see projects that are midway through renovation, as well as ones that have been finished.

There’s also nothing to stop you asking for a guarantee: what penalty will they impose on themselves if they do not complete within a certain timeframe?

When you’ve found your team, the more you use them, the better they’ll work together, as you’ll build trust and learn to iron out little issues. If you’re doing a one-off project as an individual, finding a good team and building an instant relationship can be difficult, and in this instance it could pay to use a project manager.

What is the benefit of using a project manager to handle my renovations?

You may want to consider hiring a project manager to oversee your renovation project.

A good project manager can deal with everything from drawing plans, negotiating them through council and managing the renovation, through to ensuring the final finishes are complete. They can also take responsibility for the costings and timings, and hustle your contractors and tradespeople into gear if they appear to be lagging.

Hiring a project manager can prevent the arguments that tend to arise when you have a number of different parties all doing different pieces of the same job, by clarifying each person’s responsibility and when things need to be done.

The project manager can be anyone from a builder, interior designer or architect to a professional property investor/renovator. Ultimately, it needs to be someone who is experienced, trustworthy and has a team of reliable tradespeople.

Won’t a project manager be expensive?

A good project manager will charge 10% to 20% of the overall renovation cost, which is around $5,000 to $15,000 on a $50,000 to $75,000 project.

I’ve heard of many nightmare scenarios from clients who have struggled before coming to Empire, so I believe that hiring a project manager is well worth the investment.

Here are just a couple of the nightmare stories I’ve heard:

• “The builder didn’t turn up on the first day of the job. On the second day he reversed into the side of the building and put a hole into it. The strata managers and other owners weren’t impressed.”

• “I managed separate tradespeople to renovate the kitchen, bathroom, carpets, blinds, doors, painting, electrical and plumbing. There were so many people to manage and so many unforeseen glitches, and I learned one part of a job needed to be completed before another could start, so the project became a major headache. One person would blame another, no-one would take responsibility, and everyone took advantage of my inexperience. And the longer it took the more money it cost in mortgage payments and loss of rent. Never again!”

You might think you can save a fortune by managing the project yourself, but there are risks in managing a renovation alone.

Tradespeople will know if you’re not a renovating expert, and they may use your lack of experience to their advantage – in terms of costs, timelines and attention to detail.

A tiler might see you in your suit, for instance, and know instantly that you’re not used to dealing with tradespeople, and increase his price. And did you know that jobs can beq uoted at different prices in different suburbs?

You may also fall prey to unscrupulous tradespeople trying to secure a job and increase their prices. The tradesperson might tell you they’re ready to start on the bathroom even while they have a number of other jobs on the go. He might try to juggle all the jobs at once, starting a job on your property, leaving his tools and not coming back for four weeks until he’s ready to begin in earnest. Because your tradesperson has started, no one else will take on the job and you’re stuck waiting.

Unless you’re prepared to be on site every day to manage what’s going on, I recommend leaving project management to an expert. Weigh up the cost of your time away from work, the chances of being charged higher prices and the likelihood of the project taking twice as long.

A project manager who does renovations frequently can negotiate with tradespeople better than you, and has better buying power for trades. They should also be good at negotiating on costs, timelines and maintaining the quality of the work on your behalf.

How long should my renovations take?

A pre-planned kitchen and bathroom renovation should take four to six weeks. Many property investors who manage the projects themselves find this impossible because they fall into one of the most common traps: choosing tradespeople based on price alone.

I don’t often use the cheapest tradesperson. I choose those that can do the best job in the shortest amount of time. The cheapest will often do the job in their own time, but the faster the tradesperson, the quicker you will place tenants in the property.

You could pay $1,000 to get some students to paint your property, you could pay $2,000 to get a painter or you could pay $4,000 to get a master painter. There will be a guaranteed difference in the quality of the finish. Which one is right for you to use will depend on the type and quality of the property you’re renovating, your budget, and the potential benefits you’ll receive when a potential renter or buyer falls in love with your property.

What are the types of profits I can generate with a quality renovation?

The results can be seen in cold hard cash. On a typical project we might buy a two-bedroom unit for $600,000, invest around $75,000 into a four to six week renovation, and then get a valuation of around $700,000 to $720,000, generating a healthy $25,000 to $50,000 profit.

On a block of units we bought for $1.9 million, we renovated for $600,000 and four months later, the bank refinanced at $3.5 million – giving us a whopping $1 million profit in under four months.

On another job, we applied to council to add two penthouses to a block of units and the architect has managed to squeeze a second block of units in the back garden, and that’s in a prime position almost opposite the beach. At times, we’ve been overseeing a dozen renovations at one time and had teams of tradespeople working with a smile on their face, even through Christmas and New Year’s.

Delegating or outsourcing your work is a key ingredient to successful property investing. It took me my first few projects to build relationships, negotiate fair prices and balance our communication styles, but now a system has been built. I now receive a daily call from my project manager with an overview of what’s going on, any issues or decisions to be made and when they are due to be completed. I have so much confidence in my team that I only need to turn up on site when the job is completed.

My clients don’t receive any calls from tradespeople as everything is managed on their behalf. Instead, they prefer to receive a financial report before and after the renovation. This tells them how much money they’ve made. After all, it’s a financial decision, not an emotional one.

Top tips

There are a few quick and easy changes you can make to boost the price of your property with a low-fuss renovation:

• Clean – it’s amazing how a thorough clean increases the appeal of a home.

• Paint inside and out.

• Re-carpet or polish the floorboards.

• Tidy or landscape the garden.

• Change the light fittings, switches and sockets.

• Instead of a new kitchen, simply change the kitchen cupboard doors.

These further renovations are more expensive, but can increase the value of your home significantly:

• Replace the kitchen and bathroom – this is usually the best way of increasing a property’s value.

• Extend out the back or into the roof space.

• Convert the garage into a living space or bedroom.

• Build a carport.

• If you can, subdivide and add another residence or put a granny flat in the back garden – two incomes are always better than one.

Resources

For a handy renovations checklist, helpful information and other tips to keep your project moving forward, visit “What’s the best way to renovate?” at YourEmpire.com.au.

Check with your local Fair Trading Office to see what licenses your tradespeople need, and check that their license is still valid. You can find more details on the website for your state office of fair trading.
 
Article By: Property Observer

Read More: http://register.propertyobserver.com.au/propertyobserver-times-of-turmoil.

Investment Tax Benefits Explained

With the arrival of the new Financial Year upon us, landlords are currently preparing tax returns for their investment properties.

A significant expense for owners of property investments is the repair work done to maintain a property. However, knowing what you can and can’t claim as part of your tax return is very important.

The Australian Tax Office defines a repair as ‘restoring something to a working condition’: in other words, it should not be made better than before.

For example, if the tiles in the bathroom are broken, retiling that area is accepted as a repair. However, using a few broken tiles as an opportunity to remodel the entire bathroom will be judged as an improvement by the ATO and therefore a capital cost which cannot be claimed as an expense.

Capital costs can, however, be depreciated. The ATO recognises that certain items in a home lose their value over time and has a schedule of more than 150 types of items and the accepted ‘depreciation life’ for them.

Many investors engage a Tax Depreciation specialist as soon as they purchase a property to provide a report showing what can be depreciated, including any recent improvements done to the property. It is worth noting that just like the fees paid for Property Investment Managers, the cost of these depreciation reports are a tax deductible expense.

But remember, as always, you should consult your tax accountant for clarification about any taxation related queries you have.


Read More: http://www.ljhooker.com.au

How Much Is Your House REALLY Worth?

Everyone knows how much their home is worth. Don’t they?

It’s the conversation that can strike fear into the heart of even the most experienced real estate agent. A person’s home is often his absolute pride and joy.

 

Often it has been home to wonderful family memories or the blood, sweat and tears that were poured into those stunning renovations.

 

Then you throw the ever-discerning buyer into the mix.

 

She has hunted the open-home trail for months, researched her preferred suburbs and compared homes upon homes.

 

Ultimately, it is these people who will determine what your home is really worth.

 

So when it comes time for an agent to have the price-setting conversation with a seller, the reality of the market conditions can come as, well, a rude shock.

 

It is often the case that the seller is sporting a lovely pair of rose-coloured glasses. What is a castle in his eyes could be – for lack of a better term – a shack in the eyes of the buyer.

 

When deciding how to price your property, there is often a disparity between what the seller expects and what the market is offering.

 

Here are a few key tips to help you through the price-setting process:

1. Setting a realistic price will ensure you obtain your asking price and also conclude the sale promptly.

2. Sellers who set a too high price on their homes can seriously damage their prospects for a quick sale.

3. Facts and figures show that an overpriced property discourages serious buyers. When it remains on the market too long it redirects interest to more realistically priced properties.

4. Emotional attachment and pricey renovations often drive sellers to push the price up – and understandably so. However, unfortunately the state of the property market won’t always reflect personal circumstances.

5. Do your homework! Be sure to research the property market in your area and seek the opinion of a professional from a REIQ-accredited agency in Queensland, or other REIA-accredited agency.

 

A good start is an appraisal – an inspection to estimate the sale price of a property. An agent will appraise your property at no charge if you ask.

 

This is not a “pluck a figure from the air” kind of appraisal. Under the Property Agents and Motor Dealers Act, if you request the agent to provide a market appraisal on your home, the agent will provide a comparative market analysis (CMA) or written statement for your property.

 

The criterion for a CMA is comparing three properties of similar standard and style sold within a five-kilometre radius in the last six months. If an agent is not able to provide a CMA due to lack of comparable sales within your area, he must supply you with a written statement outlining how he arrived at the suggested market price of your home.

 

From the CMA or written statement, and taking into account the current property market, sellers will have formed a foundation from which to set a realistic selling price for the home.

 

In any market conditions, establishing a realistic price when selling your home is important, however, it is even more important when there are more sellers than buyers in the marketplace.

 

After all, being an educated seller – sans rose-coloured glasses – can make the selling process much more efficient for all involved.  

 

Article By: Property Observer

Read More: http://finance.ninemsn.com.au

Should You Buy an Investment Property?

Property investment is back in fashion. Hidden amongst the stories of an affordability crisis is good news for investors.

When news outlets are reporting that house prices rose by a record 20 percent in the year to the end of March 2010, first home owners cry into their beer while investors are on the sidelines cheering it on. In fact, according to the Australian Taxation Office one in seven taxpayers now owns at least one investment property.

Yes, there are more interest-rate hikes mooted, but surely the tax benefits of negative gearing help to neutralise those? Particularly now the federal government has confirmed it has shelved or rejected the Henry Tax Review's recommendations to reduce negative gearing tax rates.

All of which may have you asking, why haven't I sunk my money into bricks and mortar? Of course, it's not that simple. Deciding whether property investment is worth the "baked beans on toast" approach you may have to take needs some thought. We asked two experts for some tips on how to decide whether you're landlord material.

Why do you think people choose property investment over other types?

Susan Jackson, financial services professional with the Women's Financial Network, Melbourne: They've often been through the process before — buying their own home — and it's a tangible asset. They can drive past it, other people they know do it and it's seen as a smart thing to do, and it's an emotional decision.

I could point out to people 20 reasons why they might be better off investing in shares, but if their emotional thinking is telling them otherwise, it overrides any logic I can put forward.

Stuart Wemyss, financial advisor and author of The Property Puzzle: How to develop a plan to achieve financial freedom through property investment ($29.95): I think it's easier for people to understand than the stock market, it's less volatile than the stock market because you're forced to make long-term decisions, and it's physical. You can walk through your investment.

What are the most common misconceptions about property investment?

Wemyss: That it's as "safe as houses". Particularly at the moment, I think one of the biggest risks is that feeling that property is invincible. Housing is like any other growth asset: it moves in cycles and that can include a potential decline in value.

Jackson: That any property will do well. You have to buy the best property you can afford. A crap property may command a decent price in a strong market, but if the market turns, you're left with a real dog.

Wemyss: The notion that all properties are equal is a problem. It couldn't be further from the truth. There are good, bad and average properties, and the bad and average make up 85 to 90 percent of the market. When you're talking about a good property for investment purposes, it must be above average. The property, street and suburb can make or break the strategy.

What makes a good investment property?

Wemyss: Investing is all about risk and managing risk. We can't influence return — the market will do what it does — but we can manage the risk. You must look at past performance: how have properties in that area performed over the long term?

Get to know suburbs and pinpoint the streets that are regarded as "good streets". Look at past sales — up to 20 years — and look at the growth. That's the most compelling evidence that will help demonstrate future growth rate.

Jackson: You need to look at a property and decide if it will stand up as an investment in any market. Think about the amenities you would want in that area and see if it ticks the boxes. Car park? Transport? Well-maintained? Always buy with future resale in mind — don't rely on the market to create the return. And look to see if you can add some value.

Wemyss: The key fundamental drivers of growth are: water, schools, entertainment, health, shopping and transport. If a property has shown little growth over recent times, think about why you think it will change. Try not to be speculative (trying to pick the next growth suburb), it's about investment.

What about negative gearing? Is it all it's cracked up to be?

Jackson: I don't think people really understand negative gearing. I think they like the idea of getting some tax back, but I also think they sometimes overlook the cashflow costs of the property. Gearing helps to defray costs, but you will still be out of pocket.

Wemyss: According to the Australian Tax Office, the aggregate gearing benefits claimed in 2008 was $8.6 billion. Which means that property investors lost $8.6 billion in that year. There's a lot of talk about investors getting into it because they're paying too much tax, but that's starting from the negative.

Saving tax will never make anyone independently wealthy. Tax should be number four, five or six on the list of benefits when it comes to investing. It should never be the main driver in any kind of investment. Start like that and you'll be worse off.

What are your top three things to consider when investing?

Wemyss: Past performance; affordability — stay close to the median value of the area you're considering to attract more renters in the short term and more buyers in the long term; and the fundamental factors that drive growth to ensure you're buying a "good" property.

Jackson: Cashflow costs — make sure you can manage the costs for the next five to seven years, minimum, as it takes at least four years to start to make a net profit; research your investment and then your managing agent and/or tenants; remember, it's essential to maintain your asset.

Where's the best place to go for advice?

Wemyss: Look for a "fee for service", independent financial advisor. You want someone with equal knowledge of shares and property. If you can't find one of those, talk to your accountant, but be aware that there are limitations to what they can tell you.

By Allison Tait, ninemsn Finance


Read More: http://finance.ninemsn.com.au

What Renovations are Worth Your Time?

Your renovation wish list may be limitless but your bank account isn’t. Here's some tips to help you make the tough choices between purse strings and heart strings.

Cost is normally the deciding factor when determining a plan of attack for your home reno. To make your budget stretch as far as possible there should be some sort of order to your renovation madness. But where do you start?

For the best return on your renovation spend, you should be selective in your choices, especially if you’re looking to increase your property’s value.

Some common value-adding renovation projects include highly-trafficked rooms like the kitchen or bathroom - although even these rooms aren’t definite money makers.

It's a common misconception that any improvements you make to these rooms will reflect in an increased resale value. In reality, poorly planned works often add little value, with some even having a detrimental effect on a home’s value.

Here’s a quick guide on how you should spend your cash:

Kitchen

Average size: 8 square metres

Average renovation cost: $12,000-$16,000



DO

• Install a canopy rangehood and dishwasher
• Use stone for surfaces
• Keep the design open-plan

 

DON’T

• Purchase expensive fixtures and fittings
• Compromise bench and storage space
• Use an unusual colour palette

 

Bathroom

Average size: 6 square metres

Average renovation cost: $9,000-$12,000



DO

• Install a frameless glass shower
• Lay floor-to-ceiling tiles
• Include a double vanity (if there’s room)

 

DON’T

• Make extensive changes to the plumbing
• Replace a combined bathtub/tub with a shower only
• Overuse mosaic tiling

 

Any renovations that will increase your home’s space are also bound to be worth your time – think extra bedrooms or new patios/alfresco areas.

 

If you don’t want to splash out on major overhauls, there are plenty of other low-cost improvements that could make a huge difference to the value of your property. A fresh lick of paint, some new light fittings or fresh grout in the bathroom can also go a long way.

 

Although you might not be able to do it all, if you take your time to select the areas of your home that would benefit most from a revamp, you stand to boost your standard of living – and bank balance.

by Karina May, Editor of ServiceSeeking.com.au


Read More: http://discover.realestate.com.au

Big Franchise or Independent Agent?

LJ Hooker, Century 21, Ray White, First National, Raine and Horne, Elders, Professionals Group, Re/Max, PRD Nationwide, Hockingstuart, Jellis Craig, Barry Plant, Harcourts, Noel Jones, Biggin Scott, Fletchers…the list of popular real estate agents goes on ad infinitum.

According to current statistics from realestate.com.au, there are over 8,500 real estate agents and franchises around Australia. The question remains, should you choose a franchise or an independent real estate agency to help you sell, buy, or rent out a property?

Like most things in life, the answer here is not clear-cut; there’s simply no right or wrong answer. Both big name franchises and independent agencies can be worthwhile services depending on the specific situation.

In the case of franchises, it is often believed these companies have access to larger databases in which to source homes, buyers, sellers, or people to rent out your investment property. Theoretically, these large branded franchises have extensive referral networks of affiliated real estate offices in which they (if motivated) can access more people and homes. How many L J Hooker signs have you seen around town, or around Australia for that matter? If these different outlets pool their knowledge together, it can definitely work in your favour.

The other main advantage of choosing a large franchise estate agent to work with is that in many instances these companies have bigger buyer power for marketing and advertising. Their websites are often more in-depth and elaborate, they have better brochures and pamphlets, offer more services, and can utilise multiple forms of media to make a property visible in the wider community.

Brand recognition is a huge part of marketing success. If the company has been around for a long time, their ads on TV and in other media are often subliminally ingrained into the collective consciousness of the populace. These organisations also have systems put into place that have evolved over time. It’s been proven that systematised businesses have a very high success rate when compared with fledgling organisations, which often have a lot of trouble building a foundation to work with in their first few years.

On the other hand, hiring an independent real estate agent can often be a much cheaper alternative when compared to the price schemes of major franchises. On top of this fact, there’s a good chance you’ll receive more attention from your estate agent, as well as a more intimate experience and relationship based around consistent one-on-one interaction.

Independent real estate agents have gained a lot of momentum in the industry over the last ten years or so, and this could be for numerous reasons. Online listings via the internet have meant that anyone with a presence on the web can become visible enough to sell or buy homes. Australians traditionally like working with people from their local area; we like the personal touch of family-owned businesses, and real estate now is no longer an exception. Some people believe smaller niche-based companies are finding a foothold in the market these days because they are able to focus on a single product category, instead of the often more generic approach of larger organisations.

In the Sept. 2008 Consumer Reports survey on real estate brokerages, the report concluded there was no indication of any difference in levels of satisfaction when people selling their homes used independent real estate agents or those from major real estate franchises. The survey also showed that independent agencies had more freedom to do all that clients asked of them, and they could often lower their commission rates more easily when customers enquired.

The 2009 National Association of REALTORS Member Profile states over half of all real estate agencies in Australia are now independently owned, which is a great break from the traditional franchise-dominated market of former decades. Competition is greater than ever before, and the ability to use the MLS (multiple listing service) on the internet to find a property is accessible by all, so a lot of hard work that estate agents had to do previously is now obsolete.

Interestingly, independent agencies often market themselves as being ‘boutique’, or of higher class. Whether this is true or not varies agent to agent.

The truth is every real estate agent, franchise or independent, needs to be qualified. The real differentiating factor when hiring an estate agent is how you relate to the individual person, and how well they do in their occupation. The survey shows neither group sells more houses; it’s the individual real estate agent’s track record that will bring results. Whether you want to try and save money on fees, or make use of a large brand name and network, finding a good estate agent is the most important factor to a successful real estate campaign.

Read More: http://www.sellmycastle.com.au

Real Estate Therapy

Can real estate be therapeutic? Could moving house fix problems in your life or even change it altogether? Relocation therapy, real estate therapy, the geographic cure – whatever you call it – is responsible for many of the property moves we make over a lifetime.

But before you stick the For Sale sign up, think about this: moving house can only solve your problem if real estate is, actually, part of your problem.

What is real estate therapy?

A recent New York Times article offered what we think is a pretty good definition of real estate therapy:

"Legions swear by retail therapy as a way of dealing with a bad day at the office, a bad hair day or a really bad number on the bathroom scale. But people who are going through more substantial life crises — the death of a loved one, illness, divorce, a messy breakup — may be able to work through the pain with the aid of real estate therapy. A new home, after all, can be much more than a change of address."

Australian psychologist and author, Meredith Fuller, agrees that relocating after a big upheaval in your life can be therapeutic.

"Sometimes it's incredibly therapeutic to let go, leave an environment that is toxic, and move to a new area that fits more with who you are and who you are becoming," she told us.

There are many situations that immediately spring to mind as examples of real estate therapy; leaving the empty nest, breaking up, even being widowed.

But not all a real estate therapy is a response to a negative event. As Meredith Fuller says: "It might not be a loss, it could be a gain – a change, a new job, return to study, having kids."

Is a home more than an address?

Home is where the heart is, or is it? Meredith Fuller says it comes down to the individual:

"For some people a home is a reflection of their identity, it reflects their style, taste, memories, how they present themselves to the world, their values, and it's very important”, she says.

"For other people it’s just an address, they look more at it functionally."

If you're a person who is connected to their property and see it as a reflection of who you are in the world, then a geographic change could be very therapeutic if you've had a crisis that leaves you aching to move.

Don’t rush your therapy

Psychologists often recommend not making any big, life changing decisions until a year after a catastrophic event. Balancing psychological needs with the financial and practical can be tricky, and may lead many to make impulse decisions simply to get out of a house clouded with memories.

Meredith Fuller agrees. She says "a really good rule of thumb is you never make a massive life change decision immediately around the time of illness, trauma, drama, whatever. Don’t make a hasty move."

Instead, you should try to make the most planned, informed decision you can under the circumstances. Do your research, get a number of agents in, look at what is reasonable and realistic, and establish what your home is truly worth.

Meredith Fuller says rushing to heal through relocation can invite other serious problems:

"Remember if you are leaving because of therapeutic reasons you are probably a person with very little energy, so be realistic about how much you can tackle. Also be aware of what your risk profile is. You might be best off waiting to find the new place before you sell, rather than selling before you find the new place, with associated abandonment and homelessness issues."

It's not only about bricks and mortar

Moving house is an ordeal and upheaval in itself. You’ll need to scrutinise, value, sort and pack all your belongings. But it is a process that can ultimately be cathartic.

Meredith Fuller believes the process of sorting out all of your possessions and what they mean to you is significant and you need time to reflect on what it all means.

"As well as getting the house ready you have to get yourself ready by letting go and letting go of your stuff. What do you keep, let go of, throw away, and give away? It brings up memories", she says.

"That's why we say wait before throwing things out if someone has died, and have a friend help in that process because it will trigger memories. Take lots of photos of the things you have to sell or pass on, if you can’t keep them physically."

Should I go or should I stay?

"It might be gut wrenching to leave", says Meredith, "but most people say after a year they are thrilled. Letting go and shedding has allowed them to open up to new experiences and allowed them to move forward”.

However, some people go through this whole process and decide not to move because the good memories outweigh the bad. Many re-embrace their home, and look at it differently: renovating, repainting, and changing the bad memories.

Meredith believes it's about embracing the whole process. "That in itself is therapy," she says.

A word of caution

Real estate therapy probably won’t work if your problem is internal, rather than location-specific, and you're not willing to change your thoughts, emotions and behaviours. If that’s the case, you're probably better off with a psychologist rather than a real estate agent.

As US psychotherapist Josephine Ferraro writes:

"A new location can be fun and exciting for a while, and there are plenty of distractions when you're setting up a new household. But after a while, especially if your emotional problems are deep rooted, life will settle into a routine, there won't be as many distractions, and you'll be aware, once again, of the same emotional problems that you were suffering with before."

In reality real estate therapy is a privilege, for those able to afford it. Not everyone has the means to up and leave bad memories, or the ability to live in the suburb of their dreams to lift their spirits after a crisis.

But if you do, it might be just the right kind of therapy.

If you need help and support, try these trusted resources:

Lifeline: www.lifeline.org.au

Australian Psychological Society: www.psychology.org.au

by Emma Sorensen of Antelope Media
 

Read More: http://discover.realestate.com.au/buying

What is a ‘Hot Spot’ and How Do You Find One?

In flat market conditions, it is still possible to make money. A simple, fool-proof strategy is to purchase in a suburb before it becomes popular, otherwise known as a ‘hot spot’.

Hot spots are generally those suburbs that are under performing, and which are under the capital city’s median house price. This may seem easier said than done, but with the right knowledge and tools, finding a ‘hot spot’ is a realistic and achievable goal.

So, what is a “hot-spot”?

A hot spot can best be described as an area that has not attracted the same level of attention as traditional blue-chip locations. They are often identified as areas that are underperforming, usually within close proximity to more popular suburbs. When an area becomes too expensive for people to afford, they usually move to these neighbouring suburbs that are more affordable, causing a positive outward ripple effect.

What to look for before buying into a “hot- spot” area
 

• Pick a diamond in the rough - Choose a well-positioned property that represents good buying value. An un-renovated property can often be purchased under market value, offering the chance to improve and increase equity over time. If it is well supported by strong infrastructure and lifestyle amenities, then the chance of gaining a good investment return is higher.
• Follow the ripple effect outward – If you’ve been priced out of a more expensive inner city suburb, look to its surrounding areas to try and pick up a bargain.
• Choose an area with good quality stock/dwellings – For example: buying a period style apartment in a block of four versus buying an apartment in a high rise precinct where you are the owner of one of a 100 similar apartments. Period homes tend to fetch better prices and are in much higher demand than other property types.
• Easy access to employment opportunities – It is important to have easy access to a diverse range of employment opportunities near your property. This will attract reliable tenants/investors to the area and offers better growth potential over the long term.
• Look for areas with solid or expanding infrastructure – Having good, reliable access to nearby arterial roads, highways and satellite cities, will always add more value to a suburb. Look out for planned developments in the area as well as new infrastructure improvements such as freeways, as this often indicates the area is on the up.
• Don’t always go for the cheapest property – Focus on what comparable properties are actually selling for in the area to figure out if a property is overpriced, has met the current market or is at under market value.
• Focus on the property not the hot-spot – You are buying a property not an entire suburb. The key is to identify potential for capital growth and rental returns. If it is well positioned, then the desirability factor increases.
• Look for signs of the next “Williamstown or St. Kilda” and trust your intuition - look for a feeling or indicators that a suburb is on the move. Lifestyle features such as being close to the water, bars, restaurants and retail outlets will always add substantial money to your investment. It is not unusual for unwanted locations to become hot spots over a 10-20 year period, so think long term.

What other strategies can you use to make money in a flat property market?

• Find distress sales – Chase vendors that need to sell quickly due to divorce, finance issues and impending deadlines due to other purchases or commitments.
• Buy wholesale not retail – For example: Buy a whole block of flats in a group syndicate and purchase in the 1-6 million price range, as this will reduce your competition.
• Add value with subdivisions – Buy properties that need to be subdivided. This will simultaneously increase the property’s value instantly.
• Add value with renovations – Buy “ugly ducklings’ that need internal and external renovations as this will add instant value and equity.
  

 
By Frank Valentic of Advantage Property Consulting


Read More: http://www.advantageproperty.com.au/

Healthy Homes on the Agenda

HEALTH issues such as natural light, fresh air, noise and mould have become important issues for Australian homebuyers and renovators, according to Archicentre, the building design, inspection and advice service of The Australian Institute of Architects.

Increases in population density across Australian cities and suburbs means people are living closer together and this has put a premium on designing or buying properties with healthy environments.This not only applies to apartments in CBD areas but also increasingly in suburban areas where older homes may be demolished and replaced with medium density developments.

Achicentre's David Hallet said people are becoming more conscious of the need for their homes to provide a healthy environment and smart design has become extremely important to delivering healthy lifestyle outcomes.

"With increasing housing density the noise factor has become a consideration for homebuyers, with double glazing and sound proofing becoming a high priority for renovators who want to ensure peace within their home environment and cut out neighbourhood noise."

For people moving into high-density environments such as apartment towers in inner-city areas, the added issue of 'city noise' is a major consideration in design.

Odour control is also a consideration. Odour control within homes requires adequate ventilation in the cooking areas to ensure neighbours, especially in apartment blocks, are not impacted by kitchen cooking odours either in their own premises or in public areas such as hallways and stairwells.

"A lack of ventilation in a home can lead to the development of mould which should not be taken lightly as it can trigger life threatening diseases such as asthma," said Hallett.

Mould is a common factor found during Archicentre pre-purchase house inspections, especially in older homes. Mould is also found during inspections of units and apartments where there is often a lack of adequate ventilation in laundry and kitchen areas. In units and apartments, where space is tight, often laundries are little more than a cupboard with a washing machine, a clothes-dryer and laundry basin.

Mould grows wherever it can find both food and water. As food sources are abundant in buildings, mould growth generally indicates the presence of excess moisture, which may be due to numerous factors including leaking water pipes, flooding and condensation.

Moulds require moisture, a food source, such as paper, paint, clothing and still air. Seventy per cent of mould problems are due to condensation coming from wet areas like bathrooms and laundries, while thirty per cent comes from rising damp.

Hallett said it can be eradicated by cleaning it with a special purpose household cleaner, which should kill the current infestation, fixing any sources of moisture such as condensation, rising damp, leaking pipes, and the like, and by improving ventilation by leaving windows open.

"Designing healthy, sustainable environments within the home and its surrounds is an integral part of the work of an architect."

  By Archicentre

Read More: http://www.prw.net.au

How to Buy the "Right" Investment Property

Approximately 20% of our population buy one investment property, and of those investors, 50% sell within the next five years. Many first time investors don’t buy an “investment grade” quality property and make mistakes when buying. So what are some of the common pitfalls to avoid when searching for the ideal investment?

Choosing a property that the banks don’t like:

There are several property types that are considered ‘risky’ by banks. These often include serviced apartments, student accommodation, defence housing, small apartments, commercial properties and properties in a business or mixed zoning or in country or outer coastal areas.

If the major banks don’t want to lend against a certain property or will restrict loan to value ratios (LVR’s), these types of properties should be seen as risky and purchased with caution. If it’s not good enough for the bank’s money, it shouldn’t be good enough for your hard earned cash.

In addition, you should watch out for properties that come with rental guarantees for a year or two because the only guarantee is that the developer has loaded the rental amount into the inflated purchase price!

Properties in certain postcodes or suburbs also have finance restrictions. For instance, highrise apartments in Melbourne’s CBD (postcodes 3000 and 3004) and surrounding areas including Southbank, Queens Road and St Kilda Road, Docklands, Port Melbourne, South Melbourne and Carlton are generally seen as riskier properties for the banks and will have finance restrictions.

Banks may also have finance restrictions for NRAS properties and those with stratum title or company share ownership. These restrictions will impact your capital growth potential and resale value, since fewer buyers, in particular first home buyers, will be able to buy these properties in the future.

Avoid buying “Off the Plan” or brand new properties:
 
Be wary of developer incentives such as “free cars” or “free holidays” to try and sell their new stock, as this will usually be loaded into the purchase price. Many buyers purchase “off the plan” due to the significant stamp duty savings but fail to realise that this is usually offset by the GST they indirectly pay, as a developer pays 10% GST on the building costs component.

For example, if a $500,000 apartment costs a developer $250,000 to build, they will be charged $25,000 GST which will be passed on in the purchase price. You should also be wary of high Owner’s Corporation/Body Corporate fees which will ultimately affect your cash flow and rental return. Buildings with lifts, communal gymnasiums and pools usually come at the cost of higher fees.

Many investors are attracted to the significant building and chattel depreciation that new properties offer which enhances cash flow; though some new properties don’t seem to achieve the same capital growth as older existing properties that have a proven track record. This may be partly due to the increasing supply of these properties every year. Around 25,000 new apartments will be hitting the market within the next 12 months that will be in direct competition to your new apartment.

Not being able to afford the property:

Many investors don’t do their research on property prices and overpay which ultimately affects their cash flow and out of pocket expenses. They also don’t properly research the rental returns in the area and overestimate the rental returns, often based on the agent’s over estimated rental valuation.

A simple solution is to prepare a detailed cash flow analysis before you buy, which many investors overlook. Don’t forget to include expense items such as bank interest, lender’s mortgage insurance, stamp duty, council and water rates, property management and leasing fees and Owner’s Corporation fees. There are computer programs readily available that can calculate before and after tax cash flows. Ensure that you have income protection insurance which is tax deductable and will protect and cover your personal income in certain scenarios. Always have money set aside in a bank account for any emergencies or maintenance items that may arise.

Purchasing the property in the wrong entity:

Many investors sign a contract first and then speak to their accountant about their ownership structure options afterwards, often once it’s too late. Should you buy the property in your name, family trust or a Self-Managed Super Fund?

Setting up a SMSF or family trust takes a lot of time and this would need to established before signing any contracts, as it is too late afterwards, even if you have signed the contract “And /Or Nominee” so you can nominate a related entity.

There are pros and cons to different ownership structures and many investors buy property in the wrong ownership structure for their situation. Investors should discuss the pros and cons of the different structures with their accountant before signing on the dotted line.

Focusing on tax benefits or high yields and not on capital growth:

Be wary of buying property that gives you good rental yields or good tax deductions or depreciation, but very limited prospects for creating wealth and equity. Capital growth should be the most important consideration as this equity will accelerate your wealth creation strategies and allow you to create equity and use this to build your portfolio further.

Avoid properties that have a single industry or kicker; an example being mining towns like Port Headland in Western Australia that are not self-sustainable.

By Frank Valentic, Director at Advantage Property Consulting.

(Photo: Iqoncept|Dreamstime.com)

Read More: http://www.prw.net.au/Buying-the-right-investment-property

6 Ways to Use Social Media to Sell a Home

When was the last time you sold a house for $135,000 above the asking price? An Australian man recently made headlines by doing just that: selling his home on Twitter.

With the help of digital marketer John Newell and real estate agent Hocking Stewart, Kurt Opray was able to sell his home in Northcote, a Melbourne suburb, for $135,000 above the asking price by employing social media in the six weeks leading up to its auction. Though his strategy was a bit more complicated than the headlines suggest…… it  illustrates the future of real estate marketing in action. Here are six lessons “the Northcote house” can teach you about using social media to sell a home.

1. Start by targeting specific keywords.

Opray’s first step was to determine the keywords that would be “perfectly aligned with the most common search phrases used by people searching for real estate in Northcote.” He and John decided on “Northcote, house, sale, auction” and used those everywhere, including the URL for the property’s WordPress blog, www.northcotehouse.com.au. The reason this is important is that all of the content that is created surrounding this online marketing campaign needs to be aligned with the consumer in mind. This is SEO 101.

2. Create a microsite on WordPress.

A microsite helps you tell a unique story and serves as a platform for search engine optimization (SEO) and lead conversion. WordPress is one of the most flexible and widely used platforms out there; it allows you to quickly create a professional-looking website. It’s SEO-friendly and it also supports all types of media, including images, video, documents and social media widgets.

3. Build campaigns for every major medium and service.

Opray didn’t stop at a Twitter account and blog. He also created a Facebook page, a YouTube channel, and Flickr, Picasa and Posterous accounts for the Northcote house. By creating multiple sources of photo, video and written content, Opray ensured that the Northcote house would show up in any kind of search and on just about any website or service. Opray also devoted enough time to each channel to make sure they all ranked No. 1 for his keywords in Google.

4. Collaborate to make it personal.

Traditionally, sellers and buyers are discouraged from personal contact in order to prevent any interactions that could jeopardize the deal. But social media provides a certain amount of distance between people, allowing you to use a more personal touch in highlighting the features of a property.

For the campaign to be potent in building an emotional attachment to the property we work with the owner to capture personal stories about the home for use on Twitter, Facebook, YouTube and the blog. This made the house stand out and gave the campaign content that the agent would have been hard-pressed to create on his own.

A blog post was created, with the title: “Why you might want to live here by people who have,” and the owner’s personal stories, photos and videos about the Northcote house were also posted.

This communication with the owner allowed him to share what he loves about the house: inside, outside, what’s great about living there, the change of seasons, what’s nearby, the community — everything from the owner’s point of view. The house, in this way, can become more than a collection of rooms — it becomes a home in a buyer’s eyes.

5. Share and share often.

Woody Allen said, “Eighty percent of success is showing up.” When talking about social media, I think “80 percent of success is being consistent.” Posting regularly helps you build interest and followers over time, and ensures you remain at the top in searches for your keywords. Opray, for his part, posted stories daily “on a range of subjects designed to inform potential buyers about the house and increase their interest in the property.”

Importantly, what is beyond the house is so often overlooked by agent and seller alike, What the new home owner is buying into IS the area and community which includes (daily) connection with shopping, restaurants and cafes, transport, parks, services, and so much more!

6. Don’t do this alone.

Owners might be tempted to think that they don’t need a real estate agent, and agents might be tempted to think that they don’t need marketing help. Opray worked with an agent and a marketer on the Northcote house for good reason: Creating compelling content on multiple platforms is a time-consuming endeavor and needs to be agile to be effective. 

Each campaign is “full time work” for 8 weeks – 2 to prepare and gather, 6 to campaign. With most people’s largest single investment at stake, it demands the necessary dedication, skills and time, effectively deployed with Agent, Marketer and Homeowner working together.

The future of real estate marketing will have all parties playing their part in the process: owners sharing stories to personalize and add emotional content about their home; marketers tying the online efforts together in ways that drive interest and leads; and the agent, orchestrating the entire process, connecting all the right dots to serve the customer and bring a successful deal to a close.

Read More: http://www.hottestproperty.com.au/articles

Top Methods For Advertising Your Property

In tough times we often see sellers tighten their purse strings when it comes to marketing their property. Whilst decreasing your advertising spend can be tempting when the market is not at its peak, investing in that little bit extra upfront can actually pay off in the long run.

How? Quite simply, advertising increases the exposure of your property. More exposure means more buyers through the door, which drives competition and can ultimately result in a higher price for your home.  So how can you gain more exposure for your property?

Online Advertising

Online advertising dramatically increases the exposure of your property, as most people head straight to the internet when conducting their property search.  This is because online property portals are perfect for engaging buyers and showing off your home, as it allows people to flick through floor plans and extensive photo galleries.

Property portals are the main touch point for buyers because they are instantly accessible. Your online advertisement is just a click away for property hunters who are scouring the internet for their dream home.  In addition, the broad reach of online increases the exposure of your property to a variety of potential buyers. Investing in online advertising is not a question of if, but how much. For example, most online advertising portals now provide prestige or feature advertising options which means you can opt for your property to appear higher up or highlighted in advertising lists.

Print Advertising

It is also worthwhile to consider the more ‘traditional’ forms of advertising – in print. Your real estate agent will usually have their own magazine that features all the properties they have for sale, which can be another effective way of reaching buyers; for example, hockingstuart’s Red Magazine is read by 55,000 potential buyers weekly.

Don’t Forget Your Agent

It’s also worth checking with your agent what other value-adds they can offer you. For example, what kind of reach does their website have? Do they have a database of buyers they could also send your property to?

The key to maximising demand and interest in your home is to reach as many of these buyers as possible – and that’s how advertising can help. Advertising draws attention to your property and remember, the more people you reach, the greater the demand and the greater sale price you can achieve.

Read More: http://advice.realestateview.com.au/selling

5 Signs That Could Mean it’s Time to Sell

A home is an emotional and practical purchase. Is it an investment? Sure, as you’ll literally be ‘investing’ much of your time and life earnings into one.

Unless you’re an investor, selling your house when prices are high isn’t very alluring when you’ll likely have to pay that same premium to buy your new home. It is more about your personal circumstances, life stage, family size and changes. Here are five real signs that it’s time to sell-up and move on:

1. You’ve been flooded one too many times

Whether you’re on the ground floor unit of a block with dodgy plumbing, on the downside of the hill which lacks council drainage in heavy rain or are unfortunate enough to live on a floodplain (which wasn’t such an issue through the previous drought years) — it may be time to seek higher ground.

Repairing flood damage isn’t cheap — wet ground can cause slippage in the foundations, structural cracking, fertile conditions for pest infestations and obviously cause water damage to carpets, walls, appliances, furniture, house frames and electrical wiring. Repeating this repair process is costly, especially when you’re insurance premiums become too costly to service or if flood damage isn’t an inclusion.

2. You’re up for unavoidable structural repairs or renovations

If you don’t have the tolerance, time or money for essential renovations or structural repairs, selling could be an option. Repairs may be foreseeable or hidden. The hidden ones can be especially nasty, such as a body corporate without enough in the sinking fund to cover a major cost or the onset of concrete cancer or termites.

You only have to think of garage sales as to how one person’s trash is another person’s treasure. Don’t feel like you’re stuck with your lot. You can sell your burden to someone else, save money and gain some peace of mind. You only have to ask people in the industry how many buyers don’t get building or pest inspections before they buy to realise that dumping a dud asset is commonplace, and entirely possible.

4. You’ve outgrown your home

Is your house getting too cramped for your growing family size? Or are you now in a financial position to upgrade to a property type you’ve had your sights set on for some time?

Whatever the reason you’ve outgrown your home, it may be time to upgrade. If you can afford to make the move now, it is worth considering — especially given the speed at which house prices can grow in this country. Put off the decision for your dream upgrade now, and you may look back and think of how much better value the purchase was when you’d first made your plan.

5. You’ve got the neighbours from hell

Is your neighbour waging a war of attrition against you? There are more sneaky ways to get under someone’s skin than there are to resolve a neighbourhood conflict. Court cases and police reports are both a massive drain which often don’t solve the root problem. Unless you’ve got tear-droplet tattoos on your face, you’re probably not fit to silence an unruly neighbour. It’s time to move, and quickly.

Identifying the signs to sell are crucial if you’re going to make the right home buying decisions. A combination of strategy and thought could see you far better off for the decision.

Read More: http://advice.realestateview.com.au/selling

10 Top Tips for Selling

There's a great reason to sell in Winter...fewer houses on the market mean more buyers for your property! Perhaps you'll see less traffic overall, but genuine buyers exist year round.

Here are 10 tips to sell in any season:

Pick your agent

Ask three agents from your area to offer their strategy on how they would sell your house. Do they suggest an auction or private treaty sale? Why? And ask them to provide evidence (recent sales of similar houses in surrounding streets) for the price they suggest it will sell for.

You want an experienced agent who knows your market and can hook the right buyer. One way to get to know agents is to attend open houses as a would-be buyer. You can assess the agents' selling styles, marketing materials and get a feel for how good they are at returning phone calls, a critical factor in a selling campaign.

Be realistic with price

Don't assume you can pay for your renovations or achieve what you may have achieved at the market's peak in 2007 - in some areas, prices are still lower than they were at that time, despite recent rises.

"A lot of vendors remember what their homes were worth three years ago," says an agent from LJ Hooker Avalon, David Watson. "If they're downsizing or trying to utilise a lot of the capital value out of their existing residences, they remember, 'Gosh, my house used to be worth $5 million and now you're telling me high threes [million dollars]? I'll wait until it's up in the fives again."'

For an independent viewpoint, vendors can also check sales in their local area by paying for a report from the Fairfax-owned Australian Property Monitors.

Early spring clean

Houses should be thoroughly cleaned and de-cluttered. Anything that detracts from a potential sale needs to be thrown out, put in storage or sold at the local auction rooms, market, garage sale or on eBay. "Most houses are over-furnished," says an agent from Richardson & Wrench Castlecrag, Mark O'Brien.

The trick is to make the property look comfortable without having too many personal things. You could even put your own furniture in storage and hire designer gear. Seek your agent's advice on whether a stylist is needed.

Create street appeal

It's important to have the property looking smart from the outside because that's what many buyers fall in love with.

Chauncy recommends vendors consider a house wash with a high-pressure hose. The service costs about $500 and gets rid of cobwebs and dust and can freshen pavers.

Bring in the repairmen

You'll want to eliminate any evidence of damp and moisture, doors and windows that stick and cracked glass, Chauncy says. "Spending that little bit of extra money by getting those things right enhances the emotional appeal," he says.

While it's hard to put a figure on exactly how much more a property can achieve if it is well presented, Chauncy says buyers could expect an extra 5 per cent or 10 per cent.
Check the outside lights are working, because you'll want to keep them turned on at night for house-hunters driving by.

Carpets should be steam-cleaned a few days before your first viewing to allow time for any cleaning smells to evaporate. Window cleaning can also help create a "lasting impression", Chauncy says.

Building and pest inspections

As a vendor, you're not required to have building and pest inspections done - yet. Although the state government is considering making them mandatory. An agent with Belle Property Annandale, Namir Mikha, says some vendors are commissioning their own reports anyway and are finding they help their property sell quicker. "Buyers can see the vendor [is] not really hiding anything," Mikha says.

Getting building and pest inspections done can also help sellers identify problems with the house, avoiding "having a bit of a heart attack when the report comes in from a buyer", Mikha says.

Picture perfect

When it comes to marketing, photographs can be the most important element. "Many buyers will judge your property within five to 10 seconds of looking at the photos and if they're not excited ... then they simply won't read on and they'll go on to the next house," Chauncy says.
The principal of Belle Property Wahroonga, Ian Clarke, agrees: "So many agents have got pixellated photographs ... or even photographs of toilets, which is just a joke."

One trap can be to show buyers photographs of everything in the property. O'Brien says you're better having five or six powerful shots. "Nobody wants to see the third bedroom or the fourth bathroom," he says. And avoid shots of cleaning equipment in the swimming pool.

Exit pets

Pet smells can be a major turn-off for buyers. "Not everyone is a dog or a cat person. You just don't need it," O'Brien says.

During the sales campaign, you might want to pay for your four-legged friend to have a holiday at the kennels. You might get the money back with a higher sale price.

If they've been living indoors, getting rid of their lingering scent will generally mean a top-to-bottom polish, plus professionally cleaning any carpets and soft furnishings.

Entice the buyers

When you find a buyer who is offering the right price, you'll want to be able to progress the sale as quickly as possible. Some buyers may want shorter or longer settlements and it's worth thinking in advance about whether you would be prepared to agree to that and letting your agent know. This can save time and can sometimes help the agent seal a deal quickly.

Mikha says negotiations are sometimes slowed by buyers requesting changes to the contract to better reflect the inclusions of the house. Providing a thorough list of inclusions to your solicitor or conveyancer from the outset can alleviate that problem, he says.

Open-day know-how

Fresh flowers can appeal on open days but O'Brien warns vendors not to go over the top. A big no-no is playing music.

"People just think you're drowning out noise," O'Brien says. "You're better off not having mood music and all that sort of thing; you're not in an elevator, you're in someone's house."

O'Brien is also against automatically turning every light on. "If a certain light needs to be on, well that's fine," he says. But if you "turn all the lights on ... it alerts people that it might be a dark house when it may not be".

If your house is on a busy road, it could be best to leave the doors open, even if you're on a secondary road and there is some traffic noise. Closing the door is "all too obvious, you've got to give people more credit than that", O'Brien says.

Switch brings a change of fortune

Jennie Holley was under pressure to reduce the asking price of the North Curl Curl house she was selling with her sister, Claire White, earlier this year.

The campaign had failed to create interest and, as auction day neared, fewer house-hunters were looking through the five-bedroom property.

"He didn't really advertise," Holley says of her agent. "[They had] just a few little articles in the paper but it didn't get any real response."

The situation became so bad Holley cancelled the auction and sacked the agent. White and her husband, Marc, were moving back to Britain, so there was a need to sell quickly.

The sisters immediately relisted the property with a new agent, Peter Pagliaro of McGrath. The difference was astounding.

After minor tweaks, such as changing the colours of the cushions on the lounges and taking new photos, he booked a solid advertising campaign.

"He had appointments through the week, he just put a whole lot of effort into selling it," Holley says.

The house sold before auction for $1.25 million, $150,000 more than the families had expected with their first agent.

Second time around: What to do if your first attempt fails

If your property is passed in at auction, there is a fair chance you may need to lower your price expectations, says BresicWhitney director Shannan Whitney.

Whitney warns vendors against making hasty changes to houses without evidence there is an issue.

NG Farah agent Ken Smith says many properties sell within two weeks of auction but price adjustment is often needed. If feedback suggests the price is right, you might need to be patient as a post-auction campaign takes effect.

Sometimes it can also be worth giving the property a rest, as solicitor Rosemary Amos found out. When Amos put her four-bedroom house in Kintore Street, Wahroonga to auction last October it failed to sell, achieving a bid $80,000 below expectations. It languished on the market for another month so Rosemary and husband Phil, a sales manager, rested it.

They launched a fresh private-treaty campaign with a new agent, Belle Property's Ian Clarke, in April and it sold four weeks later for their desired price of $1.8 million. The Amoses hadn't changed the house and used photos from the first try.

Rosemary says Clarke, a newer agent to the area, seemed "hungrier". She also believes the time of year and selling by private treaty instead of auction may have helped secure the sale.

Read More: http://news.domain.com.au/domain/real-estate-news