Common Garden Mistakes When Selling a Home

There are five common mistakes that prevent houses from making maximum impact with potential buyers.

1. Not having a clear front entrance is the number one problem as it instantly puts potential buyers into a state of confusion not knowing where to look or how to appraise the property. You really need to create a welcoming entrance with an obvious front door. Painting the door in a fresh shade can help it to stand out but also try potting something colourful or architecturally shaped to draw the eye to the door. If the door is at the side of the property make sure there is a clear pathway showing the direction to the door.

2. It's a common misconception that by not having any plants or life in the garden it will feel bigger. It simply doesn't. By softening the visual lines that outline the boundaries of the garden the eye no longer can make out the perimeter of the space so it looks further afield - making it feel larger.

3. Fixing obvious safety hazards such as rotting timbers in pergolas and re laying lifting paving stones may seem like an expensive exercise especially when you are trying to sell the house but I think it better to invest some money in making the property more saleable so it moves quicker rather than dragging out the selling process accumulating additional marketing fees and risking the possibility that the property won't sell.

4. Garden maintenance is an on going job and just because you did a big tidy up at the beginning of your sales campaign doesn't mean you can forget about it all together. Remember to keep weeds away from the key focal areas, keep pathways swept and windows clean.

5. A flaking paint job can make a whole house look uncared for and it's so easy to fix. If you haven't looked after the paintwork of your house, potential buyers will read into that and think that you also haven't cared for the rest of your home. Paint is an affordable and instant way to update your house and by scraping off the old paint and applying a fresh coat or two, a house can be instantly modernised.

By Charlie Albone is a landscape designer and presenter on The Lifestyle Channel's Selling Houses Australia.

Read more: http://www.news.com.au

Can I Have a Pool With That?

AUSTRALIA'S house hunters have a hankering for swimsuit-friendly homes, new research show.

The latest data from realestate.com.au has put "pool" at the top of the list for refined search terms being applied by buyers.

The national number one is no surprise to Catherine Cashmore, a buyers advocate with National Property Buyers, who said that while it might seem alien to buyers in Australia's cooler cities - home hunters in Brisbane often won't consider a home without a pool.

"In Queensland that is one of the top things, you just wouldn't consider buying without one," Ms Cashmore said.

"But pools in Melbourne and colder cities, never."

Sadhaka Smiles, a CEO with real estate agency Harcourts, said agents typically saw the same response - with interest in pools rising in warmer climates.

Jellis Craig Doncaster director Andrew Keleher said pools are getting a bit more love in Melbourne as summer weather has seemed to extend in recent years.

"Most new homes in the eastern, bay side and inner suburbs seem to be built with amazing pools and there are still many homes from the 70s and 80s that have a pool," Mr Keleher said.

"Generally we find that gen X are buyers looking for pools as they have young families and will get many years enjoyment out of one."

And while pools may not always be at the top of mind in places like Adelaide, Melbourne, Hobart and Canberra - realestate.com.au has also noted a trend that elevates the word 'beach' into the top-ten most searched terms nationwide from November to April.

TOP TEN MOST SEARCHED TERMS ON REALESTATE.COM.AU

1. pool
2. waterfront
3. living + areas
4. granny flat
5. bedrooms
6. views
7. investment
8. duplex
9. swimming pool
10. shed

Among the reasons behind other popular searches, experts have a few further thoughts.

Ms Cashmore believe the term 'living areas' reflects that Australian families are staying together longer and need multiple living spaces instead of one large living space.

"Now they do recognise that they need more than one living area and space for growing teenagers going into adulthood," she said.

And the same can be said of granny flats, according to Ms Smiles.

"We have more and more kids staying at home longer than they used to, and on top of that there are elderly parents being looked after by people - or they might be searching for a granny flat for a place to put their kids in as well!" she said.

Ms Cashmore also noted that the term would be popular among investors, who could potentially derive two income streams from one property with a second building on the site.

Both were surprised to see waterfront in the mix, which is usually synonymous with wealth and status - an area of the market that has not been engaged with the market lately.

Ms Smiles, however, believes the popularity of the term could be a signal buyers have become more savvy and are doing more comparable research.

"It could be caused by owners doing their own research," Ms Smiles said.

"Or there might be a lot more people doing comparable searches seeing what things cost in different areas."

Both noted that with investors a heavy influence in the market at the moment the terms 'investment' and 'duplex' were unsurprising, and were common queries from buyers approaching them or at open for inspections.

But the jury is out when it comes to the popularity of 'sheds'.

"I don't understand why that's there," Ms Smiles said.

"I can only think there are more blokes out there wanting to get in touch with their male side."

Despite the list of popular terms, Ms Smiles and Ms Cashmore agree that the main thing in buyers' minds is always lifestyle and amenity - with public transport, schools, cafes and shops marking their top tips for what buyers are looking for.

Read more: http://www.news.com.au

Is the ‘Worst House on the Best Street’ Always the Road to Success?

It’s long been thought that buying the worst house in the best street is a wise plan for investment. After all it’s location that’s the most important aspect of any real estate acquisition right?

Well not necessarily so – many ‘would be’ property developers enter into an acquisition only to find themselves with a plethora of problems they hadn’t expected to encounter. Whether it’s purchasing a renovation project that puts you on the fast track to bankruptcy, or simply mismatching the suburb’s buyer profile, it’s important to get the equation right if you really want to win the game. Here are a few tips to get you started:

• Firstly, don’t imagine that purchasing and renovating for a profit is an easy exercise. It’ll more than likely involve significant holding costs and a number of years growth before you reap a harvest. The oft marketed ‘flipping’ technique made to look easy by numerous renovation television shows, is not for the inexperienced and can result in costly mistakes. Before you start see a financial advisor and be realistic about what you’re hoping to achieve.

• Learn the area profile and understand the type of buyer that purchases in your suburb of choice. If you’re purchasing in a family orientated suburb, concentrate on larger blocks of land with the potential to build a family sized home. If purchasing in a street full of single fronted period terraces, don’t buy the townhouse that sticks out like a sore thumb on the horizon. Chances are the reason buyers migrate to the area is due to the attraction of the architectural landscape.

• Subdivision is a marvellous idea, however again it’s important to pick your area of choice carefully. If you’re in a school zone, purchasing land that once subdivided only has the ability to fit two small two-bedroom units is not going to attract punters when it’s time to rent or sell. Make sure the land size is large enough to accommodate any future plans. The local council website can be a fountain of knowledge when it comes to gathering essential information of what is and isn’t allowed when developing. Also make use of your local government land data website to assess other important criteria such as zoning, heritage overlays or areas in threat of flood inundation.

• Watch out for outstanding issues such as large trees or sites with steep gradients that will blow the budget. Moving trees not only requires council approval, it can also be a very costly exercise. If they’re on the block’s periphery it may not affect your plans, however all due diligence must be assessed prior to signing the contract. Don’t consider embarking on a purchase until a solicitor has thoroughly checked the paperwork for items such as easements and covenants.

• Underestimating the cost of renovation is a classic error many would-be developers make. Even if you’re planning on demolition your plans may require the property to be liveable for a period of time (one or two years) before you begin your project. Get a building inspector to assess the property and inform whether there are any issues that will render the house dangerous for immediate occupation. If the roof is going to cave in as soon as there’s a storm, you need to take this into account before you make any long-term plans.

• Overpaying for property is the most common error investors make.
  
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  It’s not unknown for an unrenovated property to get a higher price than its renovated neighbour simply because people rock up to the auction thinking they’re going to ‘bag a bargain’. Old houses are often advertised as ‘executors’ auctions, quoted low, and therefore generate lots of interest and activity. If you don’t do your homework, or have doubts about a property’s value, it pays to invest in good independent advice. Sales campaigns are designed to create the impression that you’re purchasing a ‘one-off’ opportunity. However employing a buyer advocate not only opens you up to off market listings, you’re prevented from overpaying and have someone with strong negotiation skills to secure the ‘bargain’ you’re looking for.

By Catherine Cashmore, senior property adviser and buyer advocate for JPP Buyer Advocates http://www.jpp.com.au

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

The Worst is Officially OVER!

You know how they say nobody rings the bell to tell you that the market has hit the bottom? Well I’m ringing the bell! I’m about a year late but property prices have definitely already hit the bottom of this cycle and they’re on their way up.

The most recent official Australian Bureau of Statistics data tells a very interesting story. This is the price index of established houses. 

The areas highlighted show when property prices hit their lowest point after the initial impact of the GFC.

According to the information above, the bottom of the property market was in:

• December 2011 – Sydney
• September 2012 – Melbourne
• June 2012 – Brisbane
• September 2012 – Adelaide
• September 2011 – Perth
• December 2012 – Hobart
• June 2011 – Darwin
• September 2011 – Canberra

For the overall Australian market, the bottom was between the end of 2011 and the beginning 2012. Before you all jump for joy, look a little bit closer!

Even though all capital city prices are on the way up, not all property prices are above their previous high. Sydney, Perth and Darwin have record high property prices but all the other capital cities still have a little way to go before they pass their previous peak.

What does this all mean? It doesn’t mean that we are completely out of the woods yet. Yes, the worst is over but in my opinion we still have a little way to go before we can all breathe a sigh of relief.

Historically low interest rates will ensure that we won’t have to wait too long before property in all capital cities regains all previous losses. I forecast that all capital cities, with the possible exception of Hobart, should have new record high property prices sometime during 2014.

Then we can all jump for joy!

By Peter Koulizos, property lecturer and author of The Property Professor’s Top Australian Suburbs www.thepropertyprofessor.com.au

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

Buy First or Sell First?

Buy first or sell first; one of the most critical considerations in answering this question is of course your financial situation. There are a number of factors that you need to carefully assess before you decide which way to jump as the uncertainties here may well just push you over the edge. If not financially, then mentality!

If you decide to buy a property first before selling your existing home you will need to give careful consideration to your financial position and ensure that you can comfortably service the loan repayments on both the new property and your existing property. This number crunching can be easily determined but the unknown factor is time. How long will you have to sustain these extra payments? This will be determined by the time it may take to sell your existing home.

Many factors will affect the length of time it takes to sell your home like…your asking price, competition from similar properties for sale in the area, the number of available buyers in your price bracket and the state of the market in general. And most importantly, the skill of the agent you hire.

If you get it wrong here, it gets very very costly!

If you decide to sell your property first, a buyer is found first so you now know exactly how much you are getting which then allows you to calculate exactly how much you can spend on your new home. You’ve avoided the financial stress, the mental stress and disappointments.

So now you’re thinking…. well what if I can’t find something I want to buy? Surely it would be better to find something first then sell? In the majority of cases you will always find something.

The least costly way to go about this process is:

1. See what you can do financially. This won’t cost you anything.
2. Just to give you an idea, inspect a couple of homes that seem to fit your budget so you can see what you can expect to get for your money. You are not looking for the perfect home here! If you like what you see and feel that it is worthwhile making the move…
3. Find the best agent in your area to sell with.
4. Place your property on the market for sale.
5. Find a buyer for your property. Agree on the price.
6. Find the home you want to buy. Agree on the price.
7. Arrange the contract of sale with your buyer and the contract to buy your new home simultaneously.

Now you are straight out of the old home and into the new, in most cases on the same day! No stress, no bridging finance, no dead money wasted on rent and no extra moving expenses!

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

Activity vs Productivity

Any Tom, Dick and Harry can be shown through your home and as a result you’ll probably think….I’m having lots of inspections therefore lots of interest, that’s understandable, a normal conclusion. But what if Harry is the only one in a position to buy? The only one who has an approved loan, or cash in the bank, or has already sold his current home and now needs to buy. That basically means that all the Tom’s and Dick’s were a waste of time!

Imagine getting a call from your agent saying he’s got buyers to bring around; you’ve had a late night the night before and thought… I’ll tidy up in the morning or, the kids have been kids and the place is really not in the state that you would like it to be, so you rush around madly tidying up, just as you finish there’s a knock on the door, the agents arrived. As the agent is showing the ‘buyers’ around you overhear…….we really love it, but we do need to get our place sold first, or, we like it, but really need that extra bedroom and 2nd bathroom like we said…are you happy/not happy? Is that activity or productivity?

The two main reasons this happens is:

1. Incompetence
2. Just plain deception

In the case of incompetence; it simply means that someone has not correctly qualified the buyer’s needs or wants, or capabilities. As a result you get people looking through your home that either cannot afford it, or it does not meet their needs, or they are just simply out for a sticky beak and so on. Is this activity or productivity?

In the case of deception; the agent already knows that the ‘buyer’ should not be inspecting your home but takes them through anyway! Why? Because he/she needs to be seen to be active to get the desired result they are after. This is where the sting comes in, you see after having ten or twenty ‘buyers’ march through your home, no nibbles, no offers, you start to hear little voices in your head saying….what’s wrong with my home, why is it not selling?

Now one thing you can be sure of and that is that the agent will almost certainly have started those little voices, the odd casual comment such as “gee we’re getting lots of buyers through Mr Seller, I am surprised we haven’t had any offers yet, I think we might be a bit dear”.
Whether it’s the fault of incompetency or dishonesty, the end result is the same you drop your price based on fiction not cold hard facts. You’ve resigned yourself to the logic that it must be too dear and drop your price; the agent has now successfully used the activity trap on you to get you to reduce your price.

The better agents will bring the best genuine buyers to your home. They will continue to keep you updated on those buyers and if they end up buying another property over yours, at least you know the feedback is genuine and a possible adjustment to your price is warranted, it will be based on fact, not fiction.

With preparation and research, you will quickly and easily identify the agent you want to look after your money.

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

Playing with the Price

One of the roles of a real estate agent is to advise their vendors of a pricing strategy. Sellers quite often, against the agent's advice, instruct the agent to “bump it up a little” and the agent is on the spot to “do it or loose it”. Home sellers who demand to inflate the asking price of their property need to be aware of how their higher asking price can affect their final selling price.

Now there is nothing wrong with starting a little higher than comparable sales indicate a sale may occur, in fact, most good agents will recommend this approach especially if the market conditions are in your favour. However, most problems occur when the sellers feel that they need to add an extra buffer on top of the agents suggested asking price. This is where sellers price themselves out of the market and do the most damage to themselves.

Here's your typical scenario.... a real estate agent gives the seller a probable sale price of say $440,000 maybe as high as $450,000 and suggests a starting asking price of say $469,950 ($470,000) . The seller is happy with this but then instructs the agent to market the property for say $490,000 to $500,000. Just to be safe, just to allow a little for negotiation, just so we can come down a little. Now let's put our buyers cap on and see what the effect is!

You're looking at buying, looking in agent's windows; you know you have finance approval for up to $450,000ish. You like the look and sound of a particular property and notice that it has just come on the market but is asking $499,950 ($500,000). That's $50,000 above your budget. Now most buyers know that prices are negotiable, but generally speaking, most feel that you cannot negotiate $50,000 from the asking price and consequently will more than likely move on and not even make an enquiry.

The seller is oblivious to this situation, and as time passes starts to suffer frustration from apparent lack of interest, although buyers are inspecting the property, there are no offers forthcoming. The property gets stale as the buyer pool knows it's been for sale for a while and think that there must be something wrong with it because it's not selling.

Ok, so as a seller, motivation is starting to kick in, you now need to attract some attention. Even if you drop your price back to the agents initial suggested asking price it may not have the desired effect, mainly because it's been on the market for a while, and buyers have formed their opinions. Unfortunately a drastic price reduction may be necessary to attract some attention. As a result you may end up selling below the probable range suggested from day one.

When a property first comes on the market, it gets the most attention. It's new, it's fresh. Buyers looking in your area will notice it as being new to the market and will be keen to check it out. It is critical to have your property priced correctly when you first hit the market. It can of course be a little high, but the key is not to go over the top. Done correctly you are almost certainly assured of a healthy level of inspections and perhaps some offers to consider.

It is your property and it's always your choice whether to accept an offer or not, so don't price yourself out of the market, generate some interest, get an offer and work with it until you are happy.

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