Kylie's Tip of the Day...Family Pictures

Sometimes better in the cupboard than adorning the walls of your open home.

Top 5 Signs of a Bad Real Estate Agent

If your home is listed for sale and it just won't sell, it may not be your real estate agent's fault. However, there are many ways to gauge if your agent is doing a good job. Here we look at some of the top signs of a bad real estate agent.

1. Lack of Communication

If you haven't heard from your real estate agent in a few weeks, it's time to find a new one. Even if no one has called for a showing of your home, or your agent hasn't found any homes that meet your requirements as a buyer, he or she should be touching base with you regularly to keep you up to date on the work that has been done on your behalf. After all, there's no doubt you're thinking about your home transaction almost daily - as an agent acting on your behalf, shouldn't your real estate agent be keeping you in mind?

2. Lack of Leadership

If your real estate agent agrees with you on every point, this is the sign of someone who's eager to please - not someone who's committed to doing the best possible job at representing your interests in the real estate market. When it comes to pricing a home for sale, insist that your agent produce the research that was used to arrive at that price. An agent who asks you what you think your home is worth and lists it for that price is a sign of trouble.

Your real estate agent is supposed to be an expert, so look for one who can take the lead and provide you with well-reasoned advice. That said, your agent should also be acting on your behalf, and must take your final word in the end.

3. Unused Resources

Many real estate agents will use all of the tools at their disposal to market your home to the public and help you find a new one that meets your needs. Some, however, will do next to nothing and rely on other real estate agents to market your home to their clients.

Expect your real estate agent to take good photos and descriptions of your home if it's for sale, and list it anywhere that may draw more interest to it, including putting the listing onto real estate websites, into local newspapers and even distributing flyers to homes in the area. Sure, your home might sell without this extra effort, but is that really the kind of person to whom you want to pay a commission?

4. Too Much Pressure

While you should seek out a real estate agent who is knowledgeable enough to have an educated opinion and confident enough to (respectfully) voice it, if you feel your agent pushing you in any particular direction, this should send up a red flag. Particularly when you're buying a home, there is no real reason why an agent should want you to buy any particular home over another. If you get the feeling this isn't the case, you could be being steered toward homes listed by your agent or your agent's brokerage, which can produce additional commissions for your agent.

Australian laws force real estate agents to reveal this conflict of interest to buyers, but if you feel your agent isn't being entirely open, beware. Your real estate agent's job is to act in your best interest and ensure that you're happy with the outcome of your real estate transaction. If you think your agent is preoccupied with his or her own interests, it's time to find another one.

5. Lack of Follow-Up

Whether you're buying or selling, many real estate agents think their job ends on the home's possession date. This is the day upon which the transaction is considered complete, and the real estate agent is paid. An agent who calls beyond this date to address any follow-up questions you might have and ensure that you're happy with his or her work is going above and beyond what is required and showing a commitment to customer service. After all, at this point your agent's commission cheque has already been signed, so this level of care is a great sign of an agent who is willing to do what it takes to make you happy and keep your business in the future.

The Bottom Line

As in every line of work, there are great real estate agents and there are terrible ones. However, in a tough real estate market like this one, you might have to gauge their performance on more than just a speedy transaction, which for home sellers, may be all but impossible.

By Tara Struyk of Investopedia.com


http://au.pfinance.yahoo.com/money-manager/real-estate/article/-/7964071/top-five-signs-of-a-bad-real-estate-agent/

Your Responsibilities as a Landlord

At the beginning and during the residential tenancy, as the landlord you have various responsibilities which must be upheld. As a landlord it is important that you understand these as you are obligated to abide by state law.

 

Choosing a Tenant

 

Discrimination

During the application process, you must not discriminate against any of the applicants based on certain characteristics, such as:

• Gender
• Age
• Race
• Religion
• Marital status
• Sexuality
• Having children
• Pregnancy
• Mental illness
• Disabilities

 

Bond and Advance Rent

It is recommended that all landlords acquire a bond from their new tenants. This security measure will be useful in instances where the tenant does not pay rent, damages the property or fails to keep it in a satisfactory condition. If so, you are then eligible to claim some or the entire bond once the tenancy is over.

The landlord may make a claim on the bond for:

• Damage caused by the tenant or their visitors
• Cleaning expenses
• Abandonment of the premises by the tenant
• Landlord being forced to pay tenant’s bills
• Loss of landlord’s goods
• Rent not being paid

At the start of a new lease, you are expected to provide a bond lodgement form to be filled out by both parties and are responsible to ensure that it is lodged with the relevant state authority within the correct time period.

 

During Tenancy

 

Condition Report and Rental Guide

Once the residential tenancy agreement has been established, a condition report must be completed by the estate agent / landlord and tenant. This report will, in detail, state the condition of the premises at the start of the tenancy, and any past damages. Having photographic evidence and the condition report is very important as it may be used as evidence if there is a disagreement regarding the bond claim in the future. The estate agent or landlord must also provide a rental guide relevant to their state, which will include all the tenant’s rights and other information which may be needed during the tenancy.

 

Rent and Bond

As the landlord you have the right to request rent on a weekly, fortnightly or monthly basis. With both the bond and rental payments received, you should provide detailed and signed receipts stating the date, amount received, property address, name of tenant and duration for which it has been paid.

 

Rent Increases

The conditions of rental increases vary from state to state.
For more information contact your relevant state authority.

 

Utilities

As the landlord, you are responsible for ensuring the property has all basic utilities installed. You are also responsible for the payment of rates and taxes, any services which do not have separate metering devices, annual supply charge for water and sewerage, body corporate fees and any other services they have agreed to finance.

 

Maintenance and Repairs

The main living areas must be kept in good condition and all the appliances need to be maintained. The condition expected will be dependent on how old the property is and how much the rent is. You are obliged to take care of anything that may need repairing on the property and must respond to any requests in a timely manner.

 

Urgent Repairs

Urgent repairs should be dealt with without any delay, in order to continue providing the tenant with a secure and liveable environment. Urgent repairs are those which are needed in order to fix a serious problem or fault which may endanger the tenant or damage the property and other belongings, such as:

• Burst water service
• Blocked or broken lavatory system
• Serious roof leak
• Gas leak
• A dangerous electrical fault
• Flooding or serious flood damage
• Serious fire or storm damage
• Failure or breakdown of gas, electricity or water supply to premises
• Any other damage which results in the property being unsafe or not secure

If they are not dealt with, the tenant has the right to organise a qualified professional to complete repairs, up to the amount specified in the tenancy agreement. You will then have to reimburse the tenant for the cost incurred.

 

Non Urgent Repairs

Non urgent repairs need to be resolved within a specified amount of time. This may vary from state to state therefore we recommend you to contact your relevant state authority to understand your obligation.


http://advice.realestateview.com.au/buying-investing/beginner-guide-to-investing/7/

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Managing Your Investment

Once you have purchased an investment property, you need to consider how you will manage it. Property management is a big responsibility as tasks such as finding tenants, chasing rental payments and coordinating maintenance can be time consuming.

When managing your investment property, there are two options to be considered; self management or hiring a property manager to do it for you. It is important to weigh up the facts and consider the pros and cons of each option before making a decision.

 

The Pros and Cons of Self Management vs. a Property Manager

Table 4: The Pros and Cons of Self Management vs. a Property Manager

	Property Manager	Personal Management
Pros	Time: A property manager will take care of all time consuming tasks involved in managing your investment. Once a property has been leased, there is little more you need to do; they will take care of the rest. Emotional attachment: You will remain emotionally detached from the property when difficult matters need to be dealt with such as damage to your property, difficult tenants, etc. Industry knowledge: A property manager is an expert in all areas of property management. They can advise you on the optimal return for your property based on current market conditions. Tradesmen experience: As they manage a range of properties, they will have access to reputable trades people to perform maintenance on your behalf.	Agent fees: You will save on property management fees. Management: You will manage the property better than anyone else as you will be emotionally attached to the investment you have made. Top priority: As it is your investment, it will be your top priority to ensure it is tenanted, whereas a property manager may have many properties to manage, meaning yours may not be a top priority.
Cons	Agent fees: You will have to pay the agent who is representing you and your property an ongoing commission / fee. Management: A property manager may not manage your property like you would.	Time: Self management of an investment property can be very time consuming and stressful due to ongoing management tasks i.e. chasing rent payments, organising maintenance and inspections, etc. Emotional attachment: You may become too emotionally attached to the property when dealing with problematic tenants. Industry knowledge: You will not have up-to-date, vital information that an agent may have such as information on the current market, a register of available tenants, tenant history, etc. Marketing: You will not have access to all of the tools and websites needed to effectively market your property. Agents have access to websites that are not available to the “Self Management” market. This may impact on the rental return you can gain on your property.

 

Choosing a Property Manager

A property manager can play a vital role in the rental process of an investment property. The property manager will seek to maximise weekly rental income and source high quality tenants who will best take care of your asset. If you have decided to have a property manager represent you and your property, it is crucial to choose wisely.

Once you have shortlisted a few potential property managers, it is important to meet with them individually to discuss the possible rental of your property.

 

Questions To Ask When Interviewing a Property Manager

1. Does your agency have a dedicated property management department?
   Some agencies will view the task of property management as less important than selling and will therefore leave this task up to the front desk staff or receptionists. . Discover if the agency is experienced in the area of property management and has dedicated staff to effectively manage your property.
2. Is a director/owner of the agency overseeing the property management department?
   How focused is the agency on property management? The more important property management is to an agency, the more likely they are to effectively manage your asset.
3. How many years of experience do you have in property management?
   Experienced property managers will be able to attract the best tenants to look after your property and deal with those that become difficult.
4. Can you provide me with a written comparison on rental values in the market?
   An experienced and knowledgeable agent will be able to benchmark comparable rental properties on the market and advise you of the optimal rental return you should receive from your property.
5. What is your process for reviewing potential tenants?
   How do they determine whether the tenant is suitable for a property? Do they conduct police checks, or checks regarding their past rental history, current employment, etc?
6. How many properties are you managing at the moment?
   Are they representing many other people, hence being reputable and successful? Bigger however is not always better, it is also important to establish if you will be a priority and get the service and attention required during the property management process.
7. Will you go to court to represent me if needed?
   In the case that you experience difficult tenants, you may need to go to court to resolve certain issues about the bond or other matters. The property manager you decide on will need to be experienced and willing to support you in these times.
8. Will you advise me of any maintenance and repairs that need to be made to the property?
   In particular when non urgent repairs need to be made, will you seek approval before getting items repaired?
9. What are your fees?
   Enquire about management fees as well as any other costs a property manager may charge. Typical fees you may incur include those related to sourcing tenants, ongoing management of property and monthly statement fees.
10. Can I please see some references or contact details of the landlords using your property management services?
    What level of service was provided to past clients? Did they take care of the landlord and follow through on all which was promised?

Property Management Fees

If you have chosen for your property to be managed via an agent, it is important to understand the fees and costs that are associated with property management. Generally, this monthly fee covers the continual task of property management tasks such as: inspections, rent collection, etc. In some cases, agents may charge additional fees to cover the cost of finding a tenant. Property management fees will vary from state to state.

http://advice.realestateview.com.au/buying-investing/beginner-guide-to-investing/6/

Market Valuation – Estate Agent vs. Valuer

An estate agent, through their market knowledge, can provide you with an appraisal of your property which is a guide of the market value. Given the agent is specialized in a local area of the market, their knowledge and expertise will deliver a strong indication of the likely sale price for your property.

On the other hand, a valuer is legally qualified to provide a formal ‘valuation’ of the property. A valuation report, which is prepared by a valuer, is a professional and legal assessment of the value of your property prepared for many different purposes, including for the sale or pre purchase of a property.

Engaging a valuer will add additional cost to the sales process, however, as an independent and unbiased view of the market it may provide you with peace of mind that the property is being priced at market rate.

 

A Professional Valuation

If you have made the decision to commission a formal valuation for your property it is important to understand the process the valuer will go through to value your property.

 

Types of Valuation

A valuer may use one of several methods to value your property:

Direct Comparison Method

The direct comparison method compares the property with the recent sales of similar properties which have been sold in the area. These sales act as a guide to assist in determining the market value of your property.

Summation Method

The summation method is the process of determining the value of the land (its size, shape, location, surrounding infrastructure and changes), and then adding the value of improvements on the land (age, style, architectural features, number of rooms, renovations, etc).

Capitalisation Method

The capitalisation approach involves applying an investment yield to the property to work out the rental income, which is then discounted to determine the market value. This method tends to be more commonly used with investment properties.

The Valuation Process

 

Before the Inspection

A valuer requires instructions in writing that a valuation is requested, specifying the purpose of the valuation along with an agreement to the valuer’s terms and conditions.

A valuer will then proceed to make an appointment to inspect the property. Before the valuer arrives, ensure the following documents are on hand:

• Contract of Sale
• Certificate of Title
• Plan of Subdivision
• Building Plans (if new)
• List of any work(s) undertaken
• Rates of Notice
• Provide Owner’s Estimate of Market Value (OEMV) but ensure you are realistic
• Local papers and newspaper sales results
• Obtain some evidence from local real estate agents
• Obtain a ‘market appraisal’ from a local real estate agent

 

During the Inspection

A valuer will look through the property both internally and externally and will take notes of key factors which influence the final valuation, such as:

• Accommodation
• Fixtures/fittings
• Features
• Measurements of the dwellings and land

After the Inspection

In addition to inspecting the target property, a valuer will also consider its surroundings; both proximity to key points of interest (schools, public transport, etc) and the neighbourhood in which the property is situated.

On this basis the valuer will then prepare a report which will take all of the information into consideration. This detailed report will include the following information:

• Title Details
• Planning
• Location Description
• Site Description
• Building Description (after an inspection has occurred, this will include detailed description of accommodation, features, living areas, etc.)
• Comparable Sales
• Valuation Figure
• Photographs of the property
• Disclaimers

http://advice.realestateview.com.au/selling/ultimate-selling-guide/2/