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Oct 9, 2023
Selling your home? Some mistakes to avoid
Selling a home is a significant financial transaction that requires careful decision-making and planning. To ensure a successful and smooth selling process, it’s important to avoid common mistakes that can impact your experience and outcome. In this article, we will discuss six critical mistakes to avoid when selling your home, providing insights that will help you make informed decisions and maximise your chances of a successful sale. Setting an Unrealistic Asking Price One of the most crucial mistakes sellers make is setting an unrealistic asking price for their home. Overpricing can deter potential buyers and result in a longer time on the market, ultimately leading to a lower selling price. To avoid this, conduct thorough market research, analyse recent sales data, and seek guidance from a trusted real estate agent to determine a competitive and realistic asking price. A well-priced home will attract more buyers and increase your chances of receiving offers. Neglecting Necessary Repairs and Maintenance Neglecting essential repairs and maintenance tasks can significantly impact the sale of your home. Prospective buyers are likely to be discouraged by visible issues, which can lead to lower offers or negotiations that favour the buyer. Prioritise necessary repairs before listing your home, addressing any cosmetic or structural problems. Fix leaky faucets, replace broken fixtures, and ensure the overall condition of your home is well-maintained. A properly maintained home instils confidence in buyers and justifies your asking price. Failing to Stage Your Home Home staging is a critical component of the selling process that should not be overlooked. Failing to stage your home can result in a lacklustre presentation and make it difficult for potential buyers to envision themselves living there. Take the time to declutter, depersonalise, and arrange furniture strategically to create an inviting atmosphere. Consider hiring a professional stager or researching staging techniques to highlight your home’s best features and maximise its appeal. Inadequate Marketing and Promotion To attract a wide pool of potential buyers, it’s crucial to invest in effective marketing and promotion. Relying solely on traditional methods or listing your home on a few real estate websites may limit your exposure. Develop a comprehensive marketing strategy that leverages online platforms, social media, and real estate networks. Utilise high-quality photographs, virtual tours, and open houses to generate interest and showcase your property’s unique qualities. Disregarding Feedback and Market Trends Ignoring feedback from potential buyers and disregarding market trends can hinder your chances of a successful sale. Pay attention to comments about pricing, home condition, or recurring concerns. Adjust your selling strategy accordingly and make necessary changes based on feedback. Additionally, stay informed about market trends, such as changes in buyer demand or local property values. Being adaptable and responsive to market signals can help you make informed decisions and increase your chances of a timely and profitable sale. Choosing the right agent Selecting the right real estate agent is crucial to the success of your home sale. However, choosing the first agent you meet without conducting thorough research can be a costly mistake. Take the time to interview multiple agents, asking about their experience, track record, marketing strategies, and knowledge of the local market. Look for an agent who understands your needs, communicates effectively, and demonstrates a strong commitment to selling your home. A skilled and reputable agent will provide valuable guidance, negotiate effectively, and ensure a smooth selling process. Selling your home involves important decisions and considerations that can significantly impact your selling experience and outcome. By avoiding these six common mistakes – setting an unrealistic asking price, neglecting necessary repairs, failing to stage your home, inadequate marketing and promotion, disregarding feedback and market trends, and choosing the first agent you meet – you can navigate the selling process with confidence. Remember to prioritise research, planning, and communication to achieve a successful and profitable home sale. Get in touch with the RealWay team to know how we can help you sell your home smartly and successfully.
Sep 30, 2023
Different Types of Property Valuation
Property valuation is an essential aspect of the buying and selling process, but it can often seem mysterious and complex. To demystify this process, let’s explore the basics of property valuation to gain a better understanding of the different types of valuations available, how they are calculated, and their significance in the real estate market. Valuation, in simple terms, is the determination of the monetary value of a property. It provides an estimate of how much a property could sell for based on various factors. These factors include the property’s condition, location, aspect, features, recent sale prices of similar properties, and market projections that consider whether sale prices have been increasing, decreasing, or stabilizing. Valuations are presented in the form of reports that offer detailed information on the factors considered in determining the estimated sale price of a property. Valuations serve different purposes for buyers and sellers alike. For buyers, valuations are typically required by banks before securing a loan for purchasing a property. For sellers, valuations are crucial in determining an appropriate asking price. Both buyers and sellers can use valuations as a basis for informed negotiations. Various types of valuations are used at different stages of the buying and selling process. Let’s explore them: Automated Price Estimates Online tools are provided by lenders to offer initial indications of a property’s potential bank valuation. These estimates are helpful for getting a preliminary idea of the property’s value. You often see on real estate websites the ability to enter a property address to receive an appraisal, or evaluation of that property. This is an example of an automated price estimate. Bank Valuations One of the different types of valuations is one calculated by lenders to assess the maximum size and conditions of property loans. These valuations tend to be conservative, as lenders aim to manage the risk of loan repayment. Banks must make sure that the value of the home exceeds the amount of the loan being offered. Bank valuations are more focused on the financial aspect and may not capture the full market value of the property. Selling Agent Appraisals Conducted by real estate agents to attract sellers and maintain their reputation. These appraisals are typically more optimistic than bank valuations, as agents consider market projections and property features to present a higher value. They typically involve the real estate agent doing a physical inspection of the property. Local Council Valuations The property values are mentioned in the local municipal rates bill that property owners receive annually. These valuations determine the amount property owners will need to pay for water, sewerage, rubbish collection etc. Often only the land valuation is used for this purpose. Professional Valuations Detailed valuations are conducted by skilled professionals who consider a comprehensive range of factors affecting a potential property’s sale price. Private professionals offer this service to assist buyers and sellers in navigating the abundance of information from various sources. The final sale price of a property may align with the valuations or vary significantly. Nonetheless, valuations play a crucial role in facilitating informed decision-making when buying or selling a property. At the end of a sale, the house value is what the purchaser was willing to pay for it, but that still might not change the valuations provided by the means above. If you would like a free appraisal of your property, get in touch with RealWay.
Sep 19, 2023
Setting the right price when selling your home
The real estate market is highly dynamic, and the final sale price of a property is determined by several factors. While the mortgage owed and the cost of purchasing another property are important considerations, they do not solely determine the listing price or the eventual sale price. An experienced real estate agent with local knowledge can provide valuable insights into the current market and research several factors to determine the pricing strategy. Setting the right price for your property will be one key factor to a successful sale. To establish a suitable listing price, it is advisable to consult a local agent who possesses extensive knowledge of the area and understands the current market conditions. The agent will conduct thorough research, taking into account several factors that influence the pricing of your home. Research the comparable properties in your area One crucial aspect is assessing comparable listings in your vicinity. Researching the current or recently sold properties in your area that share similarities with your own can provide valuable insights. You should consider the listed price and final sale price of these comparable properties to determine a price range for your property. When selecting comparable properties, factors such as size, number of bedrooms, bathrooms, living spaces, parking facilities, additions, and inclusions should be taken into consideration. Additionally, consider the age of the property, as well as any potential improvements or renovations that have been made, as they can impact the price estimate. Research about withdrawn listings Examining withdrawn listings can also offer valuable information. These withdrawn sales provide an indication of properties that did not sell and can reveal whether they were on the market for the right price or faced other challenges. By analysing such cases, you can expand the range of pricing considerations for your property. Calculate and compare Once you have gathered all the relevant data on comparable sales in your area, you can consolidate the information to calculate the average listing and final sale prices. By comparing these figures, you can approximate the value of your home. However, for a more accurate estimation, it is recommended to consult a local agent for a sales appraisal or consider investing in a professional property valuation. In summary, pricing your home requires a comprehensive understanding of the local market dynamics. While factors like your mortgage and personal needs are important, consulting a knowledgeable agent and conducting research on comparable listings and withdrawn sales will provide valuable insights for determining a suitable listing price. If you want to make sure you’re getting the best outcome for your property, get in touch with our team now and let us help you navigate the market to get the best price for you. Undertaking these research activities yourself is useful - RealWay's team of agents are experts at this and have additional property insight based upon their cumulative experience.
Aug 14, 2023
Buying and selling a home simultaneously
When considering buying and selling a home simultaneously, it’s important to have a well-thought-out strategy to ensure a smooth process and avoid financial loss. Most people aim to sell their current home for the highest possible price, buy a new home at the lowest possible cost, and minimise the hassle involved in the process. But the question remains: should you sell first or buy first? First off, get your home ready for sale The first step in this process is to prepare your current home for sale. Simple DIY projects like a fresh coat of paint and completing odd jobs can help increase the value of your home. Additionally, paying off more of your mortgage before selling can also result in a higher profit. Buying and selling at the same time - get ready to decide When deciding whether to sell or buy first, it’s best to aim for the settlement on your new property to occur a few days before the settlement on your current home. This will give you more time to move and minimise the stress involved. However, unforeseen circumstances can arise, and the decision of which to do first will depend on various factors such as the current market, your ability to afford a bridging loan, and your equity. What happens when you sell first? Selling your current home first has the advantage of knowing exactly how much money you have to spend on your new home. However, you may need to rent temporarily while looking for a new property, which can result in additional costs and time spent packing and unpacking. Selling first also runs the risk of a gap between sale and purchase, during which property prices may rise. What happens when you buy first? Buying your new home first can remove the need for a temporary rental and prevent you missing out on your dream home if you find it before selling. However, overestimating the selling price of your current home or underestimating the time it takes to sell can be costly. Additionally, having bridging finance can result in paying off two loans until the existing home sells. Before making a decision, it’s essential to understand the potential costs and time involved with each option. Careful planning and consideration can ensure a smooth process and minimise financial loss when buying and selling a home simultaneously. If you have any questions about how this situation might affect your decision to buy or sell a property, make sure you get in touch with our team so we can give you the best advice possible.
Jun 14, 2023
Preparing for a successful property sale: 5 tips
Selling a home involves various considerations ranging from repairs, finding the right agent, presenting the property well, to deciding where to move next. However, there are five additional areas that homeowners should take into account before or during the selling process. These include understanding the current market, building trust with the agent, checking tenant and property history, and providing access details for future owners. Do your research for a successful property sale One of the critical aspects of selling a property is researching the current market. Homeowners should have a good understanding of the property market in their area, including recent sales and pricing trends. They can investigate the real estate portals to get an idea of properties listed or sold in the neighbourhood before engaging an agent to sell. This knowledge can help them come to an agreement on the eventual list price. Establish trust between you and your agent Another crucial factor is building a good relationship with the sales agent. Homeowners need to trust their agent to assist them in making one of the most significant transactions of their lifetime. If they have questions or doubts about the agent’s experience or the process, they should not hesitate to ask for clarification. This way, they can feel comfortable with the process and satisfied with the final sale. Review the obligations of the owner and tenant If the property being sold has a tenant, homeowners should check the tenant and owner obligations with their property manager. This information may include access to the property for inspections and notice periods required once the property sells. Depending on the circumstances, homeowners may choose to sell the property tenanted or provide the tenant with notice before selling. The lease terms and tenancy details should be communicated to the sales agent and solicitor before the sale as this may affect the type of buyer interested and the terms of the contract exchange. Conduct an inventory of keys and access details Before settlement, homeowners should conduct a stocktake on keys and access devices such as garage remotes and alarms. This process will ensure that all keys and devices are handed over to the new owner, including any spare or duplicate keys. In some cases, homeowners may find that some keys do not fit the locks or are missing, requiring them to take action to replace or repair them. Review the property history and requirements Homeowners should check the property’s history and requirements before selling to ensure a successful property sale. There may be caveats or requirements listed over the property that may affect the sale or attract a different type of buyer. For instance, some properties may be heritage-listed, while others may have restrictions over potential development applications or renovations. It is essential to be transparent about this information before the sale so that potential buyers can make informed decisions. Speak with one of our sales agents to stay up-to-date with the latest sales and trends in your area. If you’re unsure whether to keep or sell your property, our sales team can also provide you with the information you need in order to make the best decision. Selling a property with tenants? Tips for keeping your tenants happy during the process.
Jun 5, 2023
Keeping your tenants happy while selling your property
If you’re attempting to sell your property while also managing an investment property, it may seem like a daunting task. However, by enlisting the help of a good sales agent and property manager who work collaboratively with the tenant, a successful sale can often be achieved. Keep an open communication Effective communication is essential. Although some states have strict regulations around sales inspections of rental properties and notice periods for entry, open communication with renters from the beginning of the sales campaign can create a solid foundation for the sale. A good sales agent and property manager will contact the tenant prior to listing the property for sale to discuss the requirements and work with them on the best times for entry. They should also be mindful that the renter may be nervous about people coming through their home and the potential need to move if the property is sold to an owner-occupier. Keep on helping with the presentation throughout the selling period Presentation can make all the difference. Every owner has their level of cleaning and presentation, but a property may need extra care to show it in the best light. If that’s the case, it may be helpful to offer professional cleaning and gardening services throughout the sale. This will ensure that the property is presented well both inside and out and can make the experience less stressful for everyone involved. Keep motivating the tenants with incentives Incentivising renters can ease the process. The relationship between the owner, tenant, and agent can be complicated, especially when it comes to the security of a home. Offering rental compensation as a thank you for the inconvenience throughout the sale campaign can sometimes assist in transitioning the renter through the process. Additionally, if the tenant is locked into a fixed-term rental agreement, you may want to offer a penalty-free tenant break option should they wish to move on and find another property, which would lead to a vacant property when it comes to the sale. Although this would mean a loss of rental income, it would allow an opportunity to make small improvements to the property before the sale, which may contribute to a higher sale price. To determine the best options for your property, it’s important to speak with your sales agent and property manager and work out which avenue is best for you, the property, and the renters. By working together and utilising these strategies, you can make the process of selling your property while managing an investment property much smoother and more successful.
May 19, 2023
Tips to make your home inviting for winter sales
Selling your home during winter can have several advantages. Firstly, there is typically less competition among listings compared to the warmer months. This means that the same number of potential buyers can have a better chance of seeing your property. Secondly, selling in winter shows that you are serious about selling as you are not relying on the appeal of blooming gardens or sunny weather. This can highlight the unique qualities of your home, making it stand out to potential buyers. Let’s have a look at some tips to help you sell your home quickly during the traditional season of hibernation. A clutter-free home is inviting One important tip is to clear your home of clutter. A clutter-free home creates the illusion of extra space and can help potential buyers imagine how they can use each room. Be ruthless when culling unnecessary items, and consider moving extraneous furniture and objects into storage. You can also hire an interior decorator to help you decide what to keep and what to remove. They can even loan or lease additional items to suit your decor, which can be a worthwhile investment in your sale. Useful tip - a clean outdoor is your edge In winter, many trees have lost their leaves and gardens can look sparse without leafy greens or bright blooms. However, you can still present your garden in meticulous detail by trimming hedges, pruning overhanging branches, removing any brown leaves and regularly maintaining weed control. If you have a swimming pool or outdoor spa, ensure that it is cleaned and covered at all times if possible. Mowing lawns and removing inappropriate outdoor furniture can also provide extra ground cover in your garden. A warm atmosphere is perfect for a cosy winter Creating a warm and inviting atmosphere inside your home is essential for both ambience and energy savings. Open fireplaces are a popular example of a feature that can inspire warmth, set the scene, and save on energy costs. You can also add the aroma of winter spices such as clove and cardamom, the scent of freshly baked goodies, and gentle background music to create an irresistible atmosphere for aspirational buyers. A professionally finished home is inviting Before listing your property, ensure that any DIY projects are completed to a high standard. Decking, painting, and landscaping projects should all be finished to create a sense of quality, style, and aspirational value. A professionally finished deck, pristine garden, or freshly painted walls can all enhance your property’s appeal. A well-lit space gets the spotlight Finally, it is important to showcase your home’s best features in winter. With shorter days and reduced natural light, effective lighting is crucial for highlighting key selling points. Open-plan rooms can be staged with zoned lighting to create different areas within the space, such as home offices, libraries, and children’s play zones. Large living areas and dining rooms can also be set up to show how they can be used for entertaining or relaxation. By shining a light on your home’s best features, you can help potential buyers envision themselves living in your property. If you need help selling your home this winter, get in touch with our team and find out how we can get the best result when selling your home.
Apr 27, 2023
Is it the right time to sell my investment property?
There is no shortage of information and opinion about any real estate market and an abundance of advice on what the best options are in the market at the time. Investors frequently ask, when is it the right time to sell? If you are an investment property owner, there will be information relating to changes in legislation, potential tax benefits and dips and rises in the property market, all influenced by various local and world factors. What is the most important aspect to consider when choosing to sell your investment is your individual circumstances and the strategy that fits your goals, rather than moving with the crowd. Before making any decisions, analyse your investment plan and talk to your financial advisor about your current situation. They are likely to work through the numbers with you and advise if the conditions are right for you. One of the reasons that you choose to sell could be that the property expenses and cash flow have consistently been in negative territory and with rising interest rates and costs associated with running an investment, you may find that making ends meet has become more challenging. Your advisor can work through your finances with you and should you decide to keep the property, may recommend solutions like refinancing your current loans to source a better deal. Our property consultants can also assist, by providing a market appraisal of the property so that you can gauge where the current value lies prior to refinancing. The market is cyclical, and you may decide that with increases in prices achieved in your local area, that it is a great time to sell and invest in other strategies. Keep in mind that if there are considerable gains, you will be liable for capital gains tax after the sale. Not all markets are the same and there are often micro-markets. While some are increasing, others could be decreasing or prices stabilising. The same occurs for rental properties and increases in rents achieved will depend on demand. The best way to find out what is happening in your area is to speak with one of our property consultants who can provide you with an accurate update on recent sales and the trends that they are seeing. Being informed will give you an extra edge when thinking about whether it is the right time to sell your investment property.