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7 QUESTIONS TO ASK AN AGENT WHEN SELLING? By Peter O'Malley

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What evidence did you rely on when valuing our property? We are all susceptible to believing what we want to hear. If an agent quotes a high price for your property, it’s natural to want to believe them. However, if an agent cannot justify their price to you as the owner, they will have an even harder time convincing a buyer! If the property sells below your quoted price, do we still have to pay full commission? When you sign an agency agreement to sell, the agent must provide a written assessment of value. You, as the seller, enter into the agreement, in part, based on the written assessment of the agent. If the agent fails to achieve their promised assessment of value, you should have an ability to penalise the agent for getting it wrong. By being firm on this point when interviewing agents, you will flush out what the agent really thinks your home is worth. How do you have an auction with one buyer? Auctions rely on competition i.e. multiple bidders. Unique homes often require unique bu…

What Australia’s growth means for property buyers

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It's hard to deny that Australia is getting bigger by the day. According to data from the Australian Bureau of Statistics, Australia's population of 22.7 million people is expected to grow to 46 million by the year 2075. This is more than double its current size. Among other things, this will affect those who will be looking for a home loan in the future.

Home loans are not the only things that will be affected by this growth. One need only look at the recent state and federal budgets to see that the government is pumping money into infrastructure all around the country in order to keep up with an ever-rising population.

Budgets go large on infrastructure

The federal budget has allocated $50 billion to Australian infrastructure. This investment will help build an East-West link in Melbourne, a freight link in Perth and help fix up various obsolete roadways around the country.

It will also give $3.5 billion for the development of the quickly growing Western Sydney region.

State…

OPEN INSPECTIONS

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There are two big dangers with open inspections – first, they are a security risk and second, they can easily damage the value of your home.

Despite the warnings and the enormous evidence, many agents continue to allow hordes of strangers to wander through family homes. Most people who visit open inspections are lookers, not buyers. Thieves also visit open inspections and check the home for a future break-in. Your home is probably not insured from theft caused by an open inspection.

But the purpose of open inspections is not to sell the home, it is to create the impression of activity and "condition" sellers to lower their prices. Sellers believe that the people looking at their home are "buyers". This makes them easy to persuade to reduce their prices. Sure, some of the people at the open inspections will be buyers. But the agents rarely know who is a real buyer and who is a looker. The agents then say to the sellers, "See, it didn’t sell. They all think the…

Mistake 3 – The Quote Trap

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One of the most common mistakes made by sellers is believing the price the agent quotes for the sale of their home.Once you sign-up with the agent, if the selling price is less than the price you were quoted, too bad. There is nothing in the "standard" real estate agreements that compels agents to honour their quotes.The ‘Quote Trap’ catches thousands of sellers who are told one price before they sign-up and another price after they have signed-up.As absurd as it seems, if a home sells for any price, the agent still gets paid.Don’t Sign Anything… unless you are sure you can trust the agent.Your Solution...Insist on a written quote Guarantee just as you would with any business. You should only pay the agent if you get the price you were quoted – or more. Don’t accept any excuses about "the market". Granted, no one can know exactly what any home will sell for; but the agent can give you a price range – from a low point to a high point – and if your home sells below t…

DOES IT MATTER IF MY RENT IS LATE?

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On occasion tenants may be late with paying their rent. There may be genuine reasons for this delay, however when you begin your tenancy you are signing a legally binding contract in the form of a General Tenancy Agreement Form 18a. This agreement will incorporate weekly rental amount and when payable ie “on due date” – failure to meet this obligation may result in a Notice To Remedy Breach being issued.
Renting is very competitive in today’s market. Rarely does an agency only receive one application for a property. When they receive multiple applications, the payment history is high on their list and the owners, when deciding which tenant to choose.
Legislation has changed and repeat offenders of late rental payments may be served with an eviction notice. Even if the tenant remedies the breach by the said date, an Agency/Owner can give a Notice To Leave with the appropriate notice periods.
Another circumstance which tenants may not be aware of is; often owners use the rent to pay part o…

THE KEY MARKET DRIVERS

What are the key economic fundamentals that drive our property market?
1)Population growth
Australia has one of the fastest population growths in the western world. Based on conservative assumptions, Economists BIS Shrapnel estimate Australia’s population will increase by 5.3 million within the next 13 years. With an average of 2.5 people per household this translates to a need for an additional 2.1 million new homes.
2)Construction of new housing
According to many analysts, Australia has a shortage of new housing.This is not true of all areas. For example there are pockets of oversupply such as apartments in the inner city of Melbourne and house and land packages in some new subdivisions in the outer suburbs.However, there is a constant shortage of housing in the popular inner to middle suburbs.
3)Employment
Unemployment in Australia currently sits under 6% which is far better than most other countries around the world. For the property market to be adversely affected by unemployment we …