Why use a buyer’s agent?

Of course you can buy property without assistance, but the vendor is represented so why shouldn’t you be?

We can demystify “agent speak” and give you clear guidance.
It’s hard to know what to believe and what not to. Believe it or not, selling agents don’t know when to believe buyers either. We can cut through all this confusion and be your credible source of information.

Give yourself a competitive edge in a sellers’ market.
We know what tactics to use and how to time offers to minimize the risk of competing with other buyers.

We can recognize potential in a property that you can’t.
Buyers these days are used to seeing well presented property and often can’t see a diamond in the rough. Our experience allows us to quickly see opportunities that aren’t obvious – this is where people make money in property.

We can recognize a lemon when you can’t.
We have been involved in buying and selling property though good markets and bad. At the moment, everything is selling, however the market will return to normal and we can help you avoid purchasing a property that would be difficult to sell in a buyers’ market.

Finally, we give you the confidence that your final decision is the right one and that you are paying the right price.

For more information on buying property in Sydney go to www.gooddeeds.com.au

Real estate buying stages.

Trying to buy a property in a sellers’ market is no walk in the park. We meet buyers at all stages of the purchase cycle – do you recognize yourself in this list?

1. Optimism – this is fun, you are excited, and nice to selling agents
2. Disappointment – first auction goes 20% over what you thought it would sell for
3. Disbelief – at what people continue to pay
4. Anger – at selling agents for under-quoting, at other buyers for over-paying
5. Resentment – you pack up your toys and stop playing for a while
6. Resignation – that the market is continuing to rise despite your lack of participation, you still want to buy after all
7. Desperation – you try to talk yourself into anything just to get into the property ladder and get your Saturdays (and sanity) back
8. Wisdom – learn from your mistakes and/or get expert help!

For more information on buying real estate in Sydney go to www.gooddeeds.com.au.

How to decide how much to pay for a property.

As real estate agents, we have a requirement under the Property Stock & Station Agents Act to undertake a thorough analysis when determining what purchase price we recommend a client pays.

There are a lengthy list of factors we take into consideration in order to comply with the Act. Some of which are:
• A detailed analysis of recent sales
• Assessment of the factors that may affect the price people are willing to pay for this property in the current market.
• Is it a property that will attract buyer interest if you need to sell it in a flat market?
• Is there an obvious way that you can add value?

However, there are also factors that are individual to every buyer. For instance:
• How long have you been looking for? Is this the only property that you have found in 12 months that suits your requirements?
• What is your timeframe – own it for 5 years then upgrade, or is this your 20 year home?
• Are you an investor or an owner occupier?

Sometimes you need to pay a premium for a property that is going to suit your needs better than anything else that is likely to come onto the market in the near future.

Sometimes, however, it is folly to pay a premium for a property that is highly likely to drop in value when the market levels off. Knowledge is power and the more you know about the suburb you are buying in, the better decision you will make.

For more information on buying property in Sydney go to www.gooddeeds.com.au

When not to compete for a property.

Last weekend I saw an auction for a property on a busy road. I was astounded not only at the amount of bidders for this property, but at the crowd of onlookers that the auction attracted. This level of interest from actual buyers and sticky-beaks alike is completely symptomatic of the current strong property market. In a “normal” market or, god forbid, a down market, this auction would be lucky to attract more than one bidder let alone many spectators. During market down times in years gone by we have seen numerous auctions where the selling agent, the vendor, the auctioneer and if they were lucky, one buyer were in attendance.

So, why are people suddenly competing for property on busy roads? Some reasons include a lack of quality stock, fear of being priced out of the market and a general sense of panic amongst buyers. We are also seeing inflated prices being paid for unrenovated properties for the same reasons.

This property sold for $100K over what the agents were quoting. If you are going to compete for a property, make sure that it is a property that will also be desirable to buyers when the market returns to “normal”. Let’s face it, if you are going to pay a premium, you may as well ensure you pay it for a good property, not a bad one.

For more information on buying property in Sydney go to www.gooddeeds.com.au.

Property Buyer Prep List

In a competitive market (which it is shaping up to be this year) you need to be ready to act quickly once you see a property that you would like to buy. Get yourself ready to buy in 2010 with this handy checklist.

Deposit

Make sure you have access to enough cash for a minimum 10% deposit and to cover other costs such as stamp duty and legal fees. You may also need to cover mortgage insurance.

Get a cheque book or put the funds into an account which will allow you to transfer large sums of money overnight.

Deposit bonds are an option, however they can be very limiting.

Finance

Get your finance pre-approved and get your lender to put this in writing. An approval in principal is not enough.

Also find out whether you will need a bank valuation before you can exchange contracts.

Legal Advice

Choose a solicitor who specializes in property or a conveyancer before you find a property you like.

Real estate agents can give recommendations or use these links:

The Law Society of NSW http://www.lawsociety.com.au/community/findingalawyer/findalawyersearch/index.htm

Australian Institute of Conveyancers NSW Division
http://aicnsw.com.au/aicnsw_cms

Building & Pest Inspection

If you are purchasing a torrens title property (and even strata in some instances) you will need to get a building and pest inspection.

Ask around (friends and real estate agents) for referrals and keep some numbers handy – you will need to engage them at short notice once you find a property.


If you would like more information on buying property in Sydney go to www.gooddeeds.com.au.

Image courtesy of www.freefoto.com.

A rising market – time to downsize!!

Look at this scenario…

This time last year, you believed your house was worth $2,000,000. Now, prices in your suburb are reported to have gained 10%, which makes your home now worth $2,200,000. You have just decided to retire and take on some consultancy work. The good news is that your next house, which would have fetched $1,000,000 a year ago, is only worth $100K* more than it was back then – now $1,100,000. So, if you downsize now, you’ll be $100,000 better off than you would have been last year and certainly better off than if you wait for interest rate rises to take effect and price growth to slow again. Time to jump!!

* all things being equal, which may not be the case if you are looking in a completely different area.

For more information on buying property in Sydney go to www.gooddeeds.com.au

Image courtesy of Michal Marcol http://www.freedigitalphotos.net/images/view_photog.php?photogid=371

How to pick the best apartment in a large complex.

Obviously, you can go straight to the top and buy the penthouse, but what if your budget is not so lofty?

We advise our clients to be very wary of large complexes. There is often more than one apartment for sale at any one time, which may offer you choice when you are buying, but can be a problem when you go to sell.

So, if the location, facilities and overall style of the complex appeals to you, how can you ensure you buy the best apartment? Here is a checklist:

· Natural light – the higher up in the building you are, generally the better natural light, however the aspect is crucial so look for a north, north-east or north-west aspect from the living areas.
· Privacy and outlook – preference should be given to apartments that look outside the complex (depending on the outlook of course – or unless there are fabulous landscaped gardens) rather than into other apartments.
· Proportion of rooms – sometimes the bedrooms are larger than the living area, or the ensuite bathroom is larger than the main bathroom, or there is wasted space in foyers and hallways. All these scenarios should be avoided.
· Outdoor space – this should be usable (is there space for a table, chairs, bbq?) and accessible from the living area.
· Noise – avoid apartments next to the entrance, opposite the lift, overlooking a noisy road, etc.

For more information on buying property go to www.gooddeeds.com.au

What to expect in real estate this spring.

Traditionally September heralds the start of the spring selling season where the warm weather and blooming gardens inspire people to sell their houses. After the winter listings drought, real estate agents gear up for the year’s busiest period and hope to power on uninterrupted until collapsing in an exhausted heap on Christmas Eve.

Will 2009 be any different? Not according to the selling agents we have been speaking to. Buyers will be able to expect more choice and, hopefully, less of the competition which has seen weekly auction clearance rates exceed 90% in some parts of Sydney.

Many experts are saying that the first home buyer segment of the market will die down and be replaced by investors entering the market. Our enquiry levels certainly support this forecast.

A recent Residex report said that “housing finance results released by the Bureau of Statistics, [showed] that most of the growth in lending is coming from existing home owners on the move. While investor activity is still weak overall, we expect it to increase later this year and increasingly take over the running from first home buyers.”

The report went on further to say that “investors are returning to a housing market which has withstood the traumas of the last two years far better than commodities, property trusts, shares or term deposits. Despite the doom and gloom merchants, the housing market did not crash or even lose any real value.”

In the meantime, the roll-on effect from the first home buyer boom means that the most competitive segments of the market now seem to be 2nd and 3rd home buyers with budgets from $750,000 up to around $1.3 million. Let’s see if the expected high number of spring listings will materialize and dampen the general enthusiasm this year.

For more information go to our website: www.gooddeeds.com.au

Strata levies - low levies can be a false economy

Sometimes when pensioners or investors dominate the ownership of a building or complex we see historical pressure to keep strata levies low. The discretionary portion of the levy is the sinking fund contribution, so when building issues arise, or upgrades are required, there is no money in the pot. So, what happens next? Either the issues are ignored, the building begins to look shabby, or a special levy is struck. And, if you are interested in capital growth, all these outcomes can negatively impact the value of a unit or townhouse.

It is now mandatory for owners’ corporations to undertake a 10 year maintenance plan and levy forecast. Those buildings with low levies will face sharp rises if the recommendations in their report are adopted. Those buildings that have been responsible in their financial management and avoided the temptation to keep levies too low will see much more modest increases.

For more information on buying property: http://www.gooddeeds.com.au/

Strata reports - often a long list of repairs is a good sign

When you read a strata report that documents a litany of building issues it can be easy to be scared off a property. And sometimes it is a warning of impending inconvenience and cost. However, it can also indicate a pro-active strata manager and an owner’s corporation that cares about maintaining their investment. In addition to the list of problems, look for a concerted and continued effort to address the issues. And keep an eye out for potential special levies. This is a sign that there has not been sufficient sinking fund levies in the past to cover these expected repairs.

For more information on how to avoid pitfalls when buying property: www.gooddeeds.com.au

A shameless plug… why use a buyer’s agent?

Here are just a few reasons:

You don’t sacrifice your weekends and family time.
Searching for a home can become all-encompassing and takes over your life!

We have access to unadvertised listings.
Though, to be honest, motivated vendors are those who pay for advertising. Unmotivated vendors want more than their property is worth – however your perfect property might just be owned by such a vendor and this could be the only way you are going to find it…

Selling agents often give us information that they won’t share with the average buyer.
Our lack of emotional involvement means we won’t have a “knee-jerk” reaction. Also, selling agents know that a buyer’s agent understands the sales process and therefore comfortably share information that can give our clients a distinct advantage over buyers who represent themselves.

If you'd like to know more, go to www.gooddeeds.com.au.

Don’t panic!

This is the time of year when new listings all but dry up. Many vendors, particularly those with properties lacking natural light, think that spring is the best season to put their property on the market. So as the weather cools, selling agents and buyers alike start to despair…

This is not to say that your dream home won’t come on the market in winter (smart vendors will be listing their properties now!). But the biggest mistake to make is to panic and pay far too much for a property or, worse still, buy something that really isn’t ideal. Take heart, take a breath and wait it out until spring – but don’t completely give up the hunt in case the perfect property does happen to turn up!

The magic question – what will happen to the market after September?

Ahhhh, if only I had a crystal ball…

For those who haven’t heard, the Federal Government has announced that it will phase out the First Home Buyer Boost, starting with a 50% reduction to $3500 after September 30th 2009 and ending completely on December 31st 2009.

From my observations of recent buyer behaviour, I believe the bonus has motivated many people who were simply thinking of buying to actually get out and buy. However, a lot of first home buyers I speak to are happy to wait till after the bonus starts to shrink before they buy. So I am not sure we will see a sudden decline of buyers out there after September.

On the bright side for buyers, there is usually a lot more property available as vendors often decide to list their properties in spring. Increased stock levels usually have a dampening effect on price growth.

Even if the first home buyer segment of the market grinds to a halt, the flow-on effect will continue for some time as many of those sellers are now buyers upgrading to their second home, and so on.

Overall, it is hard to speculate as there are so many other factors in play at the moment, for instance, low interest rates, talk of recession and job insecurity… Just try to get two economists to agree on the property market outlook!