questions & answers
A1: In a market like now - forget it, also remember sell privately, even if you get a buyer they will usually adjust their offer value downwards becuase they know you are saving on agents fees, so the point is what?
A blunt answer I know; but this is not the market to be trying.Let me know if you do want an agents help via www.andrewwinter.com.au
Happy selling
A2: Tina - what a lovely lady you are! AND you are not even a relative or close friend.
Keep watching to keep those viewing figures up, I have a huge mortgage you know!
A3: The answer to your question depends on the state of the market. A good market means you could wait and where you want to buy could go up and you get left behind! However in a tough market, you have to be very financially comfortable to risk buying without selling first! Why are you worrying about rent, just rent something modest to cover you until your home sells and buy with confidence when you sell. That is the safest way. If you have no mortgage then my answer could be different!
A4: A very common issue. The problem is simple - why would a buyer buy a home backing on to a main road when most homes do not! Even fronting a main road is better, as your outdoor space is away from the road.
So is your home un saleable -the answer is NO. It just has to be marketed accordingly. I see this often, agents forget to mention the road, buyers turn up and are shocked by it, even if it is not that bad! With an issue like this that is impossible to change - I beleive you have to 'up front' about the negative.
Mention the fact on the details, the ads, the internet and ensure your agent tells buyers too, once a problem is addressed buyers expect the worst and then are often surprised in a positive way. You will loose some inspections but they would never have been buyers anyway.
The one vital element that will get you a sale is to ensure the price takes into account the negative of the road. There are no hard and fast rules about how much a home should be reduced because of this. My suggestion is to ask yourself how much your home would be in a quiet street, even the answer was say $500k, maybe you should list at $470/480? The diffeernce depends on so much, normal quiet suburbs the drop would be more than a busy suburb for example.So be upfront and get eth rpice right. Good Luck
A5: To be advised on 'coming to Perth' question, sorry. You have a great city and I love Fremantle!
A6: Get an agent, tough market means you need all the help you can get. Plus private buyers always offer less, as they know you are saving on real estate fees, so no point really!
A7: Just checking this isn't my Mother? OK I realise it is not, so glad you enjoyed the first of the Aussie shows, I have been doing it since 2001 elsewhere, yet filming the show has been more fun in OZ than anywhere else!
A8: Give us a chance! It all takes time - anyway I think we should be backk on your screens in the new year, maybe sooner.
A9: Thanks for your email - 'yes' is the answer to your question, but I am unable to give you more details until later this month, if you don 't mind a little wait!
A10: Improvements to your home, whatever they are, do make a difference BUT if you plan to sell in the next year or so, you cannot guarantee you will get your money back in full straight away.
So improve, enjoy it - going for the above ground pool option is excellent as it saves a lot, BUT hide the fact it is above ground by using a deck around etc. Warning, if your home has a less than 300k value it will not add much more than 10k in total, however if it is a home with a 450 - 500k price tag, 20k added value for a good looking pool is very possible.
So swimmers on and enjoy!
A11: You gave me so few details about the home it is hard to comment, however in principal losing a bedroom is never a good idea unless you have 4+ to start with, then it iis ok. Also a 'tired home' with one gorgeous new bathroom with spa will appear strange and not add value directly. So save the Dollars and offer the home at a competive price as a 'fixer upper'. Good luck, although if you bought the house many years ago you should have a nice big profit on its way. Good to hear from you.
A12: Who told you that? That is a sweeping statement too far.OK Body Corp can put people off if it is too high for too few facilities. It does depend on each estate, but you need an agent who has sold in there before and can 'sell' the benefits of those gates. So the gated estate is not the problem I am sure!
A13: I am really sorry about this, I really am sure your agent was trying to get you the best price at the time, because he or she actually did themselves out of a commission! So you have been victim of the current market dropping quickly and without much warning. It could be now you have to take less, but if you are buying again you can negotiate the same ammount of your purchase. If your buyer at $510k is serious try to get them up, if you can, buyers are fairly scarce at the moment!
A14: As I currently practise on the Gold Coast. I have to admit that I am really shocked at the poor level of service from both conveyancers and lawyers! When we find good ones we shout from the roof and recommned them to everyone. From the fact you have written in means I would expect you would be in the 'great' category. I will try and take on board your comments in the future. Thanks for watching
A15: I am hoping to have a service available to help you soon, so watch this space. PS I love a good Queenslander!
A16: This is a massive issue, how long was it at the lower figure? Who discovered the error. It really could make a difference to the a marketing campaign, if advertised at a certain price for more than a few days, as so many poeple have 'alerts' set for new listings and WOULD RECALL a bargain!
Personally, unless you have to sell right now, could you not take it off the market for a month or so, ensure new photos/ new text is created before it goes back on and if the agent did this for more than a few days CHANGE AGENTS.
WHOOPS!
A17: Well noticed - best solution is DO IT YOURSELF. For many years I was involved in furnishing homes for the rental market in a certain part of London, we needed wall hangings cheap; but that looked good.
Buy frames - that certain Swedish superstore is great for them! Use wall paper, post cards, blown up black and white photos etc. Get creative; I do recall buying lots of paper types and materials, cutting them up and there you go! I am so not artistic and I could get it right, you have a great chance.
Remember hanging positions etc are vital too.
A18: Speak to a Building / Pest Inspector first, because damp can lead to many other related problems. You must stop the cause first and repair after. As for avoiding a home with this problem - that depends on the home, the price being asked and a whole number of factors - DON'T BE SCARD, BE INFORMED.
A19: Dont worry the Internet is already doing that for you, if you are using a good agent? Sometimes people target big city property papers for rural properties but to be honest it is usually the local agent that gets the deal. To advertise one home in an area is pointless as buyers, even when attracted, want to visit the area or see what else is around for sale soa ll you do is sell the location, your chance of securing a buyer that way is tiny!
A20: Investigate and investigate more! You could on to a winner, check with your local council first for their thoughts, then you can employ a specialist like an architect to take it to the next level. If you get the ok for multiple devlopment etc, you don't have to do the work becuase it is ready to sell with its new zoning, how exciting.
A21: Great to hear you like the show - on the last series we covered parts of NSW, QLD and VICTORIA, hopefully next time we will back to the same states plus others too.
A22: How did the auction go? Clearance rates always drop when the market gets tough, hope you were one of the lucky ones
A23: In the current market - not a lot! If you render an older home and it looks like new from outside, it will only increase the value if the interior is fully modernised too. If you want to do it and plan to stay in the home for at least 2 or 3 years, go for it - if you want to sell NOW, you do risk not covering your costs. Also your home is hardly ugly as a brick veneer now!
A24: I agree! However if you are doing works that require lots of materials, kitchens / bathrooms etc - try and source these fittings yourself and have them ready on site, you can then only ask for quotes on their actual work.
Other than that I agree it is difficult, also ask friends / relatives - tradies love being recommended and having regular clients who they know will pay them too.
Happy renovations
A25: That is a tough one! In my opinion and remember I use agents when I sell too. The secret is to use at lesat 3 for a valuation, Ensure they tell you a price guide for your home AND JUSTIFY IT. They need to know the area, the sales, the market etc really well! If one gives you a figure much higher, or much lower; do not be afraid to ask WHY?
You need to like the person, you need to know about what their company offers etc. Remember they will work for you and always expect weekly contact.They need to know who the likely buyer will be (buyer profile) AND just becuase one company offers lower fees do not expect them to be the best. A motivated agent is the one who will sell your home and get the best price.
Happy selling
A26: It is very hard to comment without a floor plan to see, but if it is a 3 bed home with 1 living area plus kitchen and NO real meals area. As this is a fairly basic requirement, the creation / addition of a meals area should add real value and cover its costs in the short term. My concern is how you get to this possible new space, you mention removing a window that would link the spaces, but you would access it somewhere else, this could be a good compromise. You must ensure that the removed window hole does not look like a removed window hole, if you know what I mean. You are right do not sacrifice a bedroom for this - get your agents views before you do any work too. Good Luck
A27: Well done on the sale, anyway on to your other question.
Although I am an agent and always have been, I have never sold privately and always used an agent. In reality the market needs to be good, you have to happy you know the process really well AND very important can you happily negotiate with possible buyers, how will you check their financial status and will you be ok with chasing them up all the time. Only if you are happy to do all that stuff should you consider it - however remember in my experience when something is being sold with a low fee agency, or privately, a buyer adjusts their offer accordingly so you get to do all the work and make no more money! If you knew a home was listed privately you would 'knock them down' I am sure.
A28: You will have to speak to Lifestyle about that! I am hoping to be able to offer a service that could help you guys soon - so watch this space. However a partly modernised / improved home does not always get the best price. An un modernised home at a lower price, or a fully renovated beauty at a top price are always the most saleable. So your husband could be partly right. Without seeing the home in full it is not possible for me to really comment in detail.
A29: Where is WA - no only kidding, one day soon we shall come I am sure!
The agents could be right, if you do half a job you could not even cover costs and may not add value! A general tidy up will help saleability, not value and means you will sell at a reasonable figure.
If you want top $$$s you need to improve the home throughout, but make sure the market is strong enough. Most of our sellers need top$ and the market was not too bad. The trouble is in a flat / buyers market such as it is, there is a risk to spending big sums of money unless you can be assured it is right too - without seeing the home or studying your market I cannot comment. So listen to the agents and see if they all say the same.
Q30: Hi Andrew. We plan to put our home which is on 120 acre on the market soon, but I’m a little concerned
As two agents have told me, this property has the Wow factor, and I should go to “Auction” with it. I truly believe, they have said this, as it’s not the average home.
And there are no other homes in our area, as large, or have the 360o views we have.
So have put it the too hard basket,
With our selling price approx $950,000. Their commission will be in the range of $25,000. Plus $20,000 for adds etc. When I asked what they do for that amount of money. They tell me, they use the internet, and newspaper advertising. Big deal, I can do all that myself, and for far less. With so many people now using the net, and cutting out the agent, I’m of a mind to try this myself. Your thoughts on this matter would be most welcome.
Pam O'Keefe, QLD 6/25/2008 10:08:21 PM
Andrew's answer
A30: So many points you raise!
Firstly although your home sounds fab, it is, by your own email comment, 'not average' that can be bad sometimes as it means very few people are looking for a home like that, in that price range and that area, which restricts demand and means it could take a while.
Secondly AUCTIONS should only ever be considered for homes that are really likely to attract competition and where a real price is hard to define, or for a home that has to be sold right now! Auctions do not guarantee top money, in fact quite the opposite in the majority of cases. So you are right it does sound like the type of home or the type of market to go for this' high risk' costly sales method.
Finally choose an agent who is really keen on the home, go for private treaty, don't be bullied into auctions. Due to the potential value of your home try to negotiate on the standard commissions and get some ads included. Forget doing it yourself, sorry, but sometimes finding a buyer is just the start getting the deal to settle is another thing all together plus when a buyer knows you have excluded agents they calculate the saving you have made and knock it off any offer they make!
A31: Not a happy viewer then! In the wonderful world of TV we have to cater for all types of people hence all types on this series. You do have a point about maybe trying to help someone in real need and I will pass your comments on to the Production Company.
A32: A very valid point, why should a tenant care they are paying rent, making beds and presenting for sale is not in their lease! A little tip, if they do have nice things and all it needs is a tidy up etc - bribe them, a free weeks rent etc for helping in the process. If they are a lost cause, you have to calculate the difference in sale value between selling it as is and selling it vacant and staged - get local agents to comments on that.
A33: Keep an eye on my web site www.andrewwinter.com.au, mid August onwards, might be able to answer your question then. Thanks
A34: So many sellers have problems with houses backing on to main roads, fronting main roads is not so bad but in recent years so many developers have gone down the route of 'backing on to' main roads. Undercut your price to compete with comparable homes that do not have this issue so it makes people get the same home for less, they will then accept the problem better.
If your price is right, your agent needs to be up front about the homes position on the net, in ads etc. You will sell do not worry BUT it will take a little longer!
A35: Is that an invitation? If so can I bring the wife and kids?
Only kidding, who knows there is a real possibilty in the next series.
A36: No worries as the locals say! The fact so many homes are 4 beds and not 5+ means there is sometimes a little bit of a shortage of homes for large families. The secret is to make sure it does not feel like a normal 4 bed home with 2 extra small rooms thrown in; more bedrooms should mean more family orientated living space too and a reasonable big yard. Enjoy planning your new home
A37: Good luck with your application - I do not get involved until there is a shortlist, sorry! However in my experience people who do not expect an easy sale and are prepared to meet the market - as we say usually do sell!
A38: None is the simple answer, however there is The National Association of Estate Agents (NAEA) who offer courses and info. How long it will remain unregisitered I do not know, but they will be able to help.The real quality you need is a love of homes and people and to be able to 'think outside the box' as they say. Good Luck. Check out rightmove.co.uk most agents list on this site.
A39: This is really a Charlie question, but to sell the best thing to do is cover it all with gravel and lay a few pavers over the top, not the whole area, to keep costs down and then place a few planted pots in various places. For selling it is all about how it looks! Plus even I could tackle that job, so no labour costs.
A40: In my experience, unless you have access to plenty of cash to do the renovations to 'complete' the works plus the time. It is usually not worthwhile. Remember you are likely to go over budget, if you do not do everything completely you could actually reduce the value - half renovations are almost worthless! People love renovators so sell as is. The only worthwhile spend maybe getting architects drawings, quotes etc, as buyers will always tend to over estimate and ensure your agent has access to all these. Do not carried away with the value.
A41: Working in Queensland means I have plenty of advice on this! You say 'has had termite damage' if you really know it has ceased (get it checked again) and you then ensure all damaged timbers are replaced, cut out etc and all is made good there is no real reason to tell anyone, as it is history. What you must make sure is the way the problem first happened is removed - for example - soil up against walls too high etc.
It is so important to keep all records on it, if ever needed. Don't worry
A42: You do need help! There are so many points and questions that relate to your story which I cannot answer briefly. If you keep an eye on my web site mid August onwards www.andrewwinter.com.au, there maybe something I can do, also why don't you apply to be on the show next series, if you are brave enough?
A43: Great email - glad you are not sinking! If you have ever watched the old UK shows, trust me Australia has nothing to worry about! I admit the Collingwood Park house was at the bottom of the property ladder, however I do not know many young families in the UK with freestanding homes with big backyards and a great pool in a tidy, safe street. So enjoy and be proud being Aussie!
A44: Such a short question that requires such a long answer!
If you really are serious about buying / investing go to andrewwinter.com.au and email me again. Charges may apply if I do help you in this instance, but if that does not put you off let me know. Your question is so very complex to answer, without knowing so much about you and your situation.
A45: WOW that is a big question and impossible for me to answer becuse it will vary state to state. Check your agents paperwork to see when their charges become payable firstly, secondly as long as you get a decent deposit 5%+ if it all goes wrong after exchange / unconditional you could at least have compensation in place rather than sueing anyone. Speak to your lawyer prior to signing anything if you are concerned, remember problems at that stage are very very rare!
A46: When it is NOT a sellers market, a good agent will try different options, hopefully one will work.
Auctions in a buyers market are almost always useless. Stating no price will not always attract the serious buyers looking for the right deal! It can be worth trying a low figure inviting 'offers over' or 'price + buyers'. As a Pom I find it amazing that so many homes state no price guide at all, but there are many conflicting thoughts just try a few different options - good luck.
Q47: Hi Andrew,
Do you recommend de-personalising your home, whilst it's on the market - ie. taking down family photos, or do you think that by having them up, it helps to make potential buyers feel more welcome, and (pardon the pun) "picture" their family living there, by having them displayed? Should you make it more of a display home feel, or personalise it with family snaps?
Thanks,
Nicole Edgar - Narre Warren South, VIC
NICOLE EDGAR, VIC 6/9/2008 11:50:00 PM
Andrew's answer
A47: It is all about balance - clean and tidy and remove all the excess stuff is the golden rule. Do not make the home devoid of all personal items but be selective - happy presenting! When done ask your agent and a good friend what they think and let them be honest - that can be hard to take but worthwhile.
Q48: hi Andrew, its so great your programme, and now over here in oz I watch it all the time, anyway, I come from Bath England,I own my house there worth about 150,000 pounds now, and I want to buy another one as an investment, but I have no job! can I get money out of my house for it? and then the rent will cover the payments for the mortgage?? I dont understand how people do it, buy houses and then buy another one as an investment and then another one and some people have 4 or 5 houses? I am over in oz with family as my daughters here , and what are house prices doing there now, is it a good time to sell or buy and also I want to buy a house here!! I am confused what to do as I love it here but love Englnad too , I would like to keep a base there< thank you for your help
Rachel
Rachel Dockerill, NSW 6/9/2008 3:54:27 PM
Andrew's answer
A48: You want to buy another house and have no income? Hmmmm
If you own the 150,000 GBP home outright you can raise finance on it to buy another but without any income it will not be easy. Then you say you want to buy here, there are many restrictions on Foreign ownership here - try Foreign Investment Review Board here for info (FIRB)
So you could buy something else by using a percentage of your equity of your current home as a deposit but the rent will have to cover mortgage on new home and mortgage on your current home that you would then have, plus a bit, as you have no income??? Not sure how you are going to do it.
A49: Hi Robert - Good luck with your new venture - you are entering a very competitive and very saturated market place. I love all the info available now, but stats can be misleading in the wrong hands, so I would argue it is not always help to buyers / sellers or agents.
To be honest the only thing a person needs to know is what a similar home / similar location sold for in the last month or so and what state the market is in at that particular week PLUS it is how people compare homes too and that is where it often goes wrong. A good local agents knowledge will knock any of these sites SORRY!
Q50: Andrew, firstly might I commend you on the brilliant production of selling homes Australia.
I had heard of you before when I was over in the UK, but it's great to see an Australian version of a property show, as there are so many UK versions floating around.
Can I also say, I enjoy the refreshingly straight talking style you speak to not only the vendors, but the real estate agents them selves. It's amazing how often such large miss communications can occur about the most important of issues!
So often you see houses just above there true value, sitting on the market for way too long with an agent too scare to even bring up the issue with the vendor.
Finally, I only stumbled upon this website – I have watched every episode thus far, and this website has no exposure on the show! Certainly, I haven’t seen anything on it? None of your blogs, nor Charlies or Shaynna’s are being mentioned.
Anyway, best of luck with the rest of the show – Although I suspect it’s already recorded and you’re onto your next series!
Cheers,
Michael Evangelidis
Michael Evangelidis, NSW 6/6/2008 12:47:46 PM
Andrew's answer
A50: You are very kind! A show like this is always a team effiort, please look harder on the Lifestlye site. Blogs, more info are all there plus details of Shayna and Charlie too, happy searching. Series two will commence filming soon so watch out.
A51: A very sensible question, it depends what 'things' you are after, but the Internet, seconds shops, factory outlets, ex hire stuff etc. It can be tracked down it is just not in your average shopping mall.
A52: WATCH OUT! NO established residential market is that well protected, Trust me you will see highs and lows in Perth too. If you do invest in property never expect a profit because sometimes it does not always happen. Well done you have had a great run
Q53: Hi, Andrew
I am in the market looking to invest into a property, your blog "Rent or Buy" is exactly what i am planning to do, however trying to narrow down the range of property is a hard one, thus want to ask the question:
1. What is the best type of property it invest in? a House, Town House or Unit?
I live in the North Shore of NSW, Sydney and houses are quite dear, and currently only looking to invest in property around the 500-600K (Aus) mark.
2. Do you expect that Units, townhouses will rise in value over the next 5-10 years in lieu to houses? i woudl expect houses would, but once again units and townhouses are less heavy on the wallet.
Any advice would be appreciated.
Thank You
Regards
Phil
Phillip , 5/11/2008 11:36:50 AM
Andrew's answer
A53: Sorry so long to answer
Your questions are so sensible, but it is all to general for me to comment and that is why before you buy - forget what type of home you buy focus on an area and narrow it down to 2 suburbs at the most, then get to know their markets like the back of your hand then all the questions you have asked will get answered. HAPPY HOUSE HUNTING
A54: How rude of me to your ignore your great email for so long SORRY
Thanks for watching, warning selling a half finished home can be tricky, you must get the price right or invest in getting people in to complete the works.
A55: Me blunt? Are you claiming I am losing my touch, I will try harder next time. Go on keep watching!
A56: Hmmmm I am confused, an experienced good agent should be able to see problems with his own home. You tell him from me to stop being so silly, I think he just wants to get out of doing a few DIY jobs - bless him and why wouldn't he or maybe he does not want to move? He knows really!
A57: Plants will take too long to reach the required height and thickness. I would suggest a bamboo roll or similar, fix it to your existing fence about 1 m of the ground so it goes above the existing fence height to screeen as required. The lower area where it might look strange now can be screened with plants pots and smaller shrubs etc. GOOD LUCK!
A58: You guys need to get out more... 6 years of viewing, only joking thanks for the support!
As for agents it depends if they have seen the show or not. If they have it can be a combination of nerves and fear. To be fair we usually find the good agents shine through and the weak ones, well viewers usually notice. It is like any other profession good and bad. Having said that how lucky are they as we help them get another sale!
A59: So slow in answering, sorry. Ditch the spa idea, not essential and if you want to sell now, not needed. Stand back and look at your home befroe it hits the market and be self critical and do all the jobs you have been putting off. Happy selling
A60: Only 3 months to answer, sorry, don't forget real estate offices need part timers too, at least you would hear about houses from 'the inside'
A61: I only encourage to present to their best - to get top $. You can sell any home in any condition at the right price and in fact correctly priced reno homes are usually possible.Happy selling
A62: You are so kind, happy renos
Q63: My husband and I are about to put our home on the market, we have a unique position in the country, and have taken many of your suggestions on board, [have watched your UK show], yet in today's market I do not feel confident of getting a reasonable offer. Do we take our real estate's valuation. I have been following market trend's and I feel the valuation could be slightly different, I am no expert by any means, is it possible, as the market is slow, that agent's may be after 'quick' sales. By the way, how long are you in Oz, and are you game enough for a visit to the country. Thanks, and enjoy your visit.
Debra Douthie, 4/24/2008 4:06:52 PM
Andrew's answer
A63: You are stuck with me, been living here since 2005. As for a trip to the country! I live in up in the hills in the hinterland behind the Gold Coast so pretty brave stuff for a Pom and his family.
It is normal for sellers to worry about the sale price. To be fair get 3 agents around, listen to their figures and ASK WHY! Get them to justify their figures, you cannot argue with recent sales. Most agents are usually spot on with what a home sells for, it is just a seller wants more and can be flattered by a higher quote. No buyer will pay over market value - would you? Remember just becuase you want a certain figure does not mean a buyer will pay it.Happy Valuations!
A64: I too am in the 'not allowed to touch' DIY category, even more annoying for me is I love everything to look good, but I give in and get people in.
I always have the same advice for people in your position, buy new! Even if it means trading down a few squares, go easy care and already stylish to prolong your marriage!!!!
As for selling, clean and tidy costs nothing, get people for any major issues like leaks etc then sell as is; but expect to sell for less. But it will be worth it if it gets you a nice new home.
A65: The simple answer - change the house to meet the market to maximise your return. That means do what is needed to get top $. If your street wants big renovated house do both. If the ceiling price in the street is tight do a quick and cheap reno to get the best return. Reserach and do reserach again for your answers but if you do meet the biggest market demand sector you will have more potential buyers - go get 'em
A66: OK I will let you into a secret, it is a real treat to be so frank and honest on the first meeting. I do get pretty direct in my day job and always have done but my advice to fellow agents is asses your clients deisre to sell and see if they are ready for the truth - when they are you will be surprised by the result and shouldn't be kicked out the door! But be prepared you must know your stuff, be confident and back up your comments with actual evidence.
A67: Start with agents - track a good one down, find out if there is a furniture hire service in your area too? That is the great thing about the Internet, also look at how homes in your likely price range and your suburb are looking on the Internet to get an idea of what you are up against.
A68: Have you sold yet? If you cannot afford to make changes and really need to sell - get good agents AND be aggresive with the pricing, it will be the only way. Good Luck
A69: Love emails like this, have no idea what you are talking about so quick and easy to respond!
A70: Actually I have been here since 2005, don't be too hard on the Aussie home sellers - the average one is certainly NO worse than the Pommy ones. Anyway I love them all, if they did not exist I would be out of work.
A71: The time to sell is when you want, or need to! Waiting for a change in market conditions could mean you pay more for your next purchase so that is not a reason to wait. You mention renovations - if the market is steady you have to judge that if you are going to spend 25k be assured you can get that plus a little bit more back in the short term or it is not worth it. It may be worth noting that an unmodernised homes at a lower price can often be more in demand than the finshed product at a higher price, but it does depend on your suburb of course. Get advice from your local agents.