Seven Habits of Highly Effective Home Sellers

January 14, 2012 Leave a Comment

Seven Habits of Highly Effective Home SellersYour property will possibly be the most valuable asset you will ever sell so it’s important to heed professional advice in order to maximise its sale price.

Selling your property is not a task undertaken everyday. When you’re selling, it’s important to be fully informed and plan each step carefully.

There is something to be learned from how home sellers have approached the often complex task of putting their home on the market, and more importantly, closing the deal.

Effective Habit #1: Be Realistic

Property is one of those rate things with no recommended retail price. What your neighbour sold their home for last year, or even last month, doesn’t matter. What you “lost” because you didn’t sell your home at the peak of the market doesn’t matter. The enemy is any other property for sale within your area and price range.

Selling a home ranks WAY up the list of “life’s most stressful moments”. But you have to understand and be realistic about your home’s value, your neighbourhood, and the real estate market you’re in. There are many factors that impact the potential sale of your home. You do not have control over current market dynamics (economy, interest rates, outlook, consumer sentiment, employment, wages) or local supply versus demand. But there are things you can control (presentation, cleanliness, street appeal, availability). Address what you can control, and understand the impact of what you can’t. Realistically.

Effective Habit #2: Be Open to Suggestions

You’ve selected a real estate agent to help you, trust their advice. After all, you wouldn’t visit a doctor and then tell them how you should be treated. Your real estate agent will be able to add real value to the process and is an essential component in selling for more. Sure, you may not be able to do everything they suggest, but at least listen and consider suggestions your agent may have for the best way to present, market and sell your home.

Effective Habit #3: Be Available

YOU don’t necessarily have to be available to buyers interested in your home, but you do need to be flexible with inspection times. In fact, you should avoid staying inside the house while a buyer inspections. Buyer’s sometimes feel they cannot openly discuss concerns with your agent in your presence. Golden opportunities may there be lost. Should it be necessary for you to remain at home, be courteous but don’t force conversation with a potential buyer. The buyer wants to inspect your home – not pay a social call. However, should you be asked questions about the home, the neighbours or the area answer them.

At times you need to be able to vacate the premises with reasonable notice – and occasionally with unreasonable notice. Your home can not be sold if potential buyers can’t view it. “No inspections on weekends” or “Inspections only between 11:00am and 1:00pm on Thursdays and Fridays” won’t cut it.

Effective Habit #4: Be Smart

Understand the local real estate market. Understand the home selling process. Understand the buyers’ cycle (you may not be buying, but you want to understand what your potential buyers are dealing with).

Why understand all this? KNOWELDGE IS POWER!

How do you understand all this? Let your agent help you understand it. That’s what you’re paying them for.

Effective Habit #5: Invest in a Marketing Campaign

Choosing a marketing plan that ensures your home is exposed to the maximum number of buyers is critical to achieving the best price.

YOU CAN’T SELL A SECRET! This is a well-known saying in the real estate industry. In other words, a property may be immaculate, fresh and supremely interesting but if you don’t tell ‘the world’ you will struggle to sell for more.

Let’s now look at an effective marketing campaign.

  1. It attracts buyers with increased chance of attracting offers, resulting in a great sale!
  2. It encourages competition between buyers resulting in top prices being paid!
  3. It is an insurance policy against underselling. Every suitable buyer in the market will see the advertising and will make the decision whether or not to inspect further. Those buyers who do view and want to the property will vie for the chance to buy!

Think about it…would you like the first buyer or the best buyer.

Effective Habit #6: Balance Emotion with Logic

Selling your home and all the things involved with the transaction can be very exciting, but many times it is an extremely stressful event.

Home sellers not only have to worry about their home remaining clean and available to buyers on a daily basis but they often have other important things that they could be doing to ready themselves for their move. It is also true that most Sellers have a tremendous amount of pride in their home and want to make certain that the marketing and eventual sale price are reflective of that pride.

The moment you list your home for sale, it just becomes a house on a shelf – 1 of many. You may not like what the market tells you but it will never lie to you. If you don’t have inspections you will very likely not receive any offers. If you have inspections and still don’t get any offers you must be prepared to adjust the price. Don’t take it personally.

The best homes remain unsold due to price!

Effective Habit #7: Don’t Be Afraid to Ask Questions

This is YOUR home you are trying to sell. You need to be comfortable with what is going on. If there is anything you don’t understand, ask your Real Estate Agent for clarification. Don’t be embarrassed about things you don’t know. You don’t sell a home every day. Most real estate terms and jargon aren’t important to you 99.9% of the time. But they are important now, and often agents tend to forget we frequently speak in a foreign language. There are no stupid questions. Ask.

The Bottom Line

These “seven habits” can help you through the home selling process. There is every chance your efforts will be rewarded with more buyers and the potential for buyers competing for your home, a faster sale and a better price. You will also be able to take comfort in the knowledge that you did your absolute best to influence the value of your home and your stress levels may be greatly reduced.  It may also greatly reduce the stress levels of your real estate agent as well. That’s not a bad thing. People don’t like stress so anything that can be done to alleviate a stressful situation is a good thing.

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SAFE DECISIONS CAN MAKE THE MOST OF YOUR HOLIDAY

January 3, 2012 Leave a Comment

For people heading off on holidays, Mark Millington principal of First National Lakeshores says to be careful to make sure homes are left safe and secure and to think carefully too, if considering a holiday home purchase.

“Holidays are great times for criminals to get to work if they believe a home is empty. It’s also a time when vacationers ponder their existence as they sit back and enjoy the relaxing lifestyle on offer in popular holiday spots,” Mark Millington said.

“No one likes returning from their holiday to find dead plants, over stuffed mail boxes, or even worse, stolen or broken treasures from a burglary.

“But they do like to think about ways of making the holiday euphoria last longer than the few weeks away.”

Mark Millington said with some careful planning and forward thinking, home owners can find they peace of mind they seek whether they are leaving for vacation or looking for ways to extend it.

“Anyone considering heading off for a well-deserved rest should start now to put some simple, cost effective measures in place for while they are away,” Mark Millington said.

“Unattended homes and cars act as green lights for burglars, which is why it’s important to take as many precautions as you can to ensure you don’t return from your holiday to find you’re a victim of crime.

“Turning on security lights or alarm systems is a great place to start, but the best thing you can do is ask the assistance of a trusted friend, neighbour or family member to collect the mail each day, put out bins at collection times, park a car in the driveway or adjust curtains and blinds.

“This helps give an impression of someone still being at home and deters unfriendly and unwelcome visitors.”

According to Mark Millington, a common trend for people on vacation is to fall in love with the holiday spot and look at purchasing in the area to either move into, or retire to, at some later stage in their lives.

“It is easy to get carried away with the relaxing lifestyle of a holiday home and many people want to either relive this time away, or adopt it as a new way of life,” Mark Millington said.

“But, purchasing a holiday home should only be done after careful planning and consideration of all the factors, beyond the pleasant experience.

“A holiday home purchase comes with some financial considerations such as use or purpose of the home when the owner is not there. These matters have potential long-term impacts and tax implications.”

Holiday homes can attract capital gains tax on the difference between the purchase price and the later sale price, should the decision to sell ever arise.

“However, many holiday home owners neglect to expand their purchase cost base by adding the expenses involved with holding the property, including council rates and water bills, major extensions or repairs, strata levies, garden maintenance and interest on mortgage repayments,” Mark Millington said.

“This can reduce the taxable component of the sale by many thousands of dollars, which is why it is important to ensure you keep all receipts for any expenditure on the house, including legal fees, stamp duty and any other costs relating to the purchase.”

Mark Millington advises when looking to purchase a holiday home, to approach it in the same way you would any property investment and make sure it is in the right location.

“A holiday home may also double as an investment property, given it is vacant for most of the year,” Mark Millington said.

“So it is important to ensure it is close to transport or employment opportunities, especially if it is in regional areas, otherwise it will be less desirable as an accommodation option for renters.”

There is a lot more holiday property advice says Mark Millington and the First National Lakeshores team can offer help by contacting 02 4359 1555.

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WIN $25,000 OF HOME FURNISHINGS WITH FIRST NATIONAL

October 9, 2010 Leave a Comment

Super Massive Comp

Super Massive Comp

Throughout October, First National Real Estate is offering the chance for one lucky individual or family to update their home with $25,000 worth of brand new furniture and energy efficient appliances.

All entrants have to do is visit the First National Real Estate website, firstnational.com.au, follow the prompts, answer a couple of simple questions and submit their entry form to be in the running for the $25,000 home furnishings voucher.

‘Lots of First Home Buyers bought homes last year as a result of the stimulus package and many more Australian families are putting off the replacement of old, inefficient appliances. So, we thought we’d give one lucky family or individual a helping hand’ says Mark Millington, principal of First National Lakeshores.

First National Real Estate adopted an energy efficiency stance in 2009, providing its national network of offices with an Energy Efficiency Kit to assist its agents to reduce energy consumption in their offices and their customers’ homes.

‘An important part of the kit is a booklet printed on recycled paper that shows Australian homeowners and tenants how to lower their home’s energy bills’ says Mark Millington.

‘The book was so popular, our office soon ran out of copies but customers can still download a copy, or see all our energy efficiency and sustainability advice, by visiting firstnational.com.au/energyefficient’.

The website, booklets and brochures help people choose, and better use, more efficient appliances, solve design problems in older homes, and create more sustainable Australian native gardens.

To enter the competition, participants should visit www.lakeshores.com.au and follow the links to the Super Massive $25,000 Giveaway.

‘You can enter as many times as you like between 1 October 2010 and 31 October 2010. It’s that simple, there’s no skill required and all entrants have an equal chance to win’ says Mark Millington

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Property Remains a Sure Bet

July 23, 2010 Leave a Comment

Mid year property outlook 2010

Mid year property outlook 2010

As property punters across New South Wales hedge their bets both ways, First National Real Estate Lakeshores’ Principal, Mr Mark Millington is bringing some much needed clarity, predicting property prices’ growth will slow but that the market will remain buoyant despite ongoing uncertainty and increased consumer nervousness.

According to Mr Millington, property prices across all sectors of house, land and apartment/strata in the Lake Macquarie and Central Coast region rose by up to 1 – 5 per cent in the last six months, driven mostly by an increase buyer pool and lower level of available homes for sale, plus lower interest rate and government stimulus. 

The rental market has seen vacancy rates decrease marginally by no more than 1 per cent as housing affordability and immigration create more tenants than available homes – a factor which has seen rents increase by as much as 5 per cent in some cases.

For the remainder of 2010, property prices, across all sectors (house, land and apartment/strata) are expected to continue to increase by up to 5 per cent as there is a shortage of new listings and a growing buyer pool to draw from.  However, this is dependent on the RBA not increasing rates too high. 

“The last two rate rises have already impacted on buyer confidence and also housing affordability and it is hoped they have now done their job and will hold rates where they are for some months, significantly improving buyer confidence,” Mr Millington said.

Vacancy rates are expected to ease even more, decreasing by a marginal 0-1 per cent, while rents are expect to further increase by up to 5 per cent due to the ongoing shortage of available rental accommodation.

Sales should continue to increase as Generation Xers continue to seek, and take advantage of, opportunities to trade up.

The new tax by the NSW government for home owners selling property over $500,000 will have a negative impact on the market, similar to the results of the NSW vendor exit tax for investors.

Housing affordability has come to the forefront in NSW, particularly in Sydney, while other parts of NSW, such as the regional and coastal areas, enjoy lower median prices and are attracting investors and first home buyers. It is expected affordability will remain a major factor in property decision-making throughout 2010.

Property hot spots are considered regional and coastal areas that have the greatest potential for growth as capital cities become more expensive.

A highlight for the second half of 2010 will be an expected 5-10 per cent increase in investor activity in the property market, on the back of an already 1-5 per cent increase in the last six months.

The expected increased activity is due mainly to finance markets becoming more volatile and consumer confidence being affected, investors will return to property for security, with a housing shortage that appears unable to change quickly, ensuring real estate holding values or increasing in value.

Interest rates are expected to continue to increase further by the end of 2010, by between 1-1.5 per cent, further impacting on the Lake Macquarie and Central Coast property market and adding to housing affordability concerns.

The environment is continuing to be a factor for consideration by homebuyers, with the most popular ‘green’ features being water tanks and solar hot water.

According to Mr Millington, the Government needs to take greater control of the supply versus demand issue for the Australian property market.

“They need to consider a holistic approach to the issue and look at a number of factors, such as releasing more land; overhauling the planning process and introducing a national planning authority; and introducing incentives for more medium density developments,” Mr Millington said.

There is a strong trend developing for Gen Xers and Baby Boomers opting to stay in their homes, rather than sell, making it harder for Gen Yers to get into the property market.

To view the full report for the Australian property market mid year update click here.

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HOME OWNERSHIP STILL WITHIN GRASP

June 21, 2010 Leave a Comment

First Home Buyers

Home Ownership Still Within Grasp

Home owners and buyers are once again feeling the pinch to keep their dreams of home ownership alive as housing affordability returns to the property market agenda.  But, First National Lakeshores Principal, Mark Millington says it’s a matter of rethinking options and developing creative strategies.

Impending future rate rises, along with tightening lending conditions and increasing mortgage stress concerns have started to take their toll on home buyers’ ability to own their own home.  According to Mark Millington home buyers need to take action on an individual level to tear down the wall of housing affordability in any way they can.

Recent research has found a decline in the number of home loans with a high loan-to-value ratio (LVR) of 95 per cent or above.  LVR refers to the amount of money borrowed for a property, compared to what the property is worth.

Mark Millington says while lending criteria has toughened in recent months, there are still lenders willing to negotiate a better deal around a number of factors such as fees or rates or the actual LVR itself.

“Lending institutions need to be willing to negotiate and be a little more flexible,” Mark Millington said.  “And there are plenty of lenders out there who are willing to do just that, if home buyers are willing to shop around a little and do a bit of homework themselves.  It’s up to the individual to take matters into their own hands and ask.

“But they need to have the facts that support their case as well.”

Some key tips for overcoming housing affordability concerns include:

  • Time your purchase for when there is a lull in the market, such as winter, when the market generally slows and lower demand can potentially tip the balance in favour of buyers.
  • Calculate what you can afford to spend, factoring in any interest rate increases, probably 2 per cent higher than current levels.  Match this to your list of preferred suburbs and concentrate on properties that are genuinely within your range.
  • Be flexible and adjust expectations as required.  You may dream of buying a home in a particular area, but consider a smaller home, or even a unit or apartment, with a view to upgrading later.  Alternatively, consider an area a suburb or two removed from your where you would like to live.
  • Start a disciplined saving strategy immediately.  Set realistic savings goals and set up an achievable budget for household expenditure.

Mark Millington also had some sage advice for home owners currently experiencing mortgage stress.

“Home owners can consider extending the life of the mortgage,” Mark Millington said.

“In recent years, all the focus has been on how quickly a family can pay back the mortgage and then move another rung up the ladder.

“Obviously, that is the most desirable situation, but times are changing and it may be more useful to focus instead on how to get into the market in a way that is financially manageable.

“But whatever they do, they should seek the services of a qualified, reputable and trustworthy financial advisor.”

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Residential Market Slows

June 2, 2010 Leave a Comment

For the last year, strong demand has led to high auction clearance rates and marked growth in residential real estateProperty Outlook 2010 values nationally. However, it’s now official – clearance rates have slumped after the compounding effect of six interest rate increases since October, tightening lending criteria and a worsening European financial crisis.

Eight weeks ago, Melbourne was riding the crest of the demand wave with a clearance rate of 85.3 per cent. That’s now fallen to 69.4 percent. Similarly, Sydney was enjoying a clearance rate of 73.7 per cent but that’s now just 63 per cent. However, while these are the nation’s two largest auction markets, they’re only a small proportion of all dwelling transactions nationally. Still, the traditionally weaker auction markets of Perth, Adelaide and Brisbane have eased as well.

In contrast though, the total number of auctions taking place has remained very strong and measures released yesterday by RP Data indicate that although prices growth has slowed, home values are up nationally by an average of 0.2 per cent in the month of April and 2.4 per cent for the quarter. Of concern though is the change in direction for both Brisbane and Perth values, with the former dropping 0.5 per cent and the latter 0.6 per cent in the April quarter. Could this be the beginning of a downward trend?

The Government’s planned imposition of a Super Profits tax on mining companies is affecting confidence as it attempts to position the tax as a battle between big business mining and average Australians. With several future mining projects either now on hold or cancelled, it may still be too early to be sure whether this is having direct effect but both Western Australia and Queensland have shown anecdotal evidence of cooling consumer sentiment and, as the above figures confirm, a slide in prices.

Last week, the International Monetary Fund (IMF) and the Organisation for Economic Co-operation and Development (OECD) contributed conflicting commentary on Australia’s housing position. The IMF suggested that its analysis of housing slumps since 1970 shows home prices will fall much further and for much longer. In a report in The Australian, its economist Prakash Loungani said previous slumps had lasted on average for 18 quarters, with prices dropping 22 per cent. The current housing slump has lasted only 14 quarters and prices have dropped just 15 per cent.

Prices have dropped 15 per cent? Not according to Australian data. Taking the opposing view, The OECD was more upbeat, even though it predicted at least four more rate rises, and most likely five in the year ahead. It suggests the RBA will finish the year with a cash rate of 5.1 per cent by December and push on to 5.7 per cent by next June.

This is completely at odds with Australian financial markets, which are anticipating a tightening of only 0.25 per cent over the next year. Yet, despite the OECD’s gloomy interest rate outlook, it still expects demand for Australian real estate to remain strong, ‘bolstered by immigration’ and above average economic growth – exceeding 3 per cent. New South Wales is paying the price for the State Government’s introduction of a new property tax which is making new construction less attractive for developers. Brisbane also appears to have fallen out of favour, with big residential developers pinning hopes of future profits on Melbourne, Perth and Adelaide.

Stockland have recast their product to the affordable end of the market and will be relying on the ‘boom market in Melbourne’. Its recent investor update says that 50 per cent of all jobs created in the past 12 months were created in Victoria and that the state has been more successful than any other in tapping the population surge driven by migrants from China and India. Billionaire developer Lang Walker is firmly focused on Adelaide as well as Melbourne, and most other developers are following in his footsteps.

The RBA Board met to yesterday determine what action to take with interest rates for June. The weakening market indicators and falling Australian dollar led to a hold in the official cash rate.

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FIRST HOME BUYER NUMBERS ARRESTED

March 20, 2010 Leave a Comment

First Home Buyers

Searching for First Home online

The number of first home buyers in the marketplace has dropped significantly, but according to Mark Millington from First National Real Estate Lakeshores, there is still plenty of opportunity for first home buyers to realise their dreams of home ownership.

“Since October last year, market share for first home buyers has decreased from 26 per cent to 22.1 per cent currently,” Mark Millington said.

“And the potential for escalating interest rates, which have now been on hold for three consecutive months, along with government taxes and high up-front costs may make things even harder for first time buyers to save for that ever-important, yet growing in size, deposit.”

Mark Millington does have some advice to offer first home buyers, whose confidence is waning as house prices are set to continue soaring growth throughout 2010.

“First home buyers need to be more financially savvy if they are going to get into the housing market in the coming twelve months,” Mark Millington said.

“They need to be able to make sound financial decisions, based on a level of certainty around interest rates.

“This is why we recommend they seek the services of a financial advisor who can assist them to establish a savings plan and budget to track their expenses and identify areas where they can cut back on their expenditure.”

Establishing a budget is about setting realistic timeframes, estimating income and expenses accurately and then tracking and monitoring spending to identify areas where belts can be tightened.

“There are also still in place a number of government assistance schemes, such as the First Home Saver Accounts and First Home Owners Grant which can also assist greatly,” Mark Millington said.

Other hints for first home buyers include keeping an eye on the market at all times, talking to good agents about where the bargains lay in a suburb, and shopping around for good mortgage deals.

“Look for mortgage deals where you are able to pay back more than the monthly repayments, which can often reduce the term or interest payable on the mortgage significantly,” Mark Millington said.

“Or, consider switching from a standard to a basic, or no frills, home loan which can potentially cut interest rates by around 0.4 per cent, but potentially may take away the flexibility to achieve other savings such as extra repayments.”

First home buyers need to reclaim their share of the property market and take advantage of the services and incentives currently on offer.

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SLOW AND STEADY TO WIN 2010 NSW PROPERTY RACE

March 19, 2010 Leave a Comment

Property Outlook 2010Mark Millington from First National Lakeshores and First National Real Estate State Chair, expects the New South Wales property market to further strengthen over the first six months of 2010, with the potential for small increases in property prices and rentals on the back of moderate price growth over the last six months of 2009.

“House, unit and land prices in the state rose by up to 5 per cent in the last six months, due mainly to increased investor activity as a result of low interest rates and high rental yields,” Mr Millington said in First National Real Estate’s 2010 Property Outlook released this week.

“Unit and land prices rose as a result of lower levels of established homes being available for sale, forcing buyers into building new ones.

“This shortage of available homes will also drive rent increases of up to 5 per cent in the coming six months. 

“I expect prices to rise marginally over the next six months as the First Home Owners Grant Boost comes to an end and interest rates increase, and investors continuing to be drawn back to the market as the first home buyer market returns to more normal levels of activity.”

Around 1-5 per cent of the state’s sales activity in 2009 is attributable to investors and this is expected to increase by 5-10 per cent in the first half of 2010.

Mr Millington believes this ongoing trend is due to investors finding high rental yields and lower interest and vacancy rates too attractive to ignore.

“When compared directly by investors, an unstable stock market makes bricks and mortar seem a more secure option for their investment dollars,” Mr Millington said.

Sales are expected to rise as Generation X’ers continue to be lured to the state with planned new jobs and businesses.

Hot spots are considered to be the city and coastal areas where Mr Millington expects there will be consistent price growth because of lower supply of property for sale and increasing buyer demand.

Mr Millington considers the environment another major factor that could impact on the property market. 

“Up to 5 per cent of house hunters in New South Wales are looking for energy efficient features when looking to buy a new home,” Mr Millington said.

“The most popular energy efficiency features in the state are water tanks and solar hot water.”

Click here to view Property Outlook 2010.

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