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Selling Your Property Remotely? Here’s How….

Are you selling your own home? Is your home in another state? Are you selling a deceased estate? We’ll take the stress out of the entire process. 

Whether you are at the other end of the city, living in another state, or even living overseas – we’ll do the dirty work for you. 

That’s right. We’ll take care of everything. From prepping the property for sale to marketing the property and all the post-sale admin, you won’t have to lift a finger. 

Just sit back and relax while our experts do it all. 

Watch this 1 minute video below where Rasmus from The Haus Exchange explains exactly how the process works. 

Now that you’ve watched the video you may be wondering what’s next. Our team of experts will guide you on this journey. From staging, to styling and everything in between, we can help sell your property remotely if you contact us today.  

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Selling

How to get a Buyer to pay more for your home.

Find out what motivates a buyer to pay more than market price for your property. This approach can be applied to most types of properties.

When you’re selling your property, you want the premium price, of course. But that’s not always the outcome. So why is that? 

To explain this a little bit more, we’ll look at the Olympics and your hundred metre final as an example. The reason why we’re getting world records (at the Olympics) is because the runners have transparency, they have competition. They’re pushing each other and it’s no different when selling a property or your home. 

If a buyer submits an offer and they know that they are the only buyer, they’re not going to pay any more than they absolutely have to and that is the problem with using private treaty as your sales method which is the most common method of sale here in Perth. 

The Agent is not allowed to the other buyer’s offer price is. The Agent can disclose that here is another offer but as a buyer, you don’t know for sure if the Agent is telling the truth or not.

However, if the buyer knows that there are other offers on the table and they know how their offer ranks among the other offers, the lower priced buyer would be more inclined to offer more. With the transparency and the urgency, the fear of missing out kicks in.

To get competition for your home, you need the urgency and that is why that my clients over the last couple of years when the market’s been down and the market’s been up have been getting premium prices for their properties because we’ve been able to create urgency and competition using transparency. 

If you’d like to know more about how that can happen for your property, do get in touch.

Sales Methods that are transparent. 

As a vendor, you want to sell for a premium price.

The best way (regardless of market conditions) to achieve that goal is through competition. To ensure that you get the best possible chance of generating competition, you need urgency and transparency. Click below to learn more about the different sales methods. 

Overview of traditional sales methods

Transparent sales methods

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Market Update

Perth Property Market Update – August 2022

In this month’s update, I discuss why the Perth Property Market may not really be all doom and gloom.

In fact, Perth’s property market is abuzz with owner occupiers and investors.

Due to the low rental vacancy rate of 1.1 per cent and the low unemployment rate, the Perth market should remain strong for the foreseeable future.

As 2022 approaches its midway point, uncertainty persists as politicians and regulators face an economic future that is intimidating – at best. Further, rising inflation is looming as a threat and fast becoming the hallmark of household and business decision-making. 

To combat spiralling inflation, the RBA signalled its intention to keep raising interest rates in 2022. Annual inflation reached 6.1% in the June quarter. 

However, in a recent presentation, RBA Deputy Governor Michele Bullock urged borrowers not to panic. According to Ms. Bullock, savings would protect many households from short-term rate increases.

Not too stressed in the West

Western Australia has experienced unprecedented migration in recent months and remains one of the most affordable places in the country to buy a home. According to the ABS, over 13,000 people migrated west in the final months of 2021, making it the largest migration in Western Australian history. 

Why? Because of lower median house prices and the strength of the property market. 

According to Real Estate Institute Australia (REIA), Perth had the most affordable housing sale price of $525,750 out of all capital cities in the March 2022 quarter.

Even as interest rates rise, many investors and homebuyers seem to be looking for property in the Perth area. Well-priced inner city properties will continue to sell quickly, but we’ll see the first shift in the mortgage belt areas, typically on the outskirts of Perth.

First-time purchasers made up 38.5% of the WA owner-occupier market. This is the highest percentage of any state in the nation, according to REIA. 

State of the market

Perth house prices increased by 0.4 per cent in June, marking it the second month that the rate of capital gain has decreased.

The Housing Affordability Report from REIA has indicated that WA remains the 2nd most affordable state in Australia to buy property, just behind the Northern Territory. 

The slowdown comes after a brief rebound in Perth’s growth rate, which coincided with the reopening of state borders. However, it appears that the Perth market is losing steam along with the national trend.

With buying activity appearing to be high and advertised property stock remaining exceptionally low, selling conditions appear to be steady across the Perth market.

Houses typically sell in 18 days, which supports this; yet, such a quick turnaround has happened because discounting rates have risen.

Perth property predictions for August 2022

With further interest rate hikes expected after the RBA increased the cash rate by half a percentage point to 1.85%, things could get slightly worse before they get better. 

The ANZ predicts an interest rate as high as 3.35 per cent by the end of 2022. Their Head of Economics, David Plank, is optimistic that this won’t mean a hard landing for the economy because of the continuing low unemployment rate and increased wages. 

Closing Thoughts 

There you have it! Perth’s property market is sound even with more predicted interest rate hikes. 

However, due to the widespread popularity of fixed-interest mortgages post-pandemic, continued rate increases pose a significant risk for the real estate industry. We will have to wait and see how this affects fixed-interest borrowers currently protected from rate increases. 

The best way to navigate these uncertain times is to speak to an independent professional who understands their location.

The Haus Exchange will continue to monitor the economy’s state and provide timely updates on how it affects the Perth real estate market.

Want to Learn More about the Perth property market?

Are you thinking of making a move in the next 6-12 months or would you simply like to know where you are at? If yes, click here to learn more

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Selling

Sales Methods that are transparent.

As a vendor, you want to sell for a premium price.

The best way (regardless of market conditions) to achieve that goal is through competition.

To ensure that you get the best possible chance of generating competition, you need urgency and transparency.

This is where the sales method comes in.

Traditionally, your choices are either private treaty or auction but in the past 3 years or so our clients have experienced great results with the following 2 methods.

  • Openn Negotiation – Auction style (but with flexible terms) approach
  • Openn Offers – Private treaty style approach but you can disclose pricing
openn-features-blog-3-Jan-15-2022-08-30-44-75-AM

Openn Negotiation

In an Openn Negotiation, all bidders are pre contracted – which confirms their commitment to purchasing if they are the winning bidder and provides authority for the auctioneer to transfer their specific terms to the final contract and execute on their behalf.  

Because Openn Negotiation operates under Auction Law, the highest unchallenged bid above reserve wins. As such you need an Auctioneer (complimentary when selling with The Haus)

Throughout an Openn Negotiation campaign, there is full price transparency. And just like an auction, the current bid (price) will be updated throughout the advertising.  

Openn Offers

As Openn Offers operates under a private sale or private treaty legal framework, the agent is able to control whether qualified buyers can see the prices submitted by other buyers via an on/off app setting. If the app setting is turned on, then buyers can see where their offer ranks in terms of price, providing greater transparency than traditional private treaty.

An Openn Offers campaign does not require an auctioneer and given it is not an auction, the agent would not reveal any prices outside of the platform. Only qualified buyers are informed of the price ranking through the app.

Openn Offers also allows the vendor, guided by the agent, to accept an offer which may have a lower price but more favourable terms.  They may also accept any offer at any time – which means they don’t have to proceed to the final stage.

Shared features

There are a number of shared features the Openn platform offers across all sales methods. These include:

  • A countdown timer and final stage to help build anticipation, competition and bring each process to a close. 
  • The capability to turn on or off the registration of interest feature. 
  • Contract automation – so agents can execute the final contract of sale by uploading any document, applying the fields they’ve captured from buyers and routing it for digital signatures. 
  • The ability to embed a “make a bid” or “make an offer” button directly onto an agents’ website and,  
  • A property report which can be automatically generated as a PDF at the end of the campaign with statistics on how the sale ran.  

Which method should you choose?

It really depends on your property and your situation.

If you believe that there will be strong competition for your property or you are unsure of market price for your property, then Openn Negotiation is the way to go.

On the other hand, if your property is less likely to attract strong interest or price is not the most important factor, then Openn Offers is the way to go. You can also start with a traditional campaign and switch to an Openn Offers campaign as soon as you receive multiple buyers.

At this point in time, you can switch between the two campaign styles at no extra cost.

That’s a wrap! Hopefully this helps you to understand the key differences in features between the sales methods available on Openn.

If you would like to learn more, simply get in touch here.

(Images and text supplied courtesy of Openn)

Categories
Market Update

Perth Property Market Update – June 2022

Australia has seen many changes in the past month. A new Labour government was voted into power on 21 May 2022, and the RBA raised the cash rate to its highest level in decades with an increase of 50 basis points to 0.85%.

In this update, I look at Labour’s five-point housing and economic plan and what it means for homeowners. Lastly, I explore Perth’s property market predictions for the coming months with an emphasis on rising cash rates likely to continue well into 2023. 

Watch the Perth Market update in 58 seconds including why this winter could be the ideal time to sell and the really easy way that Buyers can get ahead in this market.

For a more detailed market update, please see below.

Share market in decline

The recent rise in inflation has seen the RBA hike cash rates to higher than expected levels. Global market shares are dropping since consumers face price increases from every direction while growing concerns of a recession due to geopolitical unrest.

So, what does this mean for Perth’s housing market?  

Last week, REIWA members reported 869 property sales in Perth, a decline of 12.8% from the previous week. This is due to an 11% drop in home sales, a 17% drop in unit sales, and a 16.8% drop in vacant land sales.

While federal elections have historically slowed activity as consumers wait for the results, numerous interest rate hikes are on the horizon, which also appears to be affecting buyer attitudes.

Conditions have changed since 2021. REIWA reports that housing sales have decreased steadily from December 2021 to May 2022. However, unlike large cities on the east coast, Perth is still experiencing growth. 

Perth is currently the most affordable state capital, with a median dwelling value of $555,500, making it attractive for buyers. Although there is a decline in owner-occupier demand, investors with new funds and equity may look to acquire properties and benefit from low vacancy rates and rental price growth. 

Although further rate hikes are expected, Perth’s housing market should see moderate growth over the next while.

The Labour government’s proposed housing and economic policy 

Australia’s new federal treasurer, Jim Chalmers, warns of tough times ahead as he notes the previous government, led by Scott Morrison, has left him in a dire situation. 

“There are elements of strong demand, tight labour market, there are some pleasing aspects of the national accounts, but there are far more troubling aspects in our economy,” said Chalmers.

That being said, more social housing was promised by Labour, as well as a strategy of helping 10,000 Australians each year through a 40 percent equity contribution.

Both policies can potentially increase demand in a housing market that is already oversaturated. However, recent data suggests that Australia’s housing boom may be about to an end, with national prices dipping in May for the first time since 2020, as higher interest rates put pressure on buyers.

ANZ chief economist, Shane Oliver, notes that Australia’s property market is “highly sensitive” to changes in the monetary cycle due to high debt to income ratios. 

Maintaining economic growth amid rising global tensions and inflation while addressing calls for higher spending from freshly appointed lawmakers will be difficult for the incoming government.

Perth property predictions for July 2022

Bloomberg reports that 79% of economists predict a further rise of 50 basis points in July, which sets the cash rate at 1.35%. This should come as no surprise following a 75 basis point hike by the United States Federal Reserve on 16 June 2022. 

The rise in cash rate indicates a further slow in growth in July for Perth’s property market.

Concluding thoughts

Haus Exchange will continue to assess the economy’s performance and bring you regular updates on how it affects the Perth property market.

If you’re considering buying a property, I advise you to make sure your finances are in order so that you can move quickly to avoid rising interest rates. 

Categories
Selling

Should you sell before you buy or buy before you sell?

Similar to the chicken and egg scenario, one of the greatest conundrums when transacting property is: do you sell before you buy or buy before you sell?

There’s a few points to consider if you’re in the market for a new home, especially if you are considering the subject to sale option.

Finances

Depending on your financial capacity, buying a property before you sell your existing home is a good position to be in. It gives you the option to search for something that meets all of your needs without any time pressures.

But for most of us, this scenario is uncommon. There’s not many who have the financial ability to stump up for two mortgages at the same time, so it’s important to crunch the numbers before you take the plunge and make an offer on your dream home.

Subject to sale

One way to buy before you sell without having to simultaneously fund two mortgages is to include a “subject to sale” clause in your offer. While this can be a solution, there are some underlying issues that mean a “subject to sale” clause might not be all it’s cracked up to be.

For example, you can’t be absolutely sure how long it will take to sell your home so there’s going to be an element of uncertainty if you’re traversing this path.

It’s also possible for the seller to instate a 48-hour clause, which means that the vendor can continue to market the property and stage home opens as if your offer is not even on the table. If the vendor receives an offer from another buyer, they are well within their rights to accept it but will give you a period of 48 hours to make your offer unconditional.

Alternative approaches can be especially enticing if they’re a cash offer, even if it’s of a lesser value as it may be perceived to be less of a risk than an offer that relies on sign-off for a new loan.

Get your ducks in a row

It’s widely accepted that the best process is to list and sell your existing home before you make an offer on a new abode. That way, you’re not overextending yourself or adding to what can already be a stressful situation.

Ensure your finances meet your expectations for your dream home. Take the time to speak with you mortgage broker or bank about how much you owe on your existing home, what equity you have and how much you can borrow.

Research real estate agents and speak to some trusted realtors to get an idea about how much your property is worth in the current market. It’s also worth conducing your own inquiries about the prices of similar properties are fetching in your neighbourhood.

What if I sell before a buy?

There are a few things to consider if your home gets snapped up before you find a new property.

  • Request a long settlement. Usually, settlement periods are between 21 to 28 days once finance is unconditionally approved. But it’s worth trying to negotiate a longer settlement if you don’t have a new place to call home
  • Is it possible to rent your home back? If you’re hopeful of becoming a tenant in your own home, include a condition on the offer and acceptance agreement for the buyer to consider.
  • It might not be an ideal situation but you might want to consider moving in with family or friends or to a rental property as a short-term solution until you find the next home you want to purchase. It might be an opportunity to pay no or minimal rent and save more towards your next bricks and mortar investment.

Additional costs

As well as fees and commissions paid to a real estate agent for marketing and selling your home, it’s important to be aware of any additional costs that you may be presented with during the process.

If you are looking to sell an investment property, you will need to consider capital gains tax.  You will also be expected to pay stamp duty and settlement fees on your new home. And depending on how much you are looking to invest in marketing your existing home for sale, there may be extra maintenance or property staging costs to pay for to ensure the property looks its best when it’s put on the market.

How is your property value tracking in this shifting market?

Why guess when you can just ask us for a Digital Appraisal of your home or investment property. If it’s been on your mind, but you haven’t had the chance to arrange an appraisal or you would prefer to let your tenants have their privacy, this is your chance to stay informed without the hassle. 

Simply get in touch with the property address and a brief description so that I can send you an estimated value based on similar homes sale over the past 12 months.

This report costs nothing and is totally obligation-free, so why wait? Simply get in touch and I will send you the report including market research and comparative market sales within 24 hours.

Categories
Market Update

The Perth Property Market – May 2022

– Why buyers and sellers alike are missing out.

We have just been through some fantastic times if you own a property. Property prices have gone up by 1.1% in April alone and REIWA is expecting a 10% growth across the 2022 calendar year. However, you now have banks like Westpac, who don’t think that we are going to see any growth for the rest of the year. So who is right?

For my take on the Perth property market in 70 seconds view my video update below.

My prediction is that we are going to be steady for the rest of the year.

It might go up a little bit. It might go down a little bit but it’ll be remain reasonably steady. So in other words it’s going to be the same as what we have now, at least for the short term. And the reason for that is that we hardly have any properties for sale. We are probably about 30% under what we usually have for sale with a balanced market. Furthermore, the rental market is really really tight with a vacancy rate of about 1.1 – 1.2%. A balanced market is around the 2.5-3%.

Where are the buyers coming from?

On top of that, investors from interstate are still very keen on our property market because Perth is the most affordable capital city right now. We also have first home buyers who do not want to pay the high rents that they’re paying already and building from new is now really difficult with ongoing price increases and delays.

Then there is the recent interest rate increase. If you’ve followed the RBA change and the media reporting in the past couple of days it’s all probably doom and gloom usually because that gets peoples attention and it therefore sells advertising. However, we will get interest rate rises again this year. There’s no doubt about it. You can just look at what just happening in the US increasing their rates from 3% to 5% in the past 6 months.

As such, I do believe that 2022 is the last year we’re going to see any growth in Perth market. I expect that the brakes are going to come on towards the end of the year and will likely see a negative growth for next year which is supported by Westpac who are expecting a 6% drop for 2023. However, it will not be as bad as what you’ll see in Sydney and Melbourne. Also, remember when you’re reading the media updates that they’re reporting mainly on Sydney and Melbourne market conditions, not Perth. We are not the centre of the universe by far according to the national media. We are probably the opposite.

So that means in a nutshell that it’s going to stay roughly the same this year.

Why buyers and sellers alike are missing out. 

Talking to buyers every day, what I am constantly hearing, is so many of them have the same story to share. They keep missing out on properties because they simply don’t know what price to offer. The lack of transparency is extremely frustrating for the buyers and sellers are also missing out as they are not receiving the best possible price for their property. I’m really struggling to understand why transparency is not happening because it is so easy to address.

The good thing is my clients automatically receive that transparency as it is a standard service that we offer which means that we get some fantastic results for our clients.

Would you like to know what your Perth property (home or investment) is worth?

Whether for planning, financial management, an additional mortgage or just peace of mind, decisions made with anything less than the facts can lead you to make choices that may not be in your best interests.

Simply click here to learn more

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Selling

Should I sell my investment property with or without tenants?

Finding the right answer will be a delicate balancing act for any investor and one that requires significant consideration well before you erect the ‘for sale’ sign.

For some, how to sell an investment property will relate to cash flow so it’s likely your decision will largely be based on whether you can afford to have it vacant while it’s on the market and you wait for settlement.

Retaining the tenant

The most attractive reason for retaining tenants while the property is for sale is that you will be able to keep earning rental income. This will remove some of the time pressure and hopefully enable a higher price.

But be aware that if the tenant is on a periodic lease, they may decide to vacate at short notice and this could cause upheaval during the marketing period.

Selling while a tenant has occupancy can also throw up a few challenges, particularly when it comes to access and presentation.

Access to the property can become an issue depending on the tenants you have. For example, if the tenant is a shift worker and sleeps during the day it may not be possible to show prospective buyers through during daylight hours.

While tenants are required to provide agents with ‘reasonable access’ to a property that is for sale, some can be uncooperative and difficult.

In addition, presenting the property in a clean, welcoming state is important. Sometimes a tenant’s clutter, pungent cooking smells or the two bedrooms jam-packed full of Star Wars collectables or their 30-year teddy bear collection might not help to present the property at its best.

Having a tenant will also mean you have little to no control over presentation of the property, especially if the renters’ standards are not in line with your expectations.

Some tenants keep rental properties in pristine condition and invest considerable time and effort cleaning and tending to the gardens. But others, particularly share houses, can leave a lot to be desired when it comes to presentation.

It’s also worth remembering that even if tenants are helpful and generally tidy, their furniture and personal belongings may not showcase the property at its full potential.

Selling your investment without a tenant

Marketing a vacant home may make the property appear less welcoming, so there’s a good argument for having an expert “stage” or “style” the property with the right furniture and furnishings that makes the most of the space.

“Quite often after a property has been tenanted for a while it needs a bit of TLC, but the downside is that you’re not going to have a rental income for three or four months so cash flow could be an issue,” said The Haus Exchange proprietor Rasmus Nielsen.

“At The Haus Exchange, we understand that primo presentation can ultimately result in a higher sales price and that’s why we offer a complimentary styling service for new listings.

“The Haus Concierge service is an exclusive offering where we can arrange a staging consultation, organise quotes and coordinate the experts to make sure the property looks its best from the first day it hits the market.”

How is your property value tracking in this shifting market?

Why guess when you can just ask us for a Digital Appraisal of your home or investment property. If it’s been on your mind, but you haven’t had the chance to arrange an appraisal or you would prefer to let your tenants have their privacy, this is your chance to stay informed without the hassle. 

Simply get in touch with the property address and a brief description so that I can send you an estimated value based on similar homes sale over the past 12 months.

This report costs nothing and is totally obligation-free, so why wait? Simply get in touch and I will send you the report including market research and comparative market sales within 24 hours.

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Market Update Selling

It is a crazy market. What is the value of your Perth property in 2022?

HAPPY NEW YEAR! I hope you had a chance to relax and recharge over the Christmas/New year break!

The challenges in 2021

During 2021, we experienced some challenges including preparing a home for sale that was left vacant for nearly 2 years due to covid. With the help of our trusted trades contacts, the home came up like new and sold for a fantastic price with a very happy vendor as a result.

The Haus Exchange has prepared, staged and sold more homes and investment properties in 2021 thanks to your support and we have increased our staging capacity for 2022 as the flow of repeat clients and referrals increase.

In 2021 we have sold in more than 13 suburbs with sales prices ranging from the $300k range all the way up to mid $2 million range helping 62 buyers and sellers making a move.

What you can expect from 2022.

2022 has barely started but already buyers are thick on the ground and property prices are strong.

Over the past few months, we have seen a big increase in buyer demand and strong levels of buyer confidence.

To help our valued clients keep up to date with the current market, we are offering a market update so you can discover the NEW 2022 value of your property. It’s complementary and part of the service we offer our loyal clients.

What will you receive?

  • We will assess the current market value of your property
  • You will discover the NEW 2022 value of your property
  • We will supply a detailed market report of properties sold in your immediate area over the past three months.

REIWA is expecting that the Perth property market is in for an 10% increase in 2022 and in fact, we’re finding many of our clients are surprised when they discover the NEW value of their property.

If you would like to know the NEW 2022 value of your property, please get in contact with me on 0466 725 866 to arrange a time.

Categories
Selling

3 tips on how to generate more interest for your Perth property from interstate buyers.

Lately, at the Haus Exchange we have experienced a significant increase in the number of enquiries from interstate.

As a result, we have sold a number of properties to buyers who never actually personally inspected the property at all.

For instance, for one property located at 14 Velvetene Rd, out of the 9 registered buyers, 4 have not inspected the property, with

  • 2 buyers from NSW,
  • 1 from Tasmania,
  • as well as a buyer from regional WA .

In this quick 1 minute video I am sharing my top 3 tips on how you can generate more interest for your Perth property from interstate buyers, who would be looking at buying your property, sight unseen.

For more tips and the latest updates, please connect with us on Instagram and Facebook

Related tips on how to sell your Perth property: