Regardless of your situation, we can 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 can do the dirty work for you.
That’s right. We’ll take care of everything.
Before going to market
We will prepare your property for sale which could include organising trades such as:
We will prepare your property for sale which could include organising trades such as:
painter
plumber
electrician
handyman
cleaner
even FREE staging and styling of the property
Marketing your property and negotiating
When it comes to marketing the property for sale, we are experts in generating urgency and competition for your property to ensure that you get the best possible price.
Post Sale
Finally, post sale we will continue to sort out all the practical stuff including organising the settlement agent, final inspections so 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. Your first step is simple. Contact us today to get the ball rolling.
Despite all the media speculation, the Perth property market continues to hold steady. Indeed, the REIWA CEO Cath Hart has recently said that
“Our market remains resilient and stable, particularly when compared to the east coast. Perth and WA are still in an excellent position to weather future rate rises, with our strong economy, growing population, limited stock levels and affordable housing.”
If the activity level for 2023 so far is to go by, we will certainly see the market continuing to be a sellers market and a good indication is the strong interest from interstate investors.
Over the summer I’ve been speaking with many homeowners like yourself that are curious about our property value predictions for the year ahead. Many of them have been pleasantly surprised at how the market is going and the value of their home.
You may also be very pleasantly surprised to know just how much your Perth property is actually worth at today’s local prices.
If you would like to discuss or would like an update on the 2023 value of your home or investment, please get in touch. It doesn’t matter if you are looking to make a move in 2023 or you are just curious as to how much your property is worth. I would be happy to provide a fully complimentary and with no obligation written report on the current estimated value of your property.
We are coming towards the end of the year. So, what is happening right now and what can you expect for the next couple of months and into 2023?
The question that keeps popping up is the effect of the interest rate rises that we have experienced over the last couple of months. I believe we are going to receive another interest rate rise, but I actually don’t think, it’s going to make much of a difference. This is why.
The property prices has gone up since January and though they have taken a small step backwards in the past quarter but less than a percent.
What I am experiencing when selling homes and talking to buyers is that they’re still out there in force. They are still heaps of people looking to buy, but when there used to be maybe six offers on a property you might only looking at four or five now. So, it’s still a sellers market. Interesting enough, there’s a lot of investors buying, and some of them are interstate or overseas. And in the last couple of months, we’ve received a number of offers on properties from interstate and overseas purchases. They love Perth because the rental return is really strong and the median house price is the lowest of any of the capital cities.
2) The first home buyers who are also very active in the market, are now getting competition from the investors. The first home buyers are active because they can’t find a rental. And if they find a rental, the rent is pretty high. In some cases, getting a mortgage is actually cheaper than renting. So, the market is strong from a seller’s point of view, and we are 30% under a balanced market.
So, who’s selling now?
There are a lot of investors who are starting to sell their investment properties. They’re cashing in on their asset. They’re doing that because even though the rental market is good, the selling market is even better, because there’s hardly anything for sale. And quite often we receive multiple offers on properties. Another reason why a lot of investors are coming to me to sell their properties is because their fixed interest rate is about to go up. So, in some cases, they’re looking at having to pay the double the amount. The other market that is still very strong is your family homes. People trade up, people are downsizing, and that’s never gonna change. Some people, unfortunately are getting divorced.
The market right now is as strong as it was earlier the year. We have seen, price increases throughout the year. So, early 2023 looks like a good time to list your property for sale and cash in. As always, the value of your home depends on a number of factors, What the condition it is in, the location, the size.
If you’d like to know what your property might be worth in the current market or even your investment property is worth in the current market, do get in touch.
What is your home worth?
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.
We can provide you with the facts to calculate an accurate assessment of equity available in your property for a new purchase, upgrade, downsize or investment.
We are coming towards the end of the year. So, what is happening right now and what can you expect for the next couple of months and into 2023?
The question that keeps popping up is the effect of the interest rate rises that we have experienced over the last couple of months. I believe we are going to receive another interest rate rise, but I actually don’t think, it’s going to make much of a difference. This is why.
The property prices has gone up since January and though they have taken a small step backwards in the past quarter but less than a percent.
What I am experiencing when selling homes and talking to buyers is that they’re still out there in force. They are still heaps of people looking to buy, but when there used to be maybe six offers on a property you might only looking at four or five now. So, it’s still a sellers market. Interesting enough, there’s a lot of investors buying, and some of them are interstate or overseas. And in the last couple of months, we’ve received a number of offers on properties from interstate and overseas purchases. They love Perth because the rental return is really strong and the median house price is the lowest of any of the capital cities.
2) The first home buyers who are also very active in the market, are now getting competition from the investors. The first home buyers are active because they can’t find a rental. And if they find a rental, the rent is pretty high. In some cases, getting a mortgage is actually cheaper than renting. So, the market is strong from a seller’s point of view, and we are 30% under a balanced market.
So, who’s selling now?
There are a lot of investors who are starting to sell their investment properties. They’re cashing in on their asset. They’re doing that because even though the rental market is good, the selling market is even better, because there’s hardly anything for sale. And quite often we receive multiple offers on properties. Another reason why a lot of investors are coming to me to sell their properties is because their fixed interest rate is about to go up. So, in some cases, they’re looking at having to pay the double the amount. The other market that is still very strong is your family homes. People trade up, people are downsizing, and that’s never gonna change. Some people, unfortunately are getting divorced.
The market right now is as strong as it was earlier the year. We have seen, price increases throughout the year. So, early 2023 looks like a good time to list your property for sale and cash in. As always, the value of your home depends on a number of factors, What the condition it is in, the location, the size.
If you’d like to know what your property might be worth in the current market or even your investment property is worth in the current market, do get in touch.
What is your home worth?
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.
We can provide you with the facts to calculate an accurate assessment of equity available in your property for a new purchase, upgrade, downsize or investment.
If you are are thinking of selling your home or investment property, there are a lot of questions that may come to mind and it can all be very daunting. The good news is that you are not alone. Below we have shared our most frequently asked questions.
Why videos can be a powerful marketing tool
Videos are a really powerful marketing tool when done properly. A proper marketing video, gives added value, not just a slideshow of existing photos. For instance, videos are great way to showcase to buyers what the house looks like in 3D. It gives an extra dimension. It shows features and benefits that you may otherwise not be able to pick up from the ad copy or the images. If you’d like to know more about how to do videos that enhances the buyer experience so they are going to enquire, and they’re going to put an offer in, do get in touch.
What type of lights are best when selling?
They are really easy to fix, but yet, they are really, really important.
The thing to keep in mind is that you want your home to be as light and bright as possible, and that’s why I recommend using cool lights.
Easy to fix. Just a trip to the shops and get some new light bulbs.
3 easy ways you can increase the appeal of your home when selling.
Here are 3 easy ways you can increase the appeal of your home when selling. 1) The first one is to declutter. You don’t want a house that’s messy, but you also want to make sure that your home is light and bright. You want to remove items from the benches, especially in the kitchen to make the bench space look bigger. You also want to remove your fridge magnets and you want to depersonalise your home. Another thing that is also worthwhile, is taking the personal images, pictures, etc, off the walls and replacing it with something that’s a bit more generic or vanilla, if you like. 2) The second thing is light, no one likes a dark home. So, an easy way to get around that is quite often just simply change the light bulbs to something that is a cold light, preferably, rather than a warm light and something that’s got a bit of a punch. 3) The third one takes a bit more effort but it’s definitely something that can make a huge difference. Painting is very effective. You can obviously do it yourself if you want to save money, you’re good at it and you have the time. Or alternatively get a painter in. It could cost less than you think, and it’s definitely worthwhile doing.
What can be excluded from the contract of sale?
In short, everything, but keep in mind that if the contract of sale has no special conditions, the property is actually sold in ‘as is’ condition. An example of something that quite often is excluded is the reticulation, simply because it is very fickle and it can very easily break down. So the seller may may want to exclude the reticulation to avoid the extra work just before moving out. However, you’ve got to be careful of not excluding too many things because it will otherwise put off prospective buyers.
What is the difference between a property appraisal and a property valuation?
A property valuation is carried out by a licensed valuer and it is something that’s going to be used if you are refinancing, or you’re purchasing a property, where you need to get bank involved.
It is something that will cost money.
A property appraisal is provided by a real estate agent and they are free. They both establish a value or approximate value of the property with the possibility of listing the property for sale.
How much time do you need to settle a property?
Assuming that finance is already approved, you would want to allow a minimum of 21 days for the bank to prepare the mortgage documents for the purchaser, and to prepare the discharge documents for the seller. However, if both parties are using cash, you could settle within a couple of days.
If you’re unsure it’s best to seek advice from your real estate agent or your settlement agent, because if you do not allow enough time, you could incur penalty interest.
What stays when you’re selling your home?
Things like air conditioning units, ovens, fixtures that are bolted to the home will stay. If you have pot plants, you can take them with you. If it’s a tree, it’s in the ground. It therefore stays with the home. Another way to think about it is if you take your home, you turn it upside down what will still be in there? The personal belongings will be gone but what is left stays with the home.
Is it possible to sell a property in “as is” condition?
The short answer is yes.
It could even mean that the buyer takes responsibility of the rubbish, the chattels, furniture, etc that normally will be removed at seller’s expense at settlement.
However, this makes it less attractive to a prospective buyer.
Especially, if the buyer is not able to have it subject to building and pest inspection. So to get around that, it might be worthwhile spending a couple hundred dollars getting building and pest inspection done up front and provide that to the buyer.
This scenario, can become quite relevant especially if you’re looking at a deceased estate, where the beneficiaries/ don’t have the capacity one way or the other to actually get the house ready for sale.
Why should the seller provide a building and pest inspection report up front?
Why should the seller provide a building and pest inspection report to the purchaser rather than just having the purchaser making the offer subject to one?
There’s a couple of reasons behind it.
From a purchaser’s point of view, it actually gives you transparency and more confidence in putting in an offer on the property.
But for the seller, there are some really great advantages as well.
1) The first one is that it’s kind of like insurance policy because if something pops up you can deal with it and be ready for it in advance.
For instance, the roof is sagging, the floor is sloping, if it’s an old weatherboard like this one in here, you can actually show to the purchaser that it is okay, or it is not okay but then at least they know.
2) It also means that if it is something that could be potentially a deal breaker, you can exclude it from the contract because you now know about it.
So if you’re looking at selling your home, it might be worthwhile providing a building and pest inspection up front.
How to add colour to your home when selling.
It is easy to add colour to your home, simply get some paintings or some pictures that are full of colour, not ones of you and your family but something more generic. And that way your home presents like a blank canvas.
What is the purpose of the final inspection?
The purpose of the final inspection is for the buyer to make sure that the seller has met their obligations under the contract. For instance, to ensure that things are in working order, if there are special conditions for that. Usually the buyer also measures up, checks things are in preparation for moving in, but that is not the purpose of the final inspection. The final inspection usually takes place within one week prior to settlement.
Why a Floor plan is a must have
There are so many buyers, who tell me that they get frustrated with properties advertised for sale and there’s no floor plan because they can’t understand how the home is flowing. And it doesn’t matter if it’s a small home or a big home, it’s the same principle. Floor plans are really easy to create. If you don’t have a floor plan, don’t worry about it. That can be done and they don’t cost a lot. If you have a builder’s plan, it can be redrawn really, easily. It is a must in your marketing package when you’re selling.
Which website one should you market your home on?
You should be on realestate.com.au, because that has dominant market share, here in WA. You should also have your home for sale on Domain, because a lot of buyers here in WA are using it, and it has dominant market share in some of the Eastern States. And then there’s Reiwa, and it’s definitely worthwhile being on Reiwa as well. So, there are some other websites as well, but they’re less important, and most of them actually just feed from one of the three main websites.
Another thing to consider is that you want to make sure that you get maximum exposure on these websites, which means you need to get the premium or highlight, or whatever they call, package, because there’s no point having your home advertised for sale if it’s sitting on page three. It’s like looking at Google, very rarely do you go past page two.
When to use staging vs virtual staging
Presentation is so important when selling a property. Ideally, a property gets staged. If the no one’s living there, it can be staged so it looks like a complete home. It can be partially staged. Sometimes that’s not possible and that could be a cost factor. If the house is empty, the photographer can take the photos of the empty house, and then apply virtual staging. It’s never the recommended version but it’s the next best option especially if you have an investment property. If you like to know more about how to present your property for maximum exposure, do get in touch.
What type of photos to use when selling.
Photos are one of the most crucial parts of your marketing campaign. If your photos are not properly done, you will have buyers running away. You can have photos taken during the day or you can have photos taken at night which is what we call twilight. The twilight ones are definitely the ones to go for if you’ve got a very well presented home, you’ve got great views or you’ve got fantastic lighting. It really comes down to the property but, do yourself a huge favour and get a professional photographer in regardless.
Why should you include drone when you’re selling your property?
Using drone photography or video is a fantastic way to showcase the location of your home. It could be that you are close to the beach or the city or you are close to some amazing cafes or another great location. It could also be about certain features of the property. It is definitely something you want to consider when you’re selling your property, because it engages with the buyer, and that’s what you want.
Advertising your property on social media, is that a good idea?
Realestate and Domain have some really powerful retargeting tools that can be applied to your property when selling. And what they do is they look at what the people on their platforms, what they’re searching for, and then they can serve the advert for your property as well. The great thing is that you don’t have to activate this straight away. You can do it as part of your campaign.
You could do it in week one, two, three, four, five, and hopefully you don’t need to be on the market for that long. If you’d like to know more about how to advertise your property effectively on social media, do get in touch.
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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 disclose what 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 Perth real estate for sale expert.
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.
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
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 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.
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 whythis 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.
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.
