Buying – Rebecca Herbst

When is the best time to buy or sell real estate?

There is no hard and fast answer to this question, but if you want to generalise, the answers are “when you are ready” and “always buy and sell in the same market”.

It really doesn’t matter what time of year it is, there are always people looking to move, it is just that at certain times of the year there are more transitions and transactions happening, that it is busier and there is more competition – for both buyers and sellers. The month lead up to School holidays factor as quite busy times of the year, as buyers looking to be able to settle into their new homes during the break especially if moving interstate or to different suburbs that require a change of schools. Easter and Christmas can be a little bit quieter in activity as people’s focus can move to other things such as family gatherings and work parties. However Boxing Day is the highest viewing day on realestate.com.au every year! The thing is though, the serious buyers that have a need to buy are still out in force all year round!

To be ready, if you are looking to buy, make sure you have already spoken to a broker or bank, know your budget, and have a pre-approval in place so that the time needed on your offer for finance approval can be shortened. Research the areas and style of home you are looking for, and have a clear idea of what price the type of property you are looking for generally sells, so you can make fast, informed decisions. Nothing worse than hesitating to do additional research and missing out on a suitable property time and time again.

If you are thinking of selling, have your local agent come around and give you a written appraisal, and make sure they give you evidence of similar properties that have recently sold or are currently on the market to demonstrate how they came up with the appraisal price. Other questions you should ask, are around the strategy they suggest, as well as a marketing package to suit your property, strategy and circumstances. All agents now charge different commission rates in Queensland since the deregulation, and there can be a wide variation in fees. Don’t be scared to ask the agent why they charge the rate they do. Sometimes the cheaper agents are not as highly trained or experienced as the agents that charge a slightly higher percentage, and service levels and extras that the agencies provide also vary widely, so find out what they will do for you. It is important to remember that the most affordable agent, is the one that leaves the most money in your pocket at the end of the transaction. So ask for testimonials or proof that the agent has a track record of achieving better results if they are charging a higher rate.

Why buy and sell in the same market? Well, whether you are in a boom or a downturn market, if you buy and sell at the same time it all balances out, and there is definitely less risk involved!

Call or email Rebecca Herbst for a no obligation sales appraisal and strategy for you home – 0417 644 840 or email rebecca.herbst@century21.com.au

What is a Hotspot??

A common “buzzword” in real estate, hotspots are areas where property values are predicted to next experience significant capital growth. While it is impossible to pinpoint exactly where and by how much the increase will be, there are some key indicators that investors or real estate savvy home buyers should look out for. Keep in mind that if it is already being called a “Hotspot” in the media you might be a little late for the best capital growth as prices would have already started increasing!

So what are some key indicators? Are neighbouring areas currently experiencing good capital growth? What is known as the “ripple effect”, buyers tend to move a suburb further out than where they would like to live when they are struggling to find or afford a property in their chosen suburb. This causes a ripple like effect to pricing in a circumference out from that neighbourhood. Are prices lower in the suburb compared to other surrounding suburbs? Make sure you check that there is no obvious reason for the more affordable prices eg. New industrial development under construction. Is demand starting to exceed the supply and are “days on market” becoming shorter? Are you starting to see properties just listed for sale selling straight away or find out all offers on the properties for sale are becoming multiple offer situations. Are there positive developments happening in the area? Proposed transport developments often increase prices. Will it be quicker to get to the CBD? Are there road transport links under construction? Other positive developments can be new shopping precincts or schools undergoing improvements to their facilities. Are there a lot of older run down properties undergoing renovations, increasing the caliber of the housing in the area? We are not talking just one or two homes in a whole suburb.

I’m sure everyone has heard the adage “buy the worst home in the best street” When you can start to see a trend of general improvement in the area and you are not scared to do some basic renovations, this can be the best way to achieve fantastic capital growth from your initial outlay. Finding the next “Hotspot” location is only one thing to keep in mind if you are looking to use real estate investment for good capital growth or some quick cash “flipping” property. Don’t forget to do research around what style of home or configuration is in demand in the general location, and don’t get carried away on your speculating and pay too much. If you can see there will be significant renovations required, make sure you have a Building & Pest inspection, and it may be a good idea to get a quote of the work required to make sure you will not be overcapitalising once the work is complete.

Want to chat about the Ipswich real estate market? Please call me, Rebecca Herbst on 0417 644 840 or email rebecca.herbst@century21.com.au

How important is a pre-settlement Inspection?

When you purchase a property – whether it is for yourself to move into as your new home, or as an investment, you are entitled to a final inspection of the property before settlement occurs and you become the legal owner of the property.

Obviously if you are purchasing the property with vacant possession, the best time to do the inspection is as soon as the occupants have vacated, and as close to the time of settlement as possible – such as the afternoon on the day before settlement, or the morning of settlement day. If the you are purchasing a property with tenants in place that will be remaining once you take over ownership, it is also a good idea to do a pre-settlement inspection within 3 days of settlement, just to make sure the property is basically in the same condition it was when you first inspected it and there has not been any damage done that you have not been made aware of.

So what do you look for at a pre-settlement inspection?

1. Is the property in the same condition or has there been any damage – other than fair wear and tear to the property, since you signed the contract?

2. Is everything that was in working order when you signed the contract or at the time of the building & pest inspection report, still working?

3. Are any items that were listed as inclusions on the contract of sale still in the property?

What can you do if there is a problem?

If it is just a small issue like some rubbish that can easily removed by throwing it in the wheelie bin, just mention it to the sales agent so it can be brought up with the seller to see if the sellers are willing to attend to it. If the issue doesn’t end up being rectified by settlement, while it is not nice, it also is not a major drama that can delay or hold up settlement.

If there is an unreasonable issue that you are unwilling to accept, you have a couple of options.

1. Discuss the problem with your agent as they have a direct ear to the seller, but also notify your Solicitor that you would like to formally request to the Seller what the issues are and that you are requesting the matters to be remedied before settlement occurs.

2. Your solicitor will advise you on the course to take depending on the issue, but it could mean that settlement may be delayed until the issue is remedied, or that settlement continues as planned but some funds are withheld at settlement until the issue is rectified.

Have some more questions? Please call me, Rebecca Herbst on 0417 644 840 or email rebecca.herbst@century21.com.au