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What is a property appraisal?

Posted on by jacintaj

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What is a property appraisal?

Understanding how your property’s value is determined is critical

 

How to use competitive properties to work out value

Spend time inspecting similar properties that are currently on the market, however do be aware that their asking price does not necessarily equal true market value. The most consideration should be given to properties that have SOLD in the past six months.

Try to compare your property with homes that are equal to yours. For example, look at properties that are a similar land size or apartments that have comparable floor space, the same amount of accommodation and bedrooms on offer, the style of the home and whether it is renovated or dated, the condition of the property and importantly its location, particularly proximity to amenities and lifestyle attractions such as parks and beaches.
   
Consider features your property may or may not have. For example views of the city, water or parkland, a swimming pool, secure level garden, garaging, level lift access if you live in an apartment complex, luxury inclusions or special eco features such as solar panels and rain water tanks. On the downside, being on a busy road or having no outlook in an area where many homes enjoy views may affect your sale price and this should be taken into consideration when determining value.

Once again, the best person to turn to is your agent. They should be a wealth of knowledge and familiar with what features of your home will offer the most appeal to buyers. Not only this, they should be able to provide you with valuable data and research material to help you make an educated assessment of your property’s value.

How to research the market

There are many ways to find out what your property may be worth as well as the impact of what current market conditions may have on your sale.

  • Check the times and dates of local open homes and up-coming auctions and attend as many as you can. The interest in these will help you understand the market conditions and help you gauge your home against the rest of the market.
  • Check in with your real estate agent or an agent who is particularly active in your area. They should be able to provide you with an abundance of free property sales information from a number of reliable sources.
  • Australian Property Monitors and RP Data are online providers of property data and information, who are highly reputable and for a small fee will supply you with the same reports agents and banks use to assess property values. Reports worth purchasing are postcode data, street history, auction results and market trends to name just a few. But ask your agent first as they may well be able to provide these reports for you for free.
  • The weekend paper’s property lift out is another valuable source of up to date market  information as well as recent sale information and auction results.
  • Websites like www.domain.com.au, www.realestate.com.au and agent sites like www.ljhooker.com.auare another good place to find out what is for sale in your neighbourhood. These sites also provide commentary and articles relating to current market conditions.

The Purpose of a Property Appraisal

A property appraisal is an informal estimate of what your home may be worth, which is commonly given as a free service by real estate agents. It is an educated opinion based on recent, comparable sales data in your area, current market sentiment plus the agent’s insight into the features of your home that will either create a lot of buyer interest and competition or any negative features which may limit interest and the price buyers are prepared to pay.

It is worthwhile to request an appraisal from a number of agents before you choose who you are going to use to sell your property. However, it is also important to do your own research so you can either agree or disagree with the agent, as well as understand the rationale behind their pricing strategy.

How is a Property Valuation Different?

A property valuation is usually performed by a Certified Practicing Valuer for an agreed fee. They are not real estate agents or associated with any real estate agency. A valuer will inspect the property, carry out research and analysis into the local market and provide a detailed report regarding issues affecting the current market value of the property.

A property valuation service is commonly required by a bank or financial institution prior to approving a home loan. It is also used by buyers and sellers wanting an independent opinion prior to pre purchase or pre sale, family or partnership settlement, capital gains tax and in some instances building insurance.

What is a Seller’s Market and How Can it Affect Your Price?

A seller’s market reflects the return of consumer confidence and a strong economy. It is occurs when buyer demand outweighs housing supply and greater competition will inevitably drive property prices up.

With the likelihood of competitive bidding, a seller’s market will see increased auction success. However, you need to take into consideration that the real estate market is very segmented, properties at the lower end generally always attract strong buyer interest, while properties at the high end may struggle for attention.

What Impact Does a Buyer’s Market Have on the Sale Price?

This is a common real estate term referred to when market conditions favour buyers. In a buyer’s market there are typically a large number of properties for sale and fewer buyers. This may come about because of rising interest rates and a slowing economy.

In a buyer’s market, sellers will generally need to be competitive with pricing in order to achieve a sale. Great results are still obtainable and your real estate agent should be able to offer the right advice and best approach


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    Styling to Sell in Spring

    Posted on by jacintaj

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    Styling to Sell in Spring

    Making the most of the outdoors

    It pays to style your home

    The spring selling season has arrived with gusto! But how do you give your home the advantage and make it stand out to discerning buyers.

    The answer is styling according to a panel of LJ Hooker agents. 96% believe it’s a good idea to style a home when selling and 87% believe it can boost the final sales price by up to 10% and can make a big difference to the number of people who are interested in the property and how quickly it sells.

    So styling helps. But whilst you do need to look at the whole home we hought we would share with you some tips on how to make the most of your outdoor space – after all spring is here and us Aussies love to be in the great outdoors.

    Create an entrance

    I’m sure you’ve heard the saying – “You never get a second chance to make a first impression” – well this statement is certainly true for the front of your home.

    This is the first thing people see, so you want to make sure your property looks great from the street. As soon as a buyer arrives you want them to be excited about coming in to take a closer look.

    With the garden starting to burst into life, it is certainly the best time of year to make the most of what nature has to offer. So roll up your sleeves and start tidying up the front yard. Make sure your front gate is in good working order. This is the first thing people come into contact with – so check yours out and get it swinging.

    Add a fence around your property if you don’t have one. This will allow you to separate your home from the street and will have the added advantage of making your front yard seem bigger – amazing but true.

    Clean out your gutters and make sure your roof and windows are clean and free of spider webs. Power-wash your path and keep it swept before any open home inspection.

    Spend some time weeding and trimming the garden beds and because it’s spring – add some beautiful spring flowers – just make sure they will still be in bloom when you open your home for inspections.

    If you don’t have an established path, consider laying one to help guide your buyers to your front door. Plain white pavers look great against a green lawn but there are many great options to choose from depending on what your budget and taste is like. They will make a big difference to your entrance.

    Don’t worry if you don’t have a front yard you can make an impact by adding window planters, some clean shutters, good lighting and clearly visible house numbers.

    Making the most of the outdoors

    As you know us Aussies love being outside. To have a garden or courtyard where we can entertain friends and family or have a space where the kids can play is really important to many buyers – it’s in effect another room to enjoy and another selling point for your property.

    Show your buyers how they could use this space – take advantage of the warmer weather and add a great outside table or refresh the one you have. I’d suggest you set the table with brightly coloured placemats and cutlery and add some flowering plants to the middle. Put up an umbrella and some colourful cushions and the space will look great!

    Another tip is to have a think about what your neighbourhood is known for. Are you near a beach – perhaps you could add a great outdoor shower. Do you live in a grassy suburb – a hammock might help create the right feel, or is it a family friendly suburb – maybe a sandpit or a swing in a tree would do the trick.

    Creating different zones in your garden works well, as it does inside the home, it helps create interest. By zones we mean, an area for eating or entertaining, an area of mixed planting, perhaps with a focal point such as a fountain or feature plant. Or if you have the space, adding an area for kids to play can be really enticing for the family buyers.

    Many homes today, particularly in the inner city don’t have large gardens. Often there is a small courtyard, so it’s important to maximize this space.

    The first step may be to create a focal point like a water feature, statue or urn. This should be placed at the furthest point from the entrance so your buyer’s vision is drawn to a distance, giving a sense of space. You can also give an illusion of space by paving the entire area with large pavers to make the ground look wider and less busy. Don’t use any dark colours in your courtyard structures as these reduce the perception of space.

    If you have a small balcony, add a café table and chairs, a planter and some fresh spring flowers on the table. Your buyers will think what a lovely spot to eat.

     

    This article originally appeared on ljhooker.com.au


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      How to set a reserve price for auction

      Posted on by jacintaj

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      How to set a reserve price for auction

      As part of our on-going series on ow to sell your property by auction, this month David Holmes, National Manager, LJ Hooker Auction services, looks at how to set a reserve price and what factors you should consider.

       

      What is a reserve?

      A reserve is the minimum figure you would be happy to sell the property for.  If the bidding reaches the reserve the property it will definitely sell to the highest bidder.  The good news is any bids achieved above the reserve is essentially bonus money in your pocket!
       
      In some instances, if bidding doesn’t go over the reserve, then a sale is negotiated between the vendor and any interested buyers.

      When setting your reserve make sure you consider the following:

      1. Your initial appraisal

      At the beginning of your campaign your agent would have appraised your property.
       
      To get to this figure they would have conducted a comparative market analysis and looked at similar properties that have sold within the last 90 days.  They would have considered current competition, wider market trends and your properties structure and conditions to arrive at a value that they believe you could achieve if you sold your property at that point in time.

      2. Buyers sentiment

      Auctions often achieve high sales prices because 2 or more emotional buyers keep bidding against each other, motivated to buy the property.  Understanding buyer sentiment is important when setting your reserve.  Talk to your agent and see if there are any passionate buyers, what does the agent think they would be willing to spend, what is the general feeling at the open homes?

      3. Advice from your agent

      Your agent is at the coal face of your marketing campaign, they are hosting open homes, fielding calls, sending contracts, following up attendees after inspections.  They know how much interest there is in your property plus any positive or negative feedback.  They know what the market is thinking about your property and are an important resource to tap into when setting your reserve.

      4. Any offers and market feedback

      It is important not to get sentimental about your property and set an unrealistic reserve.  It is very important to talk to your agent, to review any pre-auction offers and listen to market feedback from your agent.
       
      Over the course of the auction campaign, which is normally 3-4 weeks, the property market can fluctuate and it’s important to factor these changes in when setting your reserve.  You want to be “in the market” not “on the market”.  Consider carefully – are you prepared to sell for what the market is prepared to pay?


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        Selling? Do you understand the key auction terms?

        Posted on by jacintaj

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        Selling? Do you understand the key auction terms?

        You may have heard many of terms below, but you many not know what they mean.

        Here is an overview of the main auction phrases:

        1.    Opening bids & bidding

        After the auctioneer has run through the property being auctioned, detailed the features and an overview of the what is included with the property one last time, they will invite the buyers to put in an opening bid – or in other words for someone to place the first bid on the property.  Other interested parties will then bid on the property in increments until either the property is sold or it is passed in (not sold).

        2.    Vendor’s Bids

        A vendor’s bid is used to encourage bidding from buyers. Think of it as a momentum bid…..a bid to keep buyers interested, to keep the process flowing.  This is placed by the auctioneer on the vendor’s behalf to assist the property reaching its reserve price.

        The amount of the bid needs to be below the reserve price and must be disclosed to all buyers in the interest of transparency.

        3.    Dummy Bids

        A dummy bid on the other hand is a false bid made by a non-genuine buyer.  All dummy bids are illegal and attract significant penalties for the vendor, the dummy bidder and in some cases the agent.  Professional auctioneers will not engage in dummy bidding.

        4.    Bidding increments

        This is the amount by which bids increase during an auction and is usually dictated by the auctioneer.

        5.    On the Market and Passed In

        If the bidding does not reach the reserve price or a price the seller is happy with, the property may be passed in. In this case your agent will encourage interested parties to stay behind to negotiate a sale with the agent.   Don’t panic, in my 12 years’ experience a sale is normally made soon after the auction.

        If the bidding doesn’t reach the reserve price, the auctioneer will ask you if you are willing to adjust your reserve and sell the property for the highest price. If you are, the auctioneer will announce to the crowd that the property is on the market or in other words, that it will be sold to the highest bidder.

        The final and usual scenario is when the bidding has reached the reserve price.  The auctioneer will briefly stop the auction and confirm with the seller that they are happy to sell at that price.  If they are the property will be sold to the highest bidder.

        Pre-Auction Offers

        When you list your property for sale by auction, you still have the ability to accept pre-auction offers before the auction day deadline.  All pre-auction offers need to be submitted in writing to your agent who in turn will present it to you for consideration.

        However, in order for this to be rewarding, the offer needs to be solid and stand out to catch your attention. Otherwise, it may be a good plan to allow your property to go to auction and see what the market will give you for your home.


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          What to expect on auction day

          Posted on by jacintaj

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          What to expect on auction day

          Over the last couple of months David Holmes, National Auction Manager for LJ Hooker Auction Services, has been sharing his insights into how best to sell a home by auction. This month he discusses the auction day itself and what exactly will happen. Knowing how the day will flow will help keep your nerves in check…. Which is very important as auctions can be quite stressful.

          OK…so the big day has arrived. To keep the nerves under control, think of the auction as a process, a process that will get your property sold in a great time frame with a great result. Being process focused, not out come focused is key here.

          1. Meeting the agent and advising reserve
          Two days before the auction you should meet with your agent to go through the auction day strategy and set the reserve. During this meeting you will confirm the following important information:

          • Any offers and market feedback
          • Your reserve price
          • How many bidders are expected to attend?
          • How and when you will communicate with the agent and auctioneer during the auction
          • What happens if the reserve is not met?
          • How any vendor bids will be used?
          • Run of the day

          2. Pre-auction inspection
          Most agents will open your property for one final inspection. Frequently we have buyers turn up on auction day for the first time so make sure your property is looking spotless and well-presented. You never know you may pick up a buyer at the last minute and you certainly don’t want to deter buyers that are there to bid.

          If the auction is on-site, set up a suitable area to hold the auction. Usually it is held in the garden or on the front footpath, however your agent and auctioneer will be able to guide you.

          3. Registration of Bidder

          In most states, all interested buyers are required to register before the auction commences in order to receive a bidder’s number. This protects you, the seller from people who may not complete the auction process.

          4. Start of the Auction
          At the start of the auction the auctioneer will detail the positive attributes of your property and outline the state laws and settlement terms applying to this particular property including whether vendor bids will be used.

          5. Bidding
          Now things are really start to heat up….. The auctioneer will call for an opening bid or in other words the first bid from the crowd.

          From this point onwards the auctioneer will control the flow of the bidding and will encourage bidders to go higher, but at the end of the day, each bidder decides how much they are prepared to pay and the seller decides whether they’re prepared to sell at that price.

          6. If the property doesn’t sell under the hammer
          If your property doesn’t sell under the hammer don’t panic, the great news is both you and your agent have an overwhelming amount of intelligence as to what the market will potentially pay to purchase your property, plus your agent has a book of potential buyers to talk to. In my 12 years’ experience a sale is normally made soon after the auction so don’t be alarmed if it doesn’t sell under the hammer.

          7. Completion of Sale
          If your reserve price is reached during the auction, the hammer will sell to the highest bidder. The winning bidder will sign the contract there and then, pay a deposit which is normally 10% of the winning bid…… and you can pop open the champagne!


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            The auctioneers job and rules of auction

            Posted on by jacintaj

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            The auctioneers job and rules of auction

            Auctions can be daunting – but they don’t need to be! 

            An auction can be a great way to buy or sell, as the bidding process is transparent. This series of blogs will help explain the auction process.

            Essentially the role of the auctioneer is to control a public negotiation process where potential buyers are competing to buy a property.

            The auctioneer has to make sure the process takes place in an orderly and legal manner and they must always conduct themselves professionally. A good auctioneer though stands out from the rest as they use tools like humour and wit to make the buyers feel more comfortable.  I’ve found the more relaxed they are, the better the results.

            Auctioneer announcements

            Before the auction commences the auctioneer will introduce themselves and the agency they work for and they will announce terms and conditions in accordance with state law and any rules that surround your auction in particular.

            Following this the auctioneer will give a detailed description of your property and list its valuable features and benefits.

            Rules of auction

            Terms and conditions of the auction are on display before and during the auction and are always available from the agent throughout the campaign.   
             

            Bidding at the auction

            Following the introduction from the auctioneer, the auction will get under way.  The auctioneer will call for an opening bid or in other words the first bid from the crowd.  

            From this point onwards the auctioneer will control the flow of the bidding and will encourage bidders to go higher, but at the end of the day, each bidder decides how much they are prepared to pay and the seller decides whether they’re prepared to sell at that price.

            All bids must be acknowledged and recorded, so there are no misunderstandings over who has bought the property and for how much.  And no bid can be accepted after the hammer falls.

            Auctions by nature are often emotionally charged, but a good auctioneer knows how to take the pressure out of this very serious process by making the buyers feel comfortable.  They have the ability to get the best out of the buyers and to achieve the best possible price for the seller.

            We can’t stress enough the importance of choosing a professional auctioneer with a commanding presence as they are the decider in all disputes.


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              Local Market Report – July 2018

              Posted on by jacintaj

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              Local Market Report – July 2018

              Every month the market changes and staying up to date with the latest information about your local market is a great advantage if you are thinking about buying, selling or investing.


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                Downsizing contribution into superannuation FAQ’s

                Posted on by jacintaj

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                Downsizing contribution into superannuation

                As of July 1, 2018, home owners aged 65 or over will be able to make an additional non-concessional contribution of up to $300,000 from the proceeds of selling their principal residence, if owned for 10 years or more.

                Both members of a couple will be able to take advantage of this measure for the same home; meaning $600,000 per couple can be contributed to superannuation through the downsizing cap.

                This initiative is aimed at reducing the barriers to downsizing with the objective being to encourage some older people to downsize from homes that no longer meet their needs and free up housing stock for younger families starting out.

                Here are some frequently asked questions to help you understand what it means to you.

                Why has the government introduced this incentive?
                Older home owners are currently unable to invest proceeds from selling their home into their superannuation which has been discouraging older people from downsizing. This means that many larger family homes sit occupied by only singles or couples. Encouraging downsizing should enable more effective use of the housing stock by freeing up larger homes for younger, growing families.

                What will be the impact of the new downsizing incentive?
                It is hoped that this measure will encourage some people to downsize into housing that is more suitable to their needs, freeing up larger family homes for younger families.

                It will assist people aged 65 and over who are currently unable to contribute all or any proceeds of the sale of their home into superannuation because of the existing restrictions and caps.

                What property can you sell to get this incentive?
                This measure will apply to a principal place of residence held for a minimum of 10 years. Both members of a couple will be able to take advantage of this measure for the same home, meaning $600,000 per couple can be contributed to superannuation through the downsizing cap.

                 

                Why do people downsize?
                Many Australians downsize their home because they:
                Are approaching retirement
                Have become empty nesters
                Want to free up some money to enjoy their lifestyle
                Are overwhelmed with the upkeep and maintenance of the property
                Realize they have just too much empty space

                What are the benefits of downsizing?
                Reducing the size of your living space has many financial benefits
                Reduced mortgage payments
                Less real estate taxes
                Lowe utility costs
                Lower insurance costs
                Less maintenance costs
                Enable you to reduce the clutter and enjoy a simpler life
                Enjoy a simpler lifestyle, less cleaning, less work to do in the garden and less cost to maintain
                After July 1 2018 a key benefit is being able to add up to $600,000 per couple into your superannuation fund.

                 

                How old do you need to be to be eligible for the Government incentive?
                You must be 65 years or older to be able to make the additional non-concessional contribution to your superannuation fund.

                What is the eligibility criteria for the incentive?
                The ATO website states you will be eligible to make a downsizer contribution if you can answer yes to all of the following:

                • You are 65 years old or older at the time you make a downsizer contribution (there is no maximum age limit)
                • The amount you are contributing is from the proceeds of selling your home where the contract of sale was exchanged on or after 1 July 2018
                • Your home was owned by you or your spouse for 10 years or more prior to the sale
                • Your home is in Australia and is not a caravan, houseboat or other mobile home
                • The proceeds (capital gain or loss) from the sale of the home are either exempt or partially exempt from capital gains tax (CGT) under the main residence exemption, or would be entitled to such an exemption if the home was a CGT rather than a pre-CGT (acquired before 20 September 1985) asset
                • You have provided your super fund with the downsizer contribution form either before or at the time of making your downsizer contribution
                  You make your downsizer contribution within 90 days of receiving the proceeds of sale, which is usually the date of settlement
                • You have not previously made a downsizer contribution to your super from the sale of another home.

                How much can you add to your superannuation as part of the downsizer contribution?
                If eligible, you can make a downsizer contribution up to a maximum of $300,000. The contribution amount can’t be greater than the total proceeds of the sale of your home.

                Example 1

                A couple sell their home for $900,000. Each spouse can make a contribution of up to $300,000.

                Example 2

                A couple sell their home for $500,000. The maximum contribution both can make cannot exceed $500,000 in total. This means they can choose to contribute half ($250,000) each, or split it – for example, $300,000 for one and $200,000 for the other.
                Where do I get more information about the downsizer contributions scheme?
                Visit the ATO website here

                *Source:
                Note: The downsizing and super contributions proposal was announced as part of the 2017/2018 Federal Budget (May 2017 Budget). The proposal became law on 13 December 2017.

                This article was originally published on ljhooker.com.au


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                  19 Walter Crt Walkthrough

                  Posted on by jacintaj

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                  19 Walter Court Walthrough

                  Haven’t had time to check out 19 Walter Court, Wongawallan?

                  I’ve put together a quick walkthrough so that you can get a feel of the property without being there!

                  This home is just so full of potential and character, with beautiful mountain views as a backdrop.

                  There is a bit of work to do here but it would be the perfect country home once done.

                  19 Walter Court, Wongawallan will be open this Saturday the 19th, and goes to Auction on May 23rd.

                  I hope to see you there!

                   


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