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Guest Blog: Ways to know you’ve found the right house

January 27, 2021Uncategorizedadmin

You’re finally ready to buy a new house!

Maybe it’s the first home you’re ever going to purchase yourself, or perhaps it’s a crucial upgrade that you’ve decided to invest in now that your family is getting bigger. Either way, choosing the ideal home is a big decision. In fact, is one of the most significant financial decisions you’re ever going to make.
With so much pressure riding on the right choice, it’s no wonder that so many buyers end up biting their nails over whether a purchase is right for them or not. Move too quickly, and you risk wasting all your budget on a home that’s just not right for you. Sit on the fence for too long, and you could lose your chance of getting the property of your dreams.
So, how do you know whether you’ve really found the right house? Look for the following signs.

It Suits your Budget Perfectly

Ultimately, we’re all limited by how much house we can reasonably afford to buy. You’ll need to sit down with a real estate agent or a mortgage broker before you start looking for homes, and sort through your finances to determine how much you can afford to offer as a down payment, and how much debt you’re comfortable being in and can realistically afford to pay back.
If you’re struggling to figure out what you can afford, there are plenty of great mortgage calculators out there who can help you to do the math. Perhaps the most important thing to remember is that you should never put yourself in a position where you’re going to struggle to make ends meet every month.
Your home is a place of comfort – it shouldn’t be something that fills you with dread every time you see the mortgage payment. If the price of your ideal home leaves you breathing a sigh of relief, then that’s a good sign you’re on the right path.

It Meets Your Must-Have List

With your budget in mind, you’ll probably find that you need to do some prioritising. After all, you might not be able to afford three bathrooms, four bedrooms, and a giant garden. With that in mind, you’re going to need to decide what your “must have” items are, and what your “nice to have” preferences might be.
The perfect home will be the one that checks off all the deal-breakers on your list while covering a few of the nice to have options too. While everyone’s list is different, a few of the things you might consider include:
– A location that’s close to work
– Enough bedrooms for the whole family
– A kitchen that’s large enough to entertain in
– An extra bathroom
– A theatre room

While you should always be willing to compromise when your house-hunting, remember that a property that doesn’t fit your basic needs might not be the right fit.

You No Longer Care about Seeing Other Homes

When you start house hunting, with a little luck you’ll find that there are plenty of homes out there that meet your budget. However, while there might be countless fish in the sea within your local area, once you find the perfect place for you, you’ll no longer be interested in seeing the other options. Ultimately, once you find the one, all the excitement of house hunting goes through the window, and all you can think about is getting your hands on that dream property.
Even if you do decide to look at the other homes in your area, then there’s a good chance that the “one” will be on your mind throughout the entire viewing. You might even find yourself comparing other houses to the property you love – telling yourself that the other garden was bigger, or that there was more “light” in the living room.

If the thrill of the hunt has gone, you might have already found your perfect home!

The Area or Neighbourhood is Perfect

While it’s great to fall in love with a house for its structure or the number of spacious bedrooms it has, it’s also important to remember that you’re not buying a home in a vacuum. In other words, when you invest in a house, you’re also investing in the neighbourhood. Before you even consider making an offer somewhere, you should look at the surrounding area and see if you’re happy with it.
Is there a school nearby that would be great for the kids? Can you access plenty of public transportation if you don’t want to rely on a car? What about the neighbours? Can you consider knocking on a few doors and finding out whether you’re going to get along with the people you live beside? Ask about the nitty gritty like the crime rate in the area and if there is a lot of noise in the evenings when you would rather be relaxing in peace.
It’s a good idea to explore an area thoroughly before you submit an offer. Make sure you’re on the lookout for essential amenities like a grocery store, or bank. It’s also worth looking for fun hotspots like restaurants and parks too.

Is It Right for Today and Tomorrow?

An important point to keep in mind when you’re buying a house is that you’re not just purchasing the property to live in for the next year or so. Most people spend at least a few years in their home, so it’s worth making sure that your house is going to meet all your expectations for today and tomorrow.
Real estate is a solid investment, and you’ll want to make sure that any home you’re thinking of purchasing is a good fit for the life you envision having. Is there are a spare room for any kids you’re thinking of having? If you’re planning to launch your own business or spend more time working from home, is there somewhere you can turn into an office space?

Looking for the Perfect Property Vibes
Ultimately, finding the right house is a lot like falling in love. For many people, you simply know when you’ve found the right one. From the moment you see the property, you’ll be dying to get inside, and every new room will create an even deeper love affair. Even if the house isn’t perfect, the home that’s right for you won’t put you off because you don’t like the paint colour, or you know the kitchen needs a refresh. Just make sure that you don’t let your heart rule your head too much, or you could end up spending more money thanyou realistically have.

Ready to start looking? To see our currently available properties, please click here.

Should I sell or rent my property

January 26, 2021Uncategorizedadmin

Thinking of upgrading to a bigger home, but can’t decide if you should sell your current property, or rent it out as an investment property?

WA has just recorded the strongest rental expectations in Australia for the next 2 years, according to the 2019 NAB Residential Property Survey, coupled with the lowest vacancy rate in six years. So if you can afford to, now is a great time to upgrade into something bigger, and keep your current home as an investment property.

“Provided you can afford it, you could make yourself an extra $40,000-$60,000 more, if you hang onto your home and sell in the next two to three years, thanks to the state of the WA market and economy.” – Brendan Leahy, CEO of Naked Edge Real Estate

Hear Brendan’s top #3 considerations to help you make the best decision for your situation…

Can you afford to keep your home as an investment property?

If you do decide to rent out your home, you will still have your usual rates to pay, plus ongoing maintenance and repairs. With a rental, hot water systems can fail, and air conditioning systems may need work. So provided that these costs won’t stretch you too thin, I would recommend holding onto your home for another two years or so.

This is because the core fundamentals (namely commodity prices) are in place for the WA market here to have some significant gains over the next couple of years. Keep in mind it is a different case over on the east coast. The market over there has slowed down – and I think it still has some slowing down to do.

WA is a mining state, and we’ve recorded strong iron ore price exports of $100 per tonne for the last six months, and based on WA treasury estimates, with every US$1 increase in the iron ore price, WA receives an extra $81 million.

The AUD exchange rate is helping as well, each time the Aussie dollar drops by just one US cent, WA’s royalty income is expected to jump by $101 million.

Can you afford to upgrade without selling your current home?

Ideally, the choice to maintain your property and rent it out will still allow you to upgrade and afford the home you want. Sometimes by selling the property you could borrow an extra $100,000-$200,000… so maintaining your home and renting it out may reduce that capacity.

But you might find you can still afford the home of your dreams in that price point. It is a buyer’s market at the moment, which is great for upgraders because house prices have dropped far below home values – and this market will not last long. There are homes in the Perth hills that were previously worth $900,000+ now available for $650,000.

It’s a great time to see what’s around, and speak with your lender to see what you can afford. The cash rate is also at an historic low of 0.25%, so it’s an opportune time to get your finances in a position to upgrade, and secure some long-term capital growth.

Is being a landlord for you?

If you find you can afford to keep your home as an investment property, consider whether you have the time, patience, and desire to manage your rental yourself, or if you’d like to hire a property manager to do it for you.

Some of the most important tasks of a landlord (or property manager) are:

Finding a reliable tenant that pays rent on time and maintains your property.
Collecting and lodging the correct tenancy bond with WA bond administration.
Conducting regular routine inspections on the property.
Organising prompt maintenance and/or repairs on the property.
Ensuring all legal paperwork and documentation are filled out correctly and signed (e.g. tenancy agreements, property condition reports, inspection reports, repair requests etc).

If you work full-time and have a family, you may find it difficult to give your tenant and rental the time and commitment it needs – it totally depends on your circumstances, and headspace.

If you’d like more information on how a property manager can help you protect your investment, feel free to get in touch with our sister company, We Love Rentals on (08) 6254 6300. They only do property management, and have 10+ years experience in the industry.

And if you’d like a second opinion about whether to sell or rent your property in the current Perth market, feel free to call Brendan on 0439 998 867. He’d be more than happy to answer any questions you may have.

Local is better the benefits of using a local agent

January 26, 2021Uncategorizedadmin

There is so much to consider when choosing a real estate agent to sell your property. There are many agents to choose from and it can be confusing when you try to compare different commission rates, marketing plans, personalities and selling price recommendations. Some would argue that the most important factor is to choose an agent who is active in your local area. An agent’s local knowledge and expertise will often sell a home faster for the best price possible.

Here are just some of the advantages of using a local agent:

Know the Suburb Well

An agent who is selling homes in your suburb or a neighbouring suburb should know all there is to know about the area. Buyers can ask all sorts of questions from the local bus route, the number of primary schools, the high school boundary, local shopping centre expansion plans or road changes. An agent who can talk with authority about the suburb will be able to give the prospective buyer more information and hold a conversation for longer.

Value of the Home

If an agent has sold the house across the road, the one down the street and over the back fence there is a good chance they know what price point to market the home. An out of area agent can look up the selling prices of the homes but they won’t have been through previously sold houses to know how they really compare to the current listing.

Testimonials

When you use a local agent you can ask to see all their testimonials from past clients who also sold in the area. Reading testimonials can give a seller the peace of mind and confidence that their chosen agent will achieve the best possible outcome.

Database of Prospective Buyers

An agent with other listings in the suburb will meet buyers at other home opens. A buyer will often say that the property they are viewing isn’t quite right because they are looking for a particular feature or size. A good agent will take a note of this and if your property is a match, they can make contact with the prospects and invite them to view before the house is even advertised.

If you would like to find who the Naked Edge Real Estate local area specialist agent is for your area, check out our Suburb Profiles. And for more tips on making a decision on your real estate agent, download our comprehensive, free guide – How to Choose the Right Agent, found on our Blog.

Don’t Make These Property Selling Mistakes

November 23, 2020Selling Tipsadmin

How do you avoid making poor choices and ensure a positive selling experience, while also achieving the best sale price possible?

Learning from other people’s mistakes is a great place to start and these eight blunders are all too common:

1. Choosing an agent for all the wrong reasons

Choosing the right real estate agent is paramount to a successful selling experience. But deciding who to use based solely on the commission they charge or your familiarity with them can be a big mistake.

A reduced commission may be tempting but as with anything in life, you often get what you pay for!

Similarly, using a friend or relative in the industry might put a strain on the relationship if they are not familiar with your area or property type.

Instead: Go for a widely acclaimed, experienced real estate agent that you trust.

Interview a few different agencies and look for someone who is honest, prepared, makes you feel at ease, has a good track record in your suburb and is a great negotiator. Learn more about our Naked Agents here.

2. Don’t micro-manage your agent

It makes it very difficult for the real estate agent when sellers don’t allow them to do their job.

Of course you should have a say in the marketing strategies in use, but be prepared to take their advice on board – after all, you are paying them for their expertise.

If you don’t want to pay for any advertising it could really inhibit the sales campaign, and prevent a great agent from selling your property at the best possible price.

Instead: When you are working with an agent you trust you will value their advice and know that it is coming with the best intentions and experience behind it.

Discuss costs, strategies and accountability with them upfront, and then let the agent do their job properly.

3. Being half-hearted

If you are putting your property on the market just to see if you get a bite, then it is likely going to be reflected in how many buyers actually take the bait.

It also stands to reason that your agent will have the same attitude.

Instead: Decide and commit.

If you definitely are ready to sell than it means that you are ready to do the hard yards of finding a great agent, committing to the marketing process and preparing your house to be on show.

4. Leaving the research up to your agent

A real estate agent has access and experience that makes their opinion very valid but don’t let that be the beginning and end of the story.

Use it as the starting point but don’t rely on your agent for all of your information and market date.

Not only could this lead to disappointment with the price they advise, it gives the agent all the power to make and influence your decisions.

Instead: Do your own research when you are preparing to sell your house.

Start looking at other properties that are for sale in the suburb and what they are listing and more importantly selling for.

This will help you be more realistic when you are discussing prices with your agent and also set your expectations.

5. Revealing that you’re desperate

Buyers seem to be able to sniff out desperation from a mile off and they are all too willing to pounce on it with a cheeky offer.

Some common indicators that all is not well in the vendors’ camp include continually lowering the asking price, and putting your house on the market without quality photos or a tidy street appeal.

As investors, we know that first impressions count and an unattractive curb appeal shows that you’re disinterested in your asset, which can lead buyers to wonder whether the property has other maintenance issues you haven’t addressed?

Instead: Improve your chances at getting a high offer by properly preparing your property for market.

This means allowing time to find the best agent, waiting for good weather for quality photos, gathering market research and if your budget allows it, staging.

Most of all, remember that you don’t need to reveal your reason for selling to any buyer, so just keep it simple and say you are relocating.

6. Selling as-is

While adding a new kitchen for the sake of selling is not always budget friendly and could put you in danger of over-capitalising, foregoing basic tidiness is not an option.

There is a lot you can do to improve the presentation of your investment when you’re selling, without spending a bucket load of money.

Remember: buyers want to be able to imagine themselves living in the house or renting it out to interested tenants, so give them every opportunity to do just that.

Instead: Spend some time cleaning, tidying, repairing, neutralising and staging before you put your property up for sale – ask your agent for his/her opinion on what needs to be done. Check out our blog on Property Presentation for more advice.

If the property is tenanted to less-than-tidy residents, you could even consider paying for a weekly cleaner prior to open inspections so that the property presents in its best light.

7. Ignoring early buyers

We want to believe that an offer will come along and blow us away but the reality is, offers above market value are very rare.

Did you know that the best prices are often achieved in the first weeks of the house being on the market?

The further the sale campaign extends, the more leverage buyers have, as they know the vendor is getting tired of waiting for a sale.

As a result, one of the first questions a buyer usually asks is, “How long has it been for sale?”

Instead: Do the hard work up front with your agent to determine a fair price to put it on the market.

Get the word out about your house and then be prepared to make a quick decision when offers start coming in.

Or if suitable, stage an auction campaign so you can be assured of achieving the best price the local market can support.

8. Covering up problems

Painting over the water damage instead of fixing it might be a good short-term solution to making the house presentable for showings, but it can work against you when buyers start to get serious.

If a buyer notices an issue like that, they quickly become suspicious about other problems the house might have and could decide against making an offer.

Instead: Repair problems properly or be upfront about ongoing issues.

No house is perfect and most potential buyers are willing to negotiate around minor problems.

Selling your investment property can be a demanding time, but if you go in prepared (and with a realistic idea of recent suburb selling prices), you can streamline the process and avoid extra stress.

While there will always be a lot of unknowns when it comes to selling property, whether its in your neighbourhood or located interstate, many variables can be minimised by avoiding these issues and working with an experienced agent.

If you would like to discuss your property needs with a Naked Agent, call us on 08 6254 6333

How Emotions Come Into Play When Selling Your Home

November 23, 2020Selling Tipsadmin

Selling your home will most likely be one of the largest transactions you will be a part of, so it is essential to separate your love/emotion for your home and start looking at it as real estate.

Here are several guidelines to help you, the home seller, avoid making decisions based on your emotions:

1. Avoid pricing your own home, follow your agent’s advice

It is every seller’s dream to get top dollar for his or her property, and sure it is possible, however finding a buyer who is willing to pay above market value for features that you value is not feasible if they don’t value those same things.

Home sellers tend to put a high price on their home due to their emotional attachments which is completely understandable.

Buyers on the other hand do not yet have this emotional connection to the home and will base their value of the home in comparison to others they have seen and what it offers them.

It is crucial to comprehend as early as possible that your home is placed on the market in competition and not isolation.

If your property is priced above market value it becomes a ping pong table as it will attract buyers due to its stunning features and then bounce them off to similar properties that are priced more in line with market value.

It can be a challenging situation to be in, and if you decide to hold out for the highest price, you will likely face one of two results – you could find it difficult to move on, or the potential buyers may think there is something wrong with your property.

Then buyers may then end up offering at lower levels as time passes by.

Think about it, if you were a buyer and you had seen a home that has come on the market for a high price which has then had to lower that price every 2 weeks for 2 months, what would your opinion of that home be?

This situation is sadly more common than you may think.

The longer the property sits on the market, the lower the offers tend to get.

Typically, when a property is released to the market, it will receive the most exposure and interest in the first two weeks.

Buyers who have been searching for a home will possibly view any new homes that appear on the market. If the price is right, you will get bucket loads of people to your open home, which is the perfect storm for a well-informed buyer creating an emotional attachment with your home.

It is at this point the fear of loss kicks in, with all the buyers at your open home this quickly breeds competition which we then use in your favour in order to secure the best price for your home.

2. Sellers attending at the open house – This will make it difficult for buyers to be open and honest

There are many reasons why you would probably want to make an appearance at the open house.

However, being there could make it difficult for the potential buyers to be honest about their opinions on your house which is what you want!

It is a lot easier to obtain honest opinions from potential buyers when the owner is not around.

It also creates a possibility that a buyer may approach you in order to negotiate you down on the price.

Leave it up to your real estate agent to do their job, and trust them when they give you advice, it is out of many years of experience.

3. Taking potential buyers’ comments personally

As the homeowner, you are likely to take it personally when buyers point out every possible flaw concerning your home.

You may think that each view or comment is a complaint against how you have maintained your home over time, which is only natural.

The truth is that each observation from the buyers, while it can be harsh at times, has nothing to do with you, as the home seller.

Therefore, you need not take anything they say personally.

There have been cases where sellers declined some offers, because they took things too personally after receiving negative comments about their home.

While it is sometimes easy to take things personally when selling something that you own, doing so should be avoided as far as possible.

As soon as you decide to put your home on the market, it is essential to start detaching yourself from it on an emotional level.

Real estate transactions are often aggressive and challenging given that sellers want the highest price, while the buyers want the lowest price possible.

For all the above mentioned reasons, home sellers should use experienced and reputable real estate agents to protect them from the entire process (this is how good agents earn their money).

Real estate agents are able to filter relevant information, distinguish the genuine buyers from the tyre kickers and meet with the buyers only when they have received a serious offer.

Emotional things to be aware of as a seller:

Early bids can often spook you and make you think that you underpriced your property.
The property is correctly priced when an early offer is close to the asking price, as long as the asking price is similar to the market price.

It is counterproductive to wait for a better offer, as it can lead to a property languishing on the market.

Negotiations will normally include buyers pointing out each flaw of your property.

While it is certainly disheartening to hear the comments, it is a very good sign.

It typically means that the buyers are serious about the property.

It is essential that you accept that there will sometimes be criticism and recognise it as a valuable negotiating tool.

At the same time, you should avoid taking it too personally and prevent yourself from walking away from a prospective sale due to any type of emotional reactions that you may have.

Naked Agents are always here to help. For any advice contact our team today!

Getting The Best Selling Price For Your Home

November 23, 2020Selling Tipsadmin

Taking care of those “little jobs” you’ve been putting off every weekend is very important in achieving a quick sale at the highest possible selling price.

This is because buyers typically notice the little jobs too; an ill-fitting gate is easily and cheaply repaired, yet can loom large in the buyer’s mind as a more major problem that hints at other areas of the property being neglected.

Beware of over-capitalising

That being said, you need to be wary of over-capitalising when preparing to sell. Replacing a bathroom and renovating a kitchen are expensive and, depending on the property and its location, may prove counterproductive in the effort to achieve the best price.

For example, if you were to take a quality home worth $700,000 in a suburb where the median house price was of that same value, then investing in a new kitchen and bathroom costing $80,000 may not be the best idea, as it is probably more difficult to sell that property at $800,000. This is partly because it is already above the suburb’s median house price.

Conversely, an original cottage in a well-established affluent suburb is more likely to benefit from renovations when preparing to sell due to the higher demand for “finished” properties in those sought-after areas.

Presenting your home for sale

Obviously, each property and circumstance creates a variety of options for sellers when preparing to sell, and opinions from real estate agents on the matter are, as always, subjective.

In general terms, presenting a clean and tidy home is always going to help your cause in selling at the best price.

Paint out bright colours on internal walls, de-clutter by storing away trinkets and excess family photos, clear the fridge of magnets and kids’ school art and place items neatly in storage cupboards.

Small things do make a difference. Paint and gardens are two areas of focus that can make a disproportionate difference to the selling price (relative to their cost and the effort involved).

These tasks can usually be completed by the seller themselves which helps keep costs down and can make an amazing difference to the presentation of the home and therefore the price of the property.

For more helpful advice on selling your home, check out our related blog posts

Sell Your Home for More with these FIVE Updates

November 23, 2020Selling Tipsadmin

Sell Your Home For More With These FIVE Updates

Some home features have always been big sellers to those looking for a new home, like an updated kitchen and bathrooms, while other features are new to the market and appeal to younger buyers – such as integrated smart technology.

It’s a no brainer then, that keeping your home updated and fresh is vital to increasing its value.

Here are five home updates for you to consider to help you sell your home for more. Each of these features are quality investments, so you can rest easy knowing that they won’t age or outdate in the near future!

1. Bathroom Remodel

Moisture issues and regular use can cause bathrooms to require more remodeling attention than other areas of your home, but in our experience, most buyers will be enticed by an updated bathroom (and kitchen, but more on that later)…

This is why it’s a good idea to update the features in both your full and half baths every three to five years. This way, you avoid having to complete a total overhaul once you decide to sell your home.

Lighting: Want to make the biggest impact for the lowest cost? If your bathroom is dark and dingy, consider going light shopping.

There are a range of affordable looks you can choose from to suit your bathroom, including:

Pendant lights
Downlights
LED downlights
Concealed lighting

Whatever your preferred design is, making sure your bathroom is well lit should be at the top of your priority list.

For Perth bathroom pricing and style tips, we love this post from On the Ball Bathroom Renovations – they showcase their recent bathroom reno’s in Thornlie, Como, Southern River and Bibra Lake.

>>> General Style Tip… Carefully consider the style of the tiles you decide to lay when first updating the bathroom and opt for neutral colours with few patterns or designs. They’re called “classics” for a reason – this style is timeless and won’t go out of fashion any time soon.

Shower + Bath Tub: If your current shower and bathtub are outdated (if it’s chipped or it’s a bright shade of mauve or seafoam green, sorry but the buyer consensus is – it’s ugly), consider installing a new shower or free-standing bath tub and then re-caulk the area every so often to avoid cracking, discoloration and water leakage.

Just a shower? If you’re without a bathtub and have the space in your stand up shower, double shower heads are a very popular and appealing feature to home buyers. They’re luxurious, convenient, and timeless.

2. Kitchen Update

The kitchen has long been one of the most important features of a home for buyers of all ages. An open kitchen area with plenty of dining space and counter seating is a top priority for any homeowner looking to capitalise on their investment.

If you feel as though you’ve stepped back in time when you walk into your kitchen, it’s advisable to remodel the space and then make small tweaks over the years.

A few pointers:

Sleek, modern kitchen cabinets are favored over older, ornate wooden-style ones.
When it comes to kitchen counters, granite is appealing to many buyers, but quartz countertops have become the new gold standard.
Stainless steel is another great buzzword that sticks out to modern home buyers. Replace your old appliances with those made of stainless steel for a more polished look.
A double sink recess (if your kitchen countertop has the space) is considered a must have for buyers (particularly families… lots of dishes)!

An updated kitchen can totally transform the feel of a home, so if you’re to update anything in your home first, the kitchen would be our top pick.

3. Energy Efficient Features

As the world becomes more environmentally aware, many home buyers are seeking out properties with energy efficient appliances and features. A prime example is solar panels, which can be very costly, but can offer enormous savings on energy costs.

Installing solar panels is a major project, so it’s not recommended that you take on this work solely for the purpose of selling your home, but if you’re interested in making your home more environmentally efficient, and you plan to live there for a while, they can be a great long-term investment (for both you, and potential buyers in years to come).

Aside from solar panels, a smaller, more affordable home improvement you could make to lower energy costs is to replace your windows.

These are a common feature in energy efficient homes, as old windows can become loose and let in outside air. This then allows unwanted cool or warm air into your home, making your central air work harder to maintain the set temperature.

And if you replace your windows just before you sell, the benefits are twofold – you add value to your home, and you don’t need to clean them (haha).

4. Smart Technology

From lighting and security to music systems and thermostats, there’s nearly an endless list of ways to incorporate smart tech into your home.

Our advice is, think about when you want to sell your home. If you’re selling now – it might be worth adding a cool new tech feature to entice the current buyer pool. But if you’re not planning on selling for five years or so, it might be worth waiting – in five years time your choice of “smart tech” might not be considered “smart” any more…

Just think about how often all those Apple products are updated.

If you are after the latest and greatest technology, the most desired feature is the new Nest Thermostat, which can determine which temperature you prefer to keep your home at and develops a schedule to efficiently heat and cool each room. This is especially coveted by buyers with families.

If you’re after a few smart technology options that can stand the test of time, think about installing some outdoor cameras or alarm systems. Buyers will always value their privacy and safety, so even if these features aren’t brand spanking new, they will still be viewed in a positive light.

5. Add a Porch or Back Patio Area

Aside from indoor features, many home buyers look to a property’s backyard before making a decision on whether or not they are interested in buying. A porch or back patio is the perfect space to host outdoor gatherings or relax with the family in the evenings.

If you already have one of these areas, consider updating the space with new, stylish flooring, an outdoor kitchen area, or some outdoor ceiling fans. Though you likely won’t be selling your outdoor furniture with the home, it’s important to have a cohesive design and theme within the space to help potential buyers imagine themselves relaxing on the patio.

Selling your home for the best price is our speciality, so if you’re struggling to find a buyer in the current Perth market, feel free to give Brendan Leahy a call on 0439 998 867. He’d love to lend you his 12+ years of property experience and help you get the best outcome for your home.

Subject To Sale: How To Buy A House Before Selling [VIDEO]

November 23, 2020Selling Tipsadmin

**Want to buy a house before selling your current one, but not sure how? Learn all about a subject to sale offer…**

Maybe you’re ready to upgrade to a bigger, better home than you’re in now, but due to tight finances you need to sell your current house before you can afford to buy a new one.

The good news is, there is a way for you to buy a house before selling yours. It’s called a subject to sale or ‘subject sale’ offer.

Subject to sale contracts do need more careful attention to detail, but they often succeed and proceed smoothly to settlement.

What is a subject to sale offer?

A subject to sale offer is a condition that allows you to put an offer in on a home you want to buy (either to upgrade, or downsize), and it will only proceed subject to the sale of your current house.

When are subject to sale offers beneficial for buyers?

In most cases, if you sell your current home first and then look for a new home, odds are you will get the best possible price for both transactions. But depending on your circumstances, this may not be viable for you.

Subject to sale offers can be very beneficial if you’re in one of the following situations:

You’re thinking of upgrading or downsizing into a better home for your situation.
You want to buy a house before selling, to avoid moving twice and the pressure of finding somewhere to live in the meantime.
You’ve found a house but need to sell your home first, so you can use the funds to buy the new one.

In fact, over 73 per cent of our buyers and sellers are in this position – and the percentage is only getting larger with the tight lending conditions.

How are subject to sale offers beneficial to buyers?

BENEFITS

You won’t need to borrow anything, or as much money from the bank to afford your new mortgage (depending on the amount of equity available in your current home).
You won’t need to move twice, if your current home sells before you have found a new home to buy and you need to rent in the short term.
You won’t need to worry about paying for both a new mortgage PLUS your rent if you buy a new home before your short-term rental lease is up.

What are the risks of subject to sale offers for buyers?

RISKS

Your subject to sale offer may be beaten by more competitive buyers (with cash or finance offers).
You may need to sell your home for a lower sale price.
You might not sell your home within a reasonable time frame, and could potentially lose out on your dream home.
You may need to pay a premium on your dream home. Sellers are justified in asking for a higher sale price from you, for the advantage and protection of settling after the guaranteed sale of your current house.

What is the 48 hour clause (or subject to sale clause)?

This is usually combined in the ‘subject to sale’ contract as a special condition.

It means if someone else comes along with a cash or finance offer, you have 48 hours (or two business days) to go unconditional, and get either an offer on your house, or get home to home finance (previously known as bridging finance).

Learn about home to home finance here.

If you can’t do this within 48 hours, then the cash or finance offer will take precedence over yours, and you will miss out on your dream home. Which is why it pays to be prepared…

How to give your subject to sale offer the best chance of success

Have your house ready to sell, that day

You need to have your house ready, when you go looking for homes.

When you sign an offer and acceptance with a subject to sale clause on it, you’re saying your home will be going on the market that day, and will be selling for a certain price. A good real estate agent will already be thinking about buyers that they can get through your home to make the deal happen for you.

Stick with the agent that has your dream house listed for sale

Get them to sell your home. They have a vested interest in making sure everything goes forward, but more importantly, they know what’s happening with the sale of your home, and can communicate it to the owners of the home you’re looking at buying.

Be very, very sensible about the price you list your home for

Remember, it’s not about you creating a record in your suburb, it’s about you being able to get your home sold in the first place.

Sometimes that might mean forgoing 5 per cent or 6 per cent of the sale price – so you can move to your dream home. Which on a lot of occasions is going to be a bigger home, on a bigger block, with extra room for the kids, a bigger kitchen for the cook of the family, or a workshop.

Focus on the reasons why you’re moving, and you’ll have a better chance of pricing your home for sale correctly, and allowing your subject to sale offer to proceed.

As always, if you have any questions about how subject to sale offers work, feel free to give us a call on (08) 6254 6333 or contact us here and we can talk you through the process.

How To Spot A Dud Agent

Thinking of selling? Learn how to spot a dud agent by asking these four questions…

If you answer yes to any of them, it might be worth looking elsewhere!

Do they tell you a price that seems too good to be true?

The number one thing to look out for is the agent who tells you what you want to hear, instead of what you need to hear.

And by that I mean, if they tell you a number that’s so sky high compared to other agents you’re talking to – you need to ask them why.

Now, there is a caveat on this…

I’ve sold homes for $100,000 – $300,000 more than what the other agents have said, but I’ve done it with sound sales evidence.

If your agent isn’t turning up with current comparable sales and market information, about your house and your area. Then this is a clue they’re not the right agent.

And not just a generic one that covers everything…

If you’ve got a 4×2 on a half acre block, then that’s the sales evidence you need to be looking at.

NOT a 4×2 on a five acre block that got $300,000 or $400,000 more than the market average.

Do they spruik about their “service”?

The next thing a lot of agents will tell you is how great their service is.

Service is a given in any business these days – and if you’re not service orientated you should not be in business.

What you are after, (and what we provide) is an outcome.

I’ve never met a seller yet who didn’t want their house SOLD.

Ask them about their sales strategy instead, and see what they say.

Which brings me to the next red flag…

Do their sales statistics and client testimonials tell a different story?

When agents do start telling you how good they are, there are some useful sites you can look at to fact check them.

To view their sales statistics, Agent Finder on REIWA (Real Estate Institute of Western Australia) has all the sales for every agent in the state (plus the suburbs), for the last 12 months.

You can also look on realestate.com.au, but be mindful that it isn’t quite as accurate as REIWA.

There’s also a site called RateMyAgent which is one of the best agent rating sites around. You can view their past clients feedback – good and bad.

A lot of agents are great at the talk in this game, but very few walk the walk.

On average an agent will sell between 5-9 homes per year, which isn’t very many, so it’s always important to check what they say matches up with the facts.

Did you find them on an “agent matching” website?

Lastly, also be mindful there are now websites that tell you they will find you the best agent in the area. The thing is, the top 20%-30% of agents (anywhere in Australia) aren’t on any of those sites – because they don’t need to be.

If you go to any of my areas (take Bedfordale for example) on these sites, you won’t see my name come up. Yet, I’m the number #1 agent in that area – I’ve sold the most homes and I have the highest average sales price.

Because I’m not paying the website a 20% referral fee.

So in reality you’re not getting the best agent, you’re getting the agent that spends the most on that website.

Which is not a great indicator of experience, skill, or sales. If you want the best agent in your area, RateMyAgent and REIWA (which is the peak industry body for WA) will provide you with the official information for free.

If you’d like to know how much your home is worth, book in for an obligation-free appraisal with me here. Or get in touch with me on 0439 998 867. I’d love to lend you my 12+ years of experience and knowledge in the real estate industry.

Should I Sell or Rent My Property?

Thinking of upgrading to a bigger home, but can’t decide if you should sell your current property, or rent it out as an investment property?

WA has just recorded the strongest rental expectations in Australia for the next 2 years, according to the 2019 NAB Residential Property Survey, coupled with the lowest vacancy rate in six years. So if you can afford to, now is a great time to upgrade into something bigger, and keep your current home as an investment property.

“Provided you can afford it, you could make yourself an extra $40,000-$60,000 more, if you hang onto your home and sell in the next two to three years, thanks to the state of the WA market and economy.” – Brendan Leahy, CEO of Naked Edge Real Estate

Hear Brendan’s top #3 considerations to help you make the best decision for your situation…

Can you afford to keep your home as an investment property?

If you do decide to rent out your home, you will still have your usual rates to pay, plus ongoing maintenance and repairs. With a rental, hot water systems can fail, and air conditioning systems may need work. So provided that these costs won’t stretch you too thin, I would recommend holding onto your home for another two years or so.

This is because the core fundamentals (namely commodity prices) are in place for the WA market here to have some significant gains over the next couple of years. Keep in mind it is a different case over on the east coast. The market over there has slowed down – and I think it still has some slowing down to do.

WA is a mining state, and we’ve recorded strong iron ore price exports of $100 per tonne for the last six months, and based on WA treasury estimates, with every US$1 increase in the iron ore price, WA receives an extra $81 million.

The AUD exchange rate is helping as well, each time the Aussie dollar drops by just one US cent, WA’s royalty income is expected to jump by $101 million.

Can you afford to upgrade without selling your current home?

Ideally, the choice to maintain your property and rent it out will still allow you to upgrade and afford the home you want. Sometimes by selling the property you could borrow an extra $100,000-$200,000… so maintaining your home and renting it out may reduce that capacity.

But you might find you can still afford the home of your dreams in that price point. It is a buyer’s market at the moment, which is great for upgraders because house prices have dropped far below home values – and this market will not last long. There are homes in the Perth hills that were previously worth $900,000+ now available for $650,000.

It’s a great time to see what’s around, and speak with your lender to see what you can afford. The cash rate is also at an historic low of 0.25%, so it’s an opportune time to get your finances in a position to upgrade, and secure some long-term capital growth.

Is being a landlord for you?

If you find you can afford to keep your home as an investment property, consider whether you have the time, patience, and desire to manage your rental yourself, or if you’d like to hire a property manager to do it for you.

Some of the most important tasks of a landlord (or property manager) are:

Finding a reliable tenant that pays rent on time and maintains your property.
Collecting and lodging the correct tenancy bond with WA bond administration.
Conducting regular routine inspections on the property.
Organising prompt maintenance and/or repairs on the property.
Ensuring all legal paperwork and documentation are filled out correctly and signed (e.g. tenancy agreements, property condition reports, inspection reports, repair requests etc).

If you work full-time and have a family, you may find it difficult to give your tenant and rental the time and commitment it needs – it totally depends on your circumstances, and headspace.

If you’d like more information on how a property manager can help you protect your investment, feel free to get in touch with our sister company, We Love Rentals on (08) 6254 6300. They only do property management, and have 10+ years experience in the industry.

And if you’d like a second opinion about whether to sell or rent your property in the current Perth market, feel free to call Brendan on 0439 998 867. He’d be more than happy to answer any questions you may have.