If the decision is made to buy or sell a property, you should consider some options and develop a strategy for getting the best deal. To know the true, realistic market value of the house will help you make decisions with confidence. Home sales are often associated with big emotions, so listen to your head rather than your heart and get one step ahead of your competitors.
If you think about purchasing a house, financing is the main focus but there are other things that also need to be considered.
The location is one of the most important reasons to buy or rather not to buy a certain property:
And the condition of the building and the property is equally important:
Don't fall in love with the property before it's yours. You are at risk of offering an unrealistically high price and if it comes to nothing, you could experience a big disappointment. Stay focused on the actually important and essential features of the property.
An independent appraisal of the property and an assessment which points out defects and disadvantages, can become the main factor to justify a price reduction.
Buying a house is often the biggest investment in life. With no other purchase, the chances to save a lot of money by clever negotiation, are better than at the time you buy a house – be aware of that. So when buying a house there is often room for negotiation and it is important to explore the negotiation limits.
It is particularly important to set yourself a maximum price limit and to determine the realistic value of the house. An independent appraisal of the property and an assessment which points out defects and disadvantages of the property, can become the main factor to justify a price reduction.
You should try to find out as much as possible about the seller and their reasons for selling the house. In general, the chances to achieve a price reduction are better in direct negotiations with the seller compared to negotiating with the real estate agent although the estate agent should try to mediate between the parties.
Two abilities that always pay off while negotiating are a dose of finesse and a likeable impression because home sales are often associated with big emotions and to appear likeable in the eyes of your negotiating partner will go a long way. However, real estate agents are experts in terms of property sale and excellent communication. So if you feel rushed or pressured rather discontinue the negotiations, drive home and deliberate the purchase carefully.
Most homes for sale in Australia are offered through real estate agents. There is no law regulating that houses have to be sold by an estate agent, yet it seems to be the most convenient option and additionally, real estate agents have the specialised knowledge and experience that promises a smooth sale. But apart from the method a house is offered for sale, it should also be well prepared for the upcoming sale.
If you look at real estate ads, you'll find many houses that look abandoned, like the owner had moved out in a hurry, happy to not have to live there anymore. Abandoned, empty, dead – is that the kind of impression you want to convey to a prospective buyer? How about giving the property a little love, repair damages, maybe a fresh coat of paint, healthy-looking plants in the garden and a green lawn? Who would not prefer the house that is still alive.
Real estate guys have access to networks and mailing lists of potential buyers. Such contacts can significantly facilitate and accelerate the sale.
The advantages of selling houses via real estate agents are obvious, basically the whole sale can be organised by them. It starts with advertisements, through arranging viewings, up to conducting negotiations or mediating between buyer and seller. Because of their specialization in property sale, estate agents have valuable expertise and experience which enables them to offer fair and comprehensive advice. Often the real estate guys have access to networks and mailing lists of potential buyers. In the best case, they already have prospects looking for a property like that. Such contacts can significantly facilitate and accelerate the sale. As a result the seller has little more to do than signing the contract and thereby finalizing the sale.
A dedicated private sale can lead to earlier success and much higher profit.
Real estate agents are not compulsory and if you want to sell your property you don't have to consult them, you can do it yourself. Apart from saving the realtor's commission, there are opportunities for dedicated private home sellers that are less obvious at first glance.
As a seller of a property, you want a seller's market. In a seller's market the number of buyers looking to buy properties exceeds the number of available properties. As a result there could be multiple buyers interested in your property. But what if the opposite is the case, a lot more houses on the market than buyers (buyer's market)? From the perspective of real estate agents that could mean lots of addresses supposed to be sold but just a handful of buyers. Whether it takes three months or one and a half years to sell, and no matter how much more effort it takes, they get paid the same. And not only that it takes longer but you may even be forced to lower your asking price, making it even less appealing for your estate agent because they get a percentage. So this will rather tend to result in less effort put into the sale, which in turn increases the time to secure a buyer even further... And that is the time when a dedicated private sale can lead to earlier success and much higher profit.
Last updated: 08 Mar 2019
House & Property Care