As many Australians enjoy the festive season and summer sun, the real estate market goes into hibernation. That is until the New Year, when the market starts to pick up again. If you are looking to put your home on the market in early 2018, there are a few things you can do to make sure your home stands out from the crowd and increase your chances of achieving a successful sale. Here are seven tips on how to prepare your home for a summer sale:
Garden is number one – When looking at a home during summer, many buyers will pay extra attention to the garden and outdoor areas, as this is where they will imagine themselves spending time during the summer. Make sure the garden is well maintained, green and lush, with no dead flowers or uncut grass. If possible, try and incorporate some shady areas in the backyard.
Credit: renoguide.comau
Inspection times – Running around and looking at houses when the sun is shining and the temperature is high, is not an ideal scenario for potential buyers. Try to schedule your inspection times earlier in the morning or later in the afternoon to avoid the heat during the middle of the day.
Inside retreat – The inside of your home should be a cool escape from the outdoor sun. Keep the air conditioning or ceiling fans on during inspection times, or open windows and doors to get a nice breeze flowing through the house.
Credit: Three Birds Renovation
Change up the colours – Remove heavy curtains, rugs and cushions in darker colours, and replace them with a brighter and lighter palette that is more suited to summer. These small things can give the home a completely new look that is more suited to summer and warmer temperatures.
Create an oasis – If you have a pool, this is the time to show it off by making sure it is well maintained and looks its absolute best. During summer, this is a great selling tool and you want it to appear as the perfect summer oasis.
Credit: Harrison Landscaping
Replace the old – Small things that are worth investing in include updating the mailbox, front door, fence and adding a fresh coat of paint to the exterior. This can work wonders for the front of the home, which is the buyer’s first impression. It’s important that the home has great street appeal and looks inviting.
Credit: Heartly Design
Outdoor dining – In Australia, we are lucky to be able to use outdoor areas the majority of the year, and during summer we really want to take advantage of our climate. Stage your alfresco or patio area with furniture to make it appear large and inviting. You want potential buyers to imagine themselves eating and entertaining in the space.
–Greville is executive chairman of WBP Group and one of the buyer’s advocates on The Block. He is a regular commentator on Sky News and the daily papers such as Herald Sun, the AFR and The Australian, helping everyday Australians make better property decisions.
Storage and more storage. Photo credit 306/417 Bourke Street, Surry Hills represented by Belle Property
As the weather gets warmer it’s time to highlight the best renovations that will see you attract interest and win over buyers. Keep in mind that as we head into summer, people think about spending more time outdoors and that some of the things you can get away with in winter, become essential to fix when the market heats up.
Light it up
You can make a dim room look cosy in winter but as the days get longer, getting in enough light becomes crucial to nailing a sale. If a room can be improved by introducing more light—whether that’s enlarging a window, removing a wall, or adding a skylight—do it.
Also consider where shadows fall at different times of day. You may already have an instinct about what time might best represent your property: do you have bright mornings or stunning sunsets? Schedule an inspection at the optimum time.
Light and bright. Photo Credit: 1/102 Albion Street, Surry Hills represented by Belle Property
Some rooms need light more than others, so if you’re on a budget focus on bringing light into spaces where people gather during the day, like the kitchen, dining and lounge rooms. Bedrooms look nice with natural light but because they are used mostly at night it’s not nearly as important.
Show some space
You might get away with relabelling a poky property as ‘intimate’ in colder, less competitive seasons, but in spring you need to lift your game and open up the space. Older style properties are often made up of many rooms, which makes the property come across as poky. Combining a couple of these spaces to make it open plan will definitely improve what buyers see. Space is something buyers look for subconsciously, so if you can increase the feeling of roominess, that will help your place sell.
Storage and more storage. Photo credit: 306/417 Bourke Street, Surry Hills represented by Belle Property
Also consider if there is enough storage. If your renovation can add storage without cutting into the floor space —think high and low— then that will make the property more attractive. And if you haven’t done your spring cleaning, do it before you show your property, as clutter is a big turn off. Better yet, move out and let a property stylist bring in furniture that fits proportionately and shows the space at its best.
Private property
A sense of privacy is another element that’s largely subconscious but makes a huge difference to how comfortable buyers feel in a place. It helps if you can’t see the neighbours and vice versa, but if you can, make sure your reno addresses this. Consider screens or awnings that don’t block the light, or fittings like frosted windows or glass bricks that let in light but reduce visibility.
This also goes for backyards, especially if you have a terrace that opens up to a back area such as an entertaining deck or a garden. Use hedges and other natural elements like bamboo screens, wood fences or living walls to disrupt the line of vision but maintain that outdoorsy feel.
Urban oasis. Photo credit: 164B Bourke Street, Darlinghurst represented by Belle Property
Sellers often think buyers are primarily influenced by size and location, but these factors only serve basic needs. What will make a difference is how the property feels and that intangible feeling is based on light, space and privacy. Ensure your renovation improves those three things and you’re set for a competitive selling season.
Selling your home is stressful. There’s a lot to consider, from choosing the right agent to staging your home. In such a competitive marketplace it can be difficult to weigh up what is the best way to secure the highest price for your property, so comes one of the hardest decisions of all: auction versus private treaty? Justin Ferguson, Founder and Principal of Ferguson Property Agents, shares the pros and cons of these two popular methods.
Willoughby home listed by Ferguson Property
Auction
Pros:
• Flexibility: As the property owner you have the ability to choose the date of sale, settlement date and make sure all the terms suit you.
• More security: Provides the protection of a reserve so your property won’t sell unless bidding reaches a pre-agreed level.
• Win-win: Both buyers and sellers can work towards getting a result on auction day, which means the vendor can get a premium through spirited competition.
• Spoilt for choice: The option to sell your home one of three potential ways: prior to auction, auction day or through negotiation.
Cons:
• Higher cost: In terms of a marketing budget and other unprecedented costs.
• Personal preference: Some buyers may not like the auction process and could be deterred from viewing your property.
Private Treaty
Pros:
• No rush: Provides more time to consider offers from multiple buyers. This is suited to sellers who don’t have the urgency to sell.
• Privacy: The ability to withhold certain information from the general public.
Cons:
• Uncertainty: Subject to a cooling-off period where the buyer could change their mind.
• Lengthy: No specified end date means it may take much longer to sell your property compared to selling it via auction.
One-bedroom apartments have been the surprise hit of the real estate market in recent years, especially in the city and inner city. It’s common for renovators to try to add value to a property by adding a room but, considering this trend, you should stop and think about whether it really will.
Image courtesy of Belle Property
What I’ve found is a lot of one-bedroom places have performed extremely well because they cater to singles and couples and these two demographics have shown a preference for one-bedders of generous proportions rather than two pokey rooms.
The preference for more space rather than more rooms doesn’t apply to everyone, however. If you’re looking to rent out a property near a university, for example, your key demographic might be students and two or more smaller rooms will be more attractive to these tenants than fewer rooms with bigger spaces. Families with children will also show a preference for more rooms over bigger rooms—the more you can separate the kids, the better.
The rule is to consider the market your property is in, the demographics of the likely buyers and their preferences.
Make room
Instead of splitting a property into smaller rooms, try to add rooms and keep the space as big as possible at the same time. How? If you can, convert space such as an attic into a bedroom, or add a room above an unused area, like the garage.
If you have a property with a yard you can apply to build a granny flat or studio that’s separate from the house and add value that way. The NSW Government has been pretty good about approving new granny flats and studios because it adds capacity without requiring new land or utility infrastructure.
No matter which state you live in, however, you need to check the laws as there may be limits on aspects such as size, or the building may need council approval.
Create a niche
There are a couple of cases where it’s a good move to add a wall or at least a separator. Converting a studio apartment to a one-bedroom place will almost always add value, for example. Although single occupants don’t mind the big open space of a studio, you can increase the appeal of the property to a wider demographic (adding couples as well) if you enclose the bedroom, as it will allow for a bit more privacy.
Also consider having a selling point like a study/office space or hobby niche. You don’t need to close off a space and make it a new room; instead, build in a separator such as sliding walls/doors or create a nook in an awkward spare corner to accommodate it.
If there’s one thing the last few years has taught the real estate industry, it’s that properties with more rooms do not always sell better than places with more space. Always keep in mind potential buyers when you feel like knocking down walls—or building them up.
If you could do only one thing to make your place more appealing to buyers it would be to hire a property stylist. Property stylists, sometimes called home stagers, are professionals who, through clever use of furniture and accessories like artwork and lighting, make your place more attractive to buyers through aesthetics and ambience.
Image courtesy of Bowerbird Interiors
Here are five things to consider when hiring one, based on what we do:
1. Experience and expertise
Look for stylists who have an interior design background and a track record of consistent delivery. They should also have at least a few years of experience working in real estate. A lot of stylists come from an editorial background, working on photoshoots for magazines and are not always the best choice to help you sell your place.
Experienced stylists should examine your property and also ask about the type of buyers you’re expecting as this will give them a starting point for the kind of transformation they will make.
2. Match the stylist to the property
All professional stylists will have a portfolio. Take some time to look at the stylist’s previous work to see whether their design and style would suit your property. A high-end property, for example, will need someone who can do luxury looks.
While the aim of hiring a property stylist is to neutralise a space so that buyers can visualise its potential, be careful of stylists who use too much white and make the property look bland. Your place should invite buyers to project their own vision on it but also show a little personality of its own.
Image courtesy of Bowerbird Interiors
3. Compare quotes
We usually ask at least two stylists to quote for a job, which makes them more competitive.
For the inner-city Sydney market, prices sit around:
1-bedroom apartment: $2,500
2-bedroom apartment: $3,500
3-bedroom apartment: $4,500-5,000
However, the cost will vary depending on the condition and size of your property and also the availability of property stylists in your area.
Consider this cost as an investment. If the styling attracts even one more buyer than the property would have had if left unstyled, then the price tag is worth it. At auction, one more prospective buyer will easily pay back the stylist’s fee.
4. Prepare your property
The most helpful renos you can do to support a property stylist’s work is to paint the walls a neutral colour and replace any worn carpet. While the stylist will bring in their own furniture to help freshen up the place, nice furniture can’t hide walls that are too distinctive (or unattractive) or ugly floors.
Your property also needs to be empty before the stylist can transform it.
Image courtesy of Bowerbird Interiors
5. Leave enough time
Stylists need at least a week’s lead time to source the right furniture and accessories, and installation will generally take between a few hours to a day, depending on the size of your property. The more time you can give the stylist the better; very busy stylists will work on several properties at once and a longer lead time may mean you can secure better furniture and accessories for your property.
Real estate is all about a feeling and styling is the ideal way to create that emotional connection between a property and a prospective buyer. It is well worth the time, money and effort to have your place styled, so take this advice into consideration when you’re next looking to sell.
When clients came to talk to us recently about organising finance for the purchase of their next family home, it was time to action the “slow and steady wins the race” approach.
Leah and Brett bought their first home in a sleepy lakeside suburb of Lake Macquarie, with the plan of giving it a bit of a facelift while they lived in the granny flat out the back.
Before: frontAfter: front
“We built the granny flat so we could live there while we gave the house a cosmetic makeover,” says Leah. ‘But once we started to pull things out we realised it was more of a project than we realised – and my husband is a builder!’
So what began as a freshen-up quickly escalated into a complete renovation, with the home stripped back to its foundations before any new work could begin. What was to be a three-month job for Brett blew out by six months and as for costs…
But nine years down the track it’s (almost) a fond memory for the couple. “We lived in the granny flat for three years,’ Leah explains. “It was great!”
With two small children and a yearning for some more space, the family is moving on and has put their home on the market. And, despite already finding their next dream project, after chatting with us they have chosen to sit tight and wait until they sell their home before making an offer on the next.
“It’s hard to wait,” Leah says. “We’ve found a place that’s perfect for us. But once we sell this place, we’ll know where we stand, we’ll have our finance in place and we can make an offer from a position of strength. I just hope it all works out!”
Before: back yardAfter: back yard
Even though Brett and Leah are probably in a position in which they could organise a bridging loan, after working through their options, they decided to take our advice and wait it out and try to sell their own home first before doing anything else.
This way, they will know just how much money they have to offer and it also means they won’t be tempted to take a lower price on their own home just to relieve the financial pressure of a bridging loan. The worst case scenario will be having to find somewhere to live if they miss out on the home they want to buy.
While there is a good cased for bridging finance for a lot of people, it just wasn’t the approach the couple wanted to take. Bridging finance is no longer as expensive as it used to be and if you have the means to service the loan, most lenders should negotiate with you on a rate that is usually pretty well in line with the current home loan offering.
However, it can be expensive to set up and you will have to service two home loans until you sell your existing home; which may put you under financial pressure and tempt you to sell your home for less than it is actually worth just to ease the stress.
— Paul is the Director of CVG Finance, a leading brokerage offering financial services across all areas.
Attending an auction, with the intention to bid, can be a nerve racking experience to say the least. You’re about to compete, in public and at a cost; however, the ultimate cost is at your own discretion. Bidding is an art, and if perfected, can see you outdo the guy who rolled up in the shiny Merc and tripled the first bid.
Image source: Your Property Hound
Have your finances pre-approved: Secure a loan package with a competitive interest rate – and do so beforehand so you know your budget and can bid with confidence (and not just emotion) when you rock up on auction day.
Bid in odd numbers: a simple trick that can be extremely effective. Typically bids will go up in even increments. If bids begin to falter at $500,000, then bid $503,000. You could just manage to win the auction at a fraction of your foreseen cost by avoiding round numbers.
Have three prices in mind: A price you believe would be an absolute bargain to pick up the property, another you consider to be the true value, and a final that would be the absolute maximum you could afford. Auctioneers fuel off overbearing emotions. By dissecting the value, you’re effectively allowing yourself to participate in the auction from a stable and sensible position.
Be an alternate-bidder: If the bid is increasing in $5,000 or $10,000 increments, try to slow bidding by going up by only $1,000 or $2,000; likewise, if bidding has slowed down and is going up in only small increments, try to blow the other bidders out of the water with one last powerful bid. Either way, you’re breaking the pattern and by doing so, manipulating the process to your advantage.
Remain cool and confident: Ask the auctioneer or selling agent questions that might deter the hesitant, auction-novice. Mention the body-corporate fees, or ask for an update on the local capital works. Expressing your knowledge could be the difference between leaving with a new property or leaving without. Make calm eye contact with other bidders, transmit your confidence through your body language even if inside you’re as nervous as the rest of them!
–Bessie writes for finder.com.au, one of Australia’s largest comparison websites. She is passionate about real estate, renovating, and helping Australians find better.
Spring has always been the darling season on the property sales calendar, but summer is hot for sales too—if the timing’s right.
When is the best time to sell a property? Many people assume it’s spring, but the answer is not a season. The best time to sell is when there’s not much stock on the market. The best sales results are achieved when your property is selling in isolation, not competition.
Summer then, is a great time to sell property, but you need to get your timing right. A lot of ‘new year’ stock comes on the market in February after everyone has had a break and has finally gotten around to talking to an agent. The best time to sell in summer is therefore January, before everyone lists their property.
There’s a myth that there aren’t as many buyers during summer but, the truth is, buyers are always looking. On a lazy summer’s day people browse property listings and start dreaming of a new life and plenty of new year’s resolutions centre on finding a new place to live. Sellers should take advantage of this.
Want to sell in summer? Follow this schedule:
December
If you’re going to sell in December, the first two weeks is the best window you have before everyone (including most agencies) take a break over Christmas and new year. Buyers will still be looking during the holidays but very few agencies will show a property during this time.
Otherwise, December is the best time to prepare your property, especially the garden. Lawns need a decent lead time to look their best, so cut and treat the grass so it looks lush by January. Clean the gutters, give the property a lick of paint and declutter. When you retrieve the Christmas tree from storage, it’s a great time to look around and see what you can sell or throw away.
Talk to your agent in December and have photos taken after sprucing up the place but before the holidays so you are ready to list the property in January.
January
List the property and get ready for inspections. If your house tends to heat up, consider scheduling showings for the morning or evening. A sunset viewing when the days are longer is one advantage summer has over other seasons.
While it may be too hot for baking bread or burning a candle, seasonal scents from fresh flowers or fruit can set a good mood. Have fresh cold water or lemonade on hand to give to visitors.
Summer showings are also an excellent time to play up any appealing outdoor area your property may feature. Set up your deck, courtyard or balcony as an inviting space so buyers can instantly see it as a place for friends and family to gather. Highlight other warm weather features such as breezeways and, if you have one, your pool—which you have cleaned, of course.
February
If all has gone well, you’ll have exchanged contracts by February. If your property is still on the market, however, rest assured that you don’t have to compete for tradespeople and painters and agents to get your property ready.
If you’re selling at auction, book the auctioneer for late January or early February, giving you enough time to show in January but closing the sale before the rush in February.
In my experience, the best times to sell are before the rush periods. For me that’s August, before the spring listings, and January, before lots of stock comes on the market in February. With a bit of planning, you can get the jump on the summer sales period by listing in January, making it a very happy new year indeed.
The episode started with the contestants finding out their reserves. This was interrupted by Suzi apologising to the contestants (for those who stay away from any and all tabloid drama, let’s say she’s been having a few issues of late). I thought it was really good of her to confront it head on and give an eloquent “I’m sorry.” Well done! So, once that was done, onto the reserves? Ah, well nearly. We had to sit through a hugely time-consuming, overt sponsorship-package of virtual glasses, which saw the contestants put them on to try find the keys to the briefcases that held their reserves. What a waste of time! Many minutes later, they’d found the keys. “That’s 10 minutes I won’t get back,” said Scotty. You and me both, buddy!
So with the keys retrieved, they opened their briefcases to find their reserves. I can’t say there were any surprises, with the prices going up consecutively from apartment one-to-five. Ranging from Caro and Kingi on $1.33 million (they got to deduct $10,000 as a result of their challenge apartment win) and Shay and Dean on $1.645 (who got to deduct $15,000). In my mind, it was always between these two, and now it was time for the apartments to go under the hammer.
Caro and Kingi
First up were Caro and Kingi with apartment one. Now there’s quite a dramatic tale behind the auction order and them scoring position number one. Initially, in a previous episode, they had gotten number five and Luke and Ebony had received one. However, in probably the noblest move I’ve ever seen on reality TV, the second-chance siblings swapped positions after they all agreed Caro and Kingi would struggle to sell (being the lowest level apartment) if they were last. What good eggs!
So Caro and Kingi’s reserve was set at $1.33 million and it was time to start bidding. First bid? $150,000 above reserve. And from there it just kept going! Suddenly the profit was at $320k. “Did you pay off your mortgage?” said Scotty. “Yes, just then!” said Kingi. This is why I love The Block. It started slowing down and the bids were rising by $5,000 for ages. Finally there was last call and the couple ended up with a final bid of $1.735 million and a profit of $405,000. Fabulous job.
Vonni and Suzi
Next up was apartment three with Vonni and Suzi and a reserve of $1.48 million. Now, we’ve always known their apartment was looking for a very specific buyer. My hope, was that buyer was actually at the auction. Waiting for the bids to start Scotty had a chat with the best friends about how they went on the show for their kids. “When I felt like giving up, that’s who I thought of,” said Vonni. Oh, the emotion. And that’s not sarcasm, I actually find this stuff very moving (don’t judge). Ok, let’s get on with it.
Opening bid went straight over reserve by $30,000. Then $120,000. Two serious bidders were in play but by the time it got to a profit of $280,000 it seemed like it could all be over. Which, obviously is great money. But the fact they had to split it down the middle and it was significantly off Caro and Kingi’s winnings, I wanted them to get more. And more they did. After what felt like pulling teeth, the girls walked away with a final bid of $1.829 million and a profit of $349,000. I know they were an extremely polarising team, but there’s no doubt they deserved it.
Shay and Dean
Now it was Shay and Dean’s turn. Let’s admit it, they were the favourites from the get go. Having tried out for The Block countless times they were finally at auction day and my oh my, did I have high hopes. Their penthouse’s reserve was set at $1.645 million and their apartment (thanks to previous wins) came with a car and $10,000 in cash! To take out the show, they needed to sell for over $2 million!
The first bid went $5,000 over reserve and then it started moving fast. Very fast. Even Scotty, who seems to have God-like mathematical skills, was struggling to keep up. In no time at all they were closing in on $2 million and were $345,000 over reserve. And then the bids passed $2 million, then $2.1 and $2.2, and finally the closing bid was $2.3 million with a profit of $655,000. Wow. Just wow. What crazy money.
Andy and Whitney
Next it was Andy and Whitney with apartment two and a reserve of $1.4 million. We immediately hit awkward territory when they sat down with Scotty as a result of him bringing up that they were no longer together (another story that’s been going tabloid crazy!). I must admit I deal horrendously with cringeworthy television and when Scotty started talking about them dating other people I nearly threw my phone at the TV to make it stop. But luckily, Scotty stopped himself, and with Andy and Whitney agreeing to split the profits equally, it was time for the auction to start.
The first bid started at $60,000 over reserve. It jumped up quickly and not long after they were $200,000 over reserve. The bids were pretty slow from there on. Whitney said she wanted to pay off her parents’ mortgage which was very sweet, I just hope she gets some to keep. We got up to $360,000 over reserve and then the bids started getting into silly territory. Jumping up by just $2,500. At the end, the final bid was $1.79 million, scoring a profit of $390,000. Not a bad effort from the underdogs.
Luke and Ebony
Lucky last was Luke and Ebony. I must say it’s taken me to the final episode, but Luke is my favourite. How excited he’s been throughout all the auctions and how much encouragement he’s been shouting, he clearly wants everyone to do well. So Luke (and Ebony) I hope the same goes for you. Oh wait, why are ex-contestants Ayden and Jess here? Literally, what is the point? They’ve just randomly popped in to say good luck to the siblings. It’s time-wasting rubbish like this that drives me insane. The virtual glasses, then this. Really?! Get on with it!
With a reserve of $1.56 million, the first bid came in at $50,000 over reserve. And then. Well then nothing. It went quiet. Depressing music started playing in the background, and there were close-ups of faces. So many close-ups. I could tell what the producers were doing and I was not loving it. For minutes it sat at the same bid. And after Luke and Ebony had graciously swapped positions with Caro and Kingi, they had to get more money. They had to! And… ad break. Typical.
We’re back and obviously we have to replay the sadness. Goodness this would be a crap end to the season. And then. What! Suddenly it jumped to $170,000 over reserve and then $340,000 over reserve. This makes no sense. I feel like I’ve just got played by the producers. There’s no way that happened like that in real life. No way. Heavy editing at play.
Now the bids were going super fast and in no time at all, Luke and Ebony had made over half a million in profit. Were they going to beat Shay and Dean? Close, but not quite, coming in with a final bid of $2.2 million and a profit of $640,000. Over $300,000 each! So there you have it, being selfless pays off. A lesson for all the kids out there!
With Shay and Dean coming out on top they took home an extra $100,000, taking their grand total to $755,000. Amazing! In the end everyone did so well, and they’re always the best auctions to watch… until next year!
Renovating your property and preparing it for a sale means you want to add maximum value for the least amount of money. And whilst we’re all familiar with the usual makeover tips, we go a little further, revealing not only what to do but also how to do it so you can get bang for your buck!
Not just a lick of paint but the right colour
We’ve heard it many times over; a lick of paint will do wonders for your makeover. Indeed it will but it is important to know what hues to use to maximise the aesthetic potential of your property.
For exteriors we recommend dark hues because they hide imperfections and can accentuate the architectural appeal of your home. A 1950s oval tin shed that would normally need replacing can look remarkably beautiful painted in a dark exterior colour. For a fresh, contrasting look complete it by replacing old worn out doors and windows with new white ones, and you’ve just saved yourself the cost of a new shed!
Create the illusion of space
For a few hundred dollars, you could be adding thousands to your sale price by knocking down a non-structural wall. Buyers are looking for open, airy spaces and open plan living is on the top of their agenda and lifestyle. Can you knock down the wall that’s joining the living room and the tiny kitchen? Great, go ahead and do it and you’ll reap the rewards at sale time.
A good clean up of the garden is a given, but a good prune is something most sellers don’t pay attention to. How do you feel when you get your haircut? Exactly our point!
We recommend pruning your trees and plants and giving them a generous ‘haircut’ at least eight weeks before sale time. This will not only aid your garden clean up but will help promote new growth just in time for your sale, making everything look vibrant and lush. Selling in a hurry? Get rid of any leggy growth or dead wood and tip prune your plants for an equally effective result.
Front door appeal
Much like dating, first impressions count and you’ll have potential buyers saying: “You had me at hello!” if you put a little more love and attention into your front door area.
Start by eliminating any clutter from your entrance to allow the energy to flow through your front door (this is a feng shui must). Make sure your front door is functional and in perfect working order. Rust on screen doors is a turn off for buyers and so are wooden doors that have had extended exposure to harsh elements like sand, wind and sun.
Repair or and repaint immediately and why not have some fun updating your front door with a fresh new colour. For as little as $80 and an afternoon’s labour you could be adding a few thousand dollars to your sale price.
Add the shiny things
Let’s face it, people are like magpies; they are attracted to shiny things!
Add some affordable bling to your home by replacing your old worn out taps with shiny, new chrome ones. Replace a plain tiled feature wall with contemporary tiles that offer textural reflection and lustre. Light switch panels can tend to go yellow over time, replace them with new ones or even opt for a completely new and contemporary light switch panel. Adding large inexpensive mirrors to bring in the light will also amplify your interiors. Finally, finish off by styling your property with luxe accessories which you can take with you after the sale, like copper, mirror, glass or chrome vases, trays and floor lamps.
Change buyers’ perceived value of your property
Small cracks, dents and damages that you think may not be noticed can in fact play a major role at sale time. As your potential buyers inspect the property these insignificant imperfections, although not major, can still be noticed subconsciously therefore shaping any buyers’ perceived value of what your property is worth. Attention to detail is a must, so make sure that during the makeover you inspect your property with fresh eyes just like your buyer will.
Flooring rule: less is more
With flooring always remember that less is more. Strip back that aged carpet to reveal the natural wooden floor boards underneath; not only will it freshen up your interiors but it will also create the illusion of space by having one type of flooring seamlessly featured throughout the entire home. If you are replacing your flooring opt for simple floorboards, or carpet (if you must). Unless it’s a bespoke property with exceptional quality materials, your flooring should never be the showstopper!
Ask a professional
For the affordable investment of a consultation session, you can have all the guesswork removed and save hours of laborious planning if you get the advice of a professional. Makeover blind spots are easy to miss, but with a pair of fresh, expert eyes you can be on your way to maximising the value of your property.
Number crunching is one of the less exciting parts of renovating – but unfortunately it’s also one of the most important. Whether you are turning over an investment property or renovating your home as a long-term nest for your family, it makes sense to know you are not overcapitalising and the money you are spending is adding value in the long-term. What’s more, the scope of the work can often determine the best type of finance you need to put in place.
This is the third part in a series about steps to take to ensure the hard work you put into your renovation pays off financially.
So you’ve finished your reno and your house is on the market. But what do you do when you find the next house of your dreams but you have not sold your original one yet?
You have a few options, all of which have their pros and cons.
The first is taking some of the equity out of the home you have on the market to put down a deposit on the home you want to buy.
For example, the house you are selling is worth $500,000. You owe $200,000 and have $300,000 equity, so to procure the home you want to buy you can transfer some of this equity to use as a deposit.
Pros:
You can secure the house now and either move in or get started on your new reno;
You’re buying your new home at today’s prices;
You can shop around for a better loan for your new home as you have a deposit for a completely new transaction and will be able to pay out your existing loan once you’ve sold; and
You don’t risk losing the house of your dreams.
Cons:
You’re holding two mortgages which need to be serviced, because in effect, you have borrowed 100% of the cost of the new house on top of the loan you already have;
You have two houses to maintain; and
You are sweating on selling!
The second option is a bridging loan. These are useful when you don’t really have enough equity in the house you are selling to make it worthwhile pulling money out of your existing loan for a deposit on the new house.
Bridging finance is no longer as expensive as it used to be and if you have the means to service a bridging loan, most lenders should negotiate with you on a rate that is usually pretty well in line with the current home loan offering.
Pros:
You can secure the house now and either move in or get started on your next reno;
You’re buying your new home at today’s prices; and
You don’t risk losing the house of your dreams.
Cons
It can be expensive to set up;
You usually have to stick with the lender you are already with which means you can’t shop around for a better deal;
You need to service two home loans until you sell your existing home; and
You are putting yourself under financial pressure which may entice you to sell your home for less than it is actually worth just to ease the stress.
Your third option comes in to play when you simply don’t have the funds to service two loans and you need to sell your place first to free up the money to buy the next one.
But if you really want to secure the house of your dreams, this is when you can start working with your solicitor to put some clauses into the purchase contract that make it possible, but give yourself some breathing space and some outs in case yours does not sell.
There are clauses that can be set up for a delayed exchange on a purchase. This means you’ll pay a small holding deposit initially, but exchange can be subject to either the sale of your home or finance.
Your solicitor could also negotiate a six-month settlement that will allow you to secure the house with a holding deposit, but give you some time to sell yours. This one’s not for the faint-hearted because you are really putting yourself in the pressure cooker to offload your place within the six months.
Again, the pros are:
You aren’t tied to the lender you are already with because the sale is not linked financially to the purchase. This means you can shop around for a better loan for your new home because you’ve given yourself time to sell your own house and organise finance on the new one;
You secure the house now and you can either move in or get started on your next reno;
You’re buying your new home at today’s prices; and
You don’t risk losing the house of your dreams.
But the cons:
Sometimes you’ll come up against a seller who is reluctant to give you time to sell, especially if it’s a seller’s market or a hotspot, such as certain suburbs in Sydney; and
You will lose the house if yours doesn’t sell.
So the short answer to the question is yes; you can buy again before you sell your existing home, and there are number of ways you can make it happen — you just have to decide which best suits your circumstance and will work in your favour financially.
— Paul is the Director of CVG Finance, a leading brokerage offering financial services across all areas.
When selecting a real estate agent it’s all about choosing the person who can best influence the price of your property upwards. You need to ask yourself: who can achieve the best result and how are they going to do it?
Mark Foy of Belle Property Surry Hills
Finding that perfect agent can be hard, and there’s no way around the fact that you have to do your due diligence. So visit your potential agent, go to some of their open homes and auctions and check them off against the below checklist. If they get seven big ticks, then I think you’ve found the one!
1. Buyer relationships and access to buyers
What properties does your agent have on the market in your local area and do they have an extensive network across the country? Select an agent who does a lot of sales in the area but also has a broader network, because more buyers equals more dollars. It’s that simple.
2. Negotiation skills
What quality of questions do they ask the buyers and will they always go back and ask for more money?
One of Mark’s recently sold properties. Photo credit: Belle Property
3. Superior local market knowledge
Your agent should be well aware of the buyers in the market place and the properties you are competing against. They should know what properties your buyer has bided on in the past, because then they will know how much money they have to play with.
4. Auctioneer
There’s no point having a good agent if you don’t have a good auctioneer selling your property. It’s so important that the auctioneer is able to keep the auction flowing and build momentum. Make sure you watch the auctioneer in action before deciding to go with them.
One of Mark’s recently sold properties. Photo credit: Belle Property
5. Editorial
What reach does your agent have to promote your property in the media? Free editorial makes a big difference and puts you a cut above the rest. It’s going to influence the price upwards and will help get more people through the door.
6. Team operations, customer service and buyer experience
It’s not just your agent that’s representing you, but their team. What’s the dynamic? Who handles the buyers? How many people work your open home? How long has everyone been in the industry?
One of Mark’s recently sold properties. Photo credit: Belle Property
7. Presentation
How does your agent present your property? Real estate is about finding that feeling, and when you walk into a property you either get it or you don’t. There’s only one first impression. So does your agent have good access to stylists? Do they know what time of day shows your property in the best light? Do they know when bin night is? All these little things make a huge difference when it comes to showcasing your home’s maximum potential.
Even for the most experienced real estate agent, selling a Block property is no walk in the park. First, you’re dealing with thousands of potential buyers traipsing through the property, rather than the usual tens or hundreds. Secondly, there’s the fact you have to market the home while the show’s still airing (sounds like a marketing nightmare to me!). And lastly, there’s the almighty challenge of having to sell a townhouse with the whole country watching! No pressure!
Mark (left) and David
So we spoke to Josh and Charlotte’s real estate agents — listing agent Mark Konishi of hockingstuart South Yarra and auctioneer David Wood of hockingstuart Albert Park — to find out what goes on behind the scenes and how they’re going to avoid an auction disaster like last year’s.
Josh and Charlotte
“We weren’t involved with the Glasshouse series but feel that many buyers were perhaps thinking the apartments could have sold for more and as a result weren’t present on the day,” explains David. “It’s important that we do all we can to ensure all potential buyers are attending the auction of the apartment.”
Alongside high buyer demand, both David and Mark think the property’s location, style and high quality fixtures, will see Josh and Charlotte come out on top this auction day. “From our experience in the South Yarra market, we know that there’s a strong appetite for townhouses in prestige locations,” says Mark. “Darling Street, in particular, is within proximity to the shops, public transport, the Yarra, the Botanic Gardens and many schools, as well as being an arm’s reach to the CBD. The quality of Charlotte and Josh’s apartment with its luxury fittings and furnishings will also put us in good stead to come out with a good result on the day.”
As well as having many high-end fixtures, Josh and Charlotte’s townhouse also includes many other stand out features. “Being at the front of the building, the townhouse boasts fantastic street appeal and enjoys plenty of natural light,” explains Mark. “The electronic louvres on the facade allow the perfect amount of light streaming through. Plus, the spacious master bedroom has those exposed roof beams which buyers love, as well as a view of the courtyard. All in all, it’s a perfect low maintenance townhouse in a cracking location.”
With this Block listing being David’s fourth (he won Fans vs Faves with Steve and Chantelle) and Mark’s second, they both agree that while there is a lot of fanfare, the whole selling process is quite similar to any other property. “Admittedly, it’s not every day that we sell a block of four townhouses very similar in structure in the one day,” says Mark. “We have thousands of buyers through the property, most of whom want to check out their favourite contestants’ townhouse and be a part of the movement. But with that said, 27 Darling Street follows a very similar marketing campaign to other properties on the market, from sourcing buyers and running an advertising campaign to an auction.”
The Block goes to auction on 28 April, with the on air date yet to be released. Read up on everything Blockhere.
With the Apple Watch due to be released 24 April, Domain have transformed their award-winning iPhone app into the perfect tool for helping house hunters closely watch the property market (pardon the pun!).
Providing easy access to the information you need throughout the buying, selling, renting and searching process, the Domain app will allow you to:
Search and view property information and photos with one touch
Receive instant notifications about properties that meet your criteria and when details or inspection times update
Organise properties as favourites and schedule inspections
Pick up where you left off with your iPhone to explore properties in more detail.
Domain’s Apple Watch app will be available to download free from the Apple App Store following the release of the watch.
With the intense time pressure, the late nights and the limited funds, I can’t be the only one who wonders how The Block’s contestants can actually create high-end properties. Especially when you add to the mix that this series they’re renovating in the wealthy suburb of South Yarra… well it truly makes me beg the question: are these townhouses even going to sell?!
But rather than speculate I decided to go straight to the source and chatted to one of The Block Triple Threat’s newest faces, buyer’s advocate Greville Pabst. “It was my perception at first that buyers may be apprehensive about the quality, but the contestants do go back and fix all the abnormalities. There are really two aspects to The Block, there’s the television reality aspect and then there’s the presentation for marketing and sale. The contestants have a certain amount of time to prepare for reveal but after the feedback is given, they fix any issues.”
Greville, with buyer’s advocates Nicole and Frank
Greville also believes this series’ auctions will have happier endings than years past, thanks to the properties being so unique (four-level townhouses with double garages and cellars) and the involvement of himself and fellow buyer’s advocates Frank Valentic and Nicole Jacobs. “The contestants are really valuing our feedback and taking it on board. A classic example is in Josh and Charlotte’s bathroom, I walked in and said ‘Where’s the ventilation?’ and Josh immediately took it on board and said ‘Yes, I’m going to put it in!’.”
And Greville should be listened to! With 30 years in the property business, he is the CEO of WBP Property, one of Australia’s largest property valuation companies. He also frequents ABC Radio as a property expert on their Saturday Morning program and for the last eight years, has written a property column in Melbourne’s Herald Sun. Television, however, is a new realm for Greville, and he’s finding out all the tricks of the trade!
“What’s been really interesting is how much footage they take. It normally takes about five hours to shoot just one reveal! They film so much that at the end of the day, none of us know which part they’re going to use. So the fun thing is you get to see how they slice and dice that particular day. It’s been interesting watching it and so far, I’m really happy.”
[contextly_sidebar id=”NSuhGRySgSADHbF8ugjyOufuTd6k5rRO”]Greville is also enjoying the experience for the fact he gets to share his learnings with the public, believing he can help give buyers the right advice when it comes to making such a big investment. As after all, though many of The Block’s rooms are beautiful, one shouldn’t go buying a property based off cushions and pendants!
“I really liked being on the show as we’re giving a different perspective to the interior designer judges. They’re looking at the furnishings and all those other things, but as a buyer’s advocate — in most cases — when you buy a property, all those dressings aren’t included. So while we look at them and see they look nice, they really don’t come into play when we are making a buyer’s decision. Rather, it’s the floor plan, orientation, light, aspect, size and quality of renovation.”
Watch all five episodes of our Diary of a Reno video series as we take you through a real life renovation, from purchase to sale and $25,000 profit six weeks later! Our expert Naomi Findlay, an experienced property developer (and busy mum of four!) owns successful business SILK Home Staging & Styling and teaches others how to stage for sale and set up their own styling businesses through her International Institute of Home Staging. Former Block winners Alisa and Lysandra are just some of her students!
Watch videos 1 through to 5 to follow the whole story of this project in Newcastle, NSW.
Video 1
Video 2
Video 3
Video 4
Video 5
We hope our warts and all, keeping it real advice has inspired and helped you. If you have any questions for Naomi, please put them in the comments below.
Two-time Blockheads Dan Reilly and Dani Wales know a lot when it comes to renovating and selling homes. But this time there are no TV cameras and they’re selling their very own apartment.
Situated in the Melbourne suburb of Richmond, it is the first property they have renovated since being on 2012’s The Block and 2013’s The Block All Stars.
The pair purchased the one-bed apartment just before they had their TV debut, which saw them juggle renovating The Block house and moving in. “It was such a hectic week as we were working on the master bedroom and en suite on The Block whilst trying to move into our apartment at the same time,” explained Dan.
