There is no doubt that among the most stressful events in life are ‘Buying and Selling Property’ as this is a time when both parties are living and breathing either ‘their sale’ or ‘their purchase’ – and the costs of making a mistake can be high.
Selling your property can be a very emotional experience especially if the property stays on the market longer than anticipated. Selling a ‘Tenanted Property’ is another issue and we will cover this in a future eNewsletter.
Buying a house is a huge financial commitment and whether you are a first-time home buyer or have plenty of experience, purchasing a house is just plain stressful. It can be a complicated emotional process – it’s a home, after all – and even if the process is going smoothly it only takes one mishap to spoil the deal.
How to reduce Stress during this period is of interest to both the Vendor (Seller) and the Buyer as life has to go on during the process and until contracts are signed, sealed and delivered, the Vendor and the Buyer can be in a state of anxiety waiting for the decision to be finalized.
To assist help ‘reduce stress’ for both the Vendor and the Buyer at this time we have prepared a guide we recommend as a means to take more control of the process and alleviate some of the pressure.
ACTION FOR THE VENDOR
1. Ensure you contract the right Agent – If you do not know any Real Estate Agents in your area do your due diligence first before signing a contract.
2. Ask Family and/or Friends – If they can recommend an Agency.
3. Know the value of your property – If necessary employ an independent Valuer. What your home is worth may not be what you want to sell for. Properties that sell for more than their market value are rare.
Knowing the value before you start the process will help when you discuss your property with an Agent.
4. Check sales of similar properties in your area – And know the average selling price then compare this with recent local Agency sales.
5. Interview 2 or 3 Agencies – And gauge who you have the best rapport with, its very difficult dealing with someone if you are ‘not on the same page’ because when it comes to negotiating you have to trust the Agent who is selling your property.
6. Selling methods – Ask the Agent what are best in your area, ‘Auction’ or ‘Private Treaty’ and if they can demonstrate to you which method would be most successful for your property. Knowing the costs of each method will help with your sales budget – an Auction is more expense than Private Treaty and may or may not result in a higher price being achieved.
7. Marketing your property – You have to be satisfied with the method/s the Agency wants to use, know what is most effective in your area. RP Data research shows the combination of print advertising with online is the most powerful way to sell your home.
8. Be motivated – Both Vendor and Real Estate Agent have to be motivated but if the Vendor is only half-hearted then the Agent will be too.
9. Negotiating – Don’t take things personally and remember that successful negotiating is one of the key reasons you are employing an Agent, so let them handle it – you still have the final say but be reasonable as often the first good offer is the best.
10. Keep things in perspective – Although you want to sell and you want to sell for as high a price as the market will sustain – the end result may be different from what you had imagined. If you are serious about a sale then be serious about the reality.
ACTION FOR THE BUYER
1. Save, Save, Save
First action for a prospective buyer is to SAVE enough cash for a deposit and to satisfy the lending body you can afford to buy and secure a mortgage.
Buying Real Estate is one of the most expensive transactions you’re (likely) ever going to make, so be sure you understand the cost of buying a house before taking the leap.
2. Know what you want
Before you start house hunting or talking to Real Estate Agents prepare a list of ‘must-have’ and ‘would-like-to-have’ in a property, this will save you (and an Agent) time and energy looking at properties that you either can’t afford or that don’t match your requirements.
3. Be flexible
If you have a detailed checklist of exactly what you want in your ‘perfect house’, be mindful that there simply is no such thing as a ‘perfect house’ – unless you have the money to design and construct one from the ground up.
Don’t compromise on major requirements, but understand that it’s unlikely you’re going to find the carbon copy home of the one you’ve imagined. Prioritize your wants and determine which features you can live without.
Ensure you have your finance in place BEFORE you start looking. Have pre-approval for a mortgage that way you will know exactly what you can afford and what you can’t afford and will avoid unnecessary stress and heartache going after your ‘dream home’ that is out of your price range.
5. Buying a house is expensive
As part of your initial financial planning factor in all the hidden expenses and what you will need in the bank for: moving costs; repairs (if any); extra or new furniture; putting on utilities (electricity, gas, telephone); any other out-of-pocket expenses not covered in your finance package.
6. Finding the right property
You’ve found the property of your dreams and now you want to make an offer – listen to the Real Estate Agent and be realistic, the Vendor wants to sell, you want to buy, you both want to get the BEST DEAL, along the way there is the negotiating.
Don’t take things personally and remember that successful negotiating is one of the key reasons the Vendor has employed the Agent.
The Agent may discourage a low offer, knowing that this could potentially offend a buyer and ruin your chances of getting the property.
Rather than fight your Agent, trust they know the industry and the current market. Remember, agents don’t get paid until a sale closes, thus they have no reason to sabotage a deal.
8. Keep things in perspective
Although you want to buy a property for the best price and (hopefully) even under-market value – once you have settled on your ‘dream property’ if it is slightly over what you anticipated (and you can afford it) then accept the reality and don’t overly stress.
Real Estate value goes up and it sometimes goes down, but providing you are buying for the long term it is liikely you will make money on your investment if you decide to sell in the future.