Real Estate News


Why Auctioning Your Property is a HUGE Mistake


    Never mind what typical agents tell you. Never mind what you read in the papers. Auctions are a stressful, financial minefield for consumers. Despite the booms we've had in many areas, there are still thousands of sellers who don't realise, until it's too late, what really happens to them at auction.     Reserve Price   The reserve price is the lowest price a seller is prepared to accept, after 6 weeks of intense torture and conditioning. And that becomes the central focus of the auction. If you are trying to get the highest price, do NOT choose an agent that’s focused on your lowest price.   There are two parties in a sale price negotiation: a seller and a buyer. Each has their “final price” or their “limit”. The seller's final price is the reserve – that’s the lowest the home will sell for. The buyer's final price may never be known.   There is no procedure at an auction for det...


Want more money in your back pocket?


  There is no questioning that one of the largest expenses many of us face on a monthly basis is the payment of our mortgage - whether it's your principal place of residence or your investment portfolio. To take a moment to sit down and actually reflect on how much money we pay to the banks in interest can be overwhelming, but there are ways you can reduce your interest payments and put more money in your back pocket.   Have you taken the time to strategise how you can save money on your mortgage payments? There are a number of ways that you can achieve this, which can result in $1000s in savings each year:    1. Increase the number of mortgage payments made within the month. This is one of the easiest ways to reduce your interest payments and fast track owning your property sooner.   2. Pay a little extra than the minimum requirement. It doesn't have to be a large additional sum. Maybe consider paying $700 instead of $675.   3. Pay your wa...


The Upside to Buying in a Down Market


Property prices across many parts of Australia are falling, of that there is little doubt. The prevailing sentiment would have you believe that the falling prices are terrible for all concerned. Admittedly, the net result of those trading in a falling property market is probably to the downside. Make no mistake though, there are still plenty of people who manage to improve their position in a falling property market. Understanding and accepting where we are in the property cycle is crucial to trading better and smarter. There are five trading opportunities to those prepared to act in the current market: First Home Buyers First home buyers were locked out of the property market during the boom. At one stage, baby boomers wondered if their children would ever be able to buy into the housing market. Now is the best buying opportunity for first home buyers since the GFC in 2008. Sure property prices were lower in 2008, but mortgage rates were significantly higher. Every percentage...


The Awful Truth Behind Those Glossy Real Estate Magazines


  Real Estate magazines that promote one or two homes in each suburb across an entire metropolitan area are the ultimate example of hit and miss advertising. A buyer that wants to buy in Moonee Ponds is not considering Sunshine as an alternative and vice versa. Whenever you see mass wastage taking place, it's always good to examine the motive and identify the person who carries the burden of the waste.   Agents will tell you that their in-house marketing is all powerful and has massive reach. Printing 15,000 copies of the magazine each week gives the magazine a potential circulation (mainly via cafes and shops) of 15,000. Paying hard earned money to advertise in one of these magazines does not give you access to a database of 15,000 buyers as is often claimed. A database is where the agent has the full contact details of the potential buyer on file. Trying to advertise your home to Joe Nobody in a cafe whilst he drinks coffee is not marketing your home to a home buyer...


Don't be an Auction Bunny - Reading the Play When Buying at Auction


 Auction bunnies are home-buyers duped into bidding at auctions when they have no chance of being a successful buyer. The auction bunny reaches their maximum price at the auction before the price even hits the seller's reserve. Not only do these poor bunnies often get their hearts broken, they also lose thousands of dollars in 'due diligence' expenses - such as building reports, pest reports, strata reports and legal expenses.   Here's what happens: an auction bunny asks the agent, "How much will this property sell for?" The agent gives the standard bunny-trap reply - they quote a price around 10 to 15% below the seller's reserve price. For example if the seller want a million dollars, the auction agent will say "We're expecting bidding to start from around $850,000". If the auction bunny pushes the agent, saying something like, "Are you sure? Do you really think it will sell for such a low price?" the agent will say something like, "The sellers are keen and will meet ...


What makes a good real estate agent? A look at both sides of the transaction


    Knowing what constitutes a good agent, as both a vendor and purchaser, will assist you in achieving the best outcome for your sale or purchase of real estate in a stress-free manner. Make no mistake; the wrong agent can turn a stressful situation into a downright dreadful situation. But a good Essendon real estate agent can make a stressful situation tolerable and sometimes even enjoyable.   What constitutes a good agent for a seller may not necessarily mean that they would be a good agent for a buyer and vice versa. For example, if an agent is incapable of achieving a buyer's highest price for a property, the seller's loss becomes the buyer's gain. It is therefore very worthwhile identifying separately, what makes a good agent for a seller and what makes a good agent for a buyer.     From a Seller's Point of View...   A good agent will always tell you what you need to know and not what you want to hear. Often, this will include the absolute t...