Helpful Tips when you do a Final Inspection before settlement

Just before settlement, you should arrange with the Agent to do a final inspection of the property to make sure that the property is as you inspected and no inclusions have been changed or removed. I have found over many years that the final inspection is an important and integral part of the process......it can often postpone settlement until issues are rectified. 

Buyers should aim to do the final inspection as close as possible to the settlement date or early on the settlement day if possible.

Here are a few things buyers should consider when they do the final inspection:

• Make sure that items listed as "inclusions" on the Contract are in fact still part of the property. For example: pool equipment, dishwasher, blinds, TV Antennae, light fittings, curtains etc. Check your Contract.
• Make sure there are no items left behind. Check cupboards, built in wardrobes, roof void, under the house, sheds etc.
• Make sure you get into the garage. Often, some Agents say they have forgotten the key to the garage only to find after settlement that there is a bed mattress or rubbish left in there. After settlement it is too late to get this removed by the Vendor.
• Make sure the Agent has all the keys. Keys to the garages, sheds, window locks, front door, back door, letterbox etc.
• Make sure all remotes have been left behind - For example, Air-conditioner remotes, garage doors, heaters, automatic blinds, TVs etc
• Make sure all rubbish has been removed. Don't forget to look in the roof cavity (through the manhole) and under the house.
• If the electricity is not on - just check the main box. The Vendor may have switched the power off at the main.

These are just a few general ideas and suggestions that you may wish to consider when you do a final inspection before settlement. 

Comments by Dean Carver

Real Estate Lawyer - Carver Lawyers

Phone: (02) 9773 4550

NOTE: Would you like to know what houses in your area have been sold for?......order your FREE copy of the Postcode Sales Report (normally valued at $99.00).

Buying or Selling real estate at Auction - VIDEO

Here is a short video prepared and distributed by the NSW Office of Fair Trading. It provides some helpful advice on the rights and responsibilities of bidders and auctioneers before, during and after the Auction.



If you are buying or selling real estate at Auction and need legal advice or assistance bidding at the Auction, I can be contacted below.

Comments by Dean Carver - Property Lawyer
Carver Lawyers
Phone: (02) 9773 4550

3 things you should do before you sell a home

Before you decide to list and sell your home, make sure you do the following:

1. Get a copy of the NSW Fair Trading's Fact Sheet on Agency Agreements. This guide will provide information on engaging an Agent and the different types of Agency Agreements that exist in the marketplace. It also provides useful information regarding how to start and end an Agents appointment as well as what fees and commissions you are liable for. To get a copy of the fact sheet, you can click here
2. Make sure the Agent is licensed to sell your home. Check out the Fair Trading website "Licence check" facility. Click here to go to the relevant section of the NSW Fair Trading website
3. Do your research. Attend a few auctions in your area to find out the true success of an auction program for your relevant area. Also obtain a Sales History Report which sets out all the recent sales in your area. This will give you a good idea of what price range your property is worth in today's market.

If you are not sure of the process, you should contact your Solicitor to guide you through the sale.

Comments by Dean Carver

Property Lawyer - for Carver Lawyers (Sydney)

Phone: (02) 9773 4550

Home Sellers Tip - Present the home in its best light.....

If you want to sell your home- present the home in its best light. Just like selling a car, you need to clean the car and make it appeal to buyers.

You don't want to give the buyers the opportunity to find fault and use those faults to negotiate the sale price of the property down.

Here are a few low cost repairs and ideas to help you present the home well:

• Mow the lawns
• Clean all the windows
• Clean the bathroom and toilet thoroughly
• Make sure all appliances work well
• Make sure all lights work. Change globes if necessary
• Clean floors
• Remove clutter
• Tidy yard. Remove rubbish. Go to the Tip if necessary
• Fix leaking taps and toilets
• Fix squeaking doors
• Clean gutters
• Fix garage door if necessary
• Do lawn edges
• Replace missing or cracked tiles
• Clean driveway and footpaths....water blast with pressure cleaner
• A fresh coat of paint always helps
• Clean curtains and/or blinds
• Remove cobwebs
• Make sure gates and gate locks work
• Clean pool
• Make sure letterbox is straight and not falling down

Implement some of the above ideas and you are on your way to achieving a great price for your home!

Comments by Dean Carver

Property Lawyer & Strategist - "providing Solutions for Home Sellers"

Phone (02) 9773 4550 

Sellers - 5 Tips in 5 days

Selling your house, unit or investment property can be a stressful time if you don't have all the facts and know the tips, tricks and pitfalls of the real estate industry.

Over the next 5 days, I will post 5 tips for sellers that can achieve results in today's market. These tips are from my upcoming book soon to be released to clients and readers.

Stay tuned........if you need more information, you can email me or contact the office.

Regards
Dean Carver
Property Lawyer
Publisher - www.deancarver.com.au

Buying or selling real estate - read a few books first

Buying or selling real estate in today's market can be a daunting and stressful time in any persons life. During the process you will be making important decisions that could potentially increase your wealth or substantially reduce your wealth by thousands.

When you go out into the world of real estate, you deal with professionals in all areas: Real Estate Agents, Lawyers, Valuers, Tradesman, Mortgage Brokers etc. These professionals practice their trade daily and usually get very good at it. I would suggest that any person going into the "real estate world" to buy or sell a house should educate themselves on the process, the tricks and some of the traps.

I found a few good practical books that are based on common sense, that are unbiased and simple to read. I strongly recommend any of these books:

• The Ultimate Guide to Real Estate - (John McGrath)
• Don't sign Anything - How to protect yourself from the tricks and traps of real estate(Neil Jenman)
• Real Estate Mistakes - How to avoid them How to save your money (Neil Jenman)

These are just a few books I have read and found useful. There are plenty of other books on the market. Just make sure they paint an unbiased view and are written by authors with practical experience in the industry.

All these books can be found in most good bookshops or on ebay.

Best of luck.

Comments by Dean Carver - Property Lawyer

Carver Lawyers - Sydney NSW

Phone (02) 9773 4550 

www.deancarver.com.au

The Agent says "you're asking too much - REDUCE THE PRICE"

This is a common phrase used by many Agents in today's real estate market. Homeowners are being told regularly that their house is not selling because they are asking too much. They need to reduce the price to attract buyers to the property.

After the property has been on the market for a few months and remains unsold, the homeowner will reluctantly reduce the price.....but soon thereafter, the price reduction does not result in a sale. Why not?

Homeowners are all too familiar with this scenario. The issue is not always about the price of the property. Where are the buyers? The buyers aren't there even if you reduce the price. The real problem in today's market is affordability and the ability to secure finance.

Reducing the price does not always secure a sale......take for example a home owner that reduces the price from $450,000 to $425,000, a huge $25,000 price reduction. A buyer interested in this property at a purchase price of $450,000 will need to come up with a 10% deposit which is $45,000. When the price is reduced to $425,000, the buyer still needs to come up with $42,500 (deposit of 10%). By reducing the price it does not substantially change the deposit a buyer needs to get into that property. The real saving on the deposit required is $2,500.

There are less and less buyers with substantial saved deposits in today's market. Unfortunately, the Banks are requiring substantial deposits in order to approve finance for the remaining amount of the purchase price.

Agents need to look to alternative strategies to achieve a sale........but Agents continue to use the old way which is reducing the price. In this market, reducing the price may bring the price of the home to less than what is owed on the mortgage and leave the owner in negative equity.

Agents should consider such options as vendor finance and terms contracts and at least offer these options to a home owner. Times are changing, and Agents need to change with the times.

It is possible to secure a sale without reducing the price, but the homeowner needs to always keep in mind what the true value of the property is when going to the market looking for buyers. Implement the right sales strategy and the property will sell.

If you have a house that the Agent can't sell - give me a call and we can work on a strategy to sell that suits your circumstances.

Comments by Dean Carver - Property lawyer .
Phone: (02) 9773 4550

Should you use a professional photographer when you sell?

A photograph speaks a thousand words.......

When you place your property on the market for sale, one must agree that you should present the home in its absolute "best light" to appeal to buyers.

With the advent of the internet and the fact that most buyers now look to the internet as their first point of enquiry when searching for a home to buy, it is imperative that you create a great initial impression.

14 Tips to consider when hiring a Real Estate Agent

Finding a good real estate agent takes some research. Here are my 14 tips you should consider when hiring a real estate agent to sell your property:

1. Get a Sales History Report for your suburb and street.....find out what other similar properties have sold for in your area
2. Consider ordering a Valuation from a Registered Valuer so you know exactly what your property is worth in this market
3. "Phantom shop" the Agent: Visit properties for sale by an Agent you are considering - find out how they treat buyers because that is the way they will treat your buyers.
4. Make sure the Agent gives you a price guarantee - if they don't get the price they promise, then the fee is ZERO
5. Don't just choose an Agent because they charge the lowest commission - another agent that charges a bit more might be able to get you a much better price
6. Find a Good Negotiator - Be careful of Agents that negotiate on their commission. Agents that quickly reduce their own fees will only quickly reduce the price of your property. If they give away their own money, they will easily give away yours.
7. Be careful of the Agent that gives you the highest quote for your property.
8. Don't pay for upfront marketing costs. A confident Agent should cover these costs. However, you should consider paying for the costs of a good signboard and a professional photographer. For the small cost involved, these make your property present much better.
9. Interview Agents until you find one you like
10. Never hire an Agent you don't like
11. If the Agent insists on "open for inspections" - make sure they will take responsibility for any loss.
12. Ask the Agent to substantiate the price quote by comparing to other similar properties that have been sold.
13. Ask the Agent "How will he get the best price for your property?"
14. Get legal advice on the Agency Agreement before signing

The above tips are just a few things you should consider and are by no means an exhaustive list. 

If you are considering selling your property, make sure you get legal advice before you sign with an Agent. It is imperative that you get a Lawyer to have a look at the Agency Agreement before you sign.

Comments by Dean Carver

Property Lawyer and Strategist

Phone: (02) 9773 4550

Watch out for the Sewer that cuts across the property

Watch out for the sewer that cuts across the property.

I recently acted for a buyer who was interested in a property that had a sewer that ran straight across the block of land and under the house. It is important that you check the sewer diagram contained in the contract to make sure that you are aware of any sewer or proposed sewer that may affect the property.

A sewer that cuts in the middle of a property can have potential problems if you decide to rebuild in the future or if you wish to put in a swimming pool on the property.

The contract should also contain a letter from the relevant sewer/water authority that indicates that the Authority is aware that there is a property built over the sewer and that it complies with the Authority's guidelines and legislation.

Prior to exchanging contracts it is also suggested that you arrange for a plumber to have a look at the sewer diagram as well as an onsite visit to guide you regarding future development and problems with encasement of the sewer if the house is rebuilt or any further strengthening that may be required.

If you intend putting in a pool in the yard, also worth arranging for a pool company to have a look at the site and the diagram to advise whether a pool is possible.

These are general comments and you should discuss any purchase with your lawyer before you sign the contract.

Comments by Dean Carver
Solicitor at Carver Lawyers

Issues to think about when you buy real estate in todays market ....

Buying your first home or just buying an investment property can be stressful. Here are just a few tips or issues you should consider when buying your next property:

• Make sure you get a list of all the recent sales in the suburb you are buying. Make sure you do thorough research as to what properties are currently selling for in your marketplace.
• If your property of interest is near a school - find out what the traffic is like during school hours
• Make sure you have your loan approved before you go shopping for a property. A pre-approved loan means you can make quick decisions when required. Tell the Agent you have pre approval when you negotiate, this means you are serious about buying and the Agent will put you near the top of the list.
• Check for any heritage listing - Have a look at the Section 149 Certificate contained in the draft contract.
• Visit the Council to make enquiries about any property of interest - Are there any outstanding issues or notices against the property?
• Talk to your Solicitor well before you start shopping for a property. Let him know that you are in the market to buy and to keep a look out for any draft contracts. Make sure you have the email and necessary contact details of your Solicitor at hand to provide to the Agent when needed.
• If a strata property - order a Strata Report. Also ask the Agent whether he is aware of any special levies? See if you can obtain a copy of the minutes of the last AGM of the Body Corporate.
• If you see any nearby neighbours outside their property, ask them what they think of the surroundings? You might get some valuable info.
• Have you considered a Deposit Bond?
• Check the Strata By Laws - If you want, can you keep pets on the strata lot?
• Check that Appliances work - Oven, cooktop, grill, hot water etc
• Is there Housing Commission properties nearby?

These are just a few tips and issues you should consider when buying property. By no means is the above a definitive list. You should consult your Solicitor before signing any contract.

Comments by Dean Carver

Solicitor and Real Estate Strategist

Can't sell your vacant block of land?

Selling vacant land in the current real estate market is not easy. Having watched my local market very closely in the last few months, I have seen that many Agents are finding it harder and harder to sell vacant land.

Can't sell your land? What is the solution? Have you considered other alternate selling strategies such as:

• Vendor Finance
• Joint Venture with a local builder
• Joint Venture with an Investor
• Delayed Settlement
• Part sale
• Pay the Buyers stamp duty and expenses

These are just a few suggestions that sellers can consider. The above options can also be combined to real effect.

The idea is to make your block of land stand out from the rest of the properties on the market. Make your property easy to buy and it will naturally become easy to sell.

Finance for land is tough at the moment and buyers are finding it difficult to purchase if their finances are not in order. The Banks have tightened the Loan to Value Ratios meaning buyers need more equity or a bigger deposit. Accordingly buyer numbers have reduced.

The usual course for the Agent after the property has been on the market for a few months is to recommend a price reduction. In this respect, do your research to find out what the actual sale prices of similar properties have been in recent times. this will give you a better indication whether price is the real reason the property has not sold.

If you need a Postcode Report which sets out all recent sales, subscribe to our Newsletter and you will be entitled to receive a FREE report normally valued at $89.00.

Comments by Dean Carver - Solicitor and Real Estate Strategist - Carver Lawyers - phone (02) 9773 4550

When you sell - make sure you advise your Solicitor of specific EXCLUSIONS

Do you want to keep the chandelier in the hall? the 10m high palm tree in a pot? the enclosed BBQ? Plasma TVs installed on the wall? in built fish tank? in built coffee machine? split system air conditioner? outdoor shed? pot belly stove? pool cleaning equipment?......these are just a few items that are often attached to a property and can be classified as being included in the sale unless they are specifically EXCLUDED in the contract.

When you decide to place your property on the market for sale, at the time of instructing a Solicitor to prepare a draft contract for sale purposes, you should make sure that you specifically advise your Solicitor that you want to make sure that certain items are EXCLUDED from the sale. At this time, give them a list of the specific exclusions.

If the draft contract specifically has your items marked as EXCLUSIONS, there is room to negotiate to get a better price if these items are then included in the sale.

Over the years, I have found that there is many disputes over what a buyer and seller think is included in a sale which can lead to settlement being postponed. It is imperative that the contract details specifically what is included and what is not.

For more information, or to discuss your next sale, contact Dean Carver (Property Solicitor) on (02) 9773 4550 to sell your next NSW property. Don't forget to register to receive our regular Real Estate Tips Newsletter.

Bidding at Auction - Try to be the last to register

In NSW like many other states in Australia, buyers wishing to bid at a real estate auction must first register before being entitled to make a bid. At registration, the Agent will take the bidders details and need to sight suitable identification such as a Drivers Licence or Passport.

After taking the bidders details the Agent will then enter the details in a register and hand a bidding number to the bidder. A smart tip for a budding bidder is to take a quick look at the register as it is filled out by the Agent, you will often get an indication of how many bidders are registered before you. The Agent or their representative often fails to cover the previous listed registrants.

If the Agent is slack you will get a great insight into how many other bidders are seriously there to bid..

The key is to register as close to the commencement of the Auction and NOT early. Good luck to all auction bidders! Don't let the Agent influence your research or thoughts on price.

More tips - subscribe to Newsletter.

Any questions, ring Dean Carver - Solicitor and Real Estate Strategist at Carver Lawyers. Phone (02) 9773 4550

Is your home insurance up to date?

As a homeowner, is your building insurance up to date? What would happen if a cyclone hit your area and took your roof with it? Are you insured?

It is always recommended to review your insurance policy to check what you are covered for. Are you covered for cyclone? Hail? Flood? Bushfire? These are just a few circumstances that you should consider.

If you live in a bushfire area or close to a river or waterway, you should specifically ask your Insurer whether you are covered for building damage and replacement in the event of a bushfire or flood respectively. If not, have it included or change insurer. Natural disasters have been common in the last few months and Insurers are naturally keen to try and exclude insurance therefor, so make sure that you are also covered for natural disasters.

Make sure that you are comprehensively covered for all types of events that can cause damage to your property, building and contents of your house. Don't forget valuable items on your property that may also be included in the shed, basement etc......

If you are unsure regarding your policy and what is included specifically ask the Insurer and have it in writing, email or fax. Just in case the Insurer queries in the future or refuses to pay.

Remember, when estimating the value of your property and rebuilding costs, it is better to over insure than under insure. The premiums won;t be that much different. If you think it will cost $250,000 to rebuild, make it $330,000 instead. This will give you a buffer in case.

If you are unsure, get legal advice.

Comments by Dean Carver - Solicitor and Real Estate Strategist (Sydney) - (02) 9773 4550

REAL ESTATE CHALLENGE - Do you have a house that has been on the market for more than 12 months?

Its time for a challenge! I am looking for a homeowner that has had their property on the market for more than 12 months and has tried every avenue to sell but without success. It might be a home that has been listed at some stage with many different agents, needs repairs to sell, is on a main road  or just does not appeal to the right buyer. It may be a house where the loan debt is more than the value and in negative equity?

As a real estate strategist, I look to offer homes to buyers using methods rarely know of by the traditional agent. Do you know of a homeowner that has had their property on the market forever?

Let me make it clear, the price will not be reduced to make a sale, I will mainly be looking at alternative methods to sell without reducing the price.

Houses (not units) that fit one or more of the following criteria may be suitable for the challenge:

• Must have been on the market for at least 12 months;
• Houses that are in negative equity (home loan more than the value);
• Owners that have tried all usual methods through the real estate agent;
• property needs some repairs to sell;
• any other reason house has not sold?

I would prefer that the house is located in NSW, but will consider other states.

If you have a house that fits one of the above criteria or know of anyone trying to sell but without success, contact Dean Carver (Solicitor and Real Estate Strategist) on (02) 9773 4550 or by email

House prices are inflated by 20 per cent - reports chief economist

Chief Economist Brian Haratsis from Macro Plan Australia believes that house prices are inflated by 20 per cent and that Australia will have at least 2 rate rises this year. The Economist has told the Herald Sun that."A lot of people could wind up with negative equity and we could have a sub-prime issue on our hands.".

I tend to agree with his thoughts. We are in a real estate market where buyers are really finding it difficult to secure finance to purchase and if they eventually do find finance, they are having difficulty affording the mortgage payments when interest rates rise.

How can a buyer find out how long a property has been on the market?

How long has the property been on the market?................This is a question commonly asked by buyers for the main reason to find out whether the vendor may now be motivated to sell. The real problem is that many Agents who are asked this question, often lie about the true situation. Agents are taught not to give away the Vendors real position so as to avoid a weaker situation in the negotiation.

Why do Purchasers want to know how long the property has been on the market? The main reasons buyers seek out this information is as follows:

• What is the Vendors real motivation. If the property has been on the market for some time, the Vendor may now be ready to sell at a realistic price.
• The Real Estate Agents Agency Agreement may be coming to an end and the Agent may be more willing to help the buyer make a deal.
• The Vendor is now getting tired of keeping the property neat and tidy to sell and now has the motivation to sell.

All these factors make a stronger case for the buyer during negotiations. Buyers should always try to seek out how long the property is on the market but not rely on the answer primarily given by the Agent. Is there a more reliable way to find out the answer? Where can I get this information?

With the changes made to the NSW legislation over the recent years, vendors who wish to sell their residential home now need to have a contract drawn by their Solicitor or Conveyancer prior to placing the property on the market for sale. The answer is in the contract.

As a buyer, if you look to the title search in the contract, this will have a date on which the search was ordered. This is an indication, but not a certainty as to the approximate time when the contract was first prepared. Whilst you cannot rely on this date as the guaranteed date when the property first came to market, it does give a strong indication as to when the search was done in anticipation and readiness for sale.

In addition, you can also look to the date of the section 149 Certificate as issued by the Council (often referred to as the Zoning Certificate). Again this is also an indicator of when the certificates were ordered for insertion into the draft contract.

Whilst the above suggestions do not offer an absolute guaranteed answer as to how long the property has been on the market, it will however provide strong evidence as to when the vendor started to take action to place the property on the market for sale.

On the flipside, it is always good for sellers (vendors) to keep these certificates updated and "fresh" to avoid informed buyers using these details to assist them in negotiations.

When buying or selling, get the right advice.

Comments by Dean Carver, Solicitor and Real Estate Strategist - (Carver Lawyers) www.carver.com.au - phone (02) 9773 4550