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