real estate South Coast Property Specialists (Carlene Franzen) Tips #1072:
You Can’t Pick the Top of the Market Making money in real estate should be simple. All you have to do is to
Vol 16 September 15th 2017 28 December 7th, of 2017 Vol 48 2018 buy atApril the 27th bottom the market then sell at the top of the market.
How hard can that be? In a hot market like we have at the moment, we often see prospective vendors (sellers) wait and wait before putting their property on the market, just in case they sell too early and don’t sell at the top of the market. We also see the reverse scenario with purchasers in a slow market waiting to buy so they don’t pay too much. There are several difficulties with both of these approaches. Firstly, buying and selling property is rarely a fast transaction. It’s not like zipping down to your local white goods store and buying a new TV which you can collect from their loading dock and have it working before the nightly news comes on. Most people selling a property will do so through a real estate agent. But to do so, most vendors have scheduled several agents to inspect the property, who will then provide them with a market analysis and a proposal which outlines their recommendations on the marketing plan, method of sale (private treaty or auction) and of course the commission and other expenses that may be incurred. Once the agent is selected and agreement is signed, they are not legally allowed to market the property until the vendor’s solicitor or conveyancer can provide a “Contract for the Sale and Purchase of Land”. This requires activities such as legal searches for the title and obtaining zoning documentation from council. Then of course you may need professional photography to be booked which has been known to be delayed by poor weather or access to the property if it happens to be tenanted. Once the property is on the market and an offer is made, it usually takes some time for the purchaser to undertake their due diligence with a building and pest inspection and arranging their finances before the property finally “exchanges contract” and it is legally sold. All these activities can take several weeks which in a rapidly changing market may have meant you have already missed the top of the market. The second difficulty with picking the top of the market is a technical one, but somewhat obvious when you think about it. You can only know the top of the market in hindsight. It is only when you look back at the recent sales transactions that you can see when the market turned. The other point to keep in mind, is that if you are buying and selling at the same time, there is an element of relativity in the price you get for your property and what you have to pay for your new one.
beagle weekly : Vol 235 November 26h 2021
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