Should We Stay Or Should We Go

Should We Stay

Or Should We Go?

Our promise to you Since 1988 we have strived to provide the very best real estate service in Sydney to the many property buyers, sellers, investors and tenants who call on us for help and advice each week.

This booklet and the advice it contains is part of that promise. We hope you enjoy the content and profit from the experience.

Remember, our offices are open 7 days a week to help you with any real estate matter so be sure to call us if you think we can help.

You’ll find contact details for your nearest Prudential Real Estate office on the back page of this booklet.

Should We Stay or Should We Go? Easy, 6-step plan to help you decide whether to sell now or stay put

I

f you own a home it will happen to you!

the selling process (after all, who likes packing).

One day, when you least expect it, a thought will occur to you . . . "If only we had an extra bedroom" . . . or ". . . a rumpus room" . . . or ". . . a pool" . . . or, something else you don't already have.

So, for many of us, the hardest part is not selling but deciding to sell.

Perhaps you'll think, "If only we had a single storey home rather than a two storey home", or "If only we didn't have to spend every weekend mowing such a large back yard".

Maybe you'll think, "If only we lived in the next suburb" . . . or "If only we didn't live next to these neighbours" . . . or "If only we lived on a quiet street" No matter how hard you try, no matter what you do, one day you'll have thoughts similar to these.

And before you know it the next thought will be "Maybe we should consider moving" The thought of moving home can at the one time conjure up feelings of both pleasure and of pain - the pleasure of moving to a new home and the pain of

Some of us are plagued with questions such as "When is the best time to sell ?" . . . "Should we wait till prices are higher ?" . . . "What if we can't find what we like ?"

Over the years we have developed a quick 6-step plan for our clients that has been able to assist them with the thorny question "Should we stay or should we go ?" and in the next few pages we will share these simple secrets with you.

Each step in the process begins with a question. Ask yourself each of these questions, record your answers where provided, and at the end your decision will be easy.

So, let's start with the first question . . .

Step 1

How happy are you with your present home?

No matter how long you have lived at your present home there have probably been days when you have been really happy with your home and other days when you've been unhappy.

•

Quality and / or condition of the property

•

How well you (or your kids) get on with the neighbours (and their kids)

Many factors can combine to generate an overall feeling of either contentedness or dissatisfaction with your home.

•

Noise from traffic or other sources

•

Distance to facilities such as shops, schools, parks, restaurants, hospital / medical services

Such factors might include ;

•

Ease of available transport - trains, buses, taxis etc

Size of the home and of the rooms in relation to the size of your family

• •

Facilities such as the number of bathrooms and toilets

•

Size of the gardens

•

Number of bedrooms

•

Additional living areas such rumpus room or family room

as

What factors influence whether you are happy or unhappy with your present home ?

In the box below fill out the 3 things that make you most happy with your present home and then complete the 3 things that make you unhappy, uncomfortable or dissatisfied with your home.

3 Things that make us happy

3 Things that make us unhappy

1

1

2

2

3

3

Now, whilst thinking about all of the above give yourself a score out of 10. Score 10 if you're really dissatisfied and unhappy with your present home and 1 if you are very happy with all aspects of your home. Maybe you are somewhere in between - take your time, consider your answer and then complete your score below.

SCORE

1

2

3

4

5

6

7

8

9

10

Step 2

If you could move, where would you go?

Imagine, just for a moment, you were about to move to a new home. Where would you go?

Now describe your new home...

Bedrooms

Would you stay local or move away ?

Ensuite bathroom

Would you move to a bigger home or a smaller home ? Would you move closer to work or further away ? Would you move closer to sporting facilities for the kids or further from your relatives ?

Main Bathroom

What would your new home look like ?

What extra facilities would it have ?

What would the rooms be like . . . what about the decorating . . . what about the gardens ?

Tiled floors

What advantages would there be at this new home over your current home ?

What would the neighbourhood be like ? How will your kids feel living at this new home ? How will you enjoy life at your new home ?

Can you picture your new home ?

Describe where you would move and what your new home would look like below.

Built-in wardrobes Walk-in wardrobes

Polished floorboards Carpeted floors 2-storey Large / Small block Kitchen Formal dining room Family room Rumpus room Pool Foyer entrance

If you could move, where would you go?

Separate study

1

Single/Double garage

2

Granny flat

3

Pergola / BBQ area

Step 2

If you could move, where would you go?

Sometimes the most difficult thing to decide when considering a move to a new home is to decide where to go and what advantages you might enjoy when you get there.

So, now, do you have a clear picture of where you would move if and when you sold your present home? Do you know exactly what you would like your new home to look like?

SCORE

1

2

3

4

If you answered YES to these questions and have a very clear picture of your new home score 10 for yourself on the scale below. If, on the other hand, you have no idea where you would move to if you sold, score 1 on the scale.

Maybe you are somewhere in between take your time, consider your answer and then complete your score below.

5

6

7

8

9

10

Step 3

How much will you get for your current home?

The property market moves every day.

Every day properties are bought and sold. Every day new properties come on to the market and others are withdrawn.

Whenever the number of properties on the market changes and whenever another property sells in your marketplace the value of your home changes, even if only slightly.

So, if you are considering selling your property, be sure to get an up-to-date opinion of value from a professional real estate agent as part of your decisionmaking process.

How do you choose a professional agent to provide such an opinion ?

Here's a couple of quick pointers . . .

(Remember, it costs nothing to have a local agent assess the possible sale price of your property).

•

Look for the agent with the most properties for sale in your area - this agent probably also sells the most properties in your area and will therefore have the best idea of price for your home

•

Look for a company that has been trading successfully in your local area for at least 10 years - you pay no more for their wealth of experience

•

Before allowing any agent to assess the value of your property be sure to ask about their personal experience with the sale of properties - at least 3 years experience in your local area is best

•

Ask your friends, co-workers and neighbours about their experience with local real estate agents - their personal recommendations are valuable

•

Obtain 3 opinions - listen to the agent that can provide evidence of their opinion (e.g.. details of recent sales that are comparable to your own home)

Step 3

How much will you get for your current home?

Once you have obtained an opinion of the possible sale price of your property from a reputable, local real estate professional complete the following . . .

How much money do we retain from the sale of our property?

Expected sale price of our property

$

LESS current balance of any mortgage

$

LESS costs of selling (agents fee and legal costs)

$

EQUALS net proceeds of sale

$

Now that you have worked out how much money you would retain from the sale of your property ask yourself, "Are you satisfied ?"

If you are completely satisfied with the money you would retain from the sale

SCORE

1

2

3

4

of your property score 10 on the scale below. If, on the other hand you are unsatisfied, score 1 on the scale.

Maybe you are somewhere in between - take your time, consider your answer and then complete your score below.

5

6

7

8

9

10

Step 4

Will the bank lend you what you need to buy another home?

Now that you know how much money you would retain from the possible sale of your property the next step is to find out how much you can borrow.

Today there are not only dozens of lending institutions ready, willing and able to talk to you about your next mortgage but each one of them seems to have dozens of different loans on offer - all with different features.

How is anyone supposed to work out what to do?

Easy! In recent years mortgage brokers have begun to proliferate. Mortgage brokers act as a middleman between the home loan borrower and the banks.

As each of the banks have progressively cut back on services to the public over the past few years these companies have taken the place of lending

managers in banks.

Most mortgage brokers will come to your home at a time that suits you.

They will take down all your details, record all your mortgage needs and then, with the aid of a computer assess which bank and which loan suits your personal circumstances best.

Better still, they will complete all the paperwork for your loan application, follow up the loan approval process and charge you nothing for the privilege.

That's right, it costs nothing to have a mortgage broker organise your loan they are paid a fee by the bank you choose when you decide on a loan.

(If you need a referral to a reputable, local mortgage broker simply call Prudential Real Estate 7 days a week).

Once you have an idea of how much you can borrow you can complete the following . . .

How much money do we retain from the sale of our property?

Nett proceeds of sale (from Q.3 above)

$

LESS costs of buying (legal costs, stamp duty etc)

$

PLUS value of new mortgage

$

EQUALS max. value of new home purchase

$

Step 4

Will the bank lend you what you need to buy another home?

If you were to spend the money shown above on a new property in the location you described in question 2 would you be satisfied? Perhaps the money above is insufficient to purchase the type of property you would like to buy in the area you desire. If so, you may be unsatisfied with the maximum value you can spend on a new home.

SCORE

1

2

3

4

Mark your score below - if you are satisfied with the result shown above score 10 and if you were unsatisfied score 1. Maybe you are somewhere in between - take your time, consider your answer and then complete your score below.

5

6

7

8

9

10

Step 5

Have you considered all the costs involved with moving home?

Moving home doesn't come cheap !

•

Stamp duty purchase

•

Survey

•

Solicitors / legal costs (which usually also include contract preparation fee, mortgage search fees, settlement fees, bank cheque fees, photocopying, stamps, phone calls, strata search fees)

So, don't despair, the cost of moving may sound like a sizeable cost but the payoff (moving to a new home) is usually well worthwhile.

•

Agent's fee on the sale of your current home

•

Rubbish removal / cleaning fees

So, for the sake of proper balance in this difficult decision-making process, we have included a list of (most of) the costs involved with moving home . . .

•

And . . . the cost of new furniture at the new home (because, in may cases the old furniture won’t suit the new home !)

In fact, if you were to write down all the costs of moving and seriously take into account the sense in parting with the money involved, many of us would never move.

Of course, if we were to make all our decisions based on logical choices most of us would never do anything.

•

Bank fees

•

Building Inspection fee

•

Pest Inspection fee

•

Adjustments to Council rates / water rates

•

Mortgage application fee

•

Mortgage insurance

•

Removalist / truck hire

•

Stamp duty on the new mortgage

SCORE

1

2

3

4

on

the

property

Now that you have absorbed the possibility of paying some of these costs in the quest to move to your new home the question remains . . . "Are you still willing to move ?"

If you are still willing to move from your present home to a new home score 10 on the scale below. If the cost of moving has dealt a body blow to your ambitions and you now feel unwilling to move score 1 on the scale below.

Maybe you are somewhere in between take your time, consider your answer and then complete your score below.

5

6

7

8

9

10

Step 6

Have you considered the inconvenience?

Most people are very optimistic when they first list their property for sale.

They often comment that they expect their home will be sold quickly and for a fabulous profit.

Sometimes this may be the case but sadly many property sellers can be disappointed by the length of time it can take to secure a buyer for their home.

It's not uncommon, for example, for a period of 4 to 6 weeks to elapse before a buyer is found. In this time the proud homeowner feels duty bound to keep the home looking like a showpiece vacuuming every day, constantly tidying up after the children, cleaning bathrooms and kitchens every day - all in the expectation that THE BUYER might turn up that day. (The truth is it doesn't take a great deal of work to maintain your home in showing condition)

SCORE

1

2

3

4

The constant, daily strain of having people inspect your property (or the possibility that they might) can cause all sorts of difficulties.

So, one of the important things you should consider before listing your property for sale is whether you are prepared to put up with the short term stress of having your property on the market in exchange for the long term pleasure you will enjoy from your new home.

Are y ou pr e p a r e d for the inconvenience ? If so, score 10 on the scale below. If not, score 1. Maybe you are somewhere in between - take your time, consider your answer and then complete your score below.

5

6

7

8

9

10

And now, for the decision Now that you've considered all aspects of moving you are properly armed to make the best decision for you and your family.

Simply add your scores form the 6 steps shown above so you have a cumulative score out of 60 and compare this total score with the scale below.

Your TOTAL Score

‌ and your answer

50-60

You are ready to take the plunge. Call your preferred real estate agent today (hopefully, that will be Prudential Real Estate) and get started Good Luck

40-50

You are probably ready right now but may be unwilling to admit it perhaps you just need a little encouragement. Invite your preferred real estate agent back and discuss your thoughts with them - you'll be surprised.

30-40

You are almost ready to move - perhaps you need a little more time to consider your options or a few more facts to support your decision. But once you have spent time or discovered whatever facts you require be prepared to move !

Less than 30

You're not quite ready yet. There may be several things holding you back at the moment but whatever you do, don't list your property for sale until you are 100% ready and willing to move

When is the best time to sell?

Is it better to sell in Spring? Is it a waste of time listing a home for sale in December?

Many years ago these urban myths may have been true but in today's busy market one month is as good as another.

It's probably true to say that during late summer/early autumn and during

springtime we generally see a slight increase in the number of buyers coming on to the market. But such increases have little effect on the number of homes we sell.

And over the last few years we have sold almost the same number of homes in December as we have in November.

Maybe some buyers have a new home on their Christmas list.

Should we wait until prices are higher?

Most buyers have this fear - the fear of selling and then being unable to find a suitable replacement home to buy.

Firstly, the truth is almost everyone finds a replacement home. In fact, the sale of one home and the purchase of another can easily be arranged so that, on the same day, you can move from one home to another.

We generally recommend that you investigate the marketplace where you intend to buy before listing your own home for sale. Check out the local papers in that area, visit internet sites like realestate.com.au, look in agent's

windows and attend a few open houses. If you wish you can also go with a local agent to inspect a few homes.

If you take the time to properly investigate the property market where you intend to buy you will come away with a clear understanding of the type of home that is available for purchase. In this way you can confidently list your own home knowing you will find a home which will satisfy both you and your family.

And finally...

Hopefully the information on the previous few pages has been useful to you and your ability to decide whether to "Stay or Go" has been made easier.

welcome your enquiry 7 days a week.

Simply call any Prudential Real Estate office (you’ll find our contact details on the back page of this booklet.

If you have any questions concerning the selling or buying process we

We would love to help you.

CAMPBELLTOWN Serving the local community since 1988 47 Queen Street, Campbelltown Phone 4628 0033 INGLEBURN Serving the local community since 2000 31-33 Oxford Road, Ingleburn Phone 9605 5000 LIVERPOOL Serving the local community since 1994 3/52-58 Memorial Avenue, Liverpool Phone 9822 5999 MACQUARIE FIELDS Serving the local community since 1994 Cnr Saywell & Fields Roads, Macquarie Fields Phone 9605 5333

prudential.com.au

PLEASE NOTE : 1. Recipients of this report are reminded that, although due care has been taken in the preparation of the within contained material, prospective property buyers, sellers and investors are always best served by making their own independent inquiries before entering into any real estate transaction.

2. This report has been prepared for the sole and exclusive use of Prudential Real Estate clients and customers. The whole of the contents and design are protected by copyright.

COPYRIGHT Š Michael O’Sullivan 2001-2011