HOME SELLER’S GUIDE Your guide to obtaining a higher price for your home in less time
Proudly provided as a guide to home sellers by
www.nfn.com.au
CONTENTS Introduction
2
The role of the real estate agent
4
Selecting the right estate agent
5
When to involve a real estate agent
6
Types of agreements
7
Auction or Private Treaty?
8
Your budget
8
Your Guarantee of Service
8
What is your property worth?
9
Time is money
10
What’s for sale?
12
When is the best time to sell?
14
Would I get more if...?
14
Marketing for the best price in the least time
14
Reaching potential buyers
15
First impressions are lasting
16
Your home on show
16
Negotiating and accepting an offer
18
You’ve found a buyer - what now?
18
What about your next home?
20
Arranging your next home loan
20
Moving Countdown
21
Kids and Moving
26
Understanding technical, legal and building terms
27
IMPORTANT NOTICE: The content of this publication is not to be relied upon as advice. The information should only be used as an overview, as individual circumstances vary. The information may be subject to change without notice and may contain errors. You should obtain all legal, financial and accounting advice from an appropriately qualified and licensed advisor. Published by First National Group of Independent Real Estate Agents Limited. A.C.N. 005 942 192 IMPORTANT NOTICE: First National Financial Solutions is a division of Suncorp-Metway Ltd ABN 66 010 831 722. Banking products are issued by Suncorp-Metway Ltd. Various products and services are provided by different entities in the Suncorp Group. The different entities in the Suncorp Group are not responsible or liable in respect of products or services provided by other entities in the Suncorp Group.
1
INTRODUCTION Your guide to obtaining a higher price There comes a time in life when you need to move on. Whether you are making a job change, retiring, or just in need of a change of scenery, one thing is certain when it comes to the sale of your home: your main objective is to determine the best and most realistic price for your home and to achieve it in the least expensive and quickest amount of time. You may think selling a house is easy and that the first person who walks through your door will fall in love with your home. But if you ask yourself how many houses you inspected before you bought your current home, and how many other people may have been through the home before you purchased it, you’ll realise that there is a lot of work and expertise involved. Perhaps what you really need is a good real estate agent. Your home will probably be the most valuable possession you will ever sell and First National Real Estate is here to help. This book will guide you through the process from selecting the right real estate agent, realistically valuing your home, preparing your home for a quicker sale at the right price and finally the move. Of course, if there is anything else you need to know, just ask – you’ll find your First National Real Estate agent happy to help. This is an important and exciting time in your life and we want to make sure it’s enjoyable and that all goes smoothly IMPORTANT NOTICE: This booklet is only an overview and is not intended to advise you as to the financial and legal implications of selling a home, but rather provide an overview of the considerations relevant to selling a home. You should obtain all legal, financial and accounting advice from an appropriately qualified and licensed adviser.
2
3
THE ROLE OF THE REAL ESTATE AGENT
Selling your home can be an arduous task but the right real estate agent will help make the process an easy one. Listen to their advice as the agent is acting in your best interest. Some people attempt to sell their own
The real estate agent’s role is
home but this is difficult to do when
to help you achieve your aims
emotion is involved and you are "too
in the most efficient manner
close" to the home you are trying to sell.
possible. The agent acts as
Real estate agents have access to potential
a market reporter, providing
purchasers and they have the experience
experience and advice on what the market may pay for your
of knowing what the market has paid for similar
homes
in
your
area.
home and the most effective
obtaining a realistic price, implementing
way of reaching potential
an effective marketing plan and selling
purchasers.
your home sooner, outweighs the cost of employing an experienced agent.
4
The
additional money that you gain through
In summary, the major role of your real estate agent is to: • Provide a realistic market appraisal. • Advise on the best method of sale. • Assist you in developing the most effective marketing plan. • Implement the marketing plan. • Advise on presentation of your home to the public. • Bring the property before as many potential purchasers as possible. • Present any offer. • Negotiate the best price with the purchaser. • Assist in ensuring the contracts have been executed and exchanged. • Co-ordinate the settlement.
• Does the written material look professional and business like? • Do they place importance on high ethical standards? • Are they well trained in sales skills, negotiation,
marketing
and
the
legislation applied to selling property? • Do they have a wide range of marketing options? • Do they have a good knowledge of the local market place? • Does their company have significant sales activity? • Do they have the support of a larger network? • Do they keep full and ongoing records of the sale’s progress? • Have they the ability to present your home to a wide market place?
Selecting the right estate agent Making sure you have the right agent working on your behalf is also vitally important. Here are some factors that you should consider when choosing your agent: • Is the salesperson well presented?
• Do they provide weekly sales progress reports? • Do they have testimonials from satisfied sellers? • Are they considered a market leader? • Do they provide a guarantee? • Are their company brochures and advertising well presented? • Are you comfortable with them?
5
When to involve a real estate agent The best time to involve the agent is ideally when you are making the decision to sell your property. Remember, you do not have to sign with an agent to take advantage of their advice. For example, you may need more room and be considering extending your home, rather than selling. A good agent knows the value of the area and may advise that by extending your home, you could exceed the value of the neighbourhood. You may be unsure of whether a move will be financially feasible; once again the agent can advise and may be able to assist with both the sale of the current property and the purchase of a new property. Once you’ve made the decision to sell, the sooner your property is on the market, the more opportunities you will have to sell. New buyers enter the market every day and yours may be just the home they are looking for.
6
Types of agreements
The main agreements are: Exclusive Agency Agreement
When you do decide on an agent, you will be asked to sign an Agency Agreement which will contain an estimate of the fees, charges and expenses you can expect to pay the agent when your home is sold. This is important because it will help you
An Exclusive Agency Agreement covers a set period with one real estate company and allows the agent to concentrate all their efforts into the sale of your property. This type of agreement includes Auction or Private Treaty methods of sales.
determine a proper budget for selling your house or unit. Accurate budgeting is vital,
Open Agency Agreement
particularly if you are selling in order to
You can sign this kind of agreement with a
"trade up". You need to be sure before you
number of agents. The agent who
put your property on the market that, after
introduces the purchaser and holds the
all the expenses such as the solicitor’s and
deposit is entitled to the commission.
agent’s fees, any repairs and your removal
However, it must be pointed out that quite
costs are accounted for, what you will
often you may not get the same amount of
safely get for your property will enable
service from agents on an Open Agency
you to comfortably purchase the property
Agreement and therefore it may take a
you wanted.
longer
Before you sign any agreement with an agent, you should read it carefully and make sure you understand it and your obligations. There are several kinds of agreements and real estate agents will
period
to
sell
your
home.
Remember that real estate agents do not get paid unless they successfully close a sale. If a house has not sold during the agreed period it is likely that the price placed on it is too high.
happily tailor one to meet your needs.
7
Auction or Private Treaty?
Your budget
If you submit your property for auction
The following are the main fees and costs
this means that prospective purchasers
associated with the sale of your property
will bid against one another at a date and
which you can discuss with your agent
time suitable to you. You can set a reserve
and make a preliminary budget.
price, which is the minimum you will
Based on Sale Price of $
accept, and once bidding has passed that level you know you have a sale as it will
Agent’s Fees
$
be unconditional and a predetermined deposit must be paid on the day. Sale by Private Treaty means that you set a price at which your property is to be marketed to the public through the marketing
Marketing/Advertising $ Solicitor’s Fees/
$
Conveyancing Improvements
$
Other
$
Total Costs
$
plan agreed to by you and your agent.
Your Guarantee of Service A reputable and progressive real estate agent
should
offer
a
guaranteed
commitment to meeting the needs of the client. First National Real Estate has had a guarantee for many years, a sample of which can be obtained from your First National Real Estate agent.
8
What is your property worth? One of the major decisions to be made is the price to put on your property. It is vital that a sound, realistic strategy is provided in setting a price that can assure you of two things: • Obtaining your asking price or very close to it; and • Getting the sale sooner. Through expert local knowledge, your agent can establish a realistic price for your home based on its location, age, size, features and market variables such as interest rates and the availability of financing. Avoid the temptation to be influenced by the experiences other people have had in the sale of their homes. The sale price of your home should be based on prices achieved recently for similar
properties
within
your
neighbourhood. Question the motives of anyone who may suggest that you could obtain a higher price. Remember, the true value of your property will ultimately be determined by the purchaser.
9
Pricing for the Market
Time is money
If your price is too high, you could shut off the most important ingredient of real
When it comes to selling your home, time
estate selling - a constant flow of qualified
is money.
prospective purchasers who are looking for homes in the price range you establish. Overpricing may give purchasers the wrong impression and they may look at your property with higher expectations. Others will quickly reject those they perceive to be overpriced, often not even bothering to inspect them. While a prospect might submit a lower bid and
is incorrectly priced can mean extra expenses that the owner has to incur for repayments of principle, interest, taxes, insurance and maintenance. A home that is on the market too long because of an uncompetitive price sends out signals that “something must be wrong with it”.
give you a price to at least begin
Remember, like you, your agent has a
negotiations, this certainly won’t happen
keen interest in getting the best possible
automatically.
are
price for your home. Sound, up-to-the
embarrassed to make offers that are
minute market experience provided by
substantially below your asking price.
the agent will help your home to sell.
Buyer/ Seller Psychology
First National Real Estate agents can
In any buyer/ seller relationship, it’s
prepare a comparative market analysis of
normal for the seller to ask him or herself
recent sales and, by comparing your
“I wonder if I could have asked for more?”
home with similar properties, give a good
On the other hand, the buyer may
indication of a fair market price.
Many
prospects
question whether he/ she could have paid less. The professional art of negotiating for the best price is a skill that your agent should have mastered. Knowing when the time is right to stand firm requires specialized experience. One key to obtaining a speedy, successful sale, of course, is starting with a realistic price in the first place.
10
Every day a home does not sell because it
To assist the agent, you may like to highlight the points about the property that you feel are major advantages: 1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11
What’s for sale? It is important to determine from the outset what is to be included in the sale of your home. For instance, fittings and fixtures that are easily removed without damage, such as decorative light fittings, wall units and drapes are not necessarily included in the contract. It is important to make sure everyone is clear on what is included, particularly if it will add value and appeal, BEFORE your home is put on the market. Any exclusion needs to be written into the contract.
12
Inside:
Outside:
Floor Coverings
Garage/Shed
Curtains/Blinds
Fly Screens
Ceiling Fans
Barbecue
Dishwasher
Outdoor Furniture
Heaters
Outside Awnings
Stove
Watering System/s
Clothes Dryer
Greenhouse/Fernery
Water Purifier
Television Aerial
Portable Air Conditioners
Satellite Dish
Light fittings
Clothes Line
Bar
Mail Box
Bar Fridge
Birdbath / Fountain
Remote Controls
Above Ground Swimming Pool
Alarm System
Pool Heater/Cleaner
Heating Cupboard
Additional Fencing
Ironing Cupboard
Outdoor Lighting
Storage Cupboards
Tennis Court/Roller/Net/Umpire Stand
Wardrobes
Other exclusions
Bedroom 1 Bedroom 2 Bedroom 3 Bedroom 4 Other exclusions
13
When is the best time to sell? Any time you’re ready! Spring is often considered the best time to sell. It’s a time of optimism and with the weather clearing, more potential buyers will be out and about. Although, conveyancing times vary from state to state, it may represent a marketing opportunity to be “in by Christmas”. But, it’s also a time when more sellers will put their homes on the market so there will be more competition. Winter usually presents fewer buyers, but the
Of course, there are exceptions and a small
buyers are usually more focussed on
investment could be worth the outlay,
purchase and traditionally there will be
especially if you don’t intend to sell in the
fewer homes on the market to choose
immediate future. First National Real
from. Of course, the further north, the less
Estate agents will be happy to advise
difference
and
whether you may be over-capitalising,
accordingly, the less variation in selling
even if you are just considering an
conditions.
extension or a renovation.
Would I get more if…?
Marketing for the best price in the least time
Your
14
agent
in
the
can
seasons,
advise
you
if
improvements could generate a better
It’s not often that a purchaser for your
price for your home. Generally, while
home is out there, just waiting for you to
improvements may make your home
put your home on the market. Timing,
more saleable, perhaps even shortening
presentation and advertising are all
the sale time, they will not necessarily
required to bring buyers and sellers
achieve a better price.
together for the best result.
trained and qualified to handle the sale of high value and often unique properties. In all cases, it is important to select the newspapers, magazines and target areas which contain the most potential buyers for your type of property. A good real estate agent will advise you of the right advertising mix. Almost always, the first item on the list will be a signboard. Research indicates that a large proportion of homes are sold to buyers in immediate areas, which is why the signboard is so important. It not only identifies your property to those who have seen the home in the agent’s window
Reaching potential buyers
display, but also to someone who may
Selecting the best marketing plan to ensure your home is exposed to the maximum number
of
buyers
is
important
in
achieving the best price. However, expensive or extensive marketing is not always the answer; a smaller, well-planned campaign aimed at the right market can often bring the right result in a shorter time, especially if your home has features which will make it attractive to an identifiable group. For example, a home beside a popular golf course could be
have admired your home and drives or walks past every day. And that may be the person
who
will
buy
your
home.
Signboards come in a number of shapes and sizes, and of course, prices. A simple board may be all that is required, or if the exterior of your property does not indicate the quality within, a picture board can be used to give a glimpse of the interior features. Where council bylaws permit, a light mounted on the signboard can be very effective at dusk.
advertised to members of the golf club.
The next part of the marketing will be the
Perhaps the value is beyond the reach of
advertising. Local newspapers usually
the average person. In such a case, First
form the largest part of the mix. The agent
National Real Estate offers a specialist Fine
may use just one newspaper where there is
Homes service with agents specially
a choice, having tried them all and found
15
one more cost-effective than the others.
interested agent, where they can be
Real estate magazines are another tool
viewed so buyers can make an informed
used by agents. Some will take space in
decision about your property before even
an existing publication; others may
setting foot on it. Many agents also use a
publish their own. These are sent to
similar viewing system in their office to
known potential customers as well as
assist buyers to narrow the options. This
being available from the agent. Your
means less time wasted with inspections
agent also may suggest a letterbox
of houses that may fit the buyers’ criteria
campaign with cards or flyers of your
but do not appeal aesthetically. Of course,
property distributed in areas considered
one of the most powerful, yet often
to contain potential purchasers. “Open for
underestimated, marketing resources is
Inspections” are popular with some
the
agents and not with others, depending on
property needs to be seen in the best
their own experience of the marketplace.
possible way in a powerful, ever-
An “Open” is where an agent will invite
changing display that attracts buyers.
agent’s
window
display.
Your
inspection of properties for a limited period of time, usually on a weekend. Anyone interested can look over your
First impressions are lasting
home while it is open. From the moment the prospects arrive An increasingly important advertising medium is the internet. Potential buyers from anywhere in the country or the world can look at your property, sometimes inside and out, and decide
they should notice that the gardens and lawns are well presented. Garden rubbish should be disposed of and paths and porches kept clear and clean. Toys and garden tools should be stored away.
whether it is of interest before contacting the agent. With a sophisticated referral network such as that operated by First National
Real
Estate,
buyers
from
interstate or other suburbs and towns can contact their local agent, and be shown properties available through offices in areas they may be interested in. Specific details of interest can be photographed and placed on a website or emailed to the
16
Your home on show Whether
by
individual
inspections
arranged by your agent or through ‘Open Homes’ set at predetermined times, here are some tips on how to maximize their effectiveness.
A tidy home says “welcome”
Make them comfortable
Your home should be kept neat and tidy
A warm, comfortably heated home on cold
during the period of inspections. It should
days, particularly if you have an open fire
not necessarily be a “show place” but
place, adds a feeling of cosiness; on a hot
appear a comfortable home in which to
day don’t forget to turn on the air
live. Fresh flowers or indoor plants always
conditioner or fan (or simply let the breeze
brighten up a home.
flow through). You may like to set the dining table and have a coffee percolator
Less is more!
on to give your property a homely
While you’re cleaning, think about each
atmosphere.
room and what furniture really needs to be in it. Rooms look smaller when they’re
Inspections: Three’s a crowd
crowded with sports equipment, excess
Avoid having too many people present
furniture and general clutter. Clear out
during inspections. First National Real
anything that’s not needed to create a
Estate agents know the buyer’s requirements
feeling of spaciousness. And don’t forget
and can better emphasise the features of
your cupboards - keep them neat and not
your home most important to the purchaser.
too full, to show that your home has plenty Silence is golden
of storage space.
Be courteous but don’t force conversation Repairs can make a big difference
with a potential buyer. The prospective
Make sure that all minor repairs are
purchaser wants to inspect your home -
completed. Sticking doors and windows,
not pay a social call. However, should you
loose door knobs, faulty plumbing, peeling
be asked questions about the home, the
paint or faulty flywire may affect your sale.
neighbours or the district, answer them truthfully and directly.
Letting the sun shine in Let plenty of light into your home. Nothing
Keep it peaceful
improves
As a general rule it is advisable to turn off
atmosphere
more
than
brightness. On a dull day it is advisable to
radio
switch lights on prior to arrival of
inspections as they can be very distracting.
prospective purchasers.
Keep your pets out of the way (preferably
and
television
sets
during
out of the house). Let the agent and buyer talk, free of disturbances.
17
Some more “Don’ts”
You must understand that if the purchaser
• Don’t apologise for the appearance or
does not wish to accept your “counter
condition of your home (this does
offer”, they can withdraw their original offer.
nothing but emphasise the faults). • Don’t discuss the details of the transaction such as price or terms
When considering an offer, take the following into account: • price
(leave this to the professional, your First National Real Estate agent). • Don’t allow a prospective purchaser to inspect your home without your agent (refer them to the agent or contact the agent yourself).
• suitability of the deposit • terms of finance (either cash or subject to finance being arranged) • settlement date Take advice from your agent when considering the offer.
Working as a team You and your agent should always work as a team. If you feel your agent has overlooked
some
important
selling
points, feel free to discuss them privately
You’ve found a buyer what now?
(perhaps a phone call to the office). Once you have found a buyer and agreed on the price, the contract that had been
Negotiating and accepting an offer Always
have
the
agent
handle
negotiations. Should you be approached directly, it is wise to politely redirect the prospective purchaser to your agent. The agent will present any offer in writing, at which time you have the right to accept the offer or you can counter the offer at a price acceptable to you.
initially drawn up can now be signed, and normally a 10% deposit will be paid by the purchaser with the balance due on the settlement date agreed. In the case of purchase at auction, there is normally no cooling off period and the deposit must be paid and contract signed on the day of purchase. Cooling off periods for normal sales apply in a number of states, however, your agent is the best person to advise you on the legalities. The deposit will be held in trust by your agent.
18
The purchaser has the right to organize any inspection of the home, whether it be by a pest exterminator or a building consultant. This will normally be included in the contract. Once the contract is exchanged,
it
is
a
legally
binding
document and the process of transfer can begin. Some people have the knowledge, experience and time to handle the transfer themselves, but this is fairly rare. Normally a solicitor, a conveyancing company or settlement agent will handle the transfer. They are experienced and knowledgeable of what can be a very complex process. Should you not have an appropriate person to handle the transfer, your agent will assist as they will have local contacts that they can recommend. The stamp duty is paid by the purchaser. Settlement day is the point at which the keys are handed to the purchaser and the property becomes their responsibility. It is important to note that until that date the property is still legally yours and therefore such aspects as insurance remain your responsibility. It is normal for the agent to deduct the commission and any advertising costs (if applicable) from the deposit after settlement. As part of the transfer process, arrangements will be made for the balance to be transferred to your bank account or paid direct to you.
19
What about your next home?
First National Real Estate can source information about your new area to help
While you are selling your current
you relocate with a minimum fuss. Ask
property, your agent can also be working
your local First National Real Estate agent
on finding your new home. Your agent
for assistance or call 13 16 66 for
will help you by identifying your needs in
connection to your nearest office.
relation to your new home and can assist you in finding a home to suit your family and your budget. By dealing with a network like First National Real Estate, that home could be in the same street or
Arranging your next home loan
anywhere in Australia, as well as many
Sometimes it can be hard to get to the
other parts of the world. First National
bank to arrange a home loan. Rather than
Real Estate should also be able to help
you having to go to them, First National
with a rental property while you look
Financial Solutions* have a fleet of
around. First National Real Estate is one
relationship lenders out on the road who
of
Australasia’s
networks
with
Australia
and
largest
real
estate
can visit you, even after hours. As well as
offices
throughout
offering highly competitive rates, our
New
Zealand.
First
National Real Estate also has other
Lenders can provide all the home loan help, information and advice you need.
affiliations overseas. Whether it is across town or across the nation, First National
Phone First National Financial Solutions
Real Estate can take the hassle out of
on 1800 720 363
moving.
20
IMPORTANT NOTICE: First National Financial Solutions is a division of Suncorp-Metway Ltd ABN 66 010 831 722. Banking products are issued by Suncorp-Metway Ltd. Various products and services are provided by different entities in the Suncorp Group. The different entities in the Suncorp Group are not responsible or liable in respect of products or services provided by other entities in the Suncorp Group.
READY FOR THE MOVE? Moving Countdown
6 weeks before the move Discuss
Planning and preparing down to the last few details will make your move easier. Following a schedule that organises tasks within a time frame will keep you on track.
costs,
packing,
loading,
delivery, and the claims procedure with your mover. Make
inventory
of
all
of
your
possessions now determine what can 8 weeks before the move
be sold and what can be donated
If you are using a professional mover,
to charity.
get estimates from different moving
Get copies of your records from
companies and choose the one that is
doctors, dentists, lawyers, accountants,
best suited to your needs. If you are
etc. Make arrangements to transfer
moving yourself, get estimates from
your children’s school records.
truck rental companies. Be sure to reserve in advance.
Go to the post office and obtain a change of address kit and start filling
Draw a floor plan of your new house.
out the cards. Don’t forget about
This will help you decide what furniture
changing the address on magazine
stays and what furniture will go.
subscriptions, catalogues, etc.
Use up things that can’t be moved such as the food in your freezer and flammable household aerosol cleaning supplies. Contact the information office or local council in your future location and start gathering information about your new home town.
4 weeks before the move If you have contracted to have the mover do all the packing for you, arrange to have this task completed a day or two before loading the truck. If you need it, arrange for storage. Clean or repair any furniture, curtains, or carpets that need it.
21
Hold a garage sale. Use the extra cash
Arrange to cancel utilities and
to splurge a little on your new place.
services at your old home and have
If you are moving yourself, work out
them installed at your new home.
how many boxes you’ll need. (Many
2 weeks before the move
truck rental companies will provide this service)
Arrange to transfer all of your bank accounts to new branch locations.
Do-it-yourselves should take stock of non-boxable items. Add 15 percent to their combined cubic feet (along with total cubic feet of boxes to be loaded) to determine the size of truck you’ll need. 3 weeks before the move Assemble packing material
move pets, such as purchasing airline reservations and travelling containers. Consult your veterinarian about how to make moving easier for your pet. Make
arrangements
for
new
telephone service. Cancel
any
direct
deposit
or
Furniture pads
automatic payment arrangements on
Hand truck
bank accounts you are closing.
Packing tape
Cancel delivery services.
Bubble wrap Styrofoam “peanuts”
1 week before the move Transfer all medical prescriptions to a
Nylon packing string and rope
pharmacy in your location.
Crumpled newspapers
If you will need a babysitter, arrange
Scissors
for moving day service.
Utility knife
Return library books and videotapes.
Large self-stick labels
22
Make any special arrangements to
2 or 3 days before the move
Felt-tip markers
Defrost your refrigerator and freezer.
Boxes, boxes, boxes
Have the movers pack your shipment.
Begin packing items that you won’t
Arrange to have cash, a certified
need. Don’t pack too much weight in
cheque, or money order ready to pay
an un-reinforced box.
the driver on delivery day.
Set aside valuables and legal documents
Tea kettle
to go with you, not on the van.
Paper plates
Pack clothing and toiletries to go with
Toilet paper
you; take a day or two’s extra clothes
Instant coffee, tea, soft drinks
in case of delay. Soap Pack your first-day handy items box (see “Delivery Day”) to go with you.
Pencils and paper Local phone book
Moving Day Do-it-yourself movers should pick up
Masking tape Bath towels
the truck early. Trash bags Make a list of every item and box loaded onto the truck. Let the mover know where you can be reached. Before you sign your agreement with
Toiletries kit Shelf liner Check off all boxes and items as they come off the truck.
the mover, read the conditions.
Make sure the utilities are connected.
Keep it in a safe place until your
Unpack kids’ toys.
goods are delivered, charges are paid,
Be on hand to answer questions, pay
and any claims are settled.
the driver, give direction and examine
Check your old house to make sure
your goods.
you’ve turned off water, appliances etc. Inspect basement, attic, garage. Be on hand to answer questions and give directions to the mover. Delivery Day Assemble first-day handy items: Scissors Utility knife Coffee cups
23
Things to Do Tick When Completed Here’s a final checklist of contacts to be made: Financial / Legal (notify in writing) Bank (inc. children’s accounts) Building Society (loan and savings accounts) Credit Union Age/Invalid/Repatriation Pensions (Social Security/Repatriation Departments)
Public library Life insurance company (quote policy no.) Property insurance company (quote policy no.)
Car insurance company (quote policy no.) Any other insurance (children’s accident, etc.) Hire purchase company Credit cards (Diners Club, store accounts, etc.) Car registration Driver’s license Electoral Office (address in telephone directory under Government section)
Local police (if you have any driving summonses, etc. pending, or if you are to be a witness in a case, etc.)
Shares & investments Government bonds
24
Housekeeping
Personal/Social Employers
Newsagent (with date last paper required)
Apprenticeship Commission if one of
Electricity department
the
family
is
apprenticed
(quote
apprenticeship number)
Kindergarten Primary school Secondary school Part time, evening and correspondence courses Other (when children change school, you may need an official transfer)
“off” at old address “on” at new address Gas company “off” at old address “on” at new address Telephone (Contact Regional Sales Office) “off” at old address “on” at new address Post office (pay a monthly fee for redirected mail)
Doctor Dentist Hospital (if you are an outpatient, etc.) Baby health centre
Magazine
subscriptions
received by mail)
(anything
- save wrappers with
reference numbers Here’s a good idea - make up a “Moving
Health fund
Notice” and photocopy enough for your
Social clubs
requirements. It will save time writing
Children’s activities (Scouts, Ballet, etc.)
letters. Here’s a sample:
Sporting clubs (whether a player or a member) Neighbours Relations Friends Other
!! MOVING WE ARE leaving
are ary Brown John & M ithtown m S t, ee 1 Smith Str e at and will b treet S 10 Brown 0 TATE 000 S E L VIL BROWNS ovember From 1st N 0000 0000 hone: (00) ep el T ew N
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• Try not to take it personally if your
Kids and Moving
child is having trouble adjusting to the Moving to a new home can be one of the
move and blames you for causing it.
biggest changes that a family can face,
• Try to explain that sometimes big
especially for young children, so it is
decisions need to be made and some
important
cannot be avoided.
to
take
them
into
consideration. With sensitive planning these changes can be put into a positive framework. The following are a few points to take into consideration. • Prepare your children for the move by giving them lots of information about the reasons for moving and letting
emotional
had during your childhood. • Don’t forget to share your feelings with someone - adults sometimes need support as well. • Focus on the positive aspects of your new
community.
• Listen to what they have to say and assure them that you understand. • Avoid being over optimistic and insisting everything will be wonderful. Even if the new home is fantastic, it may still take time for them to adjust.
and
• Share the feelings that you may have
their new home.
feelings with you.
support
understanding.
them know what they can expect in
• Invite children to talk about their
26
• Provide
home,
neighbourhood
and
Remember, your local First National Real Estate
consultant
is
part
of
the
community you’re moving into and can assist in providing information and contacts for settling into your new area.
Understanding technical, legal and building terms ADJUSTMENTS - Apportionment of rates, taxes, body corporate, rent, insurances etc. Up to the date of possession or settlement on a sale. ALLOTMENT - A small area of land sufficient for building a house. An allotment is also referred to as a building block, lot or block of land. AMORTISATION - The process of recovering, over a stated period of time, the capital investment through scheduled, systematic repayments at regular intervals. Periodic
AUCTION AGENCY AGREEMENT - An agreement that the vendor must sign when a property is listed for auction. Details the reserve price of the house and the costs of the auction, including advertising and the agent's commission. Usually includes a condition that one agent will have the exclusive right to sell the property for a period during and after the auction. BREACH OF CONTRACT - Breaking the terms of the contract. BRICK VENEER - A building which has brick face external walls with some other material behind, usually fibrous plaster or gyprock on a timber frame.
full-scale valuation.
BRIDGING FINANCE - The need often arises for purchasers to effect settlement of a real estate transaction prior to the date that the finance becomes available. Under these circumstances it is necessary to obtain bridging finance (a temporary loan) to provide for the time gap in order to comply with the terms of the contract in regard to settlement pending the availability of the
ASSETS - Real and personal property in
long term finance.
which a person has an unencumbered
BUILDING REGULATIONS - Laws adopted and enforced by Local Government Authorities which specify the method of construction of buildings and the nature and materials to be used, below which standards the buildings must not fall. They are designed to ensure public safety, health and the minimum acceptable society standards as to design, construction, alteration, repair and occupancy. Also referred to as Building ByLaws and Building Code.
contribution sot a sinking fund to discharge a debt or make a replacement at a future date. APPRAISAL - The term commonly used in America to indicate what in Australia is termed a valuation. In Australia the term means an opinion or summation of the saleability of a property without resorting to a
ownership or equity and which has value. AUCTION - The selling of any property, real or personal, in public by a licensed auctioneer, who offers the property for sale, starting at a price possibly much below its value, and endeavours to persuade those present to make successively increased offers until it is knocked down to the highest bidder. A reserve price may be placed on the property by the owner and no sale can then be made below this price.
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CAVEAT - A caveat can be lodged on the Land Titles Register by anyone with a legal interest in the property, preventing the sale of the property without their knowledge. CAVEAT EMPTOR - Let the buyer beware. In real estate, in the absence of specific representations by the vendor or his agent as to the conditions of a property or the uses to which it may be put, the buyer takes the risk and must make his own inquiries. CERTIFICATE OF TITLE - The document of title to land held under the Torrens System. It consists of duplicate deeds stating the fact and extent of the interest of a person (the registered proprietor) in land held under the Torrens System. The deeds are numbered. One is kept in the Titles Office and the other is held by the registered proprietor. When the land is dealt with, a note of the dealing is made on both copies by the Titles Office. CHATTELS - Any property other than freehold land. Chattels are treated as personal property, although they are divisible into chattels real and chattels personal. CLADDING - A term applied to relatively thin sheets or slabs used to enclose a framework, e.g. imitation bricks, aluminium, etc. COMMERCIAL PROPERTY - Property intended for use by all types of retail and wholesale stores, office buildings, hotels and service establishments. COMMISSION - Remuneration of a real estate agent for services rendered, e.g. to effect the sale of property. The amount being a prescribed percentage based on the consideration of the contract or agreement.
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COMMON PROPERTY - (i) Land or a tract of land considered as the property of the public in which all persons enjoy equal rights. A property not owned by individuals but by groups. (ii) In a home (villa) unit or flat development that part of the property owned and used in common by all the unit or flat owners or occupiers and which is maintained by the Body Corporate. COMPANY TITLE - Rights to occupation in perpetuity of property based on the ownership of shares in a company in which is vested the title to the property. This was the common method of home unit ownership prior to the introduction of strata title ownership. CONDITIONS OF SALE - The conditions under which a purchaser takes property sold to them. CONTRACT OF SALE - An agreement relating to the sale of property, which expresses the terms and conditions of sale. CONVEYANCE - An instrument (ie document) which transfers property or a right in property from one person to another. CUL-DE-SAC - An access street with a blind end in the form of a turning space for vehicles. DATE OF SETTLEMENT - In relation to real estate transactions, it is the day on which under the terms of the contract the vendor is required to transfer his or her estate or interest in property to the purchaser. DEPOSIT - Non-refundable percentage of purchase price paid by buyer when contracts are signed and exchanged. Deposit must be held by estate agency or seller's solicitor in a trust account or held jointly in a trust account by seller and buyer.
DWELLING - A residence. A place of abode
causing irreparable damage to the demised
or a structure occupied exclusively for living
premises or land. (Fittings may, of course, be
purposes.
installed by the owner or landlord of property).
EASEMENT - A right which a person has to
FIXED FLOOR COVERINGS - Wall to wall carpet, kitchen linoleum, vinyl tiles, etc. This term does not cover loose rugs.
use land belonging to another in a particular manner not involving the taking of any part of the natural produce of that land — or of any part of its soil; or a right to prevent the owner of that land from using that land in a particular manner. The most usual easements are rights of way, easements for light and easements for the flow of water over and through another’s land. EDWARDIAN RESIDENCE - Architectural style that flourished during 1901 — 1916. Characteristics of the style include: chunky building, solid and compact constructed out of common red bricks with bold horizontal lines at floor levels, the cornice and parapets were plastered in flat planes and painted. Verandahs were discarded and walls carried up to form parapets to reveal the baldness of the building. Cast iron in all forms was not used. ENCROACHMENT - An unlawful gaining upon the possession of a neighbour. An encroachment is usually in the form of a fence, or portion of a building, erected by one person upon land of an adjoining neighbour; or a structure overhanging the land of a neighbour. An encroachment may similarly occur upon a street. EXCLUSIVE AGENCY AGREEMENT - An agreement which entitles one agent only to sell the property. FITTINGS - Those things installed by a tenant for the purpose of trade, ornament or domestic use which may be removed without
FREEHOLD - The highest form of estate in land, and the nearest the law allows a real property owner to approach complete ownership. A freehold estate is one which is of unlimited duration, that is to say, it cannot be said of an estate of freehold at the time of its creation when it will come to an end. GAZUMPING - Where the vendor agrees to sell a property, but then sells it to someone else or raises the price. GENERAL LAW TITLE - There are two systems of providing title to land. One is the Torrens Title System which uses government - recorded certificates of title. The other is the very much older system under which title is proved by showing what is known as a good root of title, that is a series of documents showing the whole of the history of the land over a prescribed period and showing by that history who is currently the lawful proprietor of the land. Also referred to as; common law title, and old systems title. GEORGIAN ARCHITECTURE - A formal colonial style adapted from English design of the eighteenth century; characterised by simple lines, balanced window openings, doors and chimneys. GRACE PERIOD - A period when a mortgage payment or other debt becomes past due, and before it goes into default. Most mortgages provide for a specified period of time when it can be paid without penalty or default.
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HOLDING DEPOSIT - An amount given by a buyer to the estate agent acting for the seller. It shows the buyer's serious commitment to the property, but is not compulsory and is refundable if the offer is rejected. INSULATION - A heat-retarding material applied in outside walls, top-flooring ceiling or in roof to prevent passage of heat or cold into or out of the house. Also, the process of insulating a house. INVESTMENT - Monies placed in a property with the expectation of producing a profit, assuming a reasonable degree of safety and ultimate recover of principle; especially for permanent use, as opposed to speculation. INVESTMENT PROPERTY - That real estate property which a person would invest in to get a return on money. JOINT
TENANTS
and
TENANTS
IN
LAND TAX - An annual tax paid to the state government, calculated according to the value of the property. LAND USAGE - The use being made of land or the uses permitted under zoning ordinances. Zoning ordinances act to control land usage in a community by establishing building codes and set back requirements. Proper land usage attempts to assign the highest and best use to each parcel. LEASE - Possession but not ownership of a property for a set period of time. The terms and conditions are set out in a document signed by both tenant and owner.
or tenancy in common. Joint tenancy is
LESSEE - One who possess the right to use or occupy a property under a lease agreement.
ownership in equal undivided shares, state
LESSOR - Property owner who rents it out.
COMMON - Property, whether real or person, may be owned under joint tenancy
to have the technical requisites of unity of possession, interest, title and time. The most important feature of joint tenancy is known as survivorship; on the death of one joint tenant, that person’s share passes to the survivors so that they remain joint tenants of the whole. Joint tenants are regarded collectively as a single person in respect of their dealings with others. In the case of tenancy in common, although each has an undivided share, such share is distinct and separate. The interests need not be equal; thus ‘A’ may have one undivided third share, and ‘B’ two undivided third shares of the
30
same property. The most important feature is that the share of a tenant-in-common may be separately disposed of during a person’s lifetime, or by will. On death it passes, not to the other tenants-in-common, but by will, or by the laws of intestacy.
LIMITED TITLE - The Torrens Title that applies before a property has been surveyed. LISTING - The recording of properties as being available for sale. LONG-TERM LEASE - Generally considered to be a lease agreement extending for 10 years or more. Under such leases the tenant may desire, or be required, to do extensive remodelling: or if the property leased is land, to construct a building or other improvements.
MARKET PRICE - The price actually paid, or to be paid, for a property.
OPEN AGENCY AGREEMENT - When any
MEZZANINE - A low-storey between two floors of a building, especially the first two floors; an intermediary floor. In a theatre, a shallow balcony between the main floor and the first balcony.
property for sale.
MORTGAGE - A written contract giving the lender certain rights over the specific property for example, the house being bought by the borrower, as security for the loan.
property to the exclusion of others.
MORTGAGEE - The source of funds for a mortgage loan and in whose favour the property serving as security is mortgaged, i.e. the person who lends money on the mortgage against some security normally real property or goods.
bidder has first option to purchase at the
MORTGAGOR - The owner of property who borrows money and mortgages the property as security for the loan. MULTIPLE LISTING - A method of exchanging exclusive entries for the sale of properties between real estate agents who are members of the same organisation. NEGATIVE GEARING - When the income received from an investment property is less than the cost of the investment, you can deduct this amount from your taxable income, reducing your total tax bill.
number of agents may market the vendor's
OPTION - A right given for a consideration to purchase property on or before a fixed date, on terms previously agreed upon. OWNERSHIP - The right to possess and use
PASSED-IN - If a property is not sold at auction because the owner’s reserve price has not been reached, it is passed in. The highest reserve price. It is then possible to negotiate for the purchase, either on the same day or afterwards. Properties so passed in are mostly sold shortly afterwards at a price close to the passed-in figure. PENTHOUSE – An apartment build on a portion of the roof or top floor of a building. Typically, such units are larger and more luxurious than most apartments. PREFERRED LISTINGS – Entrusting the sale at least in the first instance to one agent only. PRIVATE SALE – An owner sells a property without using an estate agent. PRIVATE TREATY SALES – An owner sells a property using an estate agent who deals directly with the buyer/s. The property is not
OCCUPANCY - Having possession of property. Physically taking and holding it and residing thereon as a tenant or owner.
offered for auction.
ON SITE AUCTION - Auction sale held on premises being offered for sale or chattels being offered at the owners residence as distinct from an auction held at the premises of the auctioneer or auction rooms.
PURCHASER – The buyer. The one who
PURCHASE PRICE – The price paid; the amount for which a property is sold.
acquires title to a property or an interest therein.
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QUALIFIED TITLE – An Old System Title that has been updated to the Torrens system, but which may not have been comprehensively investigated to find out all the enduring legal interests in the property. QUANTITY SURVEYOR – A person who undertakes the preparation of a statement of the quantities of material involved in the carrying out of constructional work. RANCH HOUSE – A one-storey ramblingstyle home, usually having a low-pitched gable or roof line. RATEABLE PROPERTY – Real estate property in respect of which there is power to impose rates.
SEMI-DETACHED – Party detached. A pair of homes joined together and forming a block by themselves. SETTLEMENT – This is the final stage of the sale when the purchaser completes the payment of the contract price to the vendor and takes legal possession of the property. SOLE AGENT – An agent appointed upon their own for the sale of, or other dealings with a property. An exclusive listing. STAMP DUTY – State governments impose
RATEABLE VALUE – The value of property on which rates are assessed.
a stamp duty, or tax, on the purchase of
REDEVELOPMENT – The development or improvement of cleared or undeveloped land in an urban renewal area.
calculated as a percentage of the property’s
REDEVELOPMENT ZONE – An area of land designated by a planning scheme as an area in which the existing development is to be replaced by a new development of the kind specified in the planning scheme.
STRATA TITLE – A building is subdivided
RESERVE PRICE – The minimum price at which the owner of a property is prepared to sell a property at auction.
sense of dividing land into building lots.
RESTORATION – Remodelling a building to its original form; contrasted with rehabilitation. ROW HOUSING – A group of one or twostorey dwellings separated by fire rated party walls; more often known as a terrace of housing.
32
SALEABLE PROPERTY – Property that can be readily sold; marketable because of location, demand, price or some other desirable factor.
property. The amount of tax payable is purchase price. Only buyers pay stamp duty.
and each part or unit in the building is owned separately. SUB-DIVISION – Literally a division into parts. The term is generally used in the Before the land can be sold, it must be approved by the council, other statutory authorities and the Titles Office, as
appropriate. SURVEY – The measurement of a property to confirm where its boundaries are, and what improvements have been made to it. SURVEYOR – A person qualified and licensed to practice land surveying.
TERRACE – A row of houses in one block with shared dividing walls. The houses are usually all built to a uniform style. TITLE – The ownership of property, or the documents constituting the evidence of such ownership. TITLE DEEDS – Documents evidencing the ownership of property that are transferred to the new owner when the property is sold. TORRENS TITLE – This term derives its name from the late Sir Robert Torrens of South Australia, who was mainly responsible for
VILLA – A term widely used in Victoria, elsewhere known as a cottage. The popular definition is a detached single-storey house. VISIBLE IMPROVEMENTS – Those improvements which are apparent on inspection such as buildings, fences, orchards, etc. WATER CLOSET – A room equipped with toilet fixtures and facilities. WATERFRONT PROPERTY – Any property that has frontage on an ocean, river or other
watercourse.
originating this form of title more than 100
WATER RIGHTS – A right to a definite or
years ago, although he was not the author of
conditional flow of water, usually for use at
the scheme but the one who was able to put
stated times and in stated quantities for
the scheme into effect. Under the Torrens system dealings and ownership of land are managed by registration with the Titles Office. TOWN HOUSE – The term is used to describe
irrigation or for hydroelectric power development. WEATHERBOARDING – External wall
those residential developments which permit
sheeting formed with overlapping or
single-family construction on high cost land
rebated boards.
by use of row houses.
WITHOUT RESERVE – An auction term
UNENCUMBERED PROPERTY – Property
signifying that the goods offered will be
free and clear of mortgages, restrictive
sold to the highest bidder, whatever that
covenants, leases, and assessments of any
bid may be.
kind. UNIT – Each subdivided area registered within a strata title building.
ZONING – Local planning authorities control
the
present
and
future
development of land, including residential, VALUATION – A written assessment of how much a property is worth, by a registered
business and industrial uses.
valuer. VENDOR – One who sells anything. In real estate transactions it is the person selling the property.
Acknowledgment: Information provided by the Real Estate Institute of Australia (REIA), the national professional association for the real estate industry in Australia. For more information, see: www.reia.com.au
33
www.nfn.com.au