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musings and machinations regarding realestate, small business, FOSS and other things

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Do

Simple answer: No

As a small agency in Canberra it becomes very frustrating when our clients are continually told by other agencies that by choosing us, a low cost agency they will get a lower selling price. We have proven time and time again that this is not the case and not only do we equal the average selling price for comparable homes in a suburb but regularly better it. Here is one of our recent clients experience:

“Before we decided to use Karene as our agent we had 2 of the major real estate companies come through our house for a valuation and quotation. The first came back with $360k - $380k with a $15k commission fee. Best case scenario with them was $365k in our account. The second came back with $370k - $390k with $12k commission. The best case scenario was $378k in our account.
Then Karene came along and at first we were a bit hesitant, just due to the fact that it was only 0.8% commission, which was A LOT cheaper and provided more (professional photographer, third party valuation etc).  After speaking with Karene we got the vibe that she was a very honest person (hard to find when it comes to agents) and we couldn’t be happier when she more than lived up to our expectations and got us $410k with only $3,280 in commission, which is $406,720 in our account. It took only 2 open houses.”

Cheap

Recently, on a major real estate sales website they quoted a list of things to look for in an agent. One of the comments was to beware of 'cheap agents' who advertise low commissions. Speaking to a principal of one of the largest agencies here in Canberra we received the comment that people would only 'get what they pay for' with cheap agencies, implying that with a cheap agent you don't get much. What is our take on this?

We are certainly cheap BUT our major aim is to provide a service that rivals the most expensive agencies in Canberra, and from the testimonials of our clients we feel we are well on the way to achieving that. As with anything there are cheap agents out there some people may not recommend just as there are agents that charge astronomical fees who you wouldn't refer. Use your gut and look at what your agent is including in their service and for what price.

Remember that sometimes industries need shaking up, house prices have increased hugely in Australia but commission rates haven't been reduced at the same rate.

What

'Record sales' mean that a property sold for a high price in a local suburb. That does not necessarily mean that the owner themselves received a record amount in their pocket for their home.

We advise people looking to sell to ask prospective agents how much owners received in their past sales. If a home sells for $10,000 more than another equivalent in the neighbourhood but the owner has a $15,000 commission and advertising bill rather than a $3,000 bill the record sale has benefited no one but the agent and done nothing for housing affordability.

For example consider the following two properties:

House A House B

(:row:)


Sold by point8estate

Sale Price: $465,000
Commission: $3,720


Sold by traditional agent

Sale Price: $475,000
Commission: $14,000

Owner gets: $461,280 Owner gets: $461,000

Which is really the record sale?

This to us, is just another reason as to why we should all push for more transparency in real estate costs. Yes, the market is changing and more agencies are beginning to advertise "flat rate" costs. But real estate would have to be one of the few professions left in which agents seem at times embarrassed or perhaps secretive about costs upon initial contact. These costs must of course be fully disclosed before an agency agreement is signed but until then be sure to ask about costs that may be incurred in addition to commission such as advertising.

Selling

Looking to sell your home privately in the ACT?

Real estate commission rates in the ACT are largely an unknown. Typically agents charge between 2% and 3.3% with a minimum charge of $10,000. All we can suggest is that you ring a few and ask, be careful as some will include advertising costs in their rate and some don't. Some agents at this stage will request to do a sales presentation before telling you about their rates, you will have to make your own judgement as to what to do here. Consequently many people elect to sell their property privately in Canberra. If you do want to sell privately below is list of things to consider and costs associated:

  • Documentation According the the Civil Law Act 2003 (Sale of Residential Property), four documents are necessary before properties can be marketed for sale. These are: a contract of sale, Energy Efficiency Rating Report and Building and Pest Inspection reports (not required for multi-story buildings, ie units/apartments). You will need to contact a solicitor to draft the contract of sale which needs to include a Title Search and Crown Lease. A list of firms that do conveyancing can be found on the Law Society of the ACT website. Energy Effeciency Rating Reports can be completed by accredited assessors only a list is available on the ACT Planning and Land Authority website. Building and Pest inspectors can be found in the yellowpages.
  • Listing To gain the necessary exposure for your property allhomes take private property listings for a fee of $895. The listing is current until your property sells. Other smaller sites also list private sales but do not have the audience of allhomes.
  • Marketing Photographs of your property are important in generating interest amongst prospective buyers. Many people do real estate photography in canberra and usually charge around $150.
  • Flyers Many prospective buyers will appreciate a flyer about your property when they inspect. A plan of the house is perhaps the most important aspect of this, to allow buyers to look at extensions, redesign, renovations etc.
  • Be available Once your home is on the market the most important factor is to be available for buyers to contact you. Provide as many forms of contact as possible including an email address and phone number. Buyers appreciate being able to view properties at their convenience, you may miss buyers if you only allow inspections during very specific times.

Other things that you would prefer not to think about but should include:

  • Insurance Check with your insurance company in regards to your cover for theft or public liability claims during the sale process.
  • Rental Agreements Remember if you are selling a property that is tenanted and you have a tenancy agreement, you can not offer to sell the property vacant. The tenancy agreement must be honoured until the end date unless the tenants are in agreement to vacate earlier. This agreement MUST be in writing and signed by the tenants and ALL owners of the property.

General information about preparing your property for sale can be found on our Selling section.

Tips

When it comes time to sell, you want your property to look it's best. There are a number of things you can do to ensure this:

  • Reduce Clutter inside and out. Homes look good when they are tidy and organised. Toys, books, clothes etc that are not used can be packed into storage boxes, making rooms and cupboards look more spacious. It also means that when the time comes to move, some of the packing is already done!
  • Keep your house clean and tidy. Considering that your home is now on display it is a good idea to do house cleaning chores more regularly. Even older kitchens and bathroom can look their best with the little things like mirrors and cupboard handles cleaned. Be wary of using quick fixes as these will often undermine the quality of your property to buyers.
  • Tidy and maintain gardens When prospective buyers drive to your property the gardens and outside appearance will have the first impact. You may be surprised at the effect a general garden clean up has on your property. Trimming shrubs, re-barking garden beds, mowing and edging lawns etc, will help to show your property at it's best.
  • Make your home neutral Make your property appealing to as many buyers as possible. For example, some buyers don't like pets or incense, they may in fact be allergic to them. Try and have pets secured during inspections and regularly air your house while it is on the market.
  • Secure your property Remember that strangers will be looking through your house, it is a good idea to put away anything that is precious or valuable to you.

Nokia

We use Nokia E71's with three for mobile email + web access. Problem is the gmail app (and IMAP access to gmail via the nokia mail thing) just died the other day. When I tried to use the gmail app it would present me with this nice message:

"This program requires a working data connection. Please check your signal strength"

But I knew the web connection was working as the web browser worked. To make things even more confusing when I used the inbuilt nokia mail app it would say "connecting" and then just stop. No feedback, no nothing, just dumped you back to the inbox with no new email goodness. So after digging about a bazillion different posts on forums and fiddling with the app settings and connection settings all to no avail, it finally dawned on me. Perhaps the certificates had got corrupted or they changed as part of this gmail -> mail.google.com thing? So:

menu->Settings->General->Security->Certificate Management->Trusted site certificates

I deleted anything that looked like gmail and tried again. aaah, gmail happiness again.

the

Hi, and welcome to the point8estate blog.

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