Selling your home in Moreton can be difficult and the costs of making a mistake are high. After years of experience in the industry selling and buying homes, here is my guide to being a smart seller.
Get the right agent
When working out who you might want to interview, choose agents who have a track record in your area and are known for selling similar homes.
Check your local newspaper’s real estate section and see which agents have the most listings online.
Check their profiles on Facebook and Twitter.
Once you have three or four on your list, try to attend their open for inspections to see them in action. Ask their opinion about your home and its value, what sales method they would use, their knowledge of the market and area and – my favourite question – what they think is wrong with your home. Then ask how they would overcome this when selling the property.
What your home is worth may not be what you want to sell for. Properties that sell for more than their market value are rare.
Remember valuation is an art, not a science. Look at homes for sale near you — are they worth more or less than yours? Are they nicer or uglier than yours? Be honest.
It is a tricky process but do get a rough idea before the agents come in. And when a figure is suggested, ask why and how it was calculated.
Get your own sense or what your property is worth; look in the paper and search online for homes like yours in your area as a start.
If you are really confused, get a valuation done. It costs just a few hundred dollars but can buy you peace of mind and give you an independent benchmark.
Marketing your home
You can’t sell a secret. Every buyer possible needs to know that your home is on the market and you need to reach the broadest number of possible buyers.
Choose the print and online options most buyers are attracted to and that have proven track records.
RP Data research shows the combination of print advertising with online is the most powerful way to sell your home.
Get involved and check every picture and line of text. Demand creativity, not essays. There should be good English with no typos; you and the agent need to proof read the content.
Make sure the number of bedrooms and bathrooms is correct and that the images show your home at its best.
Know and test your motivation
Except for real boom times, which are not that often, it is sellers who stand in the way of a sale, not the property.
If you are not adequately motivated, you won’t put effort into the presentation, will skimp on the marketing and your price expectations will lead to either no sale or a long time on the market.
Motivated sellers get the job done.
They look at what is going on around them.
Ask yourself if there are any negative personal or financial repercussions if you don’t sell soon?
Will you accept that you may not get the sale price you hoped for?
Is waiting not really an option? If you are realistic about these questions, congratulations, you are a motivated vendor. A motivated vendor will be realistic about these questions.
Which sale method is best for you?
Ensure you understand the different sale methods and the rules and protocols of each.
Write a list of the pros and cons of each method for selling your home.
A quick look online or in the newspaper will tell you how most homes in your area are sold.
If you follow the successful crowd, you will give buyers the sale method most common for their market.
Auctions are a good option if most homes in your area are sold in this manner, you need a sale within a defined period or your home is unique.
Many people believe that if a home put to auction does not sell on the day, it is a disaster. But research shows most homes that fail to sell on the day do sell quickly afterwards.
The benefit of the auction process is that it gives you an intense period of market feedback so you can adjust your price expectations. Get your pricing wrong with a private treaty process and your home can languish for months or even years.
No matter how great your home is, how creative and successful your marketing has been or even how strong the market is, negotiation is key.
Even if your negotiator is your agent, you, too, are involved. You need to be in a position of strength. One of the tricks is to put yourself in a buyer’s mindset. Learn what the buyer’s motivation is to buy your home.
Knowledge is power and you need to keep emotions out of it. A buyer often will try a low offer, and that upsets vendors. But see it as part of the game – and in many cases you would do the same. Don’t take things personally and remember that successful negotiating is one of the key reasons you are employing an agent, so let them handle it. If you trust them – you should because you vetted them thoroughly – follow their advice.
Article originally published in www.couriermail.com.au by Andrew Winter News Limited 8/5/2013
Mon Komo Redcliffe Records Strong Occupancy Rate
7 Common GST Mistakes On Property
It’s great to see the property market in South-East Queensland going in the right direction. With that comes an upswing in volume of transactions and GST consequences to consider.
GST and property has always been a touchy area and the Australian Taxation Office have remained active and vigilant in identifying problem transactions.
With the market now moving in the right direction we thought it a good time to set out the most common mistakes we see in the market by developers and professionals. So, here are 7 Common GST Mistakes on Property:
#1. CHARGING GST ON PRE-EXISTING RESIDENTIAL PREMISES.
For some reason this continues to happen almost 15 years after GST was introduced. If a developer sells pre-existing residential premises there will be no GST effect [they are input taxed supplies]. This is despite the fact that the developer is GST registered and selling to another GST registered developer. To be clear this only applies to pre-existing houses, units, apartments, etc … not land that may happen to be in a residential area.
#2. FORGETTING TO AGREE THE MARGIN SCHEME IN THE CONTRACT.
While most developers are aware that selling under the margin scheme can save GST on sale it is still often left out of the contract in error. The only way to fix this problem is to go to the purchaser after settlement to agree the margin scheme was used. You then still have an additional step in asking the ATO to waive the normal requirement to have this agreed prior to settlement. If this doesn’t occur you have lost the full 1/11th in GST on sale.
[Tip – make sure you can use the margin scheme in the first place]
#3. CLAIMING GST ON A RESIDENTIAL PROPERTY BEING BUILT WHERE YOU INTEND TO HOLD THE PROPERTY.
No GST can be claimed where you intend to rent out a property for residential rent. This is the case even if you intend to sell the property as new residential premises within 5 years of construction.
[Tip – make sure you have considered the cash-flow effect of not being able to claim back GST on construction costs]
#4. FIRST TIME OR PRIVATE DEVELOPERS REGISTERING AUTOMATICALLY FOR GST TO CLAIM CREDITS BACK.
When you undertake a development you need to consider whether or not you should register or if you are required to be registered for GST for your specific development. If you are subdividing land that you have held for a long term for a capital purpose such as rental, then you might not need to register for GST. If you choose to register for GST when you’re not required to by law you could be giving a lot of profit away by unnecessarily paying GST on the sale of the development property.
[Tip – do the maths and seek advice on your personal circumstances]
#5. IF A PROPERTY IS USED COMMERCIALLY THEN IT WILL AUTOMATICALLY ATTRACT GST ON SALE.
This is another common misconception. Traditionally with GST the type of property tends to determine the GST treatment. In other words you should look at the property and understand what its normal form and function is. Don’t just look at how the property is used. This will mean many properties used in a commercial way may not actually be subject to GST.
[Tip – you normally shouldn’t be charging GST to a commercial tenant in this circumstance or claiming back GST credits]
#6. IF YOU HAVE CHARGED OR PAID GST WHERE YOU SHOULDN’T HAVE IS IT DIFFICULT TO DO ANYTHING ABOUT IT?
We have dealt with numerous circumstances on both sides of the fence where we have been able to get a much better GST result. In some cases the ATO has been actively engaged with to ensure a good outcome.
[Tip – it’s still easier and less costly to get it right up front prior to settlement]
#7. IT’S TOO HARD TO GO TO THE ATO TO GET A PRIVATE RULING ON GST.
This is not the case. GST and property tend to be one of the more common rulings the ATO are asked for. They also tend to be quick to resolve where you know what information is required to be provided up front. This is one way to deal with contentious GST matters under contract.
We see these types of mistakes happening all the time [along with many others]. But now over to you, leave your comments below and tell us what other GST mistakes you have experienced on property.
Queensland Says No New Taxes on Foreign Property Buyers in Bjelke Petersen-like Strategy
The Queensland government has ruled out introducing new taxes on foreign buyers of residential real estate.
They are the only state that actually monitors foreign investment, so were in the box seat to implement such a tax regime.
The rejection comes after the populist Victoria Labor government’s recent budget unveiled a new tax regime that will seek to tax foreign buyers and foreign owners.
Queensland has vowed not to follow Victoria’s lead and introduce any new taxes on foreign property investors.
Treasurer Curtis Pitt said Queensland welcomed foreign property investment.
“We’re ruling out any stamp duty surcharges for foreign investors who purchase a house in Queensland,” said Pitt.
“We’re also ruling out any land tax surcharge for foreign investors in this state.”
The Victorian state budget, revealed on Tuesday, included a 3%t stamp duty surcharge for homes from July and land tax increases of 0.5% from 2016 for offshore-based investors.
News Ltd reported Queensland executive director of the Property Council, Chris Mountford saying the action will strengthen Queensland’s position on the global investment map.
“In particular it creates a compelling case to invest in Queensland over Victoria.”
Nothing new for Queensland as that was how former premier Joh Bjelke Petersen saw the state into an upswing when Queensland didn’t have death duties like other states.
It was in 1977 when the Premier of Queensland Joh Bjelke Petersen abolished death duties and a wave of Australia’s elderly headed towards the Gold Coast with the high rise following as dying in Queensland became a tax avoidance scheme and Surfers Paradise became a retirement haven.
By JONATHAN CHANCELLOR via propertyobserver.com.au
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