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Archive for January 2016

New Laws in NSW

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underquoting-brisbane

With the new year, comes some welcomed new reforms which aim to stop the practice of underquoting. The amendments made to the Property Stock and Business Agents Act of 2002 will provide clarity for buyers and sellers, ensuring consumers are not kept in the dark and that agents are held accountable for transparency.

Underquoting has been a hot topic for quite some time now. While it’s something we’ve never done, some real estate agents have on occasions followed the saying of ‘quote it low, watch it go’. While over quoting has not received as much attention, some agents have used this practice by promising an unrealistic price in order to win a listing.

Thankfully, with these new rules, we’ve hopefully seen the end of these underhand practices which give real estate agents a bad name. Underquoting and over quoting will now be easier to police and there are going to be harsh penalties for agents found to be underquoting.

As the laws came into effect as of 1 January 2016, you may already have noticed some changes, particularly when you’re reading advertisements of houses for sale.

Here are some of the key changes, which we will discuss with you should you wish to sell your property with us:

  • The banning of terms such as ‘offers over’, ‘mid $400K’, ‘bidding from’ or any other similar vague language in advertisements
  • Price guides to range no more than 10%. For example, the property will sell for between $400,000 to $440,000
  • All advertising must be kept up-to-date
  • All conversations about price will be documented
  • The provision of evidence to confirm the estimated selling price. Estimated selling prices can be changed if for instance there is a change in economic conditions, but evidence will still need to be provided.

At Professionals Fred Andriessen, we won’t really notice the changes too much because quite simply we always give honest advice.

We have always believed in getting the best possible outcomes for customers – which is why we’re still in business 40 years down the track!

If you have any queries about how the new legislation affects you either as a buyer or seller, or would simply like to speak to us about your real estate needs, please contact us on (02) 4954 8833

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Archive for January 2016

WHICH COMES FIRST – Buy Before You Sell or Sell Before You Buy?

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You know you want to move, but what should you do first? Should you sell your current home first or buy the dream home and sell the old one later?

When it comes to buying and selling each situation is different and there is no such thing as one rule fits all. Some people prefer to sell first so they know how much they can afford, while others may have seen the dream property and don’t want to run the risk of losing the sale to another buyer.

Each situation is different, so here are some things to consider when deciding on whether to buy or sell first.

Buying Time

It may be possible to sell your home with a long completion date allowing you time to find another property.

If you have seen your dream property, it may be possible to put on offer on a property subject to your house sale. However most Vendors will not take their property off the market for you to sell yours unless you make them such a good offer they can’t refuse it.

Bridging the Gap

Bridging loans may be an option, however, make sure you do your homework and understand the risks of taking out a bridging loan. The longer it takes your house to sell, the longer you’ll be paying two loans.

What’s the Market Like?

The state of the market may also influence your decision. Some sellers have been caught out in a rising market (ie when property prices are rapidly increasing); they’ve sold their house, but found themselves unable to afford something else in the area they want to live in. In popular suburbs, it can take several months to find a suitable property, so if you’ve sold your house, you may end up having to find alternative accommodation in the interim period.

How Saleable is Your Property?

Take a realistic look at your property and see how long it takes for properties to sell in your area. If your property is in a high demand area, and is looking presentable the chances are it will sell relatively quickly for the price you’d like. If this is the case, you may be in a position to put an offer on that dream property relatively confident that you’ll sell your current home quickly.