by blake gray principal at apex estate agents
Buying and selling property can be confusing and stressful at the best of times. Since we closed the curtains on the 20th Century in many respects real estate as an industry has experienced a kind of renaissance. With it, this revivification in the 2000s has brought about much change which means that many things are not as they once were. Staying abreast of these new trends, norms, technologies, costs, laws and processes is challenging.
Domestically the Baby Boomers are the largest group entering retirement, with Generation X next to follow them. If you’re looking to downsize or considering retirement living, wish to move closer to the kids and grandchildren, or perhaps it’s simply been a while since you’ve bought and sold property, then this article is for you. By busting these 4 common myths you’ll be more prepared when buying and selling in this new landscape.
Myth 1: I need to sell before I buy
This is amongst the most prevalent myths that still permeates the culture. Likely borne out of the fact that many people are trying to mitigate particular risks sometimes associated with looking to secure a new home before their current one has sold – the main risk here being that of a settlement deadline or possible lack of available funds. Selling before you buy can also present potential risks and undue stresses resulting from these, such as the need to move twice; compromising on the next property due to a short settlement deadline or shortage of suitable available properties; lack of funds resulting from rising property prices and so on. Speak with your real estate agent and your Solicitor/Conveyancer about the options available to you should you wish to secure your new home prior to selling your current residence. Some options that may be available to you are below.
- Extended settlement timelines.
- A deposit bond.
- Financial assistance – bridging loan.
- A licence agreement.
- It is also worth noting that if you’re considering retirement living, many of these allow you to secure a spot with some flexible terms.
Myth 2: the handshake still retains its currency
This myth persists probably because in some sense it’s a remnant of a simpler time – a time where someone’s word was their bond and a time in which a deal or agreement was confirmed with a handshake. A time for which people are generally nostalgic and rightfully so. Alas, in an age of tighter rules, increased oversight and more legislation this can no longer be the case. If you’re buying and/or selling it is important to know that the professionals with which you will be engaging must follow very specific, detailed processes in order to do business and act on your behalf. Ultimately they follow these for your protection and to safeguard your interests. It is common and legally necessary that they may request some on the following.
- Photo identification.
- Proof of ownership documentation.
- Rates notices and water bills.
- Residency information and certification.
- Offers in writing.
- Confirmation of verbal discussions in writing.
- There are many other types of supporting documentation that they may need to sight/source – many of which will be case–specific.
Myth 3: Associated costs haven’t changed – Why do I need to pay for the bells and whistles?
If you haven’t sold/purchased property in a while then the associated costs often come as somewhat of a surprise. As we’ve discussed above, buying and selling is not what it once was. Likewise the methods by which properties are advertised and marketed have also evolved considerably. The expression ‘bells and whistles’ should be replaced with ‘staples, essentials, or requisites’. Property videos, social media presence, property signage and online advertising via the main real estate portals are all integral to your success – these are tools that perform important functions. Remember, you get what you pay for. When planning your sale or purchase these are some of the essential costs that you should allow for.
- Possible improvements to prepare your home for sale.
- Marketing/advertising for your current home.
- Agent’s selling fee (either a fixed amount or percentage of the sale price).
- Solicitor/Conveyancer fee (incurred for each transaction).
- Stamp Duty Tax for your new home (for those considering retirement living this tax may not apply).
- Moving costs.
- Buyers Agent fee (only applicable if you engage a Buyers Agent to help you find your new home).
Myth 4: The best time to sell is when the market is at its peak.
We can bust this one relatively swiftly. Consider the following questions. Is the timing right for me and my circumstances? Do I like the property I’ve seen? Can I afford to take this step after selling my current home? If your answer is ‘yes’ to all of these, then perhaps now is the right time for you, irrespective of the market.
APEX Estate Agents are a team of avant–garde real estate specialists, marketing experts, and consummate professionals absolutely obsessed with challenging the status quo. We exist to be the ultimate custodians for our clients, thus improving their quality of life through property – that’s our raison d’être.
Disclaimer – This article contains general information only and should not be regarded as imparting legal, financial, accounting, or any other form of advice. The article contains information from third parties. The author disclaims all liability for the information contained in this article. Readers should seek independent advice from professional sources.