Posts

Settling market as more properties list and buyer FOMO eases

No Super Spring Saturdays!

Spring is here but the Australian property market and it’s super selling Spring Saturdays are not!  And it’s all because of the Health Orders relating to Covid-19 set down by the Chief Health Minister.

The Australian property market is no longer a seasonal market.

Typically, spring is a season where we see an influx of property already on the market but that not the case this year! It’s now evident that we will not see the Super Saturdays that we would normally see happen towards late September.

But when the health orders are lifted, the restrictions on inspections are extinguished and sellers bring their properties to the market, the prediction is that there’ll be too much stock.  There’s going to be a gluttony of listings, you’re going to see signboards everywhere and that’s when it’s going to be a buyers’ paradise.

The forecast is that this will happen during the months of Summer (November-December-January).  This is based on the number of administered vaccines and the promise of easing of restrictions by the Chief Health Minister and the Premier.

Supported by the idea that Australia is making progress and with the prediction of a buyers’ paradise, I believe that when the restrictions are lifted, sellers will begin listing their properties and you’re going to have a lot of listings on the market.

Knowing that there was limited stock and supply in recent months, it’s evident that there’s a lot of sellers that haven’t come on to the market since the middle of the year.  So in actual fact, there’s likely going to be three seasons worth of listing on the market at the one time!  Winter, spring and summer listings!

This will be a great time for buyers but I’m concerned for seller because the absorption rate of property will likely head downwards meaning that buyers get to purchase at a cheaper price and sellers forgo premium sale prices.

For clarification, the absorption rate is defined as how many days would it take for all the stock on the market to get sucked in by the buyers!

So when there’s a lot of stock, the absorption rate actually becomes lower, because what actually happens is there’s just more stock to get absorbed.

Given that buyers numbers haven’t decreased much because of a lack of stock, I’m also not sure there’s going to be an increase of buyers to match the increase of supply.  I believe, buyers will have more to choose from, properties will be on the market longer (the absorption rate being lower) and we all know that the longer a property is on the market – the more likely the price will fall.

I’m personally holding off buying until the summer months for this very reason but the question I have for sellers is, will you sell now or later when restrictions are lifted and you’ll have a lot more competition?

Call me today for a confidential chat about your property.

 

Tips for Choosing a Home with Good Resale Value

The surest way for homeowners to be able to maximise their resale value by purchasing the right property to start with.

Buyers can be particular and if a home only attracts a small number of people, it may stay on the market or get a lower price than similar homes.

Without a major improvement to the property, a home bought cheap now may still be cheap if you sell it in the future.

Meanwhile, a property with lasting appeal will draw attention from a diverse range of buyers, strengthening competition and improving returns when it is time to sell.

Prevent mistakes

First-time buyers tired of searching can be susceptible to committing blunders because they are not trained to look for the features that they should be looking for in a property.

To save money, inexperienced home buyers in particular take a gamble by failing to do their due diligence. There are many first-home buyers that are not getting building and pest reports, especially if they’ve lost out a few times. This is similar to going to the casinos and putting all your money in one table – not a good idea.

Due diligence is essential particularly when you’re buying an apartment. Some of the toughest homes to sell can be apartments in strata with pending lawsuit against the developer or builder, or trying to generate funds to repair defects.

Aside from issues, buyers can also be turned off by the design of a bespoke home. It may have been built to meet the requirements of the original owners, but their taste may not necessarily be ideal for the lifestyle of an ordinary family.

Promoting competition

Properties can fetch higher prices when there are plenty of buyers who are competing for it.

The local community is the most important factor that can attract buyers to a property. Buyers don’t necessarily prefer the most prestigious areas, just in a wonderful street or a lovely peaceful environment that is close to amenities such as transport, cafes, shops and schools.

Bigger homes are often eyed by upsizing families, who may have enough funds that they received from the sale of their property. The most sought-after properties are single-level, four-bedroom homes.

In terms of the appearance and vibe of the home, those with wide-ranging allure will attract the most number of buyers. Classic, elegant styling, plenty of neutral shades, many whites and greys, natural stone, middle to high-end finishes, and nothing too weird comprise broad appeal.

What is very popular in the market are light-filled homes with open plan layouts and  modern features. These include having north-facing backyards, two living areas and two bathrooms.

Competition is high for period homes in particular. This is because these properties are beautiful and they are likely to have attractive features such as high ceilings, cornices, rosettes and fireplaces. The 1980s and 1990s brown and red-brick homes aren’t really as popular as period homes of a prior age.  So if your home falls into this era then you may need to consider making it more modern or adding some classic features.

Improving appeal

Cosmetic renovations can help improve the future appeal of the properties. Property experts suggest purchasing property with potential. Old-fashioned bathrooms, carpets, fixtures and fittings always give buyers occasions to add value now and in the future.

Also popular are homes with development potential, including properties on corner blocks or having space to extend for a growing family.

But though upgrading a home can boost its value, avoiding homes that require major repairs is a smart thing to do. Those big structural issues can cost a lot of money and the returns are usually elusive.  Likewise if you are selling a home knowing it has major defects, you’d be wise to rectify this before going to the market.

 

 

Think You Know What Buyers Want? Identify Their Non-Negotiables

Each property and buyer is different, but most buyers across Australia require similar non-negotiables.

Some buyers might be prepared to bargain with regards to the size of bedrooms or forego an outdoor area, but universal “must-haves”, such as curb appeal, a second toilet, natural light, privacy and lots of storage provide a starting point for majority of home buyers and the professionals they hire to help them find property, like buyer’s agents.

Here are the five major “non-negotiables” buyers throughout Newcastle commonly demand, after considering important factors such as property type, price, location and general suitability.

  1. Good natural light

There are a number of reasons why good natural light is a must-have.

Natural light boosts the general pleasure you derive from the property, but it also affects your real well-being and the property’s health.  Sunlight kills bacteria and keeps moisture and mould away, making a house more enjoyable to live in and saving on maintenance costs.

  1. Privacy or the house is not unnoticed

Having privacy is always at the top of the wish lists of buyers, because you want to not only feel safe and comfortable in your home, but also outside of it, including in your courtyard or balcony.  Most buyers will rebuff a house that is completely overlooked, you can correct minor privacy issues, such as side-by-side balconies, by putting up screening or plantings.

  1. Curb appeal

There is a major correlation between having a beautiful façade and the attractiveness of a house. This means curb appeal is really important.  However, curb appeal doesn’t pause with the appearance of the one particular house, it is about the street – the whole streetscape.

Check whether there is a standard to the types and periods of the houses or there is a hotchpotch of various styles? Do you see beautiful trees? All these features affect the general appeal of a property.

  1. A second toilet

Even when looking for a two-bedroom apartment, people want two toilets.  For today’s buyers, a second toilet is typically a non-negotiable. In new builds particularly, it is considered a given, not a luxury anymore – whether it is an ensuite to the master’s bedroom or a separate toilet.  While it is ideal for a property to have two toilets already, building another can be clear-cut if buyers do their research before purchasing.  Study the layout and learn how it is connected with plumbing so you can determine whether it is simple or tough to add one.

  1. Storage

Any type of buyer, young or old, considers storage important. Provided that there is room to add storage, lack of shortage should not be a deal-breaker. It is rare to come across a person who will be dismayed by too much storage in a property.  These days, it shouldn’t be expensive to add storage. You can just go to Bunnings or IKEA and pick up something to your liking.

 

 

 

Ban Lifted on Auctions & Open Homes

 

 

As reported last Sunday, the NSW property market will be rolling out the welcome mat from May 9th 2020 with agents  able to hold traditional property inspections and on-site auctions after a six-week limited shutdown due to COVID-19.

Now as we make the move back to a more normal mode of operation Real Estate agents will have the following health guidelines to adhere to:

Key health guidelines include:

  Ensure physical distancing of greater than 1.5m is maintained;

  Promote good hygiene on premises and at auctions including hand sanitiser;

  Use digital platforms where possible to discourage physical contact;

  Keep detailed contact records of people attending open homes and auctions;

  Ensure people with any symptoms of illness do not attend a property;

  Manage the number of people entering small spaces;

  Consider extended times for open house viewings and inspections;

  Use outdoor venues for auctions wherever possible;

  If auctions are held indoors, use large venues where physical distancing

between household groups of one person per 4m2 equivalent is possible.

AS PER MEDIA RELEASE:
Trevor Seymour – Treasurer  & Julie Garvey – Minister Hazzard

 

One Agency Pinkerton Properties feel the need to continue to offer our clients, both sellers and buyers, the option of private inspections as well.  Especially for those who may still feel uncomfortable about attending open homes.

Plus for the sellers who have been sitting ‘off market’ or waiting for the return of auctions, we are offering a HALF PRICE Auctioneers Fee until June 30th 2020.