Home Sellers Guide - Nerang First National Real Estate

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HOME SELLER’S GUIDE Your guide to obtaining a higher price for your home in less time Proudly provided as a guide to home sellers by www.nfn.com.au

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Home Sellers guide to assist prospective sellers when Selling residential real estate

Transcript of Home Sellers Guide - Nerang First National Real Estate

Page 1: Home Sellers Guide - Nerang First National Real Estate

HOME SELLER’S GUIDEYour guide to obtaining a higher

price for your home in less time

Proudly provided as a guide to home sellers by

www.nfn.com.au

Page 2: Home Sellers Guide - Nerang First National Real Estate
Page 3: Home Sellers Guide - Nerang First National Real Estate

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Introduction 2

The role of the real estate agent 4

Selecting the right estate agent 5

When to involve a real estate agent 6

Types of agreements 7

Auction or Private Treaty? 8

Your budget 8

Your Guarantee of Service 8

What is your property worth? 9

Time is money 10

What’s for sale? 12

When is the best time to sell? 14

Would I get more if...? 14

Marketing for the best price in the least time 14

Reaching potential buyers 15

First impressions are lasting 16

Your home on show 16

Negotiating and accepting an offer 18

You’ve found a buyer - what now? 18

What about your next home? 20

Arranging your next home loan 20

Moving Countdown 21

Kids and Moving 26

Understanding technical, legal and building terms 27

CONTENTS

IMPORTANT NOTICE: The content of this publication is not to be relied upon as advice.The information should only be used as an overview, as individual circumstances vary. Theinformation may be subject to change without notice and may contain errors. You shouldobtain all legal, financial and accounting advice from an appropriately qualified andlicensed advisor.Published by First National Group of Independent Real Estate Agents Limited. A.C.N. 005 942 192IMPORTANT NOTICE: First National Financial Solutions is a division of Suncorp-MetwayLtd ABN 66 010 831 722. Banking products are issued by Suncorp-Metway Ltd. Variousproducts and services are provided by different entities in the Suncorp Group. The differententities in the Suncorp Group are not responsible or liable in respect of products or servicesprovided by other entities in the Suncorp Group.

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There comes a time in life when you need to move on.

Whether you are making a job change, retiring, or just in need of a

change of scenery, one thing is certain when it comes to the sale of

your home: your main objective is to determine the best and most

realistic price for your home and to achieve it in the least expensive

and quickest amount of time.

You may think selling a house is easy and that the first person who

walks through your door will fall in love with your home. But if you

ask yourself how many houses you inspected before you bought your

current home, and how many other people may have been through

the home before you purchased it, you’ll realise that there is a lot of

work and expertise involved.

Perhaps what you really need is a good real estate agent.

Your home will probably be the most valuable possession you will

ever sell and First National Real Estate is here to help.

This book will guide you through the process from selecting the right

real estate agent, realistically valuing your home, preparing your

home for a quicker sale at the right price and finally the move. Of

course, if there is anything else you need to know, just ask – you’ll find

your First National Real Estate agent happy to help. This is an

important and exciting time in your life and we want to make sure it’s

enjoyable and that all goes smoothly

IMPORTANT NOTICE: This booklet is only an overview and is not intended to advise you as to the financialand legal implications of selling a home, but rather provide an overview of the considerations relevant toselling a home. You should obtain all legal, financial and accounting advice from an appropriately qualifiedand licensed adviser.

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INTRODUCTION

Your guide to obtaining a higher price

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THE ROLE OF THE REAL ESTATE AGENT

The real estate agent’s role is

to help you achieve your aims

in the most efficient manner

possible. The agent acts as

a market reporter, providing

experience and advice on what

the market may pay for your

home and the most effective

way of reaching potential

purchasers.

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Selling your home can be an arduous task

but the right real estate agent will help

make the process an easy one. Listen to

their advice as the agent is acting in your

best interest.

Some people attempt to sell their own

home but this is difficult to do when

emotion is involved and you are "too

close" to the home you are trying to sell.

Real estate agents have access to potential

purchasers and they have the experience

of knowing what the market has paid for

similar homes in your area. The

additional money that you gain through

obtaining a realistic price, implementing

an effective marketing plan and selling

your home sooner, outweighs the cost of

employing an experienced agent.

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In summary, the major role of your real

estate agent is to:

• Provide a realistic market appraisal.

• Advise on the best method of sale.

• Assist you in developing the most

effective marketing plan.

• Implement the marketing plan.

• Advise on presentation of your home to

the public.

• Bring the property before as many

potential purchasers as possible.

• Present any offer.

• Negotiate the best price with the

purchaser.

• Assist in ensuring the contracts have

been executed and exchanged.

• Co-ordinate the settlement.

Selecting the right

estate agent

Making sure you have the right agent

working on your behalf is also vitally

important.

Here are some factors that you should

consider when choosing your agent:

• Is the salesperson well presented?

• Does the written material look professionaland business like?

• Do they place importance on high

ethical standards?

• Are they well trained in sales skills,

negotiation, marketing and the

legislation applied to selling property?

• Do they have a wide range of marketing

options?

• Do they have a good knowledge of the

local market place?

• Does their company have significant

sales activity?

• Do they have the support of a larger

network?

• Do they keep full and ongoing records of

the sale’s progress?

• Have they the ability to present your

home to a wide market place?

• Do they provide weekly sales progress

reports?

• Do they have testimonials from satisfied

sellers?

• Are they considered a market leader?

• Do they provide a guarantee?

• Are their company brochures and

advertising well presented?

• Are you comfortable with them?

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When to involve a real

estate agent

The best time to involve the agent is

ideally when you are making the decision

to sell your property. Remember, you do

not have to sign with an agent to take

advantage of their advice. For example,

you may need more room and be

considering extending your home, rather

than selling. A good agent knows the

value of the area and may advise that by

extending your home, you could exceed

the value of the neighbourhood. You may

be unsure of whether a move will be

financially feasible; once again the agent

can advise and may be able to assist with

both the sale of the current property and

the purchase of a new property.

Once you’ve made the decision to sell, the

sooner your property is on the market,

the more opportunities you will have to

sell. New buyers enter the market every

day and yours may be just the home they

are looking for.

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Types of agreements

When you do decide on an agent, you will

be asked to sign an Agency Agreement

which will contain an estimate of the fees,

charges and expenses you can expect to

pay the agent when your home is sold. This

is important because it will help you

determine a proper budget for selling your

house or unit. Accurate budgeting is vital,

particularly if you are selling in order to

"trade up". You need to be sure before you

put your property on the market that, after

all the expenses such as the solicitor’s and

agent’s fees, any repairs and your removal

costs are accounted for, what you will

safely get for your property will enable

you to comfortably purchase the property

you wanted.

Before you sign any agreement with an

agent, you should read it carefully and

make sure you understand it and your

obligations. There are several kinds of

agreements and real estate agents will

happily tailor one to meet your needs.

The main agreements are:

Exclusive Agency Agreement

An Exclusive Agency Agreement covers a

set period with one real estate company

and allows the agent to concentrate all

their efforts into the sale of your property.

This type of agreement includes Auction or

Private Treaty methods of sales.

Open Agency Agreement

You can sign this kind of agreement with a

number of agents. The agent who

introduces the purchaser and holds the

deposit is entitled to the commission.

However, it must be pointed out that quite

often you may not get the same amount of

service from agents on an Open Agency

Agreement and therefore it may take a

longer period to sell your home.

Remember that real estate agents do not

get paid unless they successfully close a

sale. If a house has not sold during the

agreed period it is likely that the price

placed on it is too high.

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Auction or Private Treaty?

If you submit your property for auction

this means that prospective purchasers

will bid against one another at a date and

time suitable to you. You can set a reserve

price, which is the minimum you will

accept, and once bidding has passed that

level you know you have a sale as it will

be unconditional and a predetermined

deposit must be paid on the day.

Sale by Private Treaty means that you set a

price at which your property is to be

marketed to the public through the marketing

plan agreed to by you and your agent.

Your budget

The following are the main fees and costs

associated with the sale of your property

which you can discuss with your agent

and make a preliminary budget.

Based on Sale Price of $

Agent’s Fees $

Marketing/Advertising $

Solicitor’s Fees/ $

Conveyancing

Improvements $

Other $

Total Costs $

Your Guarantee of Service

A reputable and progressive real estate

agent should offer a guaranteed

commitment to meeting the needs of the

client. First National Real Estate has had a

guarantee for many years, a sample of

which can be obtained from your First

National Real Estate agent.

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What is your property

worth?

One of the major decisions to be made is

the price to put on your property.

It is vital that a sound, realistic strategy is

provided in setting a price that can assure

you of two things:

• Obtaining your asking price or very

close to it; and

• Getting the sale sooner.

Through expert local knowledge, your

agent can establish a realistic price for your

home based on its location, age, size,

features and market variables such as

interest rates and the availability of

financing. Avoid the temptation to be

influenced by the experiences other

people have had in the sale of their homes.

The sale price of your home should be

based on prices achieved recently for

similar properties within your

neighbourhood. Question the motives of

anyone who may suggest that you could

obtain a higher price. Remember, the true

value of your property will ultimately be

determined by the purchaser.

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Pricing for the Market

If your price is too high, you could shut

off the most important ingredient of real

estate selling - a constant flow of qualified

prospective purchasers who are looking

for homes in the price range you establish.

Overpricing may give purchasers the

wrong impression and they may look at

your property with higher expectations.

Others will quickly reject those they

perceive to be overpriced, often not even

bothering to inspect them. While a

prospect might submit a lower bid and

give you a price to at least begin

negotiations, this certainly won’t happen

automatically. Many prospects are

embarrassed to make offers that are

substantially below your asking price.

Buyer/ Seller Psychology

In any buyer/ seller relationship, it’s

normal for the seller to ask him or herself

“I wonder if I could have asked for more?”

On the other hand, the buyer may

question whether he/ she could have paid

less. The professional art of negotiating

for the best price is a skill that your agent

should have mastered. Knowing when

the time is right to stand firm requires

specialized experience. One key to

obtaining a speedy, successful sale, of

course, is starting with a realistic price in

the first place.

Time is money

When it comes to selling your home, time

is money.

Every day a home does not sell because it

is incorrectly priced can mean extra

expenses that the owner has to incur for

repayments of principle, interest, taxes,

insurance and maintenance. A home that

is on the market too long because of an

uncompetitive price sends out signals

that “something must be wrong with it”.

Remember, like you, your agent has a

keen interest in getting the best possible

price for your home. Sound, up-to-the

minute market experience provided by

the agent will help your home to sell.

First National Real Estate agents can

prepare a comparative market analysis of

recent sales and, by comparing your

home with similar properties, give a good

indication of a fair market price.

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To assist the agent, you may like to highlight the points about the property that you feel

are major advantages:

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

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What’s for sale?

It is important to determine from the

outset what is to be included in the sale of

your home. For instance, fittings and

fixtures that are easily removed without

damage, such as decorative light fittings,

wall units and drapes are not necessarily

included in the contract. It is important to

make sure everyone is clear on what is

included, particularly if it will add value

and appeal, BEFORE your home is put on

the market. Any exclusion needs to be

written into the contract.

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Inside:

Floor Coverings

Curtains/Blinds

Ceiling Fans

Dishwasher

Heaters

Stove

Clothes Dryer

Water Purifier

Portable Air Conditioners

Light fittings

Bar

Bar Fridge

Remote Controls

Alarm System

Heating Cupboard

Ironing Cupboard

Storage Cupboards

Wardrobes

Bedroom 1

Bedroom 2

Bedroom 3

Bedroom 4

Other exclusions

Outside:

Garage/Shed

Fly Screens

Barbecue

Outdoor Furniture

Outside Awnings

Watering System/s

Greenhouse/Fernery

Television Aerial

Satellite Dish

Clothes Line

Mail Box

Birdbath / Fountain

Above Ground Swimming Pool

Pool Heater/Cleaner

Additional Fencing

Outdoor Lighting

Tennis Court/Roller/Net/Umpire Stand

Other exclusions

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When is the best time

to sell?

Any time you’re ready!

Spring is often considered the best time to

sell. It’s a time of optimism and with the

weather clearing, more potential buyers

will be out and about. Although,

conveyancing times vary from state to

state, it may represent a marketing

opportunity to be “in by Christmas”.

But, it’s also a time when more sellers

will put their homes on the market so

there will be more competition. Winter

usually presents fewer buyers, but the

buyers are usually more focussed on

purchase and traditionally there will be

fewer homes on the market to choose

from. Of course, the further north, the less

difference in the seasons, and

accordingly, the less variation in selling

conditions.

Would I get more if…?

Your agent can advise you if

improvements could generate a better

price for your home. Generally, while

improvements may make your home

more saleable, perhaps even shortening

the sale time, they will not necessarily

achieve a better price.

Of course, there are exceptions and a small

investment could be worth the outlay,

especially if you don’t intend to sell in the

immediate future. First National Real

Estate agents will be happy to advise

whether you may be over-capitalising,

even if you are just considering an

extension or a renovation.

Marketing for the best

price in the least time

It’s not often that a purchaser for your

home is out there, just waiting for you to

put your home on the market. Timing,

presentation and advertising are all

required to bring buyers and sellers

together for the best result.

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Reaching potential buyers

Selecting the best marketing plan to ensure

your home is exposed to the maximum

number of buyers is important in

achieving the best price. However,

expensive or extensive marketing is not

always the answer; a smaller, well-planned

campaign aimed at the right market can

often bring the right result in a shorter

time, especially if your home has features

which will make it attractive to an

identifiable group. For example, a home

beside a popular golf course could be

advertised to members of the golf club.

Perhaps the value is beyond the reach of

the average person. In such a case, First

National Real Estate offers a specialist Fine

Homes service with agents specially

trained and qualified to handle the sale of

high value and often unique properties. In

all cases, it is important to select the

newspapers, magazines and target areas

which contain the most potential buyers

for your type of property. A good real

estate agent will advise you of the right

advertising mix.

Almost always, the first item on the list will

be a signboard. Research indicates that a

large proportion of homes are sold to

buyers in immediate areas, which is why

the signboard is so important. It not only

identifies your property to those who have

seen the home in the agent’s window

display, but also to someone who may

have admired your home and drives or

walks past every day. And that may be the

person who will buy your home.

Signboards come in a number of shapes

and sizes, and of course, prices. A simple

board may be all that is required, or if the

exterior of your property does not indicate

the quality within, a picture board can be

used to give a glimpse of the interior

features. Where council bylaws permit, a

light mounted on the signboard can be

very effective at dusk.

The next part of the marketing will be the

advertising. Local newspapers usually

form the largest part of the mix. The agent

may use just one newspaper where there is

a choice, having tried them all and found

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one more cost-effective than the others.

Real estate magazines are another tool

used by agents. Some will take space in

an existing publication; others may

publish their own. These are sent to

known potential customers as well as

being available from the agent. Your

agent also may suggest a letterbox

campaign with cards or flyers of your

property distributed in areas considered

to contain potential purchasers. “Open for

Inspections” are popular with some

agents and not with others, depending on

their own experience of the marketplace.

An “Open” is where an agent will invite

inspection of properties for a limited

period of time, usually on a weekend.

Anyone interested can look over your

home while it is open.

An increasingly important advertising

medium is the internet. Potential buyers

from anywhere in the country or the

world can look at your property,

sometimes inside and out, and decide

whether it is of interest before contacting

the agent. With a sophisticated referral

network such as that operated by First

National Real Estate, buyers from

interstate or other suburbs and towns can

contact their local agent, and be shown

properties available through offices in

areas they may be interested in. Specific

details of interest can be photographed

and placed on a website or emailed to the

interested agent, where they can be

viewed so buyers can make an informed

decision about your property before even

setting foot on it. Many agents also use a

similar viewing system in their office to

assist buyers to narrow the options. This

means less time wasted with inspections

of houses that may fit the buyers’ criteria

but do not appeal aesthetically. Of course,

one of the most powerful, yet often

underestimated, marketing resources is

the agent’s window display. Your

property needs to be seen in the best

possible way in a powerful, ever-

changing display that attracts buyers.

First impressions are

lasting

From the moment the prospects arrive

they should notice that the gardens and

lawns are well presented. Garden rubbish

should be disposed of and paths and

porches kept clear and clean. Toys and

garden tools should be stored away.

Your home on show

Whether by individual inspections

arranged by your agent or through ‘Open

Homes’ set at predetermined times, here

are some tips on how to maximize their

effectiveness.

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A tidy home says “welcome”

Your home should be kept neat and tidy

during the period of inspections. It should

not necessarily be a “show place” but

appear a comfortable home in which to

live. Fresh flowers or indoor plants always

brighten up a home.

Less is more!

While you’re cleaning, think about each

room and what furniture really needs to be

in it. Rooms look smaller when they’re

crowded with sports equipment, excess

furniture and general clutter. Clear out

anything that’s not needed to create a

feeling of spaciousness. And don’t forget

your cupboards - keep them neat and not

too full, to show that your home has plenty

of storage space.

Repairs can make a big difference

Make sure that all minor repairs are

completed. Sticking doors and windows,

loose door knobs, faulty plumbing, peeling

paint or faulty flywire may affect your sale.

Letting the sun shine in

Let plenty of light into your home. Nothing

improves atmosphere more than

brightness. On a dull day it is advisable to

switch lights on prior to arrival of

prospective purchasers.

Make them comfortable

A warm, comfortably heated home on cold

days, particularly if you have an open fire

place, adds a feeling of cosiness; on a hot

day don’t forget to turn on the air

conditioner or fan (or simply let the breeze

flow through). You may like to set the

dining table and have a coffee percolator

on to give your property a homely

atmosphere.

Inspections: Three’s a crowd

Avoid having too many people present

during inspections. First National Real

Estate agents know the buyer’s requirements

and can better emphasise the features of

your home most important to the purchaser.

Silence is golden

Be courteous but don’t force conversation

with a potential buyer. The prospective

purchaser wants to inspect your home -

not pay a social call. However, should you

be asked questions about the home, the

neighbours or the district, answer them

truthfully and directly.

Keep it peaceful

As a general rule it is advisable to turn off

radio and television sets during

inspections as they can be very distracting.

Keep your pets out of the way (preferably

out of the house). Let the agent and buyer

talk, free of disturbances.

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Some more “Don’ts”

• Don’t apologise for the appearance or

condition of your home (this does

nothing but emphasise the faults).

• Don’t discuss the details of the

transaction such as price or terms

(leave this to the professional, your

First National Real Estate agent).

• Don’t allow a prospective purchaser to

inspect your home without your agent

(refer them to the agent or contact the

agent yourself).

Working as a team

You and your agent should always work

as a team. If you feel your agent has

overlooked some important selling

points, feel free to discuss them privately

(perhaps a phone call to the office).

Negotiating and accepting

an offer

Always have the agent handle

negotiations. Should you be approached

directly, it is wise to politely redirect the

prospective purchaser to your agent. The

agent will present any offer in writing, at

which time you have the right to accept

the offer or you can counter the offer at a

price acceptable to you.

You must understand that if the purchaser

does not wish to accept your “counter

offer”, they can withdraw their original offer.

When considering an offer, take the

following into account:

• price

• suitability of the deposit

• terms of finance (either cash or subject

to finance being arranged)

• settlement date

Take advice from your agent when

considering the offer.

You’ve found a buyer -

what now?

Once you have found a buyer and agreed

on the price, the contract that had been

initially drawn up can now be signed, and

normally a 10% deposit will be paid by the

purchaser with the balance due on the

settlement date agreed. In the case of

purchase at auction, there is normally no

cooling off period and the deposit must

be paid and contract signed on the day of

purchase. Cooling off periods for normal

sales apply in a number of states,

however, your agent is the best person to

advise you on the legalities.

The deposit will be held in trust by your

agent.

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The purchaser has the right to organize

any inspection of the home, whether it be

by a pest exterminator or a building

consultant. This will normally be included

in the contract. Once the contract is

exchanged, it is a legally binding

document and the process of transfer can

begin. Some people have the knowledge,

experience and time to handle the transfer

themselves, but this is fairly rare. Normally

a solicitor, a conveyancing company or

settlement agent will handle the transfer.

They are experienced and knowledgeable

of what can be a very complex process.

Should you not have an appropriate

person to handle the transfer, your agent

will assist as they will have local contacts

that they can recommend.

The stamp duty is paid by the purchaser.

Settlement day is the point at which the

keys are handed to the purchaser and the

property becomes their responsibility. It is

important to note that until that date the

property is still legally yours and therefore

such aspects as insurance remain your

responsibility.

It is normal for the agent to deduct the

commission and any advertising costs (if

applicable) from the deposit after settlement.

As part of the transfer process, arrangements

will be made for the balance to be

transferred to your bank account or paid

direct to you.

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What about your next home?

While you are selling your current

property, your agent can also be working

on finding your new home. Your agent

will help you by identifying your needs in

relation to your new home and can assist

you in finding a home to suit your family

and your budget. By dealing with a

network like First National Real Estate,

that home could be in the same street or

anywhere in Australia, as well as many

other parts of the world. First National

Real Estate should also be able to help

with a rental property while you look

around. First National Real Estate is one

of Australasia’s largest real estate

networks with offices throughout

Australia and New Zealand. First

National Real Estate also has other

affiliations overseas. Whether it is across

town or across the nation, First National

Real Estate can take the hassle out of

moving.

First National Real Estate can source

information about your new area to help

you relocate with a minimum fuss. Ask

your local First National Real Estate agent

for assistance or call 13 16 66 for

connection to your nearest office.

Arranging your next home

loan

Sometimes it can be hard to get to the

bank to arrange a home loan. Rather than

you having to go to them, First National

Financial Solutions* have a fleet of

relationship lenders out on the road who

can visit you, even after hours. As well as

offering highly competitive rates, our

Lenders can provide all the home loan

help, information and advice you need.

Phone First National Financial Solutions

on 1800 720 363

IMPORTANT NOTICE: First National Financial Solutions is adivision of Suncorp-Metway Ltd ABN 66 010 831 722. Bankingproducts are issued by Suncorp-Metway Ltd. Various productsand services are provided by different entities in the SuncorpGroup. The different entities in the Suncorp Group are notresponsible or liable in respect of products or services providedby other entities in the Suncorp Group.

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READY FOR THE MOVE?

Moving Countdown

Planning and preparing down to the last

few details will make your move easier.

Following a schedule that organises tasks

within a time frame will keep you on track.

8 weeks before the move

If you are using a professional mover,

get estimates from different moving

companies and choose the one that is

best suited to your needs. If you are

moving yourself, get estimates from

truck rental companies. Be sure to

reserve in advance.

Draw a floor plan of your new house.

This will help you decide what furniture

stays and what furniture will go.

Use up things that can’t be moved -

such as the food in your freezer and

flammable household aerosol cleaning

supplies.

Contact the information office or local

council in your future location and

start gathering information about your

new home town.

6 weeks before the move

Discuss costs, packing, loading,

delivery, and the claims procedure

with your mover.

Make inventory of all of your

possessions now determine what can

be sold and what can be donated

to charity.

Get copies of your records from

doctors, dentists, lawyers, accountants,

etc. Make arrangements to transfer

your children’s school records.

Go to the post office and obtain a

change of address kit and start filling

out the cards. Don’t forget about

changing the address on magazine

subscriptions, catalogues, etc.

4 weeks before the move

If you have contracted to have the

mover do all the packing for you,

arrange to have this task completed a

day or two before loading the truck.

If you need it, arrange for storage.

Clean or repair any furniture, curtains,

or carpets that need it.

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Hold a garage sale. Use the extra cash

to splurge a little on your new place.

If you are moving yourself, work out

how many boxes you’ll need. (Many

truck rental companies will provide

this service)

Do-it-yourselves should take stock of

non-boxable items. Add 15 percent to

their combined cubic feet (along with

total cubic feet of boxes to be loaded)

to determine the size of truck you’ll

need.

3 weeks before the move

Assemble packing material

Furniture pads

Hand truck

Packing tape

Bubble wrap

Styrofoam “peanuts”

Nylon packing string and rope

Crumpled newspapers

Scissors

Utility knife

Large self-stick labels

Felt-tip markers

Boxes, boxes, boxes

Begin packing items that you won’t

need. Don’t pack too much weight in

an un-reinforced box.

Arrange to cancel utilities and

services at your old home and have

them installed at your new home.

2 weeks before the move

Arrange to transfer all of your bank

accounts to new branch locations.

Make any special arrangements to

move pets, such as purchasing airline

reservations and travelling containers.

Consult your veterinarian about how

to make moving easier for your pet.

Make arrangements for new

telephone service.

Cancel any direct deposit or

automatic payment arrangements on

bank accounts you are closing.

Cancel delivery services.

1 week before the move

Transfer all medical prescriptions to a

pharmacy in your location.

If you will need a babysitter, arrange

for moving day service.

Return library books and videotapes.

2 or 3 days before the move

Defrost your refrigerator and freezer.

Have the movers pack your shipment.

Arrange to have cash, a certified

cheque, or money order ready to pay

the driver on delivery day.

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Set aside valuables and legal documents

to go with you, not on the van.

Pack clothing and toiletries to go with

you; take a day or two’s extra clothes

in case of delay.

Pack your first-day handy items box

(see “Delivery Day”) to go with you.

Moving Day

Do-it-yourself movers should pick up

the truck early.

Make a list of every item and box

loaded onto the truck.

Let the mover know where you can be

reached.

Before you sign your agreement with

the mover, read the conditions.

Keep it in a safe place until your

goods are delivered, charges are paid,

and any claims are settled.

Check your old house to make sure

you’ve turned off water, appliances etc.

Inspect basement, attic, garage.

Be on hand to answer questions and

give directions to the mover.

Delivery Day

Assemble first-day handy items:

Scissors

Utility knife

Coffee cups

Tea kettle

Paper plates

Toilet paper

Instant coffee, tea, soft drinks

Soap

Pencils and paper

Local phone book

Masking tape

Bath towels

Trash bags

Toiletries kit

Shelf liner

Check off all boxes and items as they

come off the truck.

Make sure the utilities are connected.

Unpack kids’ toys.

Be on hand to answer questions, pay

the driver, give direction and examine

your goods.

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Things to Do -

Tick When Completed

Here’s a final checklist of contacts to be made:

Financial / Legal (notify in writing)

Bank (inc. children’s accounts)

Building Society (loan and savings accounts)

Credit Union

Age/Invalid/Repatriation Pensions

(Social Security/Repatriation Departments)

Public library

Life insurance company (quote policy no.)

Property insurance company (quote

policy no.)

Car insurance company (quote policy no.)

Any other insurance (children’s accident, etc.)

Hire purchase company

Credit cards (Diners Club, store accounts, etc.)

Car registration

Driver’s license

Electoral Office (address in telephone

directory under Government section)

Local police (if you have any driving

summonses, etc. pending, or if you are to be a

witness in a case, etc.)

Shares & investments

Government bonds

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25

Personal/Social

Employers

Apprenticeship Commission if one of

the family is apprenticed (quote

apprenticeship number)

Kindergarten

Primary school

Secondary school

Part time, evening and correspondence

courses

Other (when children change school, you

may need an official transfer)

Doctor

Dentist

Hospital (if you are an outpatient, etc.)

Baby health centre

Health fund

Social clubs

Children’s activities (Scouts, Ballet, etc.)

Sporting clubs (whether a player or a member)

Neighbours

Relations

Friends

Other

Housekeeping

Newsagent (with date last paper required)

Electricity department

“off” at old address

“on” at new address

Gas company

“off” at old address

“on” at new address

Telephone (Contact Regional Sales Office)

“off” at old address

“on” at new address

Post office (pay a monthly fee for

redirected mail)

Magazine subscriptions (anything

received by mail) - save wrappers with

reference numbers

Here’s a good idea - make up a “Moving

Notice” and photocopy enough for your

requirements. It will save time writing

letters. Here’s a sample:

WE ARE MOVING!!

John & Mary Brown are leaving

1 Smith Street, Smithtown

and will be at

10 Brown Street

BROWNSVILLE STATE 0000

From 1st November

New Telephone: (00) 0000 0000

Page 28: Home Sellers Guide - Nerang First National Real Estate

Kids and Moving

Moving to a new home can be one of the

biggest changes that a family can face,

especially for young children, so it is

important to take them into

consideration. With sensitive planning

these changes can be put into a positive

framework.

The following are a few points to take

into consideration.

• Prepare your children for the move by

giving them lots of information about

the reasons for moving and letting

them know what they can expect in

their new home.

• Invite children to talk about their

feelings with you.

• Listen to what they have to say and

assure them that you understand.

• Avoid being over optimistic and

insisting everything will be wonderful.

Even if the new home is fantastic, it

may still take time for them to adjust.

• Try not to take it personally if your

child is having trouble adjusting to the

move and blames you for causing it.

• Try to explain that sometimes big

decisions need to be made and some

cannot be avoided.

• Provide emotional support and

understanding.

• Share the feelings that you may have

had during your childhood.

• Don’t forget to share your feelings with

someone - adults sometimes need

support as well.

• Focus on the positive aspects of your

new home, neighbourhood and

community.

Remember, your local First National Real

Estate consultant is part of the

community you’re moving into and can

assist in providing information and

contacts for settling into your new area.

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27

Understanding technical,

legal and building terms

ADJUSTMENTS - Apportionment of rates,taxes, body corporate, rent, insurances etc.Up to the date of possession or settlement ona sale.

ALLOTMENT - A small area of land sufficientfor building a house. An allotment is alsoreferred to as a building block, lot or block

of land.

AMORTISATION - The process of recovering,over a stated period of time, the capitalinvestment through scheduled, systematicrepayments at regular intervals. Periodiccontribution sot a sinking fund to discharge adebt or make a replacement at a future date.

APPRAISAL - The term commonly used inAmerica to indicate what in Australia istermed a valuation. In Australia the termmeans an opinion or summation of thesaleability of a property without resorting to afull-scale valuation.

ASSETS - Real and personal property inwhich a person has an unencumberedownership or equity and which has value.

AUCTION - The selling of any property, realor personal, in public by a licensedauctioneer, who offers the property for sale,starting at a price possibly much below itsvalue, and endeavours to persuade thosepresent to make successively increased offersuntil it is knocked down to the highest bidder.A reserve price may be placed on theproperty by the owner and no sale can thenbe made below this price.

AUCTION AGENCY AGREEMENT - Anagreement that the vendor must sign when aproperty is listed for auction. Details thereserve price of the house and the costs of theauction, including advertising and the agent'scommission. Usually includes a condition thatone agent will have the exclusive right to sellthe property for a period during and after theauction.

BREACH OF CONTRACT - Breaking theterms of the contract.

BRICK VENEER - A building which has brickface external walls with some other materialbehind, usually fibrous plaster or gyprock ona timber frame.

BRIDGING FINANCE - The need often arisesfor purchasers to effect settlement of a realestate transaction prior to the date that thefinance becomes available. Under thesecircumstances it is necessary to obtainbridging finance (a temporary loan) toprovide for the time gap in order to complywith the terms of the contract in regard tosettlement pending the availability of thelong term finance.

BUILDING REGULATIONS - Laws adoptedand enforced by Local GovernmentAuthorities which specify the method ofconstruction of buildings and the nature andmaterials to be used, below which standardsthe buildings must not fall. They are designedto ensure public safety, health and theminimum acceptable society standards as todesign, construction, alteration, repair andoccupancy. Also referred to as Building By-

Laws and Building Code.

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CAVEAT - A caveat can be lodged on theLand Titles Register by anyone with a legalinterest in the property, preventing the saleof the property without their knowledge.

CAVEAT EMPTOR - Let the buyer beware. Inreal estate, in the absence of specificrepresentations by the vendor or his agentas to the conditions of a property or the usesto which it may be put, the buyer takes therisk and must make his own inquiries.

CERTIFICATE OF TITLE - The document oftitle to land held under the Torrens System.It consists of duplicate deeds stating the factand extent of the interest of a person (theregistered proprietor) in land held under theTorrens System. The deeds are numbered.One is kept in the Titles Office and the otheris held by the registered proprietor. Whenthe land is dealt with, a note of the dealing ismade on both copies by the Titles Office.

CHATTELS - Any property other thanfreehold land. Chattels are treated aspersonal property, although they aredivisible into chattels real and chattelspersonal.

CLADDING - A term applied to relativelythin sheets or slabs used to enclose aframework, e.g. imitation bricks, aluminium, etc.

COMMERCIAL PROPERTY - Propertyintended for use by all types of retail andwholesale stores, office buildings, hotels andservice establishments.

COMMISSION - Remuneration of a realestate agent for services rendered, e.g. toeffect the sale of property. The amountbeing a prescribed percentage based on theconsideration of the contract or agreement.

COMMON PROPERTY - (i) Land or a tractof land considered as the property of thepublic in which all persons enjoy equalrights. A property not owned by individualsbut by groups. (ii) In a home (villa) unit orflat development that part of the propertyowned and used in common by all the unitor flat owners or occupiers and which ismaintained by the Body Corporate.

COMPANY TITLE - Rights to occupation inperpetuity of property based on theownership of shares in a company in whichis vested the title to the property. This wasthe common method of home unitownership prior to the introduction of stratatitle ownership.

CONDITIONS OF SALE - The conditionsunder which a purchaser takes propertysold to them.

CONTRACT OF SALE - An agreementrelating to the sale of property, whichexpresses the terms and conditions of sale.

CONVEYANCE - An instrument (iedocument) which transfers property or aright in property from one person to another.

CUL-DE-SAC - An access street with a blindend in the form of a turning space for vehicles.

DATE OF SETTLEMENT - In relation to realestate transactions, it is the day on whichunder the terms of the contract the vendor isrequired to transfer his or her estate orinterest in property to the purchaser.

DEPOSIT - Non-refundable percentage ofpurchase price paid by buyer whencontracts are signed and exchanged. Depositmust be held by estate agency or seller'ssolicitor in a trust account or held jointly in atrust account by seller and buyer.

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DWELLING - A residence. A place of abodeor a structure occupied exclusively for livingpurposes.

EASEMENT - A right which a person has touse land belonging to another in a particularmanner not involving the taking of any partof the natural produce of that land — or of anypart of its soil; or a right to prevent the ownerof that land from using that land in aparticular manner. The most usual easementsare rights of way, easements for light andeasements for the flow of water over andthrough another’s land.

EDWARDIAN RESIDENCE - Architecturalstyle that flourished during 1901 — 1916.Characteristics of the style include: chunkybuilding, solid and compact constructed outof common red bricks with bold horizontallines at floor levels, the cornice and parapetswere plastered in flat planes and painted.Verandahs were discarded and walls carriedup to form parapets to reveal the baldness ofthe building. Cast iron in all forms was not used.

ENCROACHMENT - An unlawful gainingupon the possession of a neighbour. Anencroachment is usually in the form of afence, or portion of a building, erected by oneperson upon land of an adjoining neighbour;or a structure overhanging the land of aneighbour. An encroachment may similarlyoccur upon a street.

EXCLUSIVE AGENCY AGREEMENT - Anagreement which entitles one agent only tosell the property.

FITTINGS - Those things installed by a tenantfor the purpose of trade, ornament ordomestic use which may be removed without

causing irreparable damage to the demisedpremises or land. (Fittings may, of course, beinstalled by the owner or landlord of property).

FIXED FLOOR COVERINGS - Wall to wallcarpet, kitchen linoleum, vinyl tiles, etc. Thisterm does not cover loose rugs.

FREEHOLD - The highest form of estate inland, and the nearest the law allows a realproperty owner to approach completeownership. A freehold estate is one which isof unlimited duration, that is to say, it cannotbe said of an estate of freehold at the time ofits creation when it will come to an end.

GAZUMPING - Where the vendor agrees tosell a property, but then sells it to someoneelse or raises the price.

GENERAL LAW TITLE - There are twosystems of providing title to land. One is theTorrens Title System which uses government- recorded certificates of title. The other is thevery much older system under which title isproved by showing what is known as a good

root of title, that is a series of documentsshowing the whole of the history of the landover a prescribed period and showing by thathistory who is currently the lawful proprietorof the land. Also referred to as; common law

title, and old systems title.

GEORGIAN ARCHITECTURE - A formalcolonial style adapted from English design ofthe eighteenth century; characterised bysimple lines, balanced window openings,doors and chimneys.

GRACE PERIOD - A period when a mortgagepayment or other debt becomes past due, andbefore it goes into default. Most mortgagesprovide for a specified period of time when itcan be paid without penalty or default.

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HOLDING DEPOSIT - An amount given bya buyer to the estate agent acting for theseller. It shows the buyer's serious commitmentto the property, but is not compulsory and isrefundable if the offer is rejected.

INSULATION - A heat-retarding materialapplied in outside walls, top-flooring ceilingor in roof to prevent passage of heat or coldinto or out of the house. Also, the process ofinsulating a house.

INVESTMENT - Monies placed in aproperty with the expectation of producinga profit, assuming a reasonable degree ofsafety and ultimate recover of principle;especially for permanent use, as opposed tospeculation.

INVESTMENT PROPERTY - That real estateproperty which a person would invest in toget a return on money.

JOINT TENANTS and TENANTS INCOMMON - Property, whether real orperson, may be owned under joint tenancyor tenancy in common. Joint tenancy isownership in equal undivided shares, stateto have the technical requisites of unity of

possession, interest, title and time. The mostimportant feature of joint tenancy is knownas survivorship; on the death of one jointtenant, that person’s share passes to thesurvivors so that they remain joint tenants ofthe whole. Joint tenants are regardedcollectively as a single person in respect oftheir dealings with others. In the case oftenancy in common, although each has anundivided share, such share is distinct andseparate. The interests need not be equal;thus ‘A’ may have one undivided third share,and ‘B’ two undivided third shares of the

same property. The most important featureis that the share of a tenant-in-common maybe separately disposed of during a person’slifetime, or by will. On death it passes, not tothe other tenants-in-common, but by will, orby the laws of intestacy.

LAND TAX - An annual tax paid to the stategovernment, calculated according to thevalue of the property.

LAND USAGE - The use being made of landor the uses permitted under zoningordinances. Zoning ordinances act to controlland usage in a community by establishingbuilding codes and set back requirements.Proper land usage attempts to assign thehighest and best use to each parcel.

LEASE - Possession but not ownership of aproperty for a set period of time. The termsand conditions are set out in a documentsigned by both tenant and owner.

LESSEE - One who possess the right to useor occupy a property under a leaseagreement.

LESSOR - Property owner who rents it out.

LIMITED TITLE - The Torrens Title thatapplies before a property has beensurveyed.

LISTING - The recording of properties asbeing available for sale.

LONG-TERM LEASE - Generally consideredto be a lease agreement extending for 10years or more. Under such leases the tenantmay desire, or be required, to do extensiveremodelling: or if the property leased island, to construct a building or otherimprovements.

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MARKET PRICE - The price actually paid, orto be paid, for a property.

MEZZANINE - A low-storey between twofloors of a building, especially the first twofloors; an intermediary floor. In a theatre, ashallow balcony between the main floor andthe first balcony.

MORTGAGE - A written contract giving thelender certain rights over the specificproperty for example, the house being boughtby the borrower, as security for the loan.

MORTGAGEE - The source of funds for amortgage loan and in whose favour theproperty serving as security is mortgaged, i.e.the person who lends money on the mortgageagainst some security normally real propertyor goods.

MORTGAGOR - The owner of property whoborrows money and mortgages the propertyas security for the loan.

MULTIPLE LISTING - A method ofexchanging exclusive entries for the sale ofproperties between real estate agents who aremembers of the same organisation.

NEGATIVE GEARING - When the incomereceived from an investment property is lessthan the cost of the investment, you candeduct this amount from your taxableincome, reducing your total tax bill.

OCCUPANCY - Having possession ofproperty. Physically taking and holding it andresiding thereon as a tenant or owner.

ON SITE AUCTION - Auction sale held onpremises being offered for sale or chattelsbeing offered at the owners residence asdistinct from an auction held at the premisesof the auctioneer or auction rooms.

OPEN AGENCY AGREEMENT - When any

number of agents may market the vendor's

property for sale.

OPTION - A right given for a consideration to

purchase property on or before a fixed date,

on terms previously agreed upon.

OWNERSHIP - The right to possess and use

property to the exclusion of others.

PASSED-IN - If a property is not sold at

auction because the owner’s reserve price has

not been reached, it is passed in. The highest

bidder has first option to purchase at the

reserve price. It is then possible to negotiate

for the purchase, either on the same day or

afterwards. Properties so passed in are mostly

sold shortly afterwards at a price close to the

passed-in figure.

PENTHOUSE – An apartment build on a

portion of the roof or top floor of a building.

Typically, such units are larger and more

luxurious than most apartments.

PREFERRED LISTINGS – Entrusting the sale

at least in the first instance to one agent only.

PRIVATE SALE – An owner sells a property

without using an estate agent.

PRIVATE TREATY SALES – An owner sells a

property using an estate agent who deals

directly with the buyer/s. The property is not

offered for auction.

PURCHASE PRICE – The price paid; the

amount for which a property is sold.

PURCHASER – The buyer. The one who

acquires title to a property or an interest

therein.

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QUALIFIED TITLE – An Old System Titlethat has been updated to the Torrens system,but which may not have beencomprehensively investigated to find out allthe enduring legal interests in the property.

QUANTITY SURVEYOR – A person whoundertakes the preparation of a statement ofthe quantities of material involved in thecarrying out of constructional work.

RANCH HOUSE – A one-storey rambling-style home, usually having a low-pitchedgable or roof line.

RATEABLE PROPERTY – Real estateproperty in respect of which there is powerto impose rates.

RATEABLE VALUE – The value of propertyon which rates are assessed.

REDEVELOPMENT – The development orimprovement of cleared or undevelopedland in an urban renewal area.

REDEVELOPMENT ZONE – An area of landdesignated by a planning scheme as an areain which the existing development is to bereplaced by a new development of the kindspecified in the planning scheme.

RESERVE PRICE – The minimum price atwhich the owner of a property is prepared tosell a property at auction.

RESTORATION – Remodelling a building toits original form; contrasted withrehabilitation.

ROW HOUSING – A group of one or two-storey dwellings separated by fire ratedparty walls; more often known as a terraceof housing.

SALEABLE PROPERTY – Property that canbe readily sold; marketable because oflocation, demand, price or some otherdesirable factor.

SEMI-DETACHED – Party detached. A pairof homes joined together and forming ablock by themselves.

SETTLEMENT – This is the final stage of thesale when the purchaser completes thepayment of the contract price to the vendorand takes legal possession of the property.

SOLE AGENT – An agent appointed upontheir own for the sale of, or other dealingswith a property. An exclusive listing.

STAMP DUTY – State governments imposea stamp duty, or tax, on the purchase ofproperty. The amount of tax payable iscalculated as a percentage of the property’spurchase price. Only buyers pay stampduty.

STRATA TITLE – A building is subdividedand each part or unit in the building isowned separately.

SUB-DIVISION – Literally a division intoparts. The term is generally used in thesense of dividing land into building lots.Before the land can be sold, it must beapproved by the council, other statutoryauthorities and the Titles Office, asappropriate.

SURVEY – The measurement of a propertyto confirm where its boundaries are, andwhat improvements have been made to it.

SURVEYOR – A person qualified andlicensed to practice land surveying.

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TERRACE – A row of houses in one block

with shared dividing walls. The houses are

usually all built to a uniform style.

TITLE – The ownership of property, or the

documents constituting the evidence of such

ownership.

TITLE DEEDS – Documents evidencing the

ownership of property that are transferred to

the new owner when the property is sold.

TORRENS TITLE – This term derives its name

from the late Sir Robert Torrens of South

Australia, who was mainly responsible for

originating this form of title more than 100

years ago, although he was not the author of

the scheme but the one who was able to put

the scheme into effect. Under the Torrens

system dealings and ownership of land are

managed by registration with the Titles Office.

TOWN HOUSE – The term is used to describe

those residential developments which permit

single-family construction on high cost land

by use of row houses.

UNENCUMBERED PROPERTY – Property

free and clear of mortgages, restrictive

covenants, leases, and assessments of any

kind.

UNIT – Each subdivided area registered

within a strata title building.

VALUATION – A written assessment of how

much a property is worth, by a registered

valuer.

VENDOR – One who sells anything. In real

estate transactions it is the person selling the

property.

VILLA – A term widely used in Victoria,elsewhere known as a cottage. The populardefinition is a detached single-storey house.

VISIBLE IMPROVEMENTS – Thoseimprovements which are apparent oninspection such as buildings, fences,orchards, etc.

WATER CLOSET – A room equipped withtoilet fixtures and facilities.

WATERFRONT PROPERTY – Any propertythat has frontage on an ocean, river or otherwatercourse.

WATER RIGHTS – A right to a definite or

conditional flow of water, usually for use at

stated times and in stated quantities for

irrigation or for hydroelectric power

development.

WEATHERBOARDING – External wall

sheeting formed with overlapping or

rebated boards.

WITHOUT RESERVE – An auction term

signifying that the goods offered will be

sold to the highest bidder, whatever that

bid may be.

ZONING – Local planning authorities

control the present and future

development of land, including residential,

business and industrial uses.

Acknowledgment: Information provided by the Real EstateInstitute of Australia (REIA), the national professionalassociation for the real estate industry in Australia. For moreinformation, see: www.reia.com.au

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