Investors that are looking to snap up a property bargain should do their shopping in winter, Australian Property Monitors chief economist Andrew Wilson has claimed.

Speaking to The Adviser, Mr Wilson said investors with good equity would be well placed to avoid the Easter property rush and buy in winter.

“There is always a lot of action in the property market in the lead up to Easter. Similarly, there is always a lot of action in spring. Often buyers overlook winter which, provided you have the capital behind you, can be an excellent time to grab a bargain,” he said.

Mr Wilson also said the current market conditions favoured investors.

“The economy is very strong at the moment. And it is definitely a buyer’s market. There is plenty of stock in the mid-price range – which is ideally suited to investors.”

If you’re selling a property, it’s pretty easy to figure out if you want to use a real estate agent or not: Either you’re going to hire someone to show your property to prospective buyers, or you’re going to do it yourself.

If you’re buying, however, things aren’t so simple. That’s partly due to a change in the real estate industry in the past couple of decades, as more and more homebuyers use buyer’s agents.

What Is A Buyer’s Agent?

He or she is an agent who works for you – as opposed to when you walk into an open house, where the agent showing the property (often referred to the listing agent) works for the seller. Part of the idea is that buying is a negotiation, and since the seller has someone in her corner, you want someone in your corner, too.

You can go even further than hiring an Licenced Buyer’s Agent, and hire a dedicated buyer’s agent, who is an agent who doesn’t list any property for sale, ever. Those agents, the reasoning goes, get really good at helping buyers because they do it full-time. As Harry Charalambous from Plan Assist puts it, “they wont be pushing you to buy one of their listings.”

The Argument Against: Cut The Middle Man

The argument against buyers’ agents is that, if the seller’s agent can talk to you directly, the deal will go more smoothly because there’s one fewer cook in the kitchen, so to speak. Also, if you’re very close to the seller’s bottom line price, maybe you can get the listing agent to cut her commission a little, since she won’t have to share it with anyone.

The Argument For: All Parties Should Be Educated

I represent both buyers and sellers, and I’m pretty pro-buyer agency overall. I like educating buyers, especially first-timers, as part of my job, and in general, I think it’s helpful for every party in the deal to have their own expert. If you’re the do-it-yourself type, I don’t want to talk you out of really studying the market closely and learning it for yourself. But for those who don’t know the ins and outs of the market and want to make sure they’re doing everything correctly, I think that a buyer’s agent can be a great resource.

A Word Of Caution

Buying property is an important purchase, so if you’re trying to figure out pricing, hire a buyer’s agent, or study it closely yourself—but don’t pin all your hopes on your cousin Laura who spends most of her time doing law, not real estate.

(By Alison Rogers   18/5/11 www.learnvest.com)

The spring selling season is off to a slow start but market conditions appear to bode well for would-be buyers.According to RP Data, property buyers are likely to remain on the sidelines of the market until the outcome of last weekend’s federal election is revealed.

“We do expect to see improvement in the coming weeks as the spring selling season grows nearer and more certainty returns to the political environment,” the data provider commented yesterday.Property listing numbers were mounting, pointing to difficult selling conditions, RP Data said, but this should mean increased buying power for buyers.Total advertised property listings increased by 1.0 per cent over the last week with total listings now 5.3 per cent above the 12 month average level.

Furthermore, prices are expected to remain stable throughout the months ahead.“The results [of the RP Data/Rismark Home Value Index] for June showed the market was relatively flat (-0.2 per cent) and over the month of June home values fell by -0.8 per cent,” the analyst said.“For the remainder of the year we are expecting fairly flat levels of growth.”

(By: Staff Reporter, Friday, 27 August 2010)

Property prices in mining towns are once again on the rise, following the settled debate over the Resources Super Profits Tax (RSPT).

Property prices in mining towns are once again on the rise, following the settled debate over the Resources Super Profits Tax (RSPT).

Ray White joint chairman Brian White says while results in the mining cities had been very average over recent months, “those cities reported a quick upswing as soon as the new Prime Minister declared that an agreement had been reached with the mining companies.”It seems that now might be an opportune time for buyers to invest in mining town property. With the uncertainty removed, investors now know where they stand and with a combination of market knowledge and good timing, significant returns can be made.

According to Cameron Kusher, RPdata research analyst, the strong resurgence in commodity prices over the last year “will mean a higher level of demand for housing in what are generally chronically undersupplied markets.”He identifies a number of stand-out regions that will likely offer strong prospects for property buyers: Roebourne Local Government Area (LGA) in WA, and the coal-rich LGA of Isaac and the Western Downs region, both in Queensland.

In Roebourne LGA, for example, the median house price sits at $880,000, only 3.3% below peak prices experienced in 2008. With a huge demand for iron ore and a limited scope to expand the existing township, house prices in the region are being pushed up.

Kusher says it isn’t just the prospect of growth in house prices that makes Roebourne attractive, with the median weekly advertised rents recorded at $1,575, suggesting an indicative gross rental yield of 9.3%.Isaac LGA is experiencing similar trends, while Western Downs is likely to become a quick moving, resource-driven market of the future.

Kusher does warn property buyers that mining and resource-rich towns do hold an inherent risk due to their dependence on what is often a singular commodity.

Why is it that some homes sit on the market for a year while others sell like hot cakes? Frustrated sellers will blame a bad market, while a good real estate professional will tell you that many times, a slow sale is often attributed to the listing price.

If a home is overpriced, buyers will stay away. But, if the price is competitive with similar homes in the area and ‘shows’ better than the competition, it will have a better chance of being sold quickly.

The secret to pricing a property correctly is perfecting the technique of comparative shopping.

Although comparing houses with different styles, square-meteridge and locations is challenging, it’s still one of the best methods to use when determining a home’s market value.

A home’s worth is most effectively evaluated through a process known as Comparative Marketing Analysis. Taking a look at assets, such as a swimming pool, bigger than normal living spaces, a fantastic view, adjacent city parks and other attractions, your home can then be compared with similar properties that have sold in the area within the last six months.

Typically, the agent is able to recommend a realistic price range that will ensure you top dollar and a reasonably good response.

It is suggested that factors such as the amount of time needed to sell your home can alter the agent’s price recommendation dramatically. If you’re under time constraints because of unexpected job changes or moving agreements you’ve made on another property, this will narrow your chances of selling the home for top dollar in the market.

Assuming you have sufficient time to market the home, here are a few small steps you and your agent can take to finding the right price for your property.

* The best comparisons can be made with similar homes that have been sold within the last 45 days. Any longer and other factors, such as the economy, could cloud your view of how much your home is really worth.

* Another good benchmark is to review the selling prices of homes that have just been sold and are pending closes. This is information that most real estate agents should be able to share with you.

* Being open and honest about what you see as the home’s greatest strengths and biggest weaknesses will also help an agent get a better feel for how to best evaluate (or assess) and market your home.

* Think of your home as if you were the buyer. If your home is listed at the right price, you’re well on your way to a speedy and fruitful sale.

* When evaluating development sites you need to remember one key thing – always leave enough in for the other guy. Development is a business, based purely on the numbers, cash on cash return, ROI, annualized return are all important as are risk profiles etc. If you have a property with development potential, you need to start with the end in mind. What is the end product? How much will it sell for?

This figure can be derived by applying the previous process. Once you have established what your end product is and that you have a market simply subtract all expenses. This is where most people go wrong, they are simply not aware of all the costs, more oten than not they under estimate by hundreds of thousands of dollars. This is obviously extremely dangerous and no development should be entered into lightly.

Thorough research and analysis is required, as well as the project needing to be driven hard and on time. As time is money in development and time blow outs will eat into your profits.

The best thing to do is seek professional advice. The team at Plan Assist will help you with any aspect of your real estate needs, visit  www.planassist.com.au