Spring has sprung, and it is one of the busiest times of the year in the property market. Families are taking advantage of the good weather and getting out and about looking for properties. Covid-19 has put a bit of a dampener on the year’s sales, though. If I look at local news and real estate listings, it would appear that housing stock levels are low at present. Add to this the new Home Builders Grant made available by the government to boost the economy and the First Home Loan Deposit Scheme, and you have a seller’s market.
From a finance point of view, we are always harping on about things you need to remember and have in place when purchasing a property, very little is said about the selling process. I thought in today’s blog, I would give a few tips from my perspective on things to remember when selling.
Firstly I would say check your loan. This may seem silly, but I have had more than one client be caught out by something as simple as this. If you are still within a fixed-rate period and have forgotten about it, there could be hefty break costs involved with paying out your loan in order to sell your property. You might want to hold off for a while for that reason. Other things to check, for example, if you have more than one property would be if they are perhaps cross securitised and after the sale of one, is there enough equity for the remaining property to stand alone. Usually, there is, but if not, or it is going to prove to be tricky untangling the properties, this may delay settlement, bringing unwanted penalties, or even worse, make the whole deal fall over. It always pays to have a good Mortgage broker help you look over your current loan situation and make sure you are lined up to easily exit your loan. If you would like assistance with this, Castle Mortgages are Mortgage brokers from Adelaide who would love to assist you in this regard.
Checking your selling costs goes a long way in making sure there are no nasty surprises when selling and exiting our loan. Making sure you are across your real-estate agent’s fees and marketing expenses is a must in my book. I would go as far as to say that you should write the whole sum down, your possible selling price minus all your costs, and make sure that figure looks right to you.
Many a time, I have seen a client who had done the mental arithmetic months ago be gobsmacked because they had made a silly mistake or not taken a cost into account. I know its obvious, but you will be surprised how quickly the obvious gets forgotten in the emotional roller-coaster that is a selling experience. A good conveyancer in the selling process is just as important as when buying. Having someone in your corner who can go over your contracts and ensure all the legalities are in order. Having the right team of experts in your corner can help you enormously.
Once you have your property on the market and the offers do start to come in, it is important that your real-estate agent probes the potential buyers from a finance perspective as much as possible. A good real estate agent will often phone the buyer’s broker and discuss the brokers’ view about their financial health. While this conversation will be very limited due to privacy, it will go a long way to sorting the wheat from the chaff with regards to the offers that are on the table. Again this will come down to the quality of the real estate agent that you have, so asking them this upfront will be an integral question. Still, on the subject of an agent, I would say always to get three appraisals of your property to make sure that you are in the right price band, and beware of agents promising overly high figures to get your business. Check their reviews on the web if available too.
Lastly, if you are selling, there is a large likelihood that you are buying again too. Have your finance set up before you start the process, or at the very least, have had a detailed conversation with your mortgage brokerabout how you are going to execute it. You and your family will have a smoother and less stressful experience by doing this. If you would like to chat with a good mortgage broker in Adelaide, get in touch with us.
Please note this is a blog and in no way is intended as financial or selling advice, this is my personal opinion. If you would like real estate advice, it always pays to do your own research as well as speak to an industry expert like a real estate agent.