What are the benefits of auction versus private treaty?
This has been a controversial subject for many years. Whilst an option that has worked to create multiple bids can get a high price, it may not achieve the highest price. This is because the bidders can see each other in the public auction forum. The highest bidder will only be enough above the second highest bidder to win the auction.Whilst auctions put some pressure on buyers to perform, they can also put a lot of pressure on sellers.
Can I use both auction and private treaty to sell my property?
Yes, this is often referred to as a combination sale. Often the auction is promoted initially in the marketing and, if there is insufficient interest for the auction to work, it is converted to a private treaty sale using the price feedback from buyers to set the private treaty price at an appealing level.
How do you decide on the price to promote for my property?
This process is called a Comparative Market Analysis. Your agent will research current similar listings for sale and recent similar properties sold and will apply some other industry formulae to best approximate the likely selling price.
How will you market my property?
Before we develop a marketing plan, we first identify the best strategy to get you the highest price. Once we have the strategy in place, we then take the appropriate marketing options to make the strategy work. Those options could include social media marketing, signage, Love Realty website, domain.com, realestate.com, Just Listed campaign, print media, robot marketing, web books, open homes or database marketing (using text, email and direct call).
What happens at an Open House?
Our agent or agents will attend your home and advertise it as open for inspection. Members of the public attend the open home at the nominated time, usually a 30 minute period, and after they have given us their personal details, we allow them to look through the home. We then follow them up usually on the same day to obtain their feedback and hopefully to identify a buyer willing to make an offer.
Will you also conduct private viewing?
We love private viewings! Private viewings give us the opportunity to find out more quickly what the buyer likes and dislikes about the property. This gives us an immediate opportunity to overcome objections and find out a price at which the buyer would consider.
What happens if I don’t receive any offers for my property within a month?
Well-priced properties often sell within the first few days of going on the market. However our team will closely monitor the response to your property and make adjustments to marketing and price (with your approval) and if necessary, well before the end of the first month. Best offers come early.
What happens after an offer is made?
Our team will make every endeavour to ensure an offer is genuine. Our recommendation to a buyer will be to put the offer on a contract of sale so our seller can see the offer is genuine. This also enables us to include all other conditions of sale if any.
What is the process from the acceptance of an offer through to settlement?
Once the property concludes its cooling off period of 5 working days (and any other conditions such as finance have lapsed), the contract then becomes “unconditional”, sold signs will be erected and your solicitor takes over carriage of the matter from there until settlement.
When and how do I pay the agent fee at settlement?
Generally, the agent holds the deposit in the trust account and upon settlement deducts their fees from the deposit, sending you the balance within 1 to 2 working days. Your solicitor similarly, will take their fee from the other settlement monies and send you the balance of those monies in around the same timeframe.
When and how will the sale funds be transferred into my account?
Before settlement, we will post out to you a form to fill in with your account details for direct deposit. This needs to be returned to us as an original document (not scanned or emailed). Alternatively, you may want a bank cheque or trust account cheque, however you would need to make this known prior to settlement.
Do I have to attend an open house or can I have a private inspection?
We would be delighted to give you a private inspection of the property. Before doing so, we always need to check it is convenient for the owner or tenant.
Is the listed price what is expected by the vendor or can we offer less?
Properties are often advertised with a price range rather than a fixed price. However, our recommendation is always to submit your best offer on a contract of sale to prevent other buyers from starting a new negotiation while you are negotiating.
What happens during an auction?
The auctioneer will call bids from the crowd in attendance and once the bids have exceeded the owner’s reserve price, the auctioneer will usually call the property on the market. This means any unchallenged bids after that point will win the auction.
Will you communicate every offer to the vendor or only the ones you think they will accept?
The law requires the agent to submit every offer to the owner unless the agent has written instructions to the contrary from the owner.
Can I be gazumped after making an offer?
The law requires all offers to be submitted to the owner until the owner has signed a contract with a buyer. Once you or your solicitor are in possession of the buyer’s signed contract, you cannot be gazumped.
What reports do I need to order and do I organise these myself?
Common practice is for the buyer to obtain a building inspection report and pest inspection report on the property. The agent may suggest some inspectors to use in which case you can organise your own reports or your solicitor/conveyancer would do this on your behalf. Generally speaking, it will be quicker if you organise your own and at this stage of the process, time is of the essence.
Who pays for the reports?
Typically, the buyer pays for Pest and Building reports. Sometimes the owner will supply these however unless the buyer pays the inspector for them, the buyer has no legal recourse for their accuracy.
What is the process and timeframe from making an offer through to settlement?
Once your offer has been accepted, you would be exchanging contracts with the seller and settling within 4 to 6 weeks.
What happens if I’ve got concerns on final inspection?
Whilst the agent will be present at the final inspection, any concerns at this point in the proceedings would need to be referred to your solicitor/conveyancer.
When will I get the keys to my new property?
Once settlement has occurred, the solicitor for the owner will send a communication to the agent authorising release of the keys to you. This generally happens within two hours of settlement.
How will you market the availability of my property for lease?
We advertise your rental property for lease on realestate.com.au, domain.com.au and loverealty.com.au and then conduct open homes during business hours, after business hours and on weekends, plus if requested we do private viewings for tenants who cannot get to the open home.
How would you profile and qualify prospective tenants for my property?
It is in the agent’s best interest and your’s to carefully select a new tenant. We adhere to a rigid application process seeking references, financial history including bank statements, references, reference checks and a TICA check which is a public register of tenants who have a bad history.
What happens if the tenant of my property falls behind in their payments?
Love Realty has a zero tolerance policy for rental arrears and a dedicated team member checks daily for any developing arrears situations.
We assertively follow up with text email and voice communications and if for any reason the situation is not resolved, we apply to tribunal for possession of the property.
What is the process if maintenance work needs to be done on my property?
Typically the tenant or a routine inspection shows up maintenance issues which are directed to our maintenance management team. Repairs over a predetermined amount are referred to the owner for approval then if necessary quoted then actioned. Urgent repairs where the owner cannot be contacted are required by law to be attended to immediately for example electrical danger or blocked sewerage pipes.
How often do you inspect properties?
Legally we can conduct inspections every three months however once we are satisfied the tenant is looking after the property we conduct inspections approximately every six months.
What happens if the tenant has damaged my property?
Willful damage can be deducted from the tenant’s bond if vacating or if they are remaining in residence, the tenant would be invoiced for the damage. Tenancy law is very strict and defined regarding what might be considered “fair wear and tear”.
What information will you provide to me for my tax purposes?
At the end of every financial year, we provide a comprehensive statement on each of your rental properties with the information your accountant will require to maximise your tax deductions.
Many property owners take an additional step of obtaining a depreciation schedule to ensure the best possible text deduction outcome. These can be obtained from specialist companies set up for the purpose.
How do I apply to rent a property?
You can download the required forms off our website including the tenancy application. The application will include a list of any other documents you may require to support your application.
What information do you consider in choosing the best tenant?
Previous rental history, references, proof of financial stability and any other information an owner would feel relevant in making their decision.
How would I pay my rent?
The preferred rental payment system at Love Realty is direct debit from your nominated bank account.
What is the process if the property needs repairs and maintenance?
We would prefer you to log on to our Maintenance Manager portal and report the repair through that system. That allows you, the property manager, the owner and the repairer to track the progress of the repair.
What happens if the landlord refuses to make vital or urgent repairs?
It would be unusual for the landlord to refuse vital or urgent repairs however there are laws in place to protect the tenant’s safety so generally an urgent repair could be undertaken without the owner’s consent.
How often do you inspect properties?
Every three months until we are satisfied the new tenant is looking after the property then generally every six months.
What happens when I vacate the property?
You would need to leave the property in the condition it was in when you leased it and with rent paid up to date in order to recover the bond.
You would also need to give the required note in accordance with the lease.
What happens to the bond I have to pay and when would I get it back?
The bond is held by the Rental Bond Board and is refunded to you after you vacate the property and the property owner is satisfied the bond refund requirements have been met.