SA real estate: your guide to buying, selling, investing
Looking to buy, sell or invest in SA? Our panel of 10 property experts answer 20 questions, giving you everything you need to know to make a confident decision.
Buying? Selling? Investing?
If you’re looking at doing any of the above this spring, you’ll want to read on. We asked 10 agents to answer 20 pertinent questions. Our aim is that after reading their enlightening responses you’ll be ready to make your next property decision with confidence.
Enjoy!
GREGG TOYAMA, HARCOURTS SA/NT CEO
I’m thinking about saving for a deposit. How much do I need to save?
That depends on the type of loan and the lending criteria of the bank or financial institution.
The preferred deposit is 20 per cent, however some lenders’ deposits can be as low as 5 per cent plus costs with additional mortgage insurance. Speak to your financial professional to check if you qualify for any government programs.
A lot of homes are using auction, but buying at auction seems intense. What are buyer’s agents and what do they do?
With the strong buyer demand, property owners are choosing to auction their property to maximise the sale value of their property and give all the potential buyer a transparent process to purchase the property. Buyer agents simply assist buyers to bid, negotiate, and secure a property if the buyers do not want to represent themselves?
STEPHANIE WILLIAMS, WILLIAMS REAL ESTATE PARTNER
Is print advertising important?
Print media is very important component to ensuring that you have a well-balanced and professional marketing strategy. This is particularly important in SA to ensure that you reach all the potential buyers. Print media looks amazing and works in complete harmony with an online campaign. The print media comes out at the perfect time on a Saturday morning and reaches a very important buyer group that doesn’t have time to search the internet every day. The relatively low cost of print media in SA makes it exceptional value and it should be an imperative part of any real estate marketing campaign. We have been placing all of our properties in print media from the day we started in real estate and still do to this day, simply because it works every time and drives excellent results for our vendors.
What tactics can I use at an open inspection to create an ambience for selling?
Properties do not have to be stripped back and overstaged. It is important to retain some of the natural warmth of a home, and a good stylist will blend all of these aspects really well. You do not want a home feeling or looking to clinical. Provide fresh new towels and bed linen and retain important soft furnishings and books that also add a sense of warmth.
Try to provide a fresh, warm environment with the gentle hum of relaxing music, the fragrance of subtle candles, a bunch of fresh flowers and sometimes even a baguette in the oven to really add those wonderful aromas that are always well received. You really want the home to reflect an inviting sense of warmth and natural beauty, that simply makes the buyers fall in love with it and want to make it their own.
NATHAN CASSERLY, OUWENS CASSERLY REAL ESTATE MANAGING DIRECTOR
How much should I spend on marketing my home when selling? Is there a general rule of thumb I should be following?
The best campaigns and best prices consistently are achieved when the owner invests approximately 1 per cent of the value of the home on marketing. Any less runs the risk of underselling, and any more doesn’t seem to add any extra value or contribute to a higher sale price. Covering a wide range of products and media is important as buyers behaviour suggests that they require three to five points of reference before making a purchase, ie online, signboard, social media, print media, as these all capture the buyers attention, then it’s the open inspection that creates the competition. It’s all about achieving the highest possible sale price, with the best terms and conditions. The best buyer isn’t always sitting online looking at the portals – they come from a variety of sources and at different times of the campaign. Your home is only a new release once, so its important to get the marketing right from the start. Think about how Apple release the latest iPhone. Good luck and happy selling!
How can I work out what a house for sale is worth?
There are many good online tools that provide an estimate to the value of a property. If the property has sold within the last five years and little has changed or been improved, then these tools can be fairly accurate, however there are many inconsistencies, so often they cannot be relied on. Most real estate portals show sold prices of properties, so looking through these details, driving past each one and comparing to your own property will help you assess your own value. Many owners believe their place is worth a little more than ‘the one that sold down the road’ so be careful to not over-estimate your value. Having a relationship with a mortgage broker and/or real estate agent will provide more accurate and up-to-date value on property sales and the value of your own property, so building a relationship with your local agent is a great idea.
CHARLES BOOTH, BOOTH & BOOTH REAL ESTATE DIRECTOR
Why is now a good time to sell?
The Adelaide residential market has shown incredible resilience and strength in more recent times driven largely by strong demand, locally and certainly from interstate and overseas. However, the lack of available stock in the marketplace has also played its part in driving price growth. I do not believe there will be a lot of new stock coming to market over the coming months and so I believe the prevailing strong market conditions will maintain.
So I see it as a good time to capitalise on this strength in the marketplace. Not to mention spring is on our doorstep which always brings a positive mood.
How long does it take roughly to get a home ready for sale, and what does this process usually involve?
Typically, it depends on how long a vendor has been thinking about selling and possibly doing some pre-preparation. It can also depend on the type of property, age of property, and size of its grounds. For most properties, depending on any lead times with trades, if required, they could be ready for photography in two to four weeks. Presentation is very important for the sale process and it’s important to get the presentation right.
PHIL HARRIS, HARRIS REAL ESTATE MANAGING DIRECTOR
Is now a good time to buy?
Based on all major big bank predictions it would clearly show that now is a good time to buy. At this stage the majority of market data is indicating that strong capital growth is going to continue across most of Australia well into 2022. So if you didn’t buy prior to last Christmas now would be the next best time.
What should I consider when looking at buying an investment property?
The first thing to decide is whether you are looking for capital growth, yield or a combination of both. Once you have made that decision then the basics apply of how appealing the property will be to potential tenants and are there any substantial maintenance issues that could be costly to you as the investor? The other key thing to do is to consider if there any basic improvements that could be made which would considerably improve the weekly return.
BILL DIMOU, LJ HOOKER SA STATE MANAGER
How do I pick the right agent for me?
This is one of the most popular questions I have been asked over the years. Remember just like doctors, teachers, electricians or other service providers, not all real estate agents are the same. In real estate the ‘cheapest’ agent and the best agent are not often the same agent.
I recommend you do your homework on your home’s area. You can do this by going to other open for inspections and watch how the agent interacts with the potential buyers.
Always ask the agent that is appraising your home if they will be conducting the open for inspections or if someone else will be.
Always make sure they have a strong marketing campaign planned to attract both active and passive buyers. Remember it’s not about attracting the first buyer, it’s about attracting the best buyer. The job of a good agent is to get you the best possible price for your property. This also includes advice on how to best present your property, how to market and who to market your property to. Then they bring all of this together with strong negotiating skills. Finally, you need to feel comfortable with the agent that you will be spending time with over the period it takes to sell the property.
What are the benefits of investing in real estate as opposed to stocks and shares?
Of course, everyone’s situation is different when it comes to investing so I would always recommend getting professional financial advice in the first instance. Generally speaking, the prices for property don’t fluctuate with the sharp peaks and troughs that the share market can experience. Another popular reason for owning a property investment portfolio is that you can see the bricks and mortar of your investment, rather than just a transaction on paper.
JOHN MCROSTIE, BELLE PROPERTY UNLEY PRINCIPAL
What kind of maintenance should I be doing before I sell? What will buyers be looking at?
You should always have a tidy well-presented garden. Ensure downpipes are away from the house. Buyers love light and bright homes, so painting can be quite valuable. They also want to see space, so ensure your home is decluttered from too much furniture. Good presentation ensures great buyer interest in this strong market. The goal is for buyers to potentially see themselves living there.
What is stamp duty and how do I know how much it will be?
Stamp duty on your purchase is a state government charge at settlement. It’s generally around 5 per cent of the sale price. You can use the calculators at RevenueSA website (www.revenuesa.sa.gov.au/stampduty/calculate-stamp-duty). Your mortgage broker or bank agent should be able to guide you regarding the fee.
MATT SMITH, KLEMICH REAL ESTATE MANAGING DIRECTOR
How long can I expect my home to take to sell in the current market?
The demand for homes in South Australia is at an all-time high, so providing a home is marketed and presented to the highest standard and sensibly priced, then the interest from the buying public is immediate. While it may take a couple of weeks to work through the conditions of purchase like finance, or for auction day to arrive a vendor, in this unprecedented market, can expect a sale in well under a month.
What are stylists, and how do I know if I should use one?
Home styling is about maximising the appeal of the home to specific target markets. The perception is that the stylist places pretty cushions the day before the first open. In reality a high-performing agent and styling team will add thousands to the sale price if they are introduced to the sale process from the outset.
ANDREW FOX, FOX REAL ESTATE PRINCIPAL
My home’s been on the market for a few months and not selling. What can I do to reignite my campaign?
If your property has been on the market for an extended period in the current climate it may well be that the price you are wanting to achieve is not in line with purchaser expectations. Media reporting of properties that have sold for hundreds of thousands of dollars above asking price are true and common, however in some instances this is not the case and can lead to vendors expecting a higher than realistic result for their property. Best speak to your trusted agent to discuss a new price and method of sale strategy going forward.
More often than not your price is fine and it’s just that the right people aren’t seeing it, so perhaps think about increasing your marketing. We did this recently with a beautiful property in Walkerville. It was on the market with another agent for two months. The agent hadn’t incorporated The Advertiser’s Real Estate Magazine in their marketing campaign. We took the listing over, put an advertisement in the real estate magazine in the first weekend and sold it in two days.
What are the benefits of drone photography and what kinds of properties benefit from them most?
Drone photography offers buyers another perspective on your home and can be used to great effect to either highlight the sense of space it offers or to show its proximity to a lifestyle feature like the beach, a park, the city or a shopping centre. It’s particularly beneficial for properties with larger grounds and really goes a long way to showing the scope and scale of Hills and rural properties.
MATT LINDBLOM, RAY WHITE SA CHIEF EXECUTIVE OFFICER
Why should I consider auction?
An auction campaign creates the most competition to achieve a premium price for the vendor.
At the fall of the hammer, a property is sold unconditionally with no cooling off, so it is final and binding for both the buyer and seller. This is a seller’s market, and we are seeing a record number of registered bidders with results more often well above the vendors reserve.
The east coast of Australia has traditionally been a strong auction market. Adelaide has now caught on and more property owners are choosing to sell via auction to achieve premium prices.
I’m currently renting. Should I consider buying?
People renting who may be considering buying need to take their own personal circumstances into account when making this decision. Because interest rates are so low, mortgage payments and other associated property costs may actually be less than renting. Buying a property is a long-term decision and I suggest people seek expert advice from their financial adviser, as well as a mortgage broker.
Originally published as SA real estate: your guide to buying, selling, investing
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