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Hello all!
Hope we are having a fantastic week!
First off, a belated Happy Father’s Day to all the fathers out there.
Whoever you are, wherever you are, you’re the unsung hero of the family.
And it’s good that we get a special day to celebrate just how awesome we are.
Self-congratulatory pats on the back notwithstanding, mine this year was low-key, mainly because when you have two toddlers running amok – the best father’s day present is probably a vasectomy.
Also the fact that I grew up in a very non-celebratory household.
Birthdays, Mother’s Day, Father’s Day, Christmas, New Year’s, etc etc – none of which we made a big deal out of.
When you grow up poor, you learn to celebrate things which truly matter and move the dial.
Not to say our family was super strict or sterile or anything like that (complete opposite) – it’s just that the three of us, Mum, Dad and myself – saw each other day in, day out, with few breaks to our routine.
Nowadays of course, with a family of my own – things are different.
Indeed, sometimes MrsFrugalSamurai DEMANDS that we celebrate events by pumping enough stimulus into the local economy to make the RBA blush.
MiniFrugalSamurai and BabyFrugalSamurai live in a different world than their old man that’s for sure.
Anyway, I’ve had a fair few comments from you guys about the previous post. Questions such as:
What should we do when we are selling our home?
How should I choose the right agent?
Oi fathead, when’s the best time to sell?
Daddy, I want a new toy.
So I thought it’s prudent to follow up the previous post with this post, to answer the questions generated from the prior post within this post.
So here goes…
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Oh wait, before we start – I gotta say that having managed a few sales (with a further one underway) on behalf of ourselves and family, selling a bloody property is downright stressful.
So if you are contemplating or have experienced selling before – MUCHO RESPETO TO YOU (Spanish for “you poor bastard”).
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To Renovate Or Not To Renovate
The first thing I would do to any potential property for sale is to try and see if I can create some uplift through a basic renovation.
Just like a first date, you only have one chance to impress potential suitors – so make it a good one.
Renovating for sale is all about face value, so I try and tackle those areas which will make buyers swoon – like the kitchen and bathrooms (two most important rooms in any property).
MrsFrugalSamurai said something quite profound when it came to this regard, “impress the female”. As typically, it is the female of the house who decides upon whether the family likes the place or not. Us males – we normally just grunt and look for a place to sleep.
Oh and if you got some loose screws, or a leaking faucet – fix these minor issues to make a great impression. But what ends up happening is you’ll find that everything around the house which you put off for “another day”, suddenly sees that day arrive.
And whenever we do renos, I try to keep everything neutral and simple. This is because being neutral has the least chance to offend someone. You also want to create a blank canvas so buyers can picture their own life and dreams in the property.
If you don’t do anything, at the very least paint. Simply put, painting is the BEST BANG FOR BUCK you can get when it comes to renos.
The Agent
After renovating your beautiful property, time to jump to the dark side and bring an agent on board for them to give their professional opinion.
Actually, I normally like to bring an agent in before the renovation – because they can give some timely tips on what needs and doesn’t need to be done on a property based on other local sales.
Some people sell a property without an agent, which despite my tightarse and frugal ways, I wonder why? A good agent is seriously worth their weight in gold with the market knowledge, client database and all the back and forth involved – why wouldn’t you?
The best way I’ve found reliable real estate agents is to search realestate.com.au and using their “agents” search function. When you type your suburb in, up pops all the best rated agents for that suburb. We have found most of our sales agents in this manner. Note that best doesn’t equate to cheapest…
…which brings us to commissions, those can vary between 1-2% of the sale price. And don’t forget about extra fees like marketing and admin costs, these all add up.
Comparables
This is where you have to know what your home is worth, because setting the right price is absolutely crucial. It’s like needing to be Goldilocks, you gotta be spot on.
(Editor’s Note: Having read “Goldilocks and the Three Bears” ad nauseam. I can unequivocally say that book has single-handedly taught children worldwide that it’s OK to break into someone’s house, eat their food, break their shit, and then run away without consequences).
Goldilocks aside, to get the pricing right, you have to be checking out how much similar homes in your area have sold for. A simple online search might not be enough – hitting the pavement and attending some open homes and auctions to get a feel for the market is what’s required.
The real estate agent would greatly assist in this regard, they’ve got access to market analysis tools like RP Data (Corelogic) to bring you the latest on what your home should range for.
Timing The Economy
Understanding the big picture is crucial when it comes to when to list your property.
Of course, sometimes you don’t have a choice, whether you are selling because you have to or need to, you just gotta get rid of it asap.
But most of the time, knowing when to sell can be the difference between a satisfactory outcome versus a great result.
First thing I would attempt to do is research local market trends – a hot market with rising prices is your cue to sell (via auction if you can), a cooler market might suggest waiting or tweaking your strategy.
Secondly, I would keep an eye on interest rates and other economic factors which feed into interest rates (like unemployment rates and consumer confidence etc). This is because the Australian real estate market, and Sydney especially is very sensitive to interest rates. A whiff of a 0.25% move in either direction, can shift market sentiment in that direction.
*Interestingly, speaking to a few agents – Spring is not necessarily the best time to sell, given everyone lists their property then and new listings come on board. The best time according to them, is when there is low stock on market which drives more competition.
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WHEW. I hope you got something out of this. Again, I say that if you are thinking of selling your home – GOOD LUCK.
For now, I have to get the spoilt ingrates a new toy.
Hmm… maybe a book instead.
Some light reading like Oliver Twist.
Goldilocks never knew Oliver Twist.
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P.S. Every post is the personal opinion of yours truly, please seek your own personal financial advice regarding your own personal circumstances.
