In this series we are going to take an in depth look at the role of real estate agents, what they can and can not do, and what their responsibilities are. We are also going to look at how the real estate agent works for the client.

What Is An Agent Or An Agency?

An agent is someone who acts on the behalf of another person. However it goes deeper than that when you are talking about a real estate agent and deserves a more in depth explanation. The High Court of Australia has stated that an agency is

“…a word used in law to connote an authority or capacity in one person to create legal relations between a person occupying the position of principal third parties.”

So in English what that means is that an agent is someone who is given authority by a person, who is known as the principal, to work with other people, or third parties, on their behalf. The principal is legally responsible for what the agent does, so it is very important to choose your agent with care. There are many ways in which a person can hire, or assign, an agent. Typically a written contract is drawn up and signed.

What Is An Estate Agent?

An estate agent is basically an introduction agent whose job is to “introduce” purchasers to vendor properties. The term “introduced” is used by commission estate agents and determines when the vendor is required to pay the commission. Once the parties have been “introduced” the estate agents job is done and both parties will then need to find lawyers to represent them for the final sale negotiations. A contract can only be negotiated by qualified lawyers and Lawyer Estate Agents.

What Is A Lawyer Estate Agent?

A Lawyer Estate Agent is a true agent for the seller of the property. This person is also referred to as the vendor. The Lawyer Real Estate Agent represents the vendor and has their best interests in mind. Since this relationship is regarded by the law as the same as that of a traditional lawyer, clients of Lawyer Estate Agents have the same benefits as clients of traditional lawyers.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2008

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The real estate market in Australia has really exploded in the past few years. Several major cities such as Sydney, Brisbane, Cairns and Melbourne have especially been affected by the housing boom. The Australian Housing Industry Association, marketers and real estate professionals all have a positive outlook for the future of Australian real estate.

It is estimated that approximately 70% of Australians own their own home. Home ownership is one of the best ways to build stability and invest in your future. There are several different ways to acquire a real estate in Australia. The first thing you will want to do is determine which area that you want to live in.

How Do You Decide Where To Look For Real Estate Property?

Several different factors may exist that determine where you will want to focus your real estate search. If you are looking for a home to live in then you may need to keep the following criteria in mind:

• If you have a job then your home will need to be located within a tolerable commuting distance to your job facility. It does no good to find an outstanding bargain or a house you love if it is three hours away from where you work. So start your search in the area where you work and the neighborhoods surrounding it. Decide in advance how far you are willing to travel to work and stay within that distance.

• If you are relocating and have young children you also will want to investigate the area school districts to determine which one is best for your family.

• Retired couples or individual who do not need to commute obviously have a higher market availability as commuting to work is not an issue. In this instance you can look for real estate in the area that you like best, regardless of where it is.

• Another factor to look at when you are considering buying a home is the proximity of convenience stores such as the market, police, fire stations, hospitals and other important facilities.

• If you are looking at purchasing a property for it’s investment potential additional care must be taken to ensure that you are getting a good deal and that the property will increase in value.

All of these are factors to consider whether you are searching for real estate for investment or for your next home. Consider that your eventual buyers will be considering these factors, too.

Regardless of what you are looking for in a new property, there are several different ways to go about finding the perfect home. We will continue to discuss how to find the perfect home in the next entry.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2008

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If you are looking to do some property improvements to increase value before putting it on the market you will want to make sure that you get the biggest bang for your buck. When deciding on an improvement project you will need to determine how feasible it will be and also what the value return will be. Some property and home improvement projects have shown to be more profitable and in getting more prospective buyers interested. The amount of money that you recoup in terms of desire and appeal will vary but the following real estate improvement ideas generally result in the biggest payoffs.

Replace The Roof And/Or Siding

Your property will be a lot more desirable if the outside of it is firm and leak free. People are not going to care if you have a brand new stainless steel kitchen if the roof leaks and the siding is peeing off, or missing in areas. Replacing the roof and siding are expensive repairs to do but they offer a large return on the investment. It is estimated that you can expect to recoup 67%-83% of the cost of replacing your roof or siding. It is also helpful to tackle any problems such as leaky roofs before the home inspection is done.

Add An Extra Bedroom

When you add square footage to your home or investment property you always add value as well. If you don’t want to go through the hassle of knocking down walls and such you can always add space by working with what you have. It will be much less expensive to add an extra bedroom to your home by converting a finished basement or an attic into a bedroom. If you have ample garage space you could also convert some of the extra garage area into a bedroom or study as well. It is estimated that making an extra bedroom can add from between $25,000 to $100,000 in value to your home.

Add Additional Closet Space

Buyers really love to see lots of closet space available when they look at homes. If you have a large bedroom use a small portion of it and transform it into a closet or storage area. You can also ad storage space in the basement or attic. Building on a closet or storage area to an existing space is very affordable and sellers can expect to recoup about 50% of the cost of doing so.

Check back next time for more property improvement ideas that really pay off.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2008

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The Australian recently reported on the worst places to buy a home in Australia. Here is the list of the top thirteen areas that made the list of undesirable places to live or buy a home in Australia. These are also areas that the Australian advised property investors against looking into.

1. Bankstown, Western Sydney, NSW
2. Blacktown, Western Sydney, NSW
3. Darwin, Northern Suburbs, NT
4. Dinmore, Brisbane, Queensland
5. Esperance, Southeast, WA
6. Giru, North Queensland
7. Kalgoorlie, Outback, WA
8. Katherine, Outback, NT
9. Lyndhurst, Melbourne, Vic
10. Mount Isa, Western Queensland
11. Parramatta, Western Sydney, NSW
12. Shepparton, Northern Vic
13. Sunshine Coast, Queensland

The list shows that most of Sydney’s western suburbs have been included as areas that should not be invested in. Parramatta, Bankstown and Blacktown have become areas with high levels of home repossessions. When an area has a high level of house repossession it tends to drive the prices in that area down due to the diminishing appearance of the houses that have been vacated. Bankstown and Blacktown have also been an area where ethnic tensions and high crime rate have dominated the scene making it a less desirable place to live. Many people also were turned off by the noise from overhead aircrafts that dominates that area.

Melbourne’s Lyndhurst and Brisbane’s Dinmore made their appearance on the list due to observations made on the property market over the last 25 years that garnered concerns about the value of property in that area dropping dramatically. If you are looking to invest in a home it is best to avoid areas where the value of the property will continue to drop.

Giru made the list due to problems with flooding and Shepparton tops the list for high levels of crime. Esperance and Kalgoorlie are considered to be over priced and polluted, which makes for a bad combination.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2008

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Many real estate experts are cautioning Australians that are eager to take advantage of the First Home Owner Grant offered by the Federal Government to proceed with caution due to falling prices in most areas of Australia. The median house prices throughout most of Australia has been dropping at a steady rate since 2004 and show no signs of beginning to climb back up again.

Finding the Balance

Some experts have stated that even though the Government is offering generous handouts to first time home buyers it can be a risky move to purchase a home at this time. Obviously the First Time Home Owner Grant is intended to boost the economy and help new home buyers get into a home. The concern is that new home buyers will bite off more than they can chew by borrowing hundreds of thousands of dollars in an economy that is not doing so great due to unemployment rates and declining house prices. Over the last five years the average house price has dropped 1.8% and the median price for a home has fallen to $270,000. In some areas such as Campbelltown and Leumeah prices have dropped as much as 2.4% this year alone.

Benefits Of Down Markets

While some may argue that the best time to buy is when the market is down due to the lower prices of homes, many experts are concerned that home buyers may find themselves with a negative equity if the prices continue to drop after they have purchased their home (which is why the low-risk of property options is favorable consideration). That would mean that Australians would end up owing more money for their home than what it is worth. On the flip side, if a person is looking at buying a home as a long term investment and plans on staying put for a good many years then investing in property now and getting in while the prices are lower may be a good idea, especially with the additional funds being offered with the First Home Owner Grant.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2008

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