Getting Over The Emotions Associated With A For Sale By Owner

When a homeowner lists their property with a real estate agent they relinquish control of the entire sale process over to that agent. Selling your house by yourself is a totally different concept. When you list your house yourself you will have to take on the responsibility of presenting your home to potential buyers. You will have to field the calls, emails and questions and set up times to have open houses and times to show your home. This can get stressful if you are trying to juggle other things at the same time, such as a job and children.

Another common emotion that many people who try to sell their property by themselves experience is rejection. Selling you home can lead to a roller coaster of emotions from excitement to fear, sadness and elation, and anticipation and depression. If it is taking a long time for your home to sell it can lead to feelings of unworthiness and dejectedness. But this should not be the case. The fact that you are trying to sell your home by yourself often times can make it more difficult to find a buyer, but there is no guarantee that an agent will sell your house any faster.

What It All Comes Down To

In the end the reason why homes don’t sell is lack of exposure or a price that is too high for the market. It is really as simple as that. Real estate agents have an edge in that they have access to multiple advertising venues from real estate websites and search engines, to real estate periodicals. When people are looking to buy a house they will typically go to a real estate agent to help them. So when you sell your house by yourself you will have to make sure that your home gets enough exposure to bring in a qualified buyer.

Property Options Australia
Property Options Blog © 2006 - 2009

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Investing in property with the intentions of reselling it has prompted several investors to earn a substantial amount of money in the Australian real estate market. If you pay attention to the numerous television programs, you will notice that a great number of people tend to overspend; increasing the amount of time it takes to get things done. However, with a growing market, it is typical to earn a profit regardless.

If property investment is something that interests you, you will discover that it is financially rewarding in addition to providing you with the ideal way to spend all of your extra time. However, it can be intensely difficult and stressful from time to time. As property investment and renovation becomes more and more popular, it is harder to find great bargain properties that are sure to increase in overall value considerably.

The Plan

As a professional, you know the importance of having a clearly defined business plan and budget, before you take on any project. The idea is to find improvements that will add the most value to your investment, without costing you a fortune. You need to have your strategy clearly laid out before you get started, such as the amount of money you have available to invest, the amount of time you have to work on your investment as well as who is going to perform the improvements to the property.

The Risks

The most obvious risk that you will discover when purchasing a house to resell is that the value of your property will not cover the cost of buying, renovating and selling the property.

The cost to renovate investment properties has a tendency to rise beyond your initial estimations and timeframe. This is another reason it is so important to have your business plan ready before you invest the first dollar.

Property Options Australia
Property Options Blog © 2006 - 2009

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This will conclude this series, with a couple of final tips and mistakes to avoid when selling your property for a profit.

Know What Your Rights Are And Be Aware Of What Your Responsibilities Are

It is extremely important for you to read through your real estate contract and understand what all it entails. You will need to be very informed of all the details in anything that you sign. Real estate documents are legally binding so read through everything before you sign anything. If you do not understand something ask for it to be explained until you are satisfied and feel comfortable with what you are signing. By knowing what the contracts say and what you are responsible for it can save you thousands of dollars and a lot of grief and turmoil.

Do Not Limit Your Exposure

When you are looking for an agent to list your home do your homework and make sure that you find one who has a successful career in selling properties. You want someone who believes in the strengths and assets of your property and who will market your home aggressively and professionally. Your agent should utilize a wide variety of resources for advertising your home to get as much exposure as possible. They should also be able to answer any potential buyers phone calls or emails in a timely and professional manner. If you can never get a hold of your agent, then be assured that any potential buyers are not able to get a hold of them either and that is not what you want when you are selling your home. Your real estate agent should be working towards selling your home during regular business hours and be available to talk to any potential buyers. Finding the right real estate agent is a very important aspect to whether you home sells in seven days or seven months.

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

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In the last installment we discussed a couple things to avoid when you are trying to sell your house such as not overpricing your home and getting a true value of what your home is worth by a real estate professional. In this installment we will continue to discuss the top things to avoid when you are listing your home.

Be Sure To Show Your Home To It’s Full Potential

While it seems to be an obvious point it is one that is often overlooked. When you show your house be sure to show it off and make it look as good as you possibly can. You only get one chance to make a good first impression and you will want to wow any potential buyers that walk through your door. Take care of anything that needs to be fixed. Make sure that everything is clean and smells good. This will go a long way in making your home appealing to potential buyers.

Don’t Try To Hard Sell Your Home

Buying a home is a very personal and emotional decision for many home buyers. A home is something to be treasured. If you will be at your home during an open house or when it is shown to potential buyers you will need to avoid trying to push the benefits of your home onto these potential buyers. Do not haggle with them or try to force them into purchasing your property. All that this will accomplish will be to put any potential buyer off and cause them to view your home as a place of stress and uneasiness. When a potential buyer comes to look at your home always make sure that you make them feel welcome and comfortable. Point out the amenities that your home has and answer any questions in an open and honest way, as you would to a friend or other party who was not thinking of purchasing your home.

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

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According to the Australian taxation system, taxation is usually not due on the escalating value of your assets. The only thing you are required to pay taxes on is the capital gain at the time of sell.

If you purchase the property to hold and you keep it for over a year, then you will be eligible to receive a 50% discount on General Capital Gains Tax. If you purchase the property with a plan to sell, then you will be responsible for paying the full marginal tax rate on your profit, regardless of how long you keep the property before selling.

Avoiding Tax Triggers

A number of investors think that the only way to received increased asset value is by selling, however, by selling your property you will trigger several costs and taxes such as:

• Capital Gains Tax
• Income Tax
• When you make your next purchase – loan costs, legal fees, stamp duty, etc. If you buy a new property, the price will include GST as well.

When you have to pay these additional taxes and expenses, you profit is minimized considerably and in some cases, lost completely. Many investors chose to refinance their properties and draw cash against the equity through a credit line. If the credit is use for investment reasons such as funding negative gearing, purchasing a new property, etc, the interest costs on the credit line are tax deductible.

You need to careful analyze if borrowing in such a manner is the right thing for you, including funding capacity. In addition, this should be done before you commit to purchasing any investment property. Be sure that you do all of your homework and are aware of all of the rules and regulations that are involved in buying and selling real estate in Australia.

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

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