Your Guide to Buying & Selling PROOF ONLY
YOUR GUIDE TO BUYING & SELLING 1 Founded in 1883, the Raine &Horne brand has become synonymous with real estate in Australia. Raine & Horne offers services and results that are simply outstanding. With over 300 offices, 3,000 employees, we sell in excess $11 billion value of property and manage more than 72,000 properties across Australia. This will give you the confidence that we will achieve the best results for you whether selling or managing your investment. As a fourth-generation 100% Australian-owned family business, we’re still driven to achieve the best results for you. You’ll notice a personal touch, professionalism and a true commitment to our clients. It is this approach that’s seen us grow from a single shop front in 1883 to over 300 offices nationwide today. Our growth means we’re able to see the big picture and use it to our clients advantage. With offices across all states and territories; city, coastal, country and overseas, we tailor campaigns to reflect your marketplace. In 2018, Raine & Horne celebrated its 135th year in business, making it one of the oldest privately owned firms in the southern hemisphere. Inextricably linked to the Australian property market, Raine & Horne is continually rated as one of Australia’s highest profile real estate companies Raine & Horne’s office on 70 Pitt Street, Sydney PROOF ONLY
YOUR GUIDE TO BUYING & SELLING 2 Update table of contents The Agent Of Choice The Right Agent For You The right agent makes a real difference to your sale. Local knowledge, market experience and drive to achieve the best result possible is our recipe for success. A great agent will not only get you the best result possible, they’ll also make sure you’re kept well informed about pricing, financing and marketing options. We are on your side throughout the entire sale process. We’ll always act in your best interest, offering you the guidance to help you make the best decisions. When it comes to property, we all know presentation matters. The same can be said for agents. A good agent is easy to communicate with and fosters a sense of trust. This is essential for you as a seller but puts your buyers at ease too. Once you’ve established a good rapport, make sure they have a reputation for success. The individual agent and the agency they represent should have a strong track record and a knowledge of the local area that’s second to none. We pride ourselves on both the reputation and character of our agents. Their individual track records are proof of their expertise. A strong network means individual agents are supported and have the reach your property needs. Our entire network offers our clients access to specialist advice, leading digital marketing solutions as well as our interoffice referral system. It’s a great advantage for properties that require exposure beyond the local market – even internationally. Over 135 Years’ Experience Since opening our doors back in 1883, we’ve consistently enjoyed one of the highest sales turnover rates in the country. That’s because we’re committed to personalised service across sales, leasing, management and consulting services – no matter the property. Through market peaks and troughs, Raine & Horne has continued to succeed. A Solid Reputation We have put in the hard work to become one of the largest networks in Australia, but also the most respected. This is in no small part to our dedication to consistently deliver professional, personalised service across everything we do. PROOF ONLY
YOUR GUIDE TO BUYING & SELLING 3 Latest Technology Our technology gives sellers a real edge, rh.com.au is consistently ranked as a top industry site in Australia. Our website attracts thousands of visitors every day, displaying the tens of thousands of properties across our network as well as the latest industry news and insights. DigiKit, which is our web-based appraisal platform, allows agents to tailor a personalised, real-time appraisals and reports for you in just minutes. Exclusive to Raine & Horne, Amplify a highly powerful, targeted digital platform uses artificial intelligence, placing up to 72 online ads for your property across Facebook, Instagram and the Google Ad network, connecting with genuine audiences based on their online profile and behaviour. National & Global Network We leverage our size to deliver our clients the best results locally. The vast exposure you’ll get with Raine & Horne is the result of a network with over 300 offices throughout Australia and across the globe. At home, we have offices in every capital city as well as a network in our regional cities, suburban, coastal and country areas. A Leading Superbrand Raine & Horne was voted as one of Australia’s most trusted brands by the Superbrands Council, a panel of highly respected and experienced business and marketing individuals. We share this iconic status with the likes of Qantas, Vegemite, Woolworths and Myer. Professional Standards To uphold our excellent reputation, all our agents take part in regular training. Our ever-growing network connects agents with experienced and knowledgeable trainers; they attend regular targeted training courses as well as external seminars and events. This helps ensure all our agents are number one in their field. Their expertise in marketing strategies and sales techniques ultimately helps ensure you get the best price for your property. Creative Marketing Selling with us gives you the benefits of professional selling practices, creative marketing ideas, and an auction practice second to none. We are committed to tailoring campaigns that inspire and deliver outstanding results. Can Offer You What our Agents PROOF ONLY
In Australia, 90% of people choose to use a licenced agent. When you choose Raine & Horne, you’re giving yourself a clear market advantage. “Although we are proud of our long history we are a forward-thinking, dynamic & diverse business.” - Angus Raine PROOF ONLY
Ready to sell? Not sure if you should sell your property by auction or private treaty? Take some time to consider which of these popular methods is right for you. PROOF ONLY
YOUR GUIDE TO BUYING & SELLING 6 Agency Agreements No matter which agent you engage to sell your property, you will need to sign an agency agreement. It’s a standard legal agreement that authorises the agent to act on your behalf in relation to the sale of your property. You can expect to find an agreed term and an estimate of the selling price. It will also include the services the agent will provide as well as the agent’s commission and may include details of marketing costs. There are three main kinds of agreements you may encounter: Exclusive Agency: This gives your chosen agent the exclusive right to sell your property. Open Agency: This allows you to list your property with a number of agents. Many agents won’t engage in open agreements. Auction Agency: Similar to the exclusive agency agreement but tailored specifically to properties listed for auction. Contract of Sale Before any property can be sold a contract of sale must be prepared. This includes all the correct documents required by each state or territory laws and any inclusions and exclusions as well as details around the cooling-off period. Finding your Market Every property is different, and each property has a perfect buyer. That’s where a sharp and tailored marketing strategy comes in. We pride ourselves not just on our reach, but on the quality of the buyers we attract. We are able to capture both active and passive buyers with Amplify. Our highly targeted digital marketing platform and our tailored campaigns include a mix of: • Digital • Signboard • Newspaper and editorial • Letterbox drop • Property magazine • rh.com.au plus additional real estate international websites • Open homes • Direct mail • Window displays • Our exclusive network referral The Auction Advantage The excitement and buzz of an auction can translate to higher-than-expected results. Emotions of potential buyers often run high, keen to secure their dream home. It’s an effective and immediate way to sell your property. Best Results The competitive nature of auctions can deliver impressive results. With no upper limit and the excitement of drawing out the best bids, there’s always the possibility of a sale price well above the reserve. The Sales Process PROOF ONLY
YOUR GUIDE TO BUYING & SELLING 7 You’re in Control The terms and conditions of the auction process are in your hands. The timing of the sale and the reserve you set are all up to you. Convenience Selling your home can bring disruption. Shorter campaigns, fewer pre-arranged ‘open for inspections’, and choosing to go to auction can be a great way to reduce the impact on family life. Maximum Exposure Auction campaigns are designed to give your property maximum exposure. By concentrating your marketing over a relatively short period of time you can attract more interest from genuine buyers. At auction the market then determines the value, so you’re genuinely getting what the property is worth at the time of sale. Strong Strategy All our auctions are carefully planned to maximise your results, from documentation to setting the right date. Preparation and tailored marketing form the backbone of real success. True Value When you sell via auction, you can be sure that your getting the best the market has to offer. You’re letting the market determine the worth of your property, and this often leads to impressive results beyond the reserve. Precision Planning Auctions may be exciting events, but the planning that goes into the lead-up is carefully considered. Each auction requires tailored planning to get the most out of the market on the day. Set the Date By setting a firm date, an auction can create a real sense of urgency. Serious buyers must be ready to act on the day, or they run the risk of missing out. Set Your Price A reserve price is the price you set – the property can’t be sold without reaching this price unless you agree to it. When it comes to setting your reserve price you have right up until the auction to make a considered decision. Private Treaty • Set the price you’re happy with right from the outset. • Take your time to consider offers. • Too fast? Too slow? You determine the pace of the process and negotiations. • A cooling-off period can be attractive to some buyers. • Marketing costs may be lower. • Some potential buyers may not be prepared to bid at an auction, but will surface during a private treaty campaign. The key to a successful sale is choosing the right agent. Someone with a professional approach, local market expertise and sales experience. PROOF ONLY
YOUR GUIDE TO BUYING & SELLING 8 Set Your Price Setting the right price for your property is a big decision. We support you by offering our expert opinion based on research and experience. Once we’ve inspected your property, you can be sure you’re getting a reliable true price estimate. Our estimates are well researched and based on a number of factors • Data sources, including property data • Recent advertisements • Recent sales negotiated by Raine & Horne • Recent sales by other agents • Valuations from other registered valuers Negotiating & Accepting Good negotiation skills are key to delivering outstanding results. That’s why Raine & Horne agents pride themselves on their qualifying skills. We’re focused on identifying motivated buyers and drawing out quality offers for your consideration. To deliver the best results, all negotiations need to come through the agent. If you are approached directly, simply refer the buyer back to your agent Contract Exchange After the sale, both the vendor and the buyer will need to sign the contract and receive a copy. The buyer will be required to pay a deposit and the remainder will be paid at settlement. Things vary slightly depending on your method of sale. If you’ve sold a residential property by private treaty, there may be a cooling-off period following the signing of the contract. Buyers often use this time to organise property, pest or building inspections. During the cooling-off period, it’s possible for the buyer to withdraw from the sale. Depending on which state or territory you call home, the legal process can differ. Your agent knows the laws that affect your sale and will explain the appropriate legal process. Sold Once sold the buyer must sign the contract and pay their deposit then and there. The immediate exchange of contracts safeguards you against loss of contract and sale. There’s ‘no cooling off’ period where the buyer can rescind the contract. Settlement On settlement, the keys are in your hands! The settlement is when you, the buyer, becomes the official owner. It’s a process that can take between 4–12 weeks after contracts are signed. Once complete, the new owner becomes fully responsible for the property, until that point, it’s the vendor’s responsibility to keep insurances and rates paid up. PROOF ONLY
YOUR GUIDE TO BUYING & SELLING 9 A Great Sale Preparing for Declutter Decluttering your home will have the most impact when preparing your property for sale. Help buyers visualise by ensuring all surfaces are clean. Small objects that don’t need to be there should be packed away, and entrances and stairways should be clear. Outdoors Draw buyers in with a bright and welcoming home. Neat and tidy lawns with trimmed edges, even a splash of potted colour can help. Windows should be sparkling. Remove leaves from paths and verandas. Sparkling Interiors It’s time to let your home shine and let buyers see your property at its best. Create a well-kept look by cleaning walls, floors and skirting, as well as marks on the carpet or around light switches. Pack away clutter from cupboards, tables and countertops and keep sinks empty and clean. Flowers Naturally welcoming, fresh cut flowers bring life and warmth to every room and are an easy way to enhance your property. Be mindful they are kept fresh and the water is changed regularly. Odours Keep your home smelling fresh and inviting. Remove any bad or strong odours. Storage & Closet Space Buyers value good storage. Be sure to remove any unnecessary items you’ve accumulated to highlight the storage in your property. Repairs Little faults can make big impressions. So get on top of defects that can annoy buyers such as dripping taps, sticking doors, and loose tiles. Spacious Bedrooms Create a sense of space and tranquility by tidying up bedrooms. Close drawers andwardrobe doors and remove any clutter from bedside tables. Crisp, clean sheets are a must, but try and avoid busy patterns. Bright Bathrooms Make your bathroom a selling point by creating a bright, clean space. Fresh towels and a lightly scented room atomiser can make sure the bathroom smells fresh and inviting. Inviting Lounge Give your lounge a spacious and inviting feel by keeping things clean and minimal. Remove clutter from entertainment areas and bookshelves and don’t forget to dust. We are experts in helping our clients get their properties market ready, from styling advice to helping organise tradespeople. Here are some simple but highly effective tips to enhance your home and your sale. PROOF ONLY
YOUR GUIDE TO BUYING & SELLING 10 Showing your property in its best light can really elevate your sale. By decluttering and preparing before the campaign begins you’ll be ready to create a strong and lasting first impression. Sparkling Kitchen A sparkling kitchen can motivate and inspire buyers. So clean all surfaces and pay special attention to food preparation areas like the sink, stove, oven and grill. Arrange stored goods attractively and keep open packets out of sight. Colour Create elegance with solid neutral tones. Simple walls painted in a subdued palette will come to life with carefully selected prints or styled wall hangings. Time to Go When it comes to open homes, it’s best not to accompany the buyer or sales agent during inspections. Give your agent room to best represent your property. Remove Animals It’s best to take animals out during inspections. Some buyers are allergic to or may not like animals. Background sound It’s vital your agent and any prospective buyers talk free of distractions. Ensure the TV and radio are switched off, and any chosen music is subtle. PROOF ONLY
YOUR GUIDE TO BUYING & SELLING 11 Choosing the right property takes time, commitment and homework. Before you start looking, work out how much you can afford to spend, where you want to buy and then keep a close eye on sales in the area. The Right Location Finding the right location is so important when it comes to buying your property. A good location is not just a good investment it is also where you or your tenants will live, its vital to find the right fit. Think about important amenities like transport, schools, shopping centres and local services. Look for areas on the rise that offer the opportunity for growth. If you like an area, but it’s out of your price range, consider neighbouring areas. The ripple effect from interest in popular areas can see nearby suburbs gaining value too. It’s also a good idea to consider future developments that might be slated for the area you’re looking in. Calling it Home Whether you’re looking for a house, terrace or apartment, there’s bound to be a property that works for your lifestyle. Freestanding houses, often complete with gardens and garages, are generally the most expensive option. They are certainly not the only option if you’re looking to keep your feet on the ground. Terraces, townhouses and semi-detached houses are great alternatives, however that may mean you are closer to your neighbours. Apartments can be a more affordable option and often easier to maintain. Create a list of what matters to you and see where it takes you. Think Before Buying Buying a property to live in, or as an investment can be a stress-free experience. The secret is proper planning and careful research. Minimise the headaches by taking time to think through a few points: • What’s driving your purchase? Does this property suit your needs? • What kind of property are you after? A house? An apartment? Maybe it’s a block of land and a new home. • How many bedrooms and bathrooms? • If the property has been renovated recently, is it compliant? Check approvals and permits. • Are there stairs? Is that a problem for the people who will live there? • Does the property have a common wall? If it does, check what the noise is like. • Car spaces can add value even if you don’t need one yourself. Does it have one? • If it’s an investment property, consider the needs of future tenants. Talk to us about who’s renting and what’s important to them – that way you can maximise returns. Property Buying a PROOF ONLY
Research. Research. Research. Before you are ready to buy, do your research to ensure confidence in your decision. PROOF ONLY
YOUR GUIDE TO BUYING & SELLING 13 Choosing a Home Loan There are plenty of different home loan options available, each offering different rates and features. Raine & Horne offer a dedicated brokerage service Our Broker, who will be able to provide you with information on the types of loans they offer. When it comes to choosing your loan, look for a competitive interest rate, sufficient repayment time, favourable conditions and options that will suit you. Variable Home Loans If you want to take advantage of the current market rate and enjoy some flexibility, a variable loan may be for you. It often starts with an introductory rate and then after a set time will change depending on the current rate. You can usually make additional payments. Basic variable loans will have fewer features but may offer a lower rate. Fixed Interest Loans If you like certainty, a fixed loan can be a good choice. With set payments, you’ll know exactly how much you need to pay. That means that you won’t experience rate rises, but you also won’t benefit from any unexpected drops in rates either. Split Loans Variable? Fixed? Not sure what’s right for you? A split loan may be the answer. Simply select the amount you want to fix and leave the rest as variable. Line of Credit Often offered as part of a home loan, a line of credit allows you to borrow against the value of your home. It means funds are easily accessible when you need them. Bridging Loan If funds are required to cover the gap between the purchase and sale of a property a bridging loan may be the answer. Redraw If you’ve made extra repayments on your loan, a redraw facility will allow you to access them when you need them. Be sure to check the details with your financial provider. Flexible Repayments Pay your home loan off faster by making extra repayments, in addition to the monthly repayments. First Home Buyers Grant If you’re looking at buying your first home, you could be eligible for the First Home Owners Grant. The grant is different in each state and territory, and in most places, it applies to new homes only. Stamp Duty This is a tax paid by the purchaser on all real estate. You’ll need to factor in the cost of stamp duty on top of your purchase price. PROOF ONLY
YOUR GUIDE TO BUYING & SELLING 14 Mortgage Insurance If you’re borrowing more than 80% of the purchase price, you’ll generally need to take out mortgage insurance. It’s typically between 2% – 4% of the purchase price and protects the lender. Conveyancing Most employ a conveyancer or solicitor to manage the legal side of buying or selling property. They prepare the contract and settlement documentation as well as provide legal advice and explain the implications of any finer details. This involves the following steps: • Examining the contract of sale. • Review of the strata inspection or company title report. • Arranging payment of stamp duties. • Checking for outstanding arrears or land tax obligations. • Finding out if any government authority has an interest in the land or if there is any planned development. • Discovering any information that may not have been disclosed such as illegal building work. • Calculating adjustments for council, strata and water rates for the property settlement. • Completing final checks prior to settlement. • Attending settlement. • Overseeing the change of title. • Exchanging the contract and paying the deposit. • Arranging building and pest inspections. • Preparing and examining the mortgage agreement. A property is a large investment, any information you have will help you make a strong decision. Before committing, consider getting a professional assessment like building and pest inspections, and if you are looking at an apartment, secure a recent copy of the body corporate minutes. Due Diligence Building Inspection Unless you are a trained professional, it can be difficult to see behind the walls of a property. To fully understand the property’s condition, you will need a building and pest inspection to identify any significant building defects or problems. The consultant will inspect the interior and the exterior of the building. If the inspection does identify issues, you can ask the vendor to resolve these prior to settlement or try to negotiate a lower price. Strata & Company Title Searches If you are buying an apartment, townhouse, or villa, you will probably share the cost of repairs to common property. For any property managed by a body corporate it’s important to arrange a strata or company title search. This provides you with the history of the property including a list of past and proposed repairs to other units and common areas and any special levies that may be forthcoming. If you are unsure of any part of the process, the listing agent can provide assistance throughout. PROOF ONLY
YOUR GUIDE TO BUYING & SELLING 15 Buying at Auction Remember auction results are immediate and binding, if you are the highest bidder and your bid is accepted, you are under law, obliged to purchase the property. The successful bidder is obliged to sign the contract of sale and pay their deposit right then and there. You should have all of the following in place before the auction: • A clear upper limit that you are prepared to pay. • All inspections and reports. • Legal documents checked by a solicitor/ conveyancer • As there is no cooling-off period, pre-approved finance and a bank cheque for the deposit is a must have on the day. • Conditions of sale by auction may differ between state and territories. Bidding at Auction Prospective purchasers need to register to bid at auction. Bidders are issued a bidder’s number which is displayed when making a bid. Do not be surprised if the vendor or the auctioneer places a bid, they are allowed one bid, called a vendor’s bid. When the property falls short of a reserve price, it is passed in. The highest bidder is usually given the first opportunity after the auction to negotiate further. If negotiations fall through and the reserve price is not met, the property will be placed back in the market for sale by private treaty. Bidding on Behalf of a Purchaser There may be a need to have someone bid on your behalf. Provide the auctioneer with a written authority before the auction starts, your letter needs to include your name, address and proof of identity such as your driver’s licence or passport. Phone Bidding Phone bidding is a way to allow buyers outside the market to participate at auction. Written authority must be given to the auctioneer prior to the auction, acknowledging that the bidder has been given a copy of the conditions of sale. A copy of the contract must be provided to all successful phone bidders after the auctioneer has signed it on their behalf. Bidding Tips To get a feel for the bidding process, attend other prior auctions prior. Here are some helpful tips to help you make the most of the auction: • Set a limit of how much you are willing to spend. • Make yourself known to the auctioneer, if you’re too far out of the way, your bid may be missed. • Bid with confidence, this shows you’re serious. • Bid in the increments the auctioneer sets for as long as you can. Don’t unnecessarily raise the price. • Before the property is sold, the auctioneer will repeat the price several times before the hammer comes down. PROOF ONLY
YOUR GUIDE TO BUYING & SELLING 16 Reserve Price This is lowest price the vendor is willing to accept, it is set before the auction by the vendor and not revealed to buyers. Passed In If the reserve price is not met the property is ‘passed in’ or withdrawn. The agent will then negotiate with the highest bidder which may result in a sale. Contract of Sale You can examine the contract of sale at any time during the buying process, even before an offer is made. The contract sets out the terms and conditions of the sale. Making an Offer Deciding how much to offer can be challenging. There is no right way. You might want to lead with your best offer up front or start with a lower offer and be prepared to negotiate. Starting low, you run the risk of higher bidders securing the property before you’ve had a chance to increase your bid. • Make offers at the current market rate. Offers below market value won’t be taken seriously. • Before making an offer, ensure your finance is approved. The vendor is only interested in serious offers. • Put your offer in writing and give it to the real estate agent. The agent is obliged to forward all formal offers to the vendor. Contract Exchange As soon as your offer is accepted, the contracts are signed between yourself and the vendor. Most people use a conveyancer or a solicitor to do the legal work. The Deposit Once both parties sign the contract it’s time to pay the deposit. The deposit is paid to the vendor’s real estate agent, who places the money into a trust account until settlement. Insurance In some states, you may be responsible for the property from the date of signing the contract. In other states, you become responsible directly after settlement. Make sure you have the right insurance for the property in your state. Settlement Settlement can take place 2–6 weeks after the contracts are signed and the title and transfer documents have been exchanged. Once complete, the balance of the purchase price and other adjustments are paid, you become the legal owner of the property. State Tax/Stamp Duty A first home buyer or concession card holder, may be eligible for Stamp Duty exemptions, otherwise the tax must be paid on settlement. It’s calculated as a percentage of the sale price and can vary between states. The prospect of buying your dream home at auction is exciting. Ensure you understand the processes and familiarise yourself with the property. PROOF ONLY
YOUR GUIDE TO BUYING & SELLING 17 Checklist Time to Move Lead Up Select a removalist, or hire a van. Obtain two or three quotes & remember to include insurance. If renting, give the required days notice in writing to the managing agent. Update your the following with your new contact details: - Registration/licence with RTA - Bank - Insurance details (house, contents, car, life) - Enrolment details with the Electoral Commission A notification email is a great way of informing friend & family about your change of address. If relevant advise your solicitors, stockbrokers & superannuation firms. Redirect your mail to the new address. Contact your gas, electricity & water providers & arrange final readings, disconnection & reconnection at the new address. Disconnect phone & internet services, & arrange reconnection at the new address. Don’t move items you no longer want. Have a garage sale or donate them. If you are doing your own packing, hire or purchase boxes & start well in advance of the move. Pack your least used items first, label each box carefully & nominate a room for it to be placed in at the new address. Leave behind any extra keys and NBN boxes. Week Before Confirm the details with your selected removalist Tidy the garden, cut the lawns &remove any rubbish. Empty fuel from lawn mowers, lamps & fuel heaters. Empty any gas boles – they have been known to explode in removalist trucks. Collect/return anything outstanding such as dry cleaning & repairs. Arrange an on-street parking permit if required. Defrost the fridge the night before your move. Arrange carpet cleaning. Moving Day Keep valuable documents & keys handy. When it comes time to move, take an organised approach, mark things off one at a time. The following checklist can help you remember all the small details. PROOF ONLY
For more inormation speak with your agent or call us on 1300 852 046. We have helped over 1 million people move house, and we would love to help you too! With just one call, our free, no-obligation service can help you connect all your services from the moment you move in, so you can focus on enjoying your new home. Services we Connect Electricity & Gas, Phone & Internet and Removalists. Connect Make a final inspection to be sure nothing is forgoen. Double check closets, garden sheds, aic, & garage. Ensure everything is turned off & locked. Supervise placement of furniture & boxes. Check the phone, electricity, internet & gas are connected in your new home. Arrange care for children & pets on moving day. Moving is stressful enough without interruptions. Guide for Parents Discuss the move with your children. Talk to them about where you are moving to & what they can look forward to about the move. Show them pictures or take them to look at the new home if you can. Give everyone a job to get them involved in the move. Label your children’s belongings so you can find them easily when you arrive at your new home. Take photos of your old house so your children can remember their time there. Step 1 Tick the box Step 2 We’ll call you Step 3 It’s a smart choice Step 4 Get connected Get Connected in Four Easy Steps For Terms & Conditions visit directconnect.com.au/guarantee PROOF ONLY
rh.com.au PROOF ONLY
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