Buying Or Selling Real Estate Is A People Business

Buying or selling a property can be stressful at times depending on who does what, what happens, what doesn't happen and any number of unforeseen situations that might or might not occur.

Although there are always guidelines, regulations and laws to follow, real estate sales do differ from one transaction to another.

Buying and selling a property is a people business and for that reason a lot can depend on how quickly and thoroughly each person does his or her job. So, if you are buying or selling a property just remember that people don’t always do what they say they will do.

They don’t always keep appointments. Some people will tell you they will bring their husband or wife for a look through the house – and they never return. Others might tell you they will call around on Friday to sign the contract – they never turn up. Some home sellers don't clean the houses or clear away the clutter before before an open home or before settlement of the contract. Some buyers don't arrange finance on time. Some agents say the wrong things.

So, as you can see any number of things can and often do go wrong. Sometimes it is because people are unreliable, disorganized, dishonest, or even downright incompetent.

It is normal for these things to happen, SO DON’T LET IT GET YOU DOWN! The main thing to make sure that you do you job thoroughly and efficiently and have a plan of action to make sure that others do a good job too.

Home Buying Tip - Property Resale Value

Whether you are buying a house for your own family or to rent out, it pays to think about the opportunities and limitations of the property.

What are the opportunities to increase the value of the property, and ultimately create a positive effect on the property resale value eg. adding a garage, redecorating, landscaping, subdividing the land, adding an extra room or level etc? Pay attention to floor plans. Changing layouts of rooms later, can be expensive.

Home Buying Tip - House Space

If you are looking to buy a home then think carefully about the size and layout of the house and lot.

If you think you may need more space in the future, be sure the house and lot you are buying will allow for expansion. Will your furniture fit in the space? Is there enough storage space in the house? Carry a tape measure with you when inspecting open houses.

Home Buying Tip - Home Improvements

Here is a simple but important real estate tip if you are looking to buy a home.

What needs to be done immediately to bring the property up to your standard (or taste)? What about the color scheme... do you prefer carpets, ceramic tiles, or wood floors? Think not only about what you like, but also about what might improve the property value for when you come to sell.

Think about what might need to be done in the near future in the way of maintenance or improvements? What cost will be involved?

Expect lower maintenance costs with a brand-new home.

How Flat Fee House Sales Are Catching On In New Zealand

It is always interesting to know how real estate sales operate in different parts of the world.

In New Zealand real estate agents usually charge about 4 per cent commission (compared with 2 to 3 per cent in nearby Australia) depending on the price of the property. There is usually only one agent involved who is paid by the property seller and the same agent presents the offer to the seller on behalf of the buyer.

New Zealand has a population of just over 4 million people and has around 17,000 real estate agents. The 4% commission on an average sale is up to $15,000 with the commission usually split 50/50 between the real estate agent and the real estate office. However, for higher priced properties a lower commission rate of between 1% to 3.5% is often negotiated.

Many in the industry believe that the commision rates are too high and believe that the country is ready for flat rate commissions.

A couple of flat rate companies have spread their wings by opening offices around New Zealand. They employ staff rather than have commission agents. These flat fee real estate offices are charging around $5,995 to $7,995 per sale compared to the usual $15,000 (approx) commission.
They argue that it takes just as much effort to sell a higher priced property as it does a lower priced property.

Home Buying Tip - Check Easements And Permits

Before buying a property check to see if there are any illegal structures on the land?

Are there any outstanding permits that have not been signed off by local authorities?

Are there any easements like the right to pass across the property, the right to construct and maintain a roadway across the property, the right to construct a pipeline under the land, or a power line over the land? Easements can affect the value of a property so always check legal issues before signing any real estate contract. If unsure always seek professional legal advice.

Who Is The Dual Agent Working For?

Good question - is it the buyer, seller or the agent?

Don't get me wrong, a dual agency isn't always a bad thing - it really depends on how ethical the agent is.

Most USA States require agents to inform their clients whom they represent. Dual agents have a responsibility to both the buyer and the seller, and must disclose the relationship to all interested parties. A dual agent cannot disclose to the seller what the buyer is willing to pay and cannot disclose to the buyer what the seller is willing to take. Dual agents must disclose all known material defects.

Home Buying Tip - Are The Electrics And Plumbing In Good Working Order?

Electrical wiring and plumbing are areas that are frequently overlooked by homebuyers. This is because the wires and pipes are usually in the walls or underground - so they often get forgotten about.

Faulty wiring is dangerous and could pose a potential fire hazard... an it can be expensive to repair.

The plumbing also needs to be considered when arranging the home inspection. As a matter of interest, when I visit an open house I make it a habit to run the shower to check the water pressure and water temperature.

Real Estate Blog Is Moderated

A quick note to all readers of this real estate blog. Your genuine comments are welcome and encouraged, however we have had several people trying to SPAM the blog with links to totally unrelated websites. For this reason we do moderate all comments on this blog and do not publish anything we consider to inappropriate or unrelated to real estate or mortgages etc.

We are doing our best to provide good independent content which we hope will be of interest to anyone buying or selling real estate. Comments are most welcome as long as they relate to the subject.

Moderator