Merry Christmas and a Happy New Year to you and your family from us at dwell.
Australian Property values have become an increasingly common topic of conversation in recent years. But just what decides how much your home is worth?
There are a number of factors which determine house prices, some are logical, based on economic theories and population density and some are based on more intangible factors, like the feel of a neighbourhood and expectations for future growth.
We have outlined some of the key factors which effect property prices and how they are determined.
1. Supply and demand
Put simply if demand for houses increases faster than supply, then house prices go up. For house prices to fall the demand needs to fall.
2. Interest rates
When interest rates rise, mortgage lenders generally increase the cost of variable mortgage payments. These higher interest rates in turn make home buying less attractive. Since the majority of Australian homeowners have variable mortgages, even a small change in interest rates can have a big impact on the affordability of buying a house.
3. Economic growth
As the economy grows and wages increase more people can afford buy a house, this in turn increases overall demand, which increases prices. See number 1.
As levels of migration increase so does the population and more people means more demand for homes. Another factor is changes in demographics; for example rising divorce rates have increased the number of single people living alone and our old friend demand is an issue again.
5. Location, location, location
This is an obvious one. Homes that are closer to the beach, closer to the CBD or closer to transport tend to sell at a higher price.
Australia is a vast and varied country but if you look at any map you'll see a high concentration of housing around the city centers .The majority of people want to live close to where they work, shop and go out to enjoy themselves and this naturally causes higher demand for property prices in these areas.
6. Room to move
The potential for growth is a key issue in determining the value of a property. This relates to the potential to add on a second storey, increase the number of bedrooms or add a room above a garage or in the garden. Increasing the floor area, will increase the value. This relates back to the value of Location and land size in determining house prices.
7. A second bathroom
If two identical properties were for sale in the same street, the one with the extra bathroom would sell for more. Simple. However, the value of the bathrooms relates directly to the number of rooms in the property. For example a second bathroom in a two-bedroom house would be less desirable than in a five-bedroom house.
We all know that parking is at a premium in our big cities so if a home has parking or even a garage this can significantly increase the value of a home.
9. Home improvements
Updating kitchens, replacing flooring, repainting walls and adding landscaping can add to the value of a home. However often homeowners spend too much and don't get the return on investment when they sell the house. Before making drastic improvements to your house, be sure to talk with your real estate agent so that you use your money wisely on your investment.
Sydney Property Market Forecast
Through the COVID period downturn, Sydney home values from a peak-to-trough perspective were down just -2.9%, but values are still 5% lower than their mid-2017 peak. ... Despite the recent weakness, Sydney home values remain 6.1% higher than a year ago.
Sydney Real Estate Auction Results for 28th November 2020www.domain.com.au › auction-results › Sydney.
Get the latest weekend real estate auction results & clearance rates for Sydney. Stay ahead of auction market trends with the latest weekend data and historical ...
Clearance rate*: 74% Confirmed results: 475
Total auctions: 637 Sold: 352
The following changes apply from Tuesday 1 December.
Increased visitors at a residence
Up to 50 people can visit a residence, however NSW Health strongly recommends having no more than 30 visitors at a time if the residence has no outdoor area.
Increased numbers for outdoor gatherings
Up to 50 people can participate in an outdoor public gathering.
Small hospitality venues can apply the 2 square metre rule indoors
Small hospitality venues (up to 200 square metres in size) will be allowed to have one person per 2 square metres indoors.
Weddings and funerals can include up to 300 guests
The maximum number of people who can attend a wedding or a funeral will increase to 300 people, subject to distancing and venue capacity conditions.
Update on entry to Queensland from NSW
From 1am Tuesday 1 December, the Queensland-NSW border will be open to all travellers from NSW. This includes travellers from Greater Sydney LGA areas.
Prepare a property for sale
When selling your house, presenting it in the best possible light will improve your chances of securing a high sale price.
You may need to step back and take a long, hard look at how your home might look to other people.
This can be difficult. You may like that patterned wallpaper, have fond memories of marking the changing heights of the children on the architrave, and smile when you look at the corner of the carpet chewed by the dog. These are things you can live with, but a prospective buyer sees neglect and something that will cost them time and money.
It’s best to remove the negatives from your house that can be an instant turn-off, and instead create a welcoming ambience which calls out to prospective buyers that the house is fresh, clean, and ready to move into.
Where to start when preparing your home for sale
There are three key areas to focus on when preparing your home for sale to help you get the best price:
1. Make simple repairs - One of the biggest turn-offs for buyers is wear and tear such as chipped tiles, cracked windows, scuffed paintwork, stained carpets, and other obvious signs of damage. These unsightly areas instantly alert buyers there is work required, which can diminish their initial enthusiasm for your property and lower the price they are prepared to pay.
Discuss with your agent which areas you should overhaul before holding open homes. You want to ensure you are increasing appeal without overcapitalising.
2. Clean and declutter - Study other houses currently on the market and you will see they have been decluttered, cleaned thoroughly, and may even have been styled to look modern and pristine.
Removing lots of clutter makes the prospective buyer able to see the room properly while more importantly, making the room appear larger.
Cleaning the house, even hidden areas such as under the sink, makes the house look well-cared for. This gives the buyer a subliminal impression that the house has been well-maintained and there should be no hidden problems.
3. Style your home - Styling is another instant facelift that can give your property a fresh look which appeals to buyers. You can hire a stylist to take care of this for you, or hire furniture and accessories and do it yourself.
Property styled perfectly for sale
Property staging can modernize a tired home. Photo: undefined
How to fix up a home before putting it on the market
If you’re handy and have good DIY skills, you can undertake many of the small jobs around the house yourself, bringing it to peak condition and ready for sale. If not, you can hire a local handyman to help you.
Walk through the house with a notepad and create a list of all of the areas which need improvement.
Among the areas you should examine are:
Front fence - Is it in good condition? Does it need vines pulled away, a paint job or repairs?
Front lawn - Is it lush and tidy?
Pathway - Are there cracks that need to be fixed? Would paving paint give it a nice facelift?
Front door -Is a new door required, or does it need to be painted?
Windows - Are they clean and do the surrounds need filling or painting?
Facade - Does it need to be pressure-washed or repainted?
Interior walls - Are they all looking pristine or freshly painted in neutral tones?
Architraves - Are they chipped, dented, or need new paintwork?
Flooring - Are the carpets clean and in good condition? Are there floorboards underneath which can be polished?
Kitchen - Are the cabinets in good condition? Would painting them improve and modernise the space? Would replacing the bench top make it look contemporary? Does the splash back need to be replaced?
Bathrooms - Are the tiles in good shape? Does the grouting need to be cleaned or replaced? If the tiles are dated, would they be better painted with tile paint?
Laundry - Is there ample storage and useful counter space?
Back yard - Are the plants trimmed and garden beds weeded? Would planting some flowers and pots of colour add some wow factor?
Pool - Is it clean, properly fenced and surrounding areas furnished with an inviting setting?
These are some of the areas to consider revamping to create a positive impression of a well looked after house. Talk to your agent about any areas needing improvement, but make sure you don’t over-capitalise.
Simple DIY tasks like cleaning and painting help boost a property's value.
Should you renovate before you sell?
Every seller wants to achieve the maximum sale price for their property, and a quick renovation could make the difference.
Looking at the houses for sale in your area, is there something they all have that yours doesn’t have? Are you able to add that element to your property without vastly altering the existing footprint of the house?
For example, if all the properties in the area have solar panels or an en-suite, you may consider updating your home to compete with the other houses on the market.
Work out who your ideal buyer is before you spend any money. Analyse the demographics of your area and then look at renovating to target them.
If you’re targeting families, make sure your backyard is fenced and secure. If you think your place might suit a single parent, you could spend some money on security screens or alarm systems. Retirees might appreciate an easy care lawn or a backyard shed.
Start your research by talking to your local real estate agent. In many cases, you can fix up a few things rather than doing a full-scale renovation.
Five updates that add the most value when selling
Not all renovations will increase your profit margin when you come to sell your property. Some projects will cost more than they will ever return. So what are the most lucrative projects to add value to your home and give you the best outcome?
1. Exterior - Buyers get the first impression of your home from the exterior. Grab their attention with fresh-looking cladding materials or colours on the facade. Make the home more visually appealing by painting the trims, gutters, fascias and bargeboards. Replacing the front door with a modern door can add wow factor, while painting the existing door adds a pop of colour. Simple landscaping can also make your home look more appealing. Ensure the front garden is tidy, lawns mowed and flower beds weeded and mulched. Modernise, repair or paint fences, awnings, porticos and porch details, and consider adding a new house number and letterbox to update the exterior. If there’s no fence, consider adding one along the front boundary to add definition.
The facade of a period cottage
Painting and repairing the facade should be at the top of the to-do list.
2. Kitchen - The kitchen, being the heart of the home, is important to buyers. Giving a good impression here could make the difference in a great sale price. You don’t need to replace the entire kitchen, as this can be expensive and you may risk overcapitalising. Instead, look for ways to bring your kitchen up to date. This could include painting timber and laminate cabinetry, changing the tap ware and adding on-trend lighting to modernise the space. Ensure your appliances are in good working order and are clean.
Modern, white kitchen with timber floors
If the kitchen has been updated, buyers can tick it off the list.
3. Bathroom - Buyers prefer bathrooms to be modern with clean and stylish fixtures and fittings. Although it is easy to overcapitalise here, easy facelifts can make the difference. Replacing the taps and shower head with modern, good quality tap ware is an easy update. If the tiles are dated, they can be painted with tile paint for an instant revamp at little cost.
Freshly renovated bathroom
The bathroom should be up to date, but usually doesn't require a full renovation.
4. Repainting - A fresh coat of paint always gives a home an instant lift, so choose neutral but modern colours. Have consistent colour shades throughout the house to create a modern flow-through effect, as opposed to jarring colours in every other room.
Freshly painted home
Paint is one of the most cost-effective ways to prepare a home for sale.
5. Outdoor area - Buyers love indoor-outdoor living as an extension of the house. Creating a well-designed all-weather area can help buyers can imagine themselves living here and enjoying the lifestyle it offers.
Neat and tidy back yard
A back yard should be well-maintained and ideally have an entertaining area.
Should you stage or style your house before sale?
Having a home that does not present well could end up costing you in the long term, so target the styling to showcase your property’s selling points.
An empty house or apartment looks cold and uninviting while a poorly furnished one is a turn-off too. But you can alter the perceptions of your property easily with staging.
Home staging involves bringing furniture and home wares in to create a space that appeals to a broader market. Styled houses not only look more appealing, but they also photograph better – a bonus in today’s competitive market.
You can hire a professional home stager, or if you have an eye for design, you can do it yourself. You must take the emotion out of the equation and look at your home as a prospective buyer would. Fresh, modern, clean and bright should be your aim.
Property styled for sale
Styling your property for sale can improve the price.
How to prepare for an open home in 10 simple steps
With property inspections being the first opportunity for potential buyers to get a good look at your home, you will want to take every opportunity to increase your chance of a quick and profitable sale. Follow these tips to show your home off at its best:
1. Tidy the exterior - Create a great first visual impression for potential buyers by making sure the house and yard are clean and tidy.
2. Complete small repairs - Chipped tiles, flaking paint, dripping taps, carpet stains should all be fixed before an open home.
3. Clear the mess - Remove any indication of repair or construction work, or any sign of pets being inside the house.
4. Clean and declutter - Wash the windows, tidy all cupboards, weed the gardens, mow the lawn and empty the bins. Remove clutter from all rooms, and arrange furniture to make rooms appear spacious.
5. Make it smell fresh - Light perfumed candles or use scented plug-ins to make your home smell pleasant.
6. Bring in light - Make sure there is lots of natural light throughout the house. Pull curtains, raise blinds, and let the sun shine in.
7. Get the temperature right - If it’s cold outside, create a welcoming ambience with indoor heating or open fires. If it’s hot, open doors and windows to create airflow or put the air-conditioned on.
8. Add life - Show that your home is loved and cared for by adding vases of fresh flowers and bowls of fruit.
9. Secure your valuables - Remove valuable items or put them in a safe location that is out of obvious sight and keep cash, identification and credit cards on your person.
10. Allow full access - Make sure the agent has keys to all additional locked areas that may need to be inspected, such as garden sheds, garage, and granny flat.
To sell your home, you must treat it like a product, and display the property at its absolute best during an inspection. With a bit of thought and effort, you can improve the chances that potential buyers will want to make a follow-up visit, and perhaps sign that all-important contract of sale.
What do I do when my home won’t sell?
If a home is taking a long time to sell, it might be time to make some changes to the price, campaign, or the home itself.
1. Refresh the look - Putting in the effort to furnish, style and get your home ready to sell can be the difference between a quick sale and months of waiting with no offers. If your home is looking tired, a fresh coat of paint and rented furniture can make a big impact. A clean home is more likely to attract potential buyers, so if your home is full of clutter, either throw it out or put that fishing gear and as many of the kids’ toys as you can in storage until you move.
2. Review the price - Dropping the price isn’t necessarily the answer, but neither is being stubborn. If after numerous conversations with your real estate agent and valuations from at least two other operators your price still isn’t right, perhaps it’s time to get back to the drawing board and master the art of pricing your home to sell. Being fixed on a number won’t sell your property; being willing to move within a reasonable price range will.
3. Take it off the market - Although it sounds counterintuitive, removing your listing for a few months can help. If your house or apartment has been displayed for months and not sold, buyers may begin to think there is something wrong with it. It takes most people at least a few months to view and find a property they like, so taking your property off the market and refreshing the interior or re-evaluating the asking price means you’ll arrive back on the housing market with a new look – and a new set of prospective customers.
4. Try a new agent - Like any relationship, the connection and understanding between you and your real estate agent can affect how quickly your property moves. If it’s not working out, consider finding a new agent to restart the campaign.
5. Think about renting - After you’ve spruced up a room or two, moved the price and had a chat with your agent, you might want to consider renting out your property. You may not recoup as much as your mortgage, but at least you’ll get to move on. While this option won’t suit everyone, renting the property can be better than an empty house sitting on the market draining funds.