Exceptional Sale Results without Excessive Commissions

The results are in! SA Listings has selected our last 18 recent sales to statistically prove you get the same results, if not better from a fixed fee Agent compared to a traditional commission based Agent. The results also prove that brand does not matter when selling your home. SA Listings, a relatively new player in the Adelaide real estate market has successfully sold the last 18 properties with an average of 23 days on market, achieving an average of full Vendors asking price and savings in excess of $110,000 in Agent fees to boot!

SA LISTINGS – CLIENT RESULTS AND AGENT FEE SAVINGS
Property Address % of Asking Price Days on Market Agent Fee Saved*
92 Folland Ave Northgate 105.24% 4 $7,312
72 Rapid Ave Lightsview 102.19% 7 $9,400
1/91 Myrtle St Prospect 100.00% 31 $4,590
11 Allen Ave Brooklyn Park 105.00% 11 $7,310
4 Paddington Ave Northgate 108.00% 9 $7,662
109/220 Greenhill Rd Eastwood 98.33% 49 $6,980
140C North East Rd Walkerville 99.11% 34 $6,320
140B North East Rd Walkerville 98.23% 31 $6,210
14 Epsilon Crt Woodcroft 100.00% 16 $3,250
14 Rapid Ave Lightsview 100.00% 52 $1,920
8 Welsh Rd Lightsview 108.70% 5 $7,750
14 Holmeswood Crt Para Hills West 98.00% 46 $3,680
74 Rapid Ave Lightsview 100.00% 1 $7,360
10 Rozells Ave Lightsview 100.00% 7 $7,150
2 Rivergum Cls Walkey Heights 97.00% 20 $6,860
13 Welsh Rd Lightsview 97.22% 21 $9,400
19 Rapid Ave Lightsview 100.00% 26 $6,540
21 Rapid Ave Lightsview 100.00% 43 $5,000

Average Ask Price

Average Days on Market Total Agent Fee Savings
100.95% 23 $114,694
*Savings based on traditional Agent Commission in SA of 2.2% inclusive of GST

The savings in Agent fees is conservative, as it does not take into account significant savings achieved by our clients in marketing fees. Several of the properties listed above had no marketing fees at all as they were successfully matched to purchasers on the SA Listings buyer database. We have in fact, been told by our clients of well known brand name Agents charging additional fees of up to $2,000 for use of pre-market listing techniques, whereby, your property is listed on their website and database for viewing only by their registered subscribers, prior to listing to the general public. This is astounding! One would expect the Agent commission to cover the cost of the Agent actually matching the registered subscribers on their database to your property. Is that not their job? At SA Listings, we database match and contact all relevant parties we believe would be interested in your property. This service is incorporated in the fixed fee package at no additional cost to you, we believe our job as your Agent is to sell the property for the very best price at an affordable cost to youwithout fee gouging!

Also as a consumer be aware, there are some new Agencies providing a low fixed fee but the package does not incorporate a full agent service. Please read the fine print and ask questions of the Agency selling you the packages.

Remember, SA Listings provides a full agent service for an affordable fee with the highest service from listing to settlement, to find out more visit www.salistings.com.au

Justine Thomson

National Property Statistics

12 MONTH MEDIAN GROWTH – SEPTEMBER 2017

HOUSES UNITS
ADELAIDE 2.5% 4.1%
MELBOURNE 11.5% 3.5%
SYDNEY 7.8% 4.3%
BRISBANE 3.3% -2.1%
CANBERRA 7.7% 2.9%
DARWIN -9.1% -8.7%
PERTH -2.4% -3.6%
HOBART 6.8% 2.4%

12 MONTH MEDIAN PRICES – SEPTEMBER 2017

HOUSES UNITS
ADELAIDE $445,000 $375,000
MELBOURNE $702,000 $520,000
SYDNEY $940,000 $715,000
BRISBANE $530,000 $410,000
CANBERRA $655,000 $430,000
DARWIN $492,000 $390,000
PERTH $500,000 $400,000
HOBART $390,000 $290,000

If interested in suburb statistics for your local area in South Australia, please email info@salistings.com.au

Justine Thomson

Disruptors in Real Estate

We are hearing the word “disruptors” quite frequently these days, used to describe traditional industries undergoing a shake-up to the way they have always done business. Think transportation with taxis and the advent of Uber, or Amazon’s effect on retail shopping. The combination of technology, forward thinking entrepreneurs and low barrier entries to market have seen consumers benefit from more choice. At SA Listings we have introduced a refreshing business model for the transaction of real estate turning the traditional way of selling real estate on its head.

The SA Listings business model is based on a fee for service, not commission. I worked for many years in Industry Superannuation Funds and believe strongly in the fee for service model over the Retail Superannuation Funds commission model and thought “why doesn’t this apply to real estate?” I had a property to sell and my only choice at the time was to sell it myself or pay a ridiculous commission of 2% or higher, inclusive of GST of the sale price, plus marketing and all other necessary expenses on top. Being time poor, selling it myself was not an option and I had little choice but to pay the generous commission to an Agent. It got me thinking……

Why not save people thousands of dollars and offer an exceptional high-quality service based on a fixed dollar amount?

Is this the Real Estate elephant in the room?

Could the successful Industry Super Fund model of charging a flat administration fee also apply to Real Estate? I went to work and over three years analysed available data about the time it takes to list and market a property, negotiate the sale and close the contract to determine the dollar cost average of selling a property based on a fixed hourly rate. The service and marketing was not to be compromised in delivery of the service and these factors were all added to the equation. My background as a CPA enabled me to crunch the numbers and come up with a new model.

The SA Listings model is based on a choice of low cost, fixed price sale packages inclusive of a full agent service with very high standards, all marketing, all Government searches and Form 1 – everything needed for a Real Estate Agent to successfully obtain the best price for your property. I am often asked where is the incentive to obtain the very best price for us if you are not commission based and my answer is simple: “By achieving the very best price and providing you with exceptional service means you will refer us to your friends and family”. The dollar amount is not the driver to do my job as a professional real estate agent.

As a new kid on the block we are often being criticised by other Agents as “ruining the profession” for charging a fixed fee and even some of our real estate professional associations are critics of the fixed fee model. We take all this criticism with a grain of salt, what we know is our model has strong support from the general public and that is all that matters to us. At SA Listings, what we care about, is providing you with an exceptional service in the sale of your home and getting you the very best price for your home whilst protecting your hip pocket from price gouging. Change is in the air and it is refreshing!

If you have a property to sell in SA and like our way of doing business, we would love to hear from you. Currently we are only operating in the SA market, however, if you have a property to sell interstate or are an Agent who resonates with this way of doing business, we are teaming up with like minded Agents interstate to replicate the model. To find out more about SA Listings, please visit, www.salistings.com.au. Please feel free to drop us a line and tell us what you think, we would love to hear from you.

Justine Thomson

Prescribed Minimum Advertising Price

The Prescribed Minimum Advertising Price or PMAP as known in the real estate industry, relates to legislation in South Australia prescribing the amount an Agent can advertise a property at. The price you and your Agent list in the Sales Agency Agreement will affect the price for which the property can be advertised. This legislation was designed to protect consumers from properties being advertised below current market expectations, a term referred to in the industry as underquoting to bait advertise.

In a Sales Agency Agreement, the Agent will provide a genuine estimate of the likely selling price and this figure is included in “Agents Estimated Selling Price”. The Agents estimated selling price is based on a range of factors including but not limited to, current comparable market sales in your area, the condition of your property, location within the area and any other factors that may impact price. For example, a property positioned on a main road may be appraised lower than the same property in a quiet street in the same area. A good Agent will know the local area well and will provide supporting evidence of how the “Agents Estimated Selling Price” was derived. This is not a guarantee you will receive this price when the property is presented to market, however, it is a genuine estimate based on supporting evidence. In the Sales Agency Agreement, the Agent must express the “Agents Estimated Selling Price” as a single figure without any words or symbols. If you think the estimate is not right, or want comfort in the figure provided you can pay a licensed Valuer to seek an independent valuation of the property.

The “Vendors Acceptable Price” is also included in the Sales Agency Agreement. This is the amount you, the Vendor wants from the sale of your property. When determining this price, you may consider the information provided by the Agent when appraising the property, research sale prices in your area, consider an independent valuation from a licensed Valuer and not allow emotion to cloud your judgment. This figure also needs to be presented as a single figure without any words or symbols.

How does the PMAP all come together? The PMAP is based on the “Agents Estimated Selling Price” and the “Vendors Acceptable Price” listed in the Sales Agency Agreement. The prescribed minimum advertised price is the greater of the “Agents Estimated Selling Price” or the “Vendors Acceptable Price”.

Let’s give an example to help assist in explaining the PMAP. After considering all variables including current market sales in your area, your Agent appraises your property with an “Agents Estimated Selling Price” of $550,000. You have considered the appraisal, researched your area and discussed with your partner and agree your “Vendors Acceptable Price” will be $570,000. The Prescribed Minimum Advertising Price for your property will be $570,000. Your Agent cannot advertise the property at less than this amount.

It is very important you have a good relationship with your Agent, as the advertised price can impact the campaign from the get go. There is no advantage gained by advertising your property above current market conditions. Consumers are well informed these days and will research the area they are looking to buy in with sales information and appraisals at their ready disposal via the world wide web! By advertising your property above market, the likely result is little or no enquiry and a property potentially not selling.

Let’s give another example, to reinforce the PMAP.

“Agents Estimated Selling Price”      $450,000

“Vendors Acceptable Price”               $430,000

The prescribed minimum advertising price is $450,000.

When determining the appraisal of your home you need to have trust and faith in your Agent and understand they have the best understanding of your local area sales and are experts in their field. If you do not trust your Agent’s knowledge there is no point pursuing a Sales Agency Agreement with them. To give an analogy, if you went to your Accountant to do your tax return would you be telling them “this item is tax deductible”, when they are the qualified expert. If you are, then you need a new Accountant!

Justine Thomson

Top Tips for First Home Buyers

To assist First Home Buyers get a step up on the property ladder, there are a few incentives you need to be aware of. To help assist, SA Listings has compiled this go to “Top Tips” for first home buyers looking to purchase in SA.

Top Tips Towards Home Ownership

First Home Super Saver Scheme: You can make contributions to your super account from your before tax pay to save for a house deposit. You are limited to $30,000 per person and capped at $15,000 per year. If you are self employed or your employer does not allow you to do salary sacrifice, you can claim a tax deduction on the after-tax contributions. To find out more, contact your Superannuation Fund direct.

Stamp Duty Savings: There are a couple of ways you can save on shelling out too much stamp duty! The SA Government allows for a stamp duty concession if you purchase an apartment off the plan anywhere in SA. What does “off the plan” mean? This means it is a new building that is yet to be constructed or it is a new building for which construction has commenced and the Commissioner is satisfied the work has not been substantially completed or it is an existing building where the Commissioner is satisfied that the building is to be substantially refurbished and the work has not yet commenced or has not been substantially completed.

The amount of stamp duty concession that applies depends on two things:

  1. What stage the construction is at from the date you enter the contract and 
  2. What the market value of the apartment is that you purchase.

To calculate how much stamp duty you need to pay for an “off-the-plan” apartment, there is a great calculator available on the Revenue SA websiteStamp Duty Calculator

Another way to save on stamp duty is to build. By purchasing a block of land and then building, you only pay stamp duty on the land, saving you considerable money. This additional money can be put towards the build rather than to State Government coffers. For example, if you buy a block of land for $150,000 and build a home for $200,000, you will only pay stamp duty on the land only. At current rates the stamp duty on $150,000 would be $4,830. If you had purchased an established home at $350,000 the stamp duty would be $13,830. This is a saving of $9,000! As a first home buyer this is a considerable amount of savings.

First Home Owners Grant (FHOG): The FHOG is a once of grant paid to eligible first home buyers on the purchase of a new build or construction of a new home. To be eligible for the grant the market value of the property purchased must be $575,000 or less. The amount of the FHOG is $15,000. If you purchase a newly built home, the grant is paid on settlement, if you construct a new build the grant is paid on date of first progress payment.

Pre-construction Grant for “Off-The-Plan” Apartment Purchases: For contracts of “off-the-plan” apartments entered into between 20 June 2017 and 30 September 2017 the State Government is currently offering a $10,000 pre-construction grant.

Savings: Don’t forget good old fashion savings. By saving a few dollars everyday, this can go a long way towards your first home deposit!

At SA Listings we know it is tough for first home buyers to dip their toe onto the property ladder but with sound knowledge and a good understanding of managing your money, the dream can be a reality! We hope this blog assists all those aspiring first home owners and should you have any questions, please send us an email or message us on facebook and we would be happy to help.

Justine Thomson

Please note: Information provided in this blog is current as at date of going to print 

Top Reno Tips Before Listing

I am often asked as an Agent, “What reno’s should I do to my home to maximise the price I achieve on sale?” Usually when a person is asking me this question, the work they are doing to the home is not for them to enjoy but to present the property as best they can to maximise return.

To answer the question, there are 5 key reno’s that will maximise the property price.

Paint: this can be done affordably if you manage yourself and can literally add tens of thousands to the sale price. Internally use a neutral white colour on all walls and ceilings. Do not do feature walls, this can polarise people if they do not have the same taste as you. Bring in colour with soft furnishings and wall art. It is also a good idea to freshen up external timber and gutters with a lick of paint if required.

Update the Kitchen: this is a major selling point of a home. Update door handles, fixtures and fittings. If the budget allows and the cabinetry/benchtops are out-dated, consider replacing the cabinetry with white laminate and upgrade the benchtops.

Update the Bathroom: you do not need to rip out and replace the entire bathroom but look at the quality of the sink, tapware and showerhead. If the tiles are dated, consider replacing or painting. Another low cost exercise is to clean all the mould from the grout. There are great products available on the market to make this job simple and easy.

Spruce up the Garden: the front garden is the first thing a prospective buyer sees. Make sure it is neat, tidy and presents well. Replace any dead plants with new, mow lawns and remove all weeds.

Repair and Patch: Consider fixing any maintenance issues including any holes/cracks in walls, cracked tiles, worn timbers and any appliances not working.

Your home is one of your most important assets and when listing to market you want to maximise your dollar return. Some hard work prior to listing should pay good dividends and will reflect in the final sale price.

Justine Thomson

 

Take Advantage of a Government Incentive


NRAS, or the National Rental Affordability Scheme. Don’t be bamboozled by the big words, the scheme is easy to understand and provides benefits to a wide demographic of people in Australia. Not only do investors benefit from NRAS but so do tenants and those looking to get a step up on the property ladder. So what is it? Why did it come about? And how does it work?

NRAS is a Federal Government initiative introduced in 2008. It was designed to encourage investment in residential housing to assist people on low to moderate incomes with an opportunity to rent homes at 20% below market rent values. It is not social housing; rather, it is a scheme to provide affordable private rental homes to individuals and families who meet the income threshold. To attract investors, tax-free incentives are provided to those who invest in and own approved NRAS properties.

NRAS was designed to assist in addressing housing supply and affordability. Pressure on the private rental sector, increased rents, the difficulty of low to middle income households to access affordable private rental homes, plus the reduced supply of public housing contributed to the NRAS initiative being created.

NRAS provides benefits to both investors and tenants:

Tenants: Eligible tenants can access private rental accommodation at 20% below the market rate. Tenants’ income may increase up to 25% before their eligibility is affected. Current income eligibility rates are available here: https://goo.gl/vHuAtF

If you are interested in renting an NRAS property and meet the eligibility criteria, it can be an affordable housing solution, to assist you in meeting your financial goals.

Investors: Approved investors are eligible to receive the NRAS incentive for up to 10 years for each approved dwelling where the conditions of allocation for the dwelling are met including renting the property at least 20% below market value rent.

The NRAS incentive for the 2017/2018 year is as follows:

Federal Contribution:          $8,335.75

State Contribution:               $2,778.58

Total Incentive:                    $11,114.33

The NRAS incentive comprises two components: the Federal Government contribution is a tax offset and the State Government contribution is a direct cash payment.

The benefits for investors can be significant. For example: If Jane invests in an NRAS property where the market rent is $300, she must rent the property out at $240 per week to be eligible for the NRAS incentive. Jane effectively receives $3,120 less in rent per annum for her property. However this is more than compensated by the above annual NRAS incentive she receives from the Federal and State Government. To understand the full benefit of the NRAS incentive and what it means to you financially, it is best to speak with a qualified Accountant or Financial Planner before purchasing an NRAS property.

SA Listings has a strong understanding of NRAS and works closely with relevant providers in South Australia. SA Listings currently has a NRAS property available in Evanston, South Australia. To find out more about NRAS either as an investor or as a tenant, please contact SA Listings for more information.

Justine Thomson