adelaide real estate

South Australian Property Market – Where to from here?

South Australian Property Market continues record growth

The property sector for 2021 to date in Australia is at record highs. Economically it is interesting times indeed. With border closures, lockdowns and uncertainty driving job prospects, one would anticipate property prices would slump. However, the combination of low interest rates, low stock levels and the love of Australian soil has seen the property market boom. What does this mean for SA?

CoreLogic data released on Friday shows housing values increased by 1.5% in September, bringing the total gain this year to 17.6%. Nationally property prices have rose at the fastest rate since 1989 with South Australia joining the ride with an annual increase of 19.1%, indicating a strong sellers’ market.

Recent statistics report Adelaide’s median property value at $529,376, compare this to Hobart with a median value of $659,622 and it suggests Adelaide has some catching up to do. The Federal Government is rightfully concerned about housing affordability and the rising debt of Australian households and this is likely to lead to Government policy intervention to quell the property market. If Government intervenes we may see prices stabilise, so if you are considering selling, now may be the perfect time.

If you are in South Australia and would like a current market appraisal for your property, SA Listings would be happy to assist. We offer a fixed fee in conjunction with a strong skill set for the sale of one of your biggest assets. SA Listings staff include licensed Land Agents with qualifications in Conveyancing, Property Management, Law and Accounting. It’s a smarter way to go. To find out more visit www.salistings.com.au

Justine Thomson

Source: CoreLogic – 30 September 2021

What is a Form 1?

A Form 1 statement is a legal document providing important information about a property. If you are selling a residential property in South Australia you are required by law to serve a Form 1 document to the prospective purchaser. The Form 1 is usually prepared by your Agent or Conveyancer and signed by the Vendor prior to advertising the property for sale but it can also be prepared and served after the contract is signed.

What is included in a Form 1?

Whilst not an exhaustive list the Form 1 includes but is not limited to:

Property Title
Particulars regarding any mortgage
Particulars regarding any easements
Council rates, Water Rates, Emergency Services Levy and Land Tax details
Zoning information
Council approvals for building works

The Form 1 may not include information about encroachments, condition of the property, whether building regulations are complied with or if the survey of the land is accurate. A prospective purchaser is responsible for finding out anything that is not covered in the Form 1 and needs to do their due diligence on the property they are purchasing.

What does the Form 1 have to do with cooling off rights?

If you buy a property other than at auction, the purchaser has a cooling off period. The cooling off period expires at the end of the second clear business day after the contract was made if the purchaser received the Form 1 prior to making the contract or after the Form 1 was served on you, if you received the Form 1 after making the contract. The Vendor does not have the right to cool off, only the purchaser. The Form 1 details your right to cool off and how you must go about serving the cooling-off notice if you change your mind.

What can happen if the Form 1 is not accurate?

The Form 1 must be factually accurate and complete. If it is incorrect or there is insufficient information, the purchaser may be able to withdraw from the sale or take legal action. It is a very important document and you need to be sure your Agent or Conveyancer understands the law when it comes to preparing a Form 1. A good Agent or Conveyancer is critical to the sale process of one of your biggest assets – your home! So, take care to choose your Agent and Conveyancer wisely and check their qualifications.

How much does a Form 1 cost?

The cost can vary depending on the property and who prepares the Form 1 for you. Government searches required to be ordered will vary with the type of property you are selling. For example, if the property you are selling is part of a strata group managed by a body corporate, you will require body corporate searches and the body corporate manager will charge a fee for this. The nature of the property determines the number of Government searches required to be ordered and this will impact the cost. The other cost involved is the preparation of the actual Form 1 document, some Agents will prepare this document and include this as part of their fee for service, others outsource to a Conveyancer for preparation or will request the Vendor to arrange with their chosen Conveyancer. The cost for a Form 1 with Government searches is significant; however, you will require this legal document to enable you to sell your home. For the 2021 Financial Year the price for a Torrens Title residential property would be in the vicinity of $750 to $850 including GST and for a Community/Strata Title $900 to $1,000 including GST. Please note, this cost is just an indicator, as discussed, it will vary depending on the number of Government searches required and what your provider charges for the service.

What is important is your Agent advises you early in the appraisal process that you will require this document to sell your home and there is an additional expense if it is not included in the Agent fee.

Changes to the Form 1

From 1 July 2021 the South Australian Government has updated the Form 1 to include additional disclosure requirements and deleted some items. It is important your Agent or Conveyancer is across these to ensure an accurate Form 1 is served on the purchaser after 1 July 2021. The last thing you would want as a Vendor is legal action from the purchaser for a faulty Form 1!

Ask your Agent to explain the Form 1 document to you, if they cannot explain the Form 1 and all the information in it, then is this the right Agent for you?

Why use an SA Listings agent?

SA Listings offers a fixed agent fee for service, with no hidden extras. You will be advised of the Form 1 costs prior to listing a property for sale. SA Listings understands the Form 1 disclosure requirements and will ensure the document is explained to you and any potential purchasers of your property. The team are licensed land agents, qualified lawyers and conveyancers, providing a strong skill set with the sale of one of your biggest assets – your home! To find out more visit SA Listings.

Justine Thomson

SA Listings is back in SA

After a time spent overseas, I am now back in Adelaide and what a tumultuous year it has been! Glad to be back on home soil and back doing what I love – selling real estate. A big thank you to all SA Listings clients for their unwavering support and calls of hello on our return to Adelaide.

On a positive note, the market in Adelaide is definitely on an uplifting trajectory, catching up with its interstate cousins with year to date growth to the end of February 2021 in home values of 7.3%, according to recent CoreLogic research. A combination of limited supply, low interest rates, additional Government supplements and purchaser demand is fueling the growth.

For developers, builders or those considering development in SA, from 21^st March new planning and building laws come into place across SA with a new State based planning and design code. One significant inclusion under the planning reform relates to administration procedures for domestic dwellings at handover.

A Certificate of Occupancy must now be issued by the relevant authority verifying the building is fit for purpose before people can move in. The current system only required a Statement of Compliance be completed, the Certificate of Occupancy is now an additional step.

An applicant applying for a Certificate of Occupancy can nominate either the local council or building certifier to issue the document. The decision must be made at the start of the building process when lodging the Development Application. A final inspection prior to issuing the document may be done by the council and they can withhold the certificate if the building is not constructed to standard. Any person occupying before the certificate of occupancy is obtained may receive a $750 expiation fee or be issued with a maximum penalty of $10,000. This may have an impact with banks releasing the final payment for the build and is something all builders need to be aware of.

It’s great to be back and I look forward to assisting clients with their future property sales.

Justine Thomson

1 July Property Legislation Update

Well we are a few weeks into the new financial year and, as is usual, property owners and investors should be aware of various changes to property rules from the ATO.

Australia wide, the greatest and possibly the one with the biggest impact on investors, new home buyers and developers is the requirement for purchasers of new residential premises or potential residential land to withhold an amount of the contract price and pay this directly to the ATO at settlement.

Essentially, this means for affected property transactions, purchasers will need to:

split the amount of GST from the total purchase price,
pay the GST component directly to the ATO by a disbursement at settlement, and
pay the GST exclusive purchase price to the property developer (vendor).

The new rule imposes requirements onto the vendor/developer as well. Developers need to give written notification to the purchasers when they need to withhold.

The actual liability for the GST remains with the property developer, however there are no changes to how property developers lodge their business activity statements.

Should you be contemplating purchasing new residential property or potential residential land there are a number of forms that need to be completed by the purchaser or their representative (a conveyancer or solicitor) after contract signing and prior to settlement. Speak to your agent or conveyancer to ensure you comply with the new requirements or visit https://bit.ly/2tLbVri for more information from the ATO.

1 July 2018 also marks the date from which first home buyers can access super contributions for the purpose of buying their first home. Since 1 July 2017 eligible Australians have been able to make voluntary super contributions of up to $15,000 a year, to a maximum of $30,000 over more than one year, to their superannuation account to help purchase their first home. Since 1 July 2018, eligible Australians are able to apply to their super funds to release these contributions (and earnings) for the purposes of purchasing a first home.

Finally, another change on 1 July 2018: Australians aged 65 years + can make a non-concessional (after-tax) contribution into their super account of up to $300,000 from the sale proceeds of their family home (main residence) if they have owned the property for at least 10 years. Couples will be able to contribute up to $300,000 each, giving a total contribution of up to $600,000.

Again, please visit the ATO website https://bit.ly/2udPt9Jor discuss with your financial advisor for detailed information related to your particular circumstances.

Justine Thomson

Selling a Tenanted Property

Selling a rental with tenants requires a number of additional requirements the owner and agent must abide by to ensure tenant rights under Legislation are met. While these requirements initially may seem onerous, by keeping a tenant “in the loop” with timely communication, any issues can be dealt with before they become insurmountable problems. There are pros and cons to selling a tenanted property:

Pros:

Rental income continues while the property is on the market.
Buyers benefit from purchasing a tenanted property – reducing costs such as letting fees and time vacant after settlement.
Potential buyers see the property as “rentable”

Cons:

Increased legislative requirements for notice to tenant
Reduced flexibility for opens
Possible lack of control over the standard of presentation of the property
Potential buyer pool – buyers after vacant possession may not be interested

A successful campaign of a tenanted rental keeps the tenant “in the loop” before, during and after the sale. A tenant who does not know what is going on, is uncertain of their future, or is kept in the dark with open times and notice will likely not be accommodating with access to the property for opens.

So, how do you do this?

Notice of Sale

It is a requirement before entering a residential tenancy agreement to advise a prospective tenant if owners have or intend to advertise the property for sale. A tenant can terminate a tenancy if the owner enters into a contract for the sale of the property within 2 months after the start of the tenancy agreement and did not inform the tenant of this intention.

Issue Correct Notices within Required Timeframes

On deciding to sell a tenanted rental property, an owner must advise the tenant with at least 14 days written notice they have entered into a sales agency agreement. Advertising the property or access to the property for the purpose of showing prospective purchasers cannot occur before this 14-day timeframe expires.

Once the initial 14 days has passed, the right of entry to the property for opens is outlined in the Act. These requirements include no more than 2 occasions within any 7-day period, at a time previously arranged with agreement of the tenant. If an agreement cannot be reached, at a time within normal working hours with reasonable notice. Reasonable notice is not defined, but at least 7 days minimum is advised.

Once the property is sold, the tenant must be advised in writing within 14 days or as soon as possible after the contract of sale is entered into of the name of the purchaser and the date from which rent is to be paid to him or her.

Remember, the tenant has a right to stay at the property during any open inspections, including on auction day. The tenant is also entitled to the quiet enjoyment of the property – continuous driving past or prospective purchasers walking around the property may not meet this requirement.

SA Listings tips:

Start an open and honest dialogue with the tenant as soon as the decision to sell the property is made.
All notices MUST be served in a timely manner, erring on the side of caution.
Provide the tenant with a complete schedule of inspections as soon as possible.
Any property manager MUST be in the loop with the decision to sell, plus the intended schedule. Consider combining routine inspections with other required access (such as photo sessions) in order to minimise tenant disruption.
Consider a small rent reduction throughout the campaign. This will show the tenant you are conscious of the disruption to the tenant’s enjoyment of the property.
Stay flexible. The tenant must not unreasonably refuse to allow access. However, be prepared and willing to negotiate access times.

SA listings will happily arrange for all of the above requirements to ensure your sale campaign runs smoothly. We also partner with experienced property managers who understand the needs of both tenants and landlords throughout a sales campaign.

Planning and preparation is needed. But if done, there is no reason the sale of a tenanted property should not go smoothly. Contact us for more information.

Justine Thomson

Preparing Your Home for Sale

Pay attention carefully, this blog could add thousands of dollars to the sale price achieved by your home, with only a relatively small outlay, plus some hard work and elbow grease! How? Well, the formula is simple:

Fresh paint on walls: preferably a neutral or crisp white – it’s amazing what a coat of paint will do
De-clutter: everything packed away in boxes, except the bare essentials
Minimal furniture: key pieces only with modern soft furnishings and accessories
Well kept garden: fresh mulch, neatly cut lawns and healthy plants
Clean windows and walls
Clean pavers and driveway
Repair any noticeable damage to the home: patch holes in walls for example
Remove mould from bathrooms and refresh grout
Basically, present a clean sparkling home that smells fresh!

Clients often ask how the home should look for photography and opens. To help clients visualise what is needed, I can provide pictures of furniture to be showcased in each room, such as those shown below. Take note, while each room in your home will not look exactly like this, I want clients to take away from these pictures the number of furniture pieces in each room and the way it is styled with the soft furnishings and accessories.

The property image above, listed and sold recently by SA Listings, was styled for minimal cost and achieved a sale result of $46,000 in excess of Vendor expectations. Note the following from the photos:

Formal lounge includes 3 key furniture pieces: lounge, coffee table & cabinet
Bedroom includes 3 key pieces: bed and two side tables
Second bedroom includes 3 key pieces: bed, desk and chair
Kitchen: totally clean bench tops with exception of minimal accessories
Lounge includes 4 key pieces: lounge, chair, cabinet and coffee table
Meals includes 2 key pieces: kitchen table and 6 chairs
Outdoor area includes 2 key pieces: outdoor table with chairs
Front yard and rear yard: neat, tidy and clean

In addition to the key furniture pieces, the soft furnishings and accessories in each room really make it pop. Think eye-popping paintings, lamps, neutral toned rugs and fresh flowers, with a common colour scheme. For bathrooms, all you require are matching towels and a beautiful soap dispenser on the vanity.

A big mistake commonly seen in homes on the market, is overcrowding in each room with too many furniture pieces. This can have the impact of making rooms appear small and cramped. Whilst it may be difficult to live without these pieces, for the limited period it is showcased to market it is well worth taking the pain to achieve the gain.

We hope you found this blog informative and if the styling process is too overwhelming, SA Listings can assist you with professional styling. We offer a unique styling service with affordable styling packages. To find out more contact us at http://www.salistings.com.au/contact

Justine Thomson

What Price to Offer?

As an Agent I am often asked the same question from each and every potential purchaser, “How much should I offer?” The answer to this question is: there is no answer! As the Agent selling the home I work for the Vendor and my role is to achieve the best possible price for them – but I’m unable to advise you, the purchaser, of what price you should offer for the property.

However, to give you some insight into ways to determine the offer price to secure the home of your dreams, SA Listings suggests you think about the following points:

Do your own research on the area and current market sale prices for similar properties. To assist you with this, a good Agent should be able to provide you with a list of recent sales of comparable properties in the area.

A good Agent should always consider current market prices for similar properties sold in the area and should price the property accordingly. Your own research, plus the agent’s comparable price list, should give you an indication of where you believe the property price sits. Remember, the price advertised will be the Vendors expectation so your offer should, as a minimum, be in this range.

Have you missed out on previous properties you were interested in? If so, the reason may be is you are low-balling your offer in the hope of securing a property below current market conditions or you may be seeking a property outside your budget. I can tell you, the chances of securing a property using this approach is slim. A good Agent prices the property in accord with current market conditions and if you low-ball an offer the Agent will likely recommend the Vendor reject it. The likelihood of securing a property using this tactic is as probable as daily rain in Dubai. Do not low-ball, go in with your best offer from the start.

Consider carefully any conditions you include with the offer. An Agent may recommend a Vendor accept a lower offer if no conditions are attached, for example, a cash unconditional may be more attractive than subject to sale. So be prepared: have finance pre-approvals in place, offer an appropriate deposit and know what you are prepared to do regarding settlement timeframes. Being prepared here provides confidence to the Vendor of your ability to pay for the property and shows you are serious about the property and your offer.

Remember, each property is unique and if you have been searching for some time and this property ticks most of your boxes then don’t miss out, put your best foot forward from the start. Too many people miss out by trying to snag “that bargain” when in reality, had they put in a realistic offer initially they would have secured the property.

One final note, don’t bother asking the Agent where your offer sits compared to others. A good Agent will not disclose this as it is against South Australian legislation. The agent is unable to tell you any details of other offers, other than the fact there are other offers. If you wish, you can ask for this in writing.

If this home is THE ONE, your inner Zen, your sanctuary, the right floor plan, the right location and within budget then don’t be influenced by other offers, just focus on what you want, what you can afford and put forward your best and final offer. You may not get a second chance. If your best offer is not good enough, be prepared to walk away, another one will come along.

If after reading this blog, you are unsure on how to go about the negotiation process you can always engage a Buyers Agent to act on your behalf. SA Listings offers this service – for more information contact SA Listings at info@salistings.com.au

Justine Thomson

Staging a Home for Sale

The whole world is a stage – but should your home be?

What is it buyers look at when visiting an open home? Frankly, ask three different people and you may get four different answers! While one may step back and take in the larger picture of the home as a whole, another may look at the same house through the eyes of the furniture, the art, or even the family photos on the wall, and yet another will simply cast a critical eye over the structural integrity of the home. It may even be that it is easier to answer what is it buyers look at by first ensuring there is nothing in the home that will turn them off as soon as they walk in.

Some examples? Tired, ratty old furniture that has seen better days, magazines or books in the loo, and whilst you may simply love your collection of every set of commemorative babushka dolls from the twentieth century – it may be many buyers will not.

Now of course, most people have some idea that in order to correctly present your home for sale you need to “de-clutter” and “de-personalise,” but what about the styling through out the home? This is where the services of a home styling or staging professional can help – with interior designing skills to make your home stand out that extra mile.

A home stylist will cast a critical eye over the home, and will be able to provide appropriately styled furniture and accessories to suit. For example, large furniture pieces may be comfortable, but they may be cramping the space available, making it look smaller than it really is. Changing them over for smaller, less intrusive pieces that match and compliment other pieces in other rooms creates a sense of space and style. Styling gives potential purchasers an idea of what the home could be for them, not what it currently is for the vendor.

A home stylist may also remove items that stand out and draw the attention of buyers, such as loud artwork or rugs. Again, a flowing sense of style throughout the home will help ensure the home appeals to as broad an audience as possible.

Remember, first impressions count. You want buyers to walk into your home and imagine living there with their family, inviting their friends over to a home they are proud of, a home that is up to date and on trend.

Not every home will require the expense of a stylist or staging. But in some cases, the outlay of a moderate expense may mean a greater return come settlement day.

Should you be interested in property staging, during the appraisal of your home the SA Listings’ team is able to discuss options that best fit your property and budget.

Justine Thomson

Selling Yourself

If you are considering selling your home in 2017 there are many paths you can take:

Sell it yourself
Engage a traditional real estate agent on commission with a full agent service
Engage a real estate agent at a fixed price with a full agent service

Selling an $800,000 home could cost as little as $2,610 if you sell yourself or up to $17,675 if you utilise a traditional commission agent.

If you are considering selling on your own, think carefully about the following:

Appraise the property correctly by using publicly available information about local sale prices and consider an independent valuation to assist
Ensure you present the home well for photography
Prepare relevant marketing material
Ensure all relevant documentation is available to a potential purchaser to enable an informed decision to be made, example: council rates, water rates, copy of title etc
Be prepared to arrange inspections by appointments and opens at various hours of the day
Be prepared to meet potential purchasers and take on board any negative feedback
Follow up with those people interested in your home and be prepared to take the emotion out of the sale negotiation
Engage a Solicitor or Conveyancer to prepare the Contract and Form 1

People often underestimate the work involved in selling a home and the level of professionalism required to negotiate the best conditions and price. Selling a property is an emotional and intense experience. It can be easy for a seller who decides to sell it on their own to run into trouble with incorrect information provided to a prospective purchaser or the inability to remove the emotion from the sale. A real estate agents market knowledge and negotiating skills can be particularly useful when it comes to listing a property for sale. Following is an indicative table of costs under each model.

Cost to sell an $800,000 Home by Private Treaty	Sell On Your Own	Sell with SA Listings	Sell with a Traditional Agent @ 2%
Base Price	$1,295.00	$7,888.00	$16,000.00
Professional Photography	Inc	Inc	$200.00
Sign Board	Inc	Inc	$150.00
Listing on realestate.com	Inc	Inc	$500.00
Brochures	Inc	Inc	$110.00
Open For Inspection	Manage Yourself	Inc	Inc
Form 1	$330.00	Inc	$330.00
Government Searches	$385.00	Inc	$385.00
Contract Preparation	$600.00	Inc	Inc
Total	$2,610.00	$7,888.00	$17,675.00

In 2017 there is choice and the flexibility to now sell your home with a full agent service at a lower cost to a traditional commission agent. So why create a headache for yourself and embark on selling alone when you can engage the service of a real estate professional at a transparent fixed fee. Whilst you think you will save thousands by selling yourself, it could in fact cost you thousands in the final negotiated price!

Justine Thomson

SA Homes Top Ten Wish List

I thought with 2016 recently ending and the New Year ringing in, it is an apt time to review the most common search words buyers use when seeking a property in SA, to assist any would be seller in 2017.

Many will be surprised pool is the number one search word when seeking properties in SA. For all those lucky enough to have a pool, the cost to run, maintenance and amount of times utilised often outweigh the benefits a pool can bring but at sale time this can be a bonus. A pool can be an attractive garden feature and for families a must have in our dry, hot summers. If your kids have flown the coop and you are thinking of ditching the pool, think twice, especially if you have plans to one day sell your home and downsize.

The old fashion granny flat is back in vogue! Statistics prove our kids are staying at home much longer these days and often do not consider leaving the family abode until in their late twenties or early thirties, sigh…. Grandparents are also becoming a part of the extended family, assuming a carers role for children when both parents work. To give extended adult families breathing space it is little wonder the granny flat is a highly sought after commodity. If you are fortunate enough to have a granny flat and are considering taking your home to market, it would be worth spending some coin on reinvigorating life into this space. If used as storage, clear out the boxes, de-clutter and style as you would a second home.

The corner block has always been a sought after find in SA but even more so since the State Government zoning changes. If you fall into the new zoning categories for higher density living, the corner block can be correlated to the golden goose who lays the golden eggs. Make sure you check with your council for current zoning requirements before putting your home on the market. The right zoning can add tens of thousands to your sale price. A good agent should be aware of the possibilities in your area when it comes to potential development or subdivision and should factor this into the market price.

Top Ten Property Search Words in SA

Pool
Granny Flat
Corner
Views
Beach
Shed
Esplanade
Cottage
Character
Investment

To maximise the return on your property consider the top ten search words and ensure your Agent takes full advantage of known characteristics your home has in meeting buyer needs.

If considering selling your home in 2017, we would love to hear from you and assist you in making the most of your properties attributes: salistings.com.au

Justine Thomson