We’ve brainstormed a list of the top 5 questions that our customers ask us on a regular basis and addressed each one.  

1   What’s my house worth?

We often receive calls from people seeking advice or enquiring about the price of their Tuggeranong home, and while it seems like a logical thing for someone to ask, the reality is that it’s hard to give a valuation of a property without seeing it first.  There are many variables at play which affect how much your property is worth including which suburb you are in, the aspect, what street your home is in, the quality of renovations undertaken, local median property prices and the number of bedrooms, bathrooms and car spaces for example.

The best thing to do is get an expert from McCann Properties to come and inspect your property and provide a detailed price estimate of your property’s value.  Alternatively, we can put you in touch with a registered valuer in Canberra to provide an estimated valuation of the property.  While a real estate agent is able to provide an opinion of value free of charge a registered valuer would charge somewhere in the vicinity of $300 – $500 for their valuation.

2   How long will it take to sell my house?

The best price usually happens in the first 30 days on the market, this is the premium window of opportunity for selling.  Outside of this, a property can go stale and prospective buyers will have the perception that something is wrong with it.  On average, the vast majority of our homes are sold within 27 days.

As a seller, do some research.  Find an agent whose homes are on the market for a below average amount of time.  This will provide confidence that the agent is an expert who can sell a home quickly and efficiently.

3   What are the changeover costs?

Changeover costs are expenses over and above the price of the property in a real estate transaction.  Costs incurred include stamp duty, agent fees, conveyancing fees, marketing costs, building and pest report and moving costs.  The total dollar amount of changeover costs depends on where the property is being sold and the value of the property being transferred.  As a general rule of thumb the average cost would be around $30,000 – $40,000.

To sell a home or property, most people will hire an agent to market the property and help negotiate a sale.  The commission charged by agents across Canberra generally ranges between $10,000 – $15,000, plus whatever marketing costs the agent recommends.

A basic marketing package should cost you around $2,000 which includes your professional photography, property brochures, signboard, agency window displays and internet advertisement.  It will generally cost you more to advertise in the newspaper and for those extras like property videos for example.

Stamp duty is applicable to almost every property purchase in Australia. It is the state government’s fee for transferring the land from one person to another.  The rate of duty payable will depend on the type of property and its value.  When you purchase your new home, stamp duty must be paid. As a first homebuyer, you will get stamp duty concessions so your costs will be a lot lower.  Stamp duty varies from state to state however here in Canberra, the estimated stamp duty for a $500,000 property is $13,460.  These calculations determined by using www.stampdutycalculator.com.au an online stamp duty calculator.

Throw in the conveyancing fees for the purchase of your new property, which will cost you between $1,300 and $1,800.  Conveyancing is the process of transferring ownership of a legal title of land (property) from one person or entity to another.

On top of this you also have your moving costs.  A professional removalist team will take the stress out of the process, although costs can be reduced by moving your home contents yourself.  The average cost for a professional removalist ranges from $2,000 – $4,000 (or more).

You will also be liable for the costs associated with a building and pest inspection.  These reports provide information on the structural integrity of the property, including pest infestations, and inform you of any problems which may require attention later on.  This service ranges from $900 – $1,100.

Working on the above scenario with a purchase around the $500,000 mark, you now have total changeover costs around $34,000 in this scenario.  Note if you’re borrowing more than 80% of the purchase price, you also need to factor in lenders mortgage insurance.

4   What is the best method of selling my house?

When it comes to selling your home in Canberra, there are really only a couple of methods you can choose between.  Auction or Private Treaty (For Sale).  There is no best method for every property.  Many agents have a preference based on their personal experience however we really believe that either method can work well for the right property and likewise, the wrong method would be very detrimental.

Choosing the right method of sale is determined on an individual property basis.  It depends on the property and its location and also how competitive the market is for that location and property type.

5   What can I do to add value to my home before selling?

One of the best things you can do to add value to your home is ensure it is presented well, both inside and out.  Ensure your property is clean and clutter free when potential buyers are viewing.

Consider undertaking minor improvements or finishing that room renovation.  It may be that you don’t see the point in fixing up your property, as you plan to move on, so feel it’s not worth bothering with.  But put yourself in the buyer’s shoes and ask yourself if you would be interested in buying your property, at the price you are asking, in the condition it is in.  If the answer is no, then you may need to drop the price enough to encourage buyers to overlook the condition, or you need to make some changes.  These changes can be as minor as new paint, carpet or blinds that could make the world of difference to selling your property.

Street appeal is one of those big things that helps a property to sell.  Spend a few dollars to have some landscaping done so your property looks good from the street.  Remember before anyone walks into your property, they are going to drive by it first.  The better it looks from a car, the more likely they will be to walk through the front door and easier it will be to sell.

We hope the above information helps give a better idea of what is required when selling a home and answers some questions you may have had.  Please feel free to call us on 6171 2220 or email us if you’d like to have a chat to discuss your real estate needs.  We look forward to helping you.

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