Real Estate Right

Episode 6: Zali Reynolds - What's The Difference Between 'On the Market', 'Off Market' and 'Marketing' in Real Estate?

Zali Reynolds, from Shelter Real Estate comes in again to tell us how to decipher the different uses of the word 'market' in Melbourne real estate.

There are so many ways the word ‘market’ is thrown around in real estate, and it can be quite confusing to those who don’t do real estate every day. There’s ‘themarket’, ‘off-market’, ‘marketing’ and ‘on themarket’… I hope Zali Reynolds can help us with giving us enough nouce to get it right. 

 

Intro:

 

We welcome bright and bubbly, Zali Reynolds back in the hot seat today to tell us about all the different uses of the word ‘market’ in real estate. Zali owns boutique agency, Shelter Real Estate in Glen Iris. An Australiasian Real Estate Results Awards finalist for Victorian Agent of the Year in 2017 and winner in 2018, welcome Zali.

Do you want to explain what the ARERA awards are?

• What is the market?
• At an auction, we hear the term ‘on the market’. What does it mean?
• ‘off market’ is also being thrown around in recent years, what does it mean? Is it the same as a private sale?
  • What are the benefits of selling your home ‘off market?’
• What are the negative implications of selling your home ‘off market?’
• When an agent talks about ‘marketing’ what does that mean to you?
  • Is it just paid advertising?
  • What would you expect to see on an advertising schedule?
• What are your home and contents insurance implications when you sell your home ‘off market’ versus having ‘marketing?’
• When I worked for a real estate agent back in the ‘90s, we used to say that 1-1.5% of the house value should be spent on marketing. Now we are in the 21^stcentury, and marketing has changed with the dominance of the internet, how much money should we budget for marketing when selling our property?
• Malina from Croydon wants to know if all agents have a database they can turn to, if they want to try to persuade me to sell off-market? Malina’s got an agent who she feels may have someone personal in mind for her house, and is telling her that he has a database full of buyers who would be keen for her property. Malina is worried the agent wants to sell it for a cheaper price.
• How do agents qualify buyers for an off-market sale?
• Sometimes you hear of properties that have been on the market for months. When does a property become stale?

Show notes discussed in the podcast:

• Go to shelterrealestate.com.au and find Zali’s blog about The Market.
• Here is a link about the Australasian Real Estate Results Awards to show you what Zali Reynolds won in 2018: http://areras.com.au/

Episode 5: Lena Fox - Finding the Right Property Manager

 

LENA FOX, FROM PROPERTY PROMOTIONS.COM HAS BEEN IN REAL ESTATE SINCE 1975 & KNOWS THE BEST WAY TO SERVICE HER LANDLORDS. LENA GIVES US A DETAILED UNDERSTANDING OF WHAT WE SHOULD BE LOOKING FOR IN A PROPERTY MANAGER TO LOOK AFTER OUR INVESTMENT PORTFOLIO.

FINDING THE RIGHT PROPERTY MANAGER IS TOUGH. YOU HAVE TO DECIDE IF YOU WANT A BOUTIQUE AGENCY WHO WILL HAVE THE SOLE PROPERTY MANAGER LOOKING AFTER YOUR PROPERTY, OR IF YOU WANT THE BACK-UP OF A LARGER FIRM WITH A NUMBER OF PROPERTY MANAGERS IN CHARGE OF DIFFERENT LOCATIONS UNDER THE BANNER OF A PROPERTY MANAGEMENT DIRECTOR. THERE ARE PROS AND CONS WITH BOTH, AND THE REALITY IS, PROPERTY MANAGEMENT IS A THANKLESS JOB – A JOB WHERE YOU GET COMPLAINTS FROM THE TENANTS AND LANDLORDS WHO DON’T WANT TO SPEND. THE ONLY HAPPY MEDIUM IS WHEN THE TENANT PAYS EACH MONTH AND NOTHING GOES WRONG WITH THE PROPERTY. WE HAVE LENA FOX FROM PROPERTY PROMOTIONS TO TELL US HOW TO FIND THE RIGHT PROPERTY MANAGER FOR YOU. 

LENA FOX HAS BEEN AN AREA SPECIALIST IN BAYSIDE FOR OVER 15 YEARS AND DURING THOSE YEARS SHE HAS ESTABLISHED MANY VERY LOYAL, SOUND AND MUTUALLY RESPECTFUL RELATIONSHIPS WITH HER VENDORS, PURCHASERS, LANDLORDS AND TENANTS. LENA HAS A DYNAMIC PERSONALITY AND OFFERS A WEALTH OF EXPERIENCE AND KNOWLEDGE IN THE REAL ESTATE INDUSTRY AND ALWAYS STRIVES IN ACHIEVING THE VERY BEST RESULTS FOR ALL HER CLIENTS. LENA OFFERS MORE THAN 100$ TO HER CLIENTS, NOT ONLY DOES SHE EAT, BREATHE AND LIVE REAL ESTATE, THIS IS A LADY WHO LOVES HER WORK AND IT SHOWS IN EVERYTHING SHE DOERS, WHICH IS THE KEY TO HER SUCCESS AT PROPERTY PROMOTIONS.COM 

• IN AN IDEAL WORLD, WHAT SHOULD AN INVESTOR EXPECT FROM THEIR PROPERTY MANAGER?
• WHAT SYSTEMS SHOULD BE IN PLACE TO RUN A PROPER PROPERTY MANAGEMENT DEPARTMENT?
• SHOULD THEIR BE A DEDICATED SYSTEM FOR HOW KEYS ARE TREATED? LIKE HOW THEY ARE STORED, GIVEN TO TRADES, USED FOR INSPECTIONS?
• HOW SHOULD SCHEDULED INSPECTIONS BE ORGANISED?
• WHAT’S THE TYPICAL PROCEDURE IF A TENANT MISSES A PAYMENT? HOW MANY DAYS AFTER A REQUIRED PAYMENT DOES A PROPERTY MANAGER TELL THE LANDLORD THAT THEIR PAYMENT IS LATE?
• HARRY FROM SEDDON WAS WONDERING, WHEN HE IS INTERVIEWING A PROPOSED PROPERTY MANAGER TO LOOK AFTER HIS PROPERTY, CAN HE ASK TO LOOK AT A RECENT CONDITION REPORT THAT THEY HAVE COMPLETED AND THE PHOTOS THAT THEY HAVE TAKEN, TO SEE HOW DETAILED THE REPORT IS?
• BESIDES THE STANDARD PROPERTY MANAGEMENT FEE, WHAT EXTRAS COULD YOU BE EXPECTED TO PAY FOR?

a)VCAT FEES?

b)RE-LETTING FEES?

c)POSTAGE?

5. SHOULD LANDLORDS, TENANTS AND PROPERTY MANAGERS BE ON THE SAME PAGE WHEN IT COMES TO MAINTENANCE?
6. CHARLES FROM RINGWOOD IS AN INVESTOR WITH 5 PROPERTIES, AND FROM HIS EXPERIENCE OVER 20 YEARS OF INVESTING, HE HAS DEALT WITH COMPANIES WHO HAVE A PROPERTY MANAGEMENT DIRECTOR WITH MANY PROPERTY MANAGERS UNDER THEM. AND THOSE PROPERTY MANAGERS COME AND GO. WHEN THE PROPERTY MANAGER LOOKING AFTER HIS PORTFOLIO CHANGES, HOW WOULD HE KNOW IF HIS PROPERTY MANAGER HAS THE SKILLS TO PROFESSIONALLY LOOK AFTER THEIR PROPERTY, IT HE HAVE ESSENTIALLY HIRED THE COMPANY TO LOOK AFTER IT?
7. A) WHAT CAN CHARLES DO IF HE DOESN’T LIKE THE CHANGE?
8. HOW OFTEN SHOULD A PROPERTY MANAGER MEET UP WITH A LANDLORD TO DISCUSS THEIR PROPERTY AND PROPERTY NEEDS?
9. WHAT SHOULD YOU BE WARY OF WITH ANY PROPERTY MANAGEMENT SERVICE?
10. DO PROPERTY MANAGEMENT DEPARTMENTS ASK LANDLORDS FOR A MONETARY CAP ON WHAT CAN BE SPENT ON MAINTENANCE IN AN EMERGENCY SITUATION (LIKE A BLOWN HOT WATER SERVICE, TOILET BLOCKED, ETC) WITHOUT NEEDING TO GET CONFIRMATION FROM THE LANDLORD, OR DO YOU NEED TO CONFIRM EVERY TIME THAT THERE IS AN ISSUE BEFORE SPENDING MONEY?

 

Special Listener Offer From Lena:

If you list your property for sale or rent with Lena Fox from Property Promotions and tell her you heard her on Real Estate Right, she will organise a lovely gift as a Thank You for listening to our podcast.

Episode 4: Leah Calnan - Agent Disclosure - Murders, Fires, Deaths and Crime, What Needs to be Divulged?

Leah Calnan, President of the REIV, talks to us about what agents need to tell buyers and tenants when looking at a property to buy or rent. 

 

As a copywriter and a photographer, we definitely go through some homes with a sordid past. I know I’ve been through homes where you just get that chill through your spine when you step into a room that you feel you aren’t welcome. My brother-in-law even sold the house for the Mornington Monster – john Sharp who killed his pregnant wife and child with a spear-gun. He bought the house in October 2003 for $390,000, killed his family in March 2004, temporarily burying his wife in the backyard, and the house sold, after he was charged for murder, in 2006 for $325,000. It’s creepy stuff… but we are going to get to the bottom of what we need to know before we go and buy or rent a property with a past.

Intro:

Leah Calnan is the President of the Real Estate Institute of Victoria. She has previously served as Vice President and Senior Vice President over the past two years, and was elected the President role in October 2019. Leah is a titan of the property management and rental sector. Leah is the sole director of prestigious Metro Property Management, and was named Property Manager of the Year in 2016. Leah brings more than 24 years of real estate experience to the role, is a passionate trainer, has authored books on real estate and is a highly sought after presenter on rental laws. Welcome Leah.

Grant: leah, how did you get into real estate?

1. How much does an agent need to disclose in Victoria, when it comes to crimes and deaths that happen within a property?
A) Do they have to tell me if I ask, or do they have to say ‘by the way, a gang land killing took place here 10 years ago, but all the riff raff have gone from the area, so there’s nothing to worry about?’
2. How recent does the death or crime need to be, to be disclosed?
3. Carrie from Kew wants to know if an agent can be fined or penalised for knowing, but not disclosing?
4. What happens if the agent hasn’t been told about the negative history?
a. Can an agent be penalised for not saying anything?
5. How does the negative history need to be disclosed? Verbally or in writing?
6. What about other types of disclosure, like if the property is in a flood plain, termites were found 12 months ago, or if a fire took place in the kitchen in the last 5 years?
7. Do we need to disclose if there is a known ghost in the house?
8. What types of buyers really care about the history of the home in terms of crime and death?
9. What should we do if we really want the property, but are worried about the negative energy that may be perceived within the home?
a. In most cases, would it also lower the price?
10. Do disclosures also need to be made when someone wants to rent a property?
a. What are the new Victorian rental laws that will affect disclosure?
11. Do you have any stories about homes you’ve been in that have had a past?

If your interested please find below some links to further information about the Easey St Murders discussed in the podcast:

Original Article Sparking The Case:

 

Wiki: https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=2ahUKEwjWoa36gKPnAhUs7XMBHaQyC30QFjABegQICxAE&url=https%3A%2F%2Fen.wikipedia.org%2Fwiki%2FEasey_Street_murders&usg=AOvVaw2xHSkDqsXUsCTeHGn5lwox

Book Murder on Easey Street by Helen Thomas

https://www.betterreading.com.au/news/notorious-cold-case-read-a-review-of-murder-on-easey-street-by-helen-thomas/

 

Enjoy & thanks for listening!

Episode 3: Zali Reynolds - Understanding Sales Commission

Zali Reynolds, from Shelter Real Estate in Glen Iris, is here to talk to you about how to be savvy when talking to your agent about sales commission when selling your property.

Sales commission is one of the bug bears of signing up an agent. What’s too much? What seems cheap? What does it include? When does it need to be paid? It’s a really scary process, especially when you’re talking about your most important asset. Zali Reynolds is in today to explain what’s acceptable and what to be weary of.

Intro:

Top producing agent, Zali Reynolds comes to real estate right today to talk to us about understanding sales commission. Zali owns boutique agency, shelter real estate in glen iris, and has previously been the director of one of Booroondara’s leading luxury estate agents. She has years of market insight and experience, ensuring her dedicated service gets her clients the results they desire with the support they require. She has won numerous awards for sales, works tirelessly for her charity, Global Village Housing that provides housing in Cambodia, and is devoted to her family. Zali is leading by example to show the world that she is consciously committed to helping others alongside actualising her own ambitions. Welcome Zali.

1. How much sales commission should we be paying?
2. What do we get for that sales commission?
3. How does the sales commission get split within the office?
4. What do you think about commission with incentives?
a. Recently an agent got fined for underquoting to a vendor, knowing full well that they would get more for the house, but put a low price on it, with an incentive, achieving the higher price. How can we make sure that we aren’t being conned into a higher commission?
5. What do we make of the companies that offer an ‘all-inclusive’ flat fee rate to sell your home?
a. We know purple bricks is over, but are there any other agents still offering this service?
b. Why haven’t they worked in Melbourne?

6. When we get 3 agents with similar experience to give us their proposals to help us sell our home, what should we be looking for?
a. If they all give the same commission structure?
b. If they don’t give us the same commission, what should we be concerned about?
7. Charles from Point Cook has had his agents through and he’s deciding who to go with. One included a separate auctioneer’s fee. Should we be paying that, or should that be absorbed into the sales commission?
8. So, can you now explain the different types of structures – falt percentage, incentive based/tiered fee or a flat dollar amount.
9. I know when I sold my first property, I was told 2% commission, but we have to pay the government as well, so its 2.2%. Not what I was expecting. How about GST… should we ask if it’s inclusive or not inclusive of the commission rate?

Special Offer From Zali:

If you would like to sell your home knowing that your commission is going to a cause, call Zali Reynolds at Shelter Real Estate on 9889 3990 or go to shelterrealestate.com.au

Episode 2: Matthew Phillips - What's the Difference Between a Spec Home and a Custom Home?

Matthew Phillips - Managing Director of Patterson Homes comes in to talk to us about understanding the difference between a spec home, a custom home and a display home.

Buying off the plan is a daunting task. There are so many factors to be concerned about, and it’s just not as easy as choosing one plan over another, hoping it will fit the block you bought. And the reality is, there are so many levels of quality. What can you add to make it your own? Do you want a ‘cookie cutter’ house where every house looks the same in the street, or do you want to be a stand out. Plus there’s the cost of it all… there’s definitely loadss to think about, and today we have matthew phillips from patterson homes to tell us what we need to know.

Intro:

Builder of new homes, townhouses and multi-unit developments, with 26 years of experience in the building industry, Matthew Phillips, the managing director of Patterson Homes, is here today to talk about spec homes vs custom built homes. Matthew is passionate about the building industry, has a strong eye for detail and is committed to a high level of customer service. Based in patterson lakes, we welcome Matthew Phillips from Patterson Homes

1. What’s great about a spec home?
2. What’s great about a custom-built home?
3. What nasty surprises could you expect from a spec home?
4. George from Clyde bought a block of land 2 years ago, and they only started building 4 months ago. He wants to know what happens if a builder goes past their suggested completion date?
5. What type of builders generally do spec homes?
6. What type of builders do custom homes?
7. Can a spec home be customised a little bit?
8. What should you look for in any builder?
9. Is there any reputable association that a builder could be a member of that will assure future clients of their builder’s qualifications and expertise?
10. What are the GST implcations in building new?

Competition: Free Consultation and quote with Patterson Homes. To be in the running, you need to go to our Facebook page, find the post to this competition & like, share and comment why you would love to win a free consultation with Matthew Phillips to build your dream home.

Good luck & thanks for listening!

Episode 1: Frank Valentic - How Do You Add Value To Your Property Without Spending a Fortune

'The Block' favourite, buyer's advocate Frank Valentic from Advantage Property Consulting explains how to add value to your property without spending a fortune.

It’s amazing how many houses we go through and the owners have spent good money on things that could put a buyer off – like different tile combinations in bathrooms rather than being consistent, yet they forget to fit out the wardrobes with shelves and drawers to have more effective storage. We want to get the expert advice on what’s the best way to spend your money & add value to your property without spending a fortune.

Intro:

Frank valentic has been regarded as one of melbourne’s trusted opinions in the melbourne property market for almost 2 decades. He also been a regular buyer’s advocate on ‘the block’ for all of the 11 melbourne series. Welcome frank!

Grant: frank, how did you get into advocacy work?

1. What elements of a house add value to the final price?
2. My biggest bug bear is seeing mirrored boxy wardrobes in a period home, what value do buyers put on storage and the quality of storage?
3. Ken from Deer Park has an unusually large second living area which gets used as a bit of a dumping ground. He’s worked out a way that he could possibly put in a wall and a door to create a 4th bedroom in his home and still have a 2nd living area.
a. Would he need to get council permission to do that?
b. Would he need to get a professional builder to do it to get a building certificate, or could he do it via the video school of YouTube, his better than normal carpentry skills, and a few mates for the price of a slab of beer?
c. What sort of price difference could ken be looking at, between a 3 bedroom and 4 bedroom home?
4. Say you had $10,000 to spend on getting your property ready for sale, where would you spend it to maximise your return?
Sue’s story: I recently went to a house to write copy. The owners brought in a professional painter and instructed him to patch the cracking walls and repaint the walls in the same colour ‘pink’ so that the didn’t have to paint all the walls. You could see the frustration on the painter’s face trying to match it, considering he needed to patch up half the house, it would have been easier to paint it all something neutral. Luckily, the house sold before it even had its first open to a developer who was looking for land in the right position, and bought the property sight unseen for the full asking price.
5. Is it worth getting attached non-working appliances, such as alarms, superceded heaters, dishwasher, etc in working order before the sale, or disclose that they don’t work?
6. With more people working from home and people wanting to create a bit of income from their property, a lot of people like to add a bit of flexibility within their floorplan, what are some good suggestions that will add value to your home?
7. First impressions count, so how much work should we put into our front garden and entrance?
8. Linh from Box Hill is feeling a little overwhelmed with what she has to do, and how much she has to pay, just to get her home ready for sale. She knows she has the sales commission, the advertising and all the maintenance of her home to pay for before she can get her agent to show people. She’s been advised to get her property styled with modern furniture, and she’s thinking it’s just another cost. What’s your advice on getting your home styled, and is it really worth it?
9. Is there anything regular that pops up that property owners are doing that could be decreasing the value of their home?

Here is the most expensive kitchen in the world the Fiore de Cristallo kitchen designed by Claudio Celeberti:

 

Here is a link to a checklist of what is required in regards to getting building permits & insurance for Extensions and renovations costing more than $10,000.

https://www.consumer.vic.gov.au/housing/building-and-renovating/checklists/extensions-and-renovations-costing-more-than-10000

 

Thanks for listening!

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