Some advise about sales representatives from Gordon

Be cautious of a sales representive that provides you with a list of sales in a suburb inferring they sold them all (often they have sold few of those listed).

Sales representatives that brag about quick sales or having received 3 to 10 offers on a property at the first open, or in the first week, or before advertising, or off market - as if this indicates they are super salespersons. Almost always this indicates that have underpriced your property.

Sales representatives who recommend that sellers auction their properties even though the property has no outstanding features that would make it highly desirable to several cash buyers - remember, it is hard enough to get one cash buyer for most properties who will pay a reasonable market price let alone several cash buyers to compete. Ask yourself if they lack the will to work out a value on your property or if they are intending to use the lack of bids to convince you to sell your property under market value.

Have you been provided with a list of ALL recent sales in your suburb in your anticipated price range or just a few at the lower OR higher end?

Does the representative you list with do all the inspections, home opens and negotiations on your property or do they delegate?

Agents are paid by sellers to negotiate the best, fairest price for the seller (not the buyer). If a buyer wants an agent to negotiate the lowest possible price for them they have to pay the agent to act as a buyers agent for them. An agent cannot act for both the buyer and the seller on a property. It is illegal to take a commission from both parties. If an agent sells another agents listing in conjunction, the agent is a sub-agent to the listing agent and is acting for the seller.

Paying Land Tax

 You may be interested in this snippet......

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 Do your parents have to pay land tax if they go into a care situation but wish to keep the family home?

 

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Capital Gains Tax

Parent Liable to Capital Gains Tax on Half-Share of Townhouse.Townhouse-Picture

An individual has been unsuccesful before the Australian Appeals Tribunal (AAT) in aruging that he should not have to pay Capital Gains Tax on the sale of a Townhouse he owned jointly with his son because, he argues, he was only holding his interest in the property to protect his inexperienced son from selling it on a whim.

The individual had purchased the property for his adult son to live in and transferred the property to himself and his son as joint tenants. After living in the townhouse for a few years , the son moved out to another property. The townhouse was then sold and all of the funds were used to pay down the mortgage on a new property.

The individual argued that he received no proceeds from the sale and that he held his interest in the property in trust for his son, or alternatively, that an exemption under the CGT law should apply.

The AAT did not accept the arguments and held that as a joint tenant the individual was liable to CGT on 50 per cent of the net capital gain on the sale.

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Should you sell first, or buy first?

If you're looking to sell your home and buy a new property around the same time, do you sell first, or do you buy first?

Once upon a time, this used to be the million dollar question. Now, it's the multi-million dollar question.

My answer: it largely depends on what sort of property market we're currently in.

When the market's obviously going up, it's certainly the safe option to buy first, then prepare your existing house for sale. Because the market's going upwards, you've got everything to gain (financially) by buying first... as opposed to everything to lose.

When the market's going downwards, you should definitely sell first. In this situation, with all the indicators showing that house prices are falling, you've got the advantage of money in your back pocket... and you know just how much you've got. You've secured a price for your home in a market where house prices may well drop well below what they were when you sold.

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To Auction or Not to Auction...

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Western Australia is one of Australia's states where home auctions are not so popular with only around 2 per cent of properties sold using this method. This is a remarkable difference from Sydney who auction around 23 per cent of their properties, Melbourne - 11 per cent, Adelaide - 27 per cent, Darwin - 16 per cent and in Canberra 10 per cent of properties are auctioned.Why is auctioning less common in Western Australia? The reason is likely to be the success of the 'Offer and Acceptance' form here in W.A which was developed by REIWA. This document is used for private treatys and I have found most home buyers are familiar with it.During the Perth 'Boom' we did see more interest in auctions. This may have been a result of agents finding it difficult to put 'the right price' on a property and perhaps an auction appealed to the seller as a way of achieving the best price. Of course the median price in Perth is more stable now. I still believe that an auction with it's short but high profile marketing campaign can be extremely effective and bring out the more serious buyers on the day.

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