{"id":7607,"date":"2016-04-14T01:00:25","date_gmt":"2016-04-13T15:00:25","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=7607"},"modified":"2016-04-14T01:00:25","modified_gmt":"2016-04-13T15:00:25","slug":"what-makes-a-property-a-lemon","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/what-makes-a-property-a-lemon\/","title":{"rendered":"What makes a property a lemon?"},"content":{"rendered":"

What makes a property a lemon?\u00a0 What turns buyers off might be a clue so Jennifer Duke<\/strong> lists the top 10.
\nTranscript –\u00a0<\/b>
\nKevin:<\/b>\u00a0 When you\u2019re looking to buy a home there are probably many reasons why you would and many reasons why you wouldn\u2019t buy a particular property, but what are some of the red flags that agents have seen in the past that have turned buyers off? A very interesting article written following some research by Jennifer Duke from Domain.com.au who joins me.
\nHi Jennifer.
\nJennifer: \u00a0<\/b>Hey, how are you going?
\nKevin<\/b>:\u00a0 Good. Thank you very much for your time. I would imagine that structural issues would be right up there at the top, would they?
\nJennifer<\/b>:\u00a0 Yes, definitely. I think one of the top warning signs was wooden retaining walls, because it\u2019s one of those things that can be sort of tricky. With most warning signs, it\u2019s things that you see that look a little bit dodgy that should have you asking more questions. It\u2019s not necessarily a turn-off straight away, but you should definitely be researching into it a little bit more and maybe getting that building and pest inspection.
\nKevin<\/b>:\u00a0 Yes. As well as wooden retaining walls, I think retaining walls generally are a bit of a warning sign, especially if they\u2019re on the boundary because quite often sometimes, they could be either one side of the boundary or the other. The other thing I\u2019ve found too, Jennifer, with these retaining walls is who maintains it? Is it the person on the top side or is it the person on the bottom side?
\nJennifer<\/b>:\u00a0 Definitely. You don\u2019t want to be in a neighborhood dispute when you\u2019ve only just moved in.
\nKevin<\/b>:\u00a0 No, you don\u2019t. That\u2019s right. One of the other important things we talk about or tell sellers is to make sure you de-clutter. I can imagine buyers walking through a very cluttered home and not being able to get a feel for the home.
\nJennifer<\/b>:\u00a0 Definitely. I think that\u2019s one of those things that buyers need to be wary of, that they aren\u2019t distracted by the clutter that\u2019s in there, maybe the old-looking furniture, and that they give the property a proper chance. I think that for sellers, it is important that they maybe consider staging, taking out their really, really, personal items. But at the same time, it could be a good opportunity for a buyer to get in ahead of other purchasers who might not be able to keep their mind off the rubbish that\u2019s there and focus on their own furniture in the place.
\nKevin<\/b>:\u00a0 Yes. That\u2019s a very good point that you make. It could give you a buying opportunity or a buying advantage if you can look past that. I think any good agent\u2019s going to tell someone to make sure they de-clutter, but I\u2019ve seen many houses that aren\u2019t. And you\u2019re right; it can be a very big turn-off for buyers, as well.
\nJennifer<\/b>:\u00a0 Definitely. And it\u2019s hard, as well, because especially with functional rooms where you could get in quite a lot of furniture, some people over-cram them in to show that you can get in that furniture, and it does them a disservice.
\nKevin<\/b>:\u00a0 Yes, exactly. Let\u2019s have a look at units for a moment. I know that sinking funds and levies and so on are always a somewhat contentious issue. You have to ask a lot of questions when you\u2019re buying a unit, don\u2019t you?
\nJennifer<\/b>:\u00a0 Absolutely. One of the main questions you should be asking is whether there\u2019s any money in the sinking fund. If there\u2019s no money in the sinking fund, that\u2019s definitely a warning sign. It means you need to be asking a few more questions. You basically want to know whether or not there\u2019s been any damage that they\u2019ve had to use the sinking fund for, or perhaps it\u2019s been mismanaged and there hasn\u2019t been any money collected in the first place. These are important things to look out for.
\nKevin<\/b>:\u00a0 Yes. While you can get these strata searches done, sometimes it doesn\u2019t hurt to roll your sleeves up and read through them yourself, because they\u2019ll only go back maybe one or two meetings. I\u2019ve had an experience particularly with rain inundation where it might not occur for even several years. We\u2019ve seen this in the Sydney market where houses that were flooded in some really bad rain that didn\u2019t reoccur for quite some years later and therefore it didn\u2019t come up in the minutes, so you really have to go back a fair way to have a look at these minutes.
\nJennifer<\/b>:\u00a0 Definitely. Most of them should be completely available to you. I think that if there aren\u2019t very good minutes in there, it\u2019s a sign that there is potentially some mismanagement happening.
\nA lot of people get concerned about things that they don\u2019t need to be concerned about. There\u2019s that one point where you\u2019re doing thorough research and there\u2019s another point where you\u2019re doing so much and getting hung up on the tiny details.
\nKevin<\/b>:\u00a0 Yes. One of the other things, I guess, as you\u2019re looking back through those minutes of the meetings, is not to get too hung up on any high strata levies.
\nJennifer<\/b>:\u00a0 Definitely. The interesting thing is that \u201chigh\u201d is a relative term, and it depends how much you\u2019re willing to pay and what there is in each building. You might be looking at two different apartments and one of them might have a swimming pool and a gym and all of those sorts of amenities, and if you\u2019re not willing to pay for them, which is [4:09 inaudible<\/b>] that has fewer amenities, and you should be willing to pay for what\u2019s coming with that building.
\nAt the same time, some high strata levies aren\u2019t necessarily comparable and you should be knowing exactly what you\u2019re paying for, where that money is going, and you should feel free to ask those questions.
\nKevin<\/b>:\u00a0 One of the other things to watch out for, as well, is the history. How focused should we be on that, Jennifer?
\nJennifer<\/b>:\u00a0 One thing that\u2019s very interesting with sales history is whether or not it\u2019s different to the local area. Once you\u2019ve done your research and perhaps you\u2019re looking in a tightly held enclave, if the one property you\u2019re considering is the one that hasn\u2019t been tightly held, you have to be asking why. Is it because the neighbor is a little bit dodgy? Maybe it\u2019s because there are other developments happening that people find out about or there\u2019s something wrong with that particular property. It\u2019s worth knowing whether or not it\u2019s common for that area, or if it\u2019s a red flag.
\nKevin<\/b>:\u00a0 A bad ad, of course, is something I always watch out for. Being in the industry I look for bad ads, bad photos. That shouldn\u2019t be a turn-off, though. It might actually be an opportunity.
\nJennifer<\/b>:\u00a0 Definitely. Everyone says that a bad advertisement doesn\u2019t do any favors for a property, but it does do favors for a buyer because it might turn off other people who think, \u201cOh, that looks like a dodgy front photo of the house,\u201d and the house might actually not look that bad. If you just do a drive past it might actually be perfect for you and you might get it at a discount.
\nKevin<\/b>:\u00a0 What about that vacant block next door? Goodness only knows what\u2019s going to happen there. You should really find out what can<\/i> be done to the vacant block so that you don\u2019t run the risk of losing your view or even being overshadowed.
\nJennifer<\/b>:\u00a0 Definitely. A quick call to council does wonders. Sometimes you want to know why that block has been left vacant. Perhaps it\u2019s just a residential home that\u2019s going up next door, but it could be a huge apartment block, and you just need to find out whether or not that\u2019s happening and whether or not it\u2019s possible. Zoning is pretty crucial.
\nKevin<\/b>:\u00a0 Yes. A lot of things around a property can be rectified, of course, but bad street appeal does actually tell you a lot about a property, I think, doesn\u2019t it?
\nJennifer<\/b>:\u00a0 There\u2019s only so much you can really do about the front of a house. You can render, fix up the lawn, and stuff like that, but if it\u2019s just in a bad part of the street, if it just looks a certain way at a certain angle on the block, that\u2019s something you can\u2019t fix. And if it\u2019s something you can\u2019t fix, it\u2019s not something you can make money on later on and it\u2019s going to be a turn-off for future buyers.
\nKevin<\/b>:\u00a0 Yes. I\u2019ve actually seen people make a decision about a property from the car. In other words, if the street appeal is so bad, they won\u2019t even get out of the car to go and have a look at it. That could be holding back a lot of buyers.
\nJennifer<\/b>:\u00a0 Definitely. At the same time, while it\u2019s important to try and get an advantage over those other purchasers, they\u2019re the people who are going to be buying it off you in the future.
\nKevin<\/b>:\u00a0 Yes. Exactly. A bad feel: you can feel it when you walk into a place, can\u2019t you? You can get a vibe about it. We\u2019ve talked about de-cluttering and some, but this is a real thing. How real is it? Should we be concerned?
\nJennifer<\/b>:\u00a0 I think the buying sixth sense and the goosebumps you get when you walk into the place that you think is yours; a part of that is important. Obviously when you walk in, you want to have a feeling like \u201cThis is my home,\u201d but at the same time most of that is going to be made when you\u2019ve moved in, when you\u2019ve repainted, when you\u2019ve refurnished. Those things are fixable, and I think being turned off by a bad feel that isn\u2019t really based on anything concrete isn\u2019t necessarily a great idea.
\nKevin<\/b>:\u00a0 I think we have to remember here, Jennifer, that we bring the personality to the house. If it does have a bad feel about it, just think about what you can do to change the feel of that particular property.
\nJennifer<\/b>:\u00a0 Definitely.
\nKevin<\/b>:\u00a0 Jennifer Duke from Domain.com.au and some of the reasons why buyers might be turned off from a property.
\nJennifer, thanks for your time.
\nJennifer<\/b>:\u00a0 Thank you so much for having me.
\n <\/p>\n","protected":false},"excerpt":{"rendered":"

What makes a property a lemon?\u00a0 What turns buyers off might be a clue so Jennifer Duke lists the top 10. Transcript –\u00a0 Kevin:\u00a0 When you\u2019re looking to buy a home there are probably many reasons why you would and many reasons why you wouldn\u2019t…<\/p>\n","protected":false},"author":176692471,"featured_media":6740,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,11,13,36,23],"tags":[101],"class_list":["post-7607","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-property-investment-topic","category-selling-a-property-topic","tag-podcast"],"yoast_head":"\nWhat makes a property a lemon? - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/what-makes-a-property-a-lemon\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What makes a property a lemon? - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"What makes a property a lemon?\u00a0 What turns buyers off might be a clue so Jennifer Duke lists the top 10. 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