The sales jargon that doesn’t mean what you think it means.
Searching for a property – whether to rent or buy – can be like searching for a needle in a haystack. Of the hundreds of properties viewed online, so few are suitable – or even look like the ad – when viewed in person. Not to mention that you’re going to encounter an entire new world of real estate jargon all while trying to navigate tonnes of paperwork, research and application processes.
“As a buyer’s agent, I’ve truly seen just about everything a lampooning sales agent might try in order to get a sale,” says property expert Paul Glossop, founder of Pure Property Investment.
“As with most things in life, education is key. A property is likely to be one of the most expensive investment you make in your life, and it’s absolutely crucial to make sure you are getting what you paid for – and that you don’t over pay for a property lemon.”
Paul has put together some of the most commonly used phrases in real estate advertisements, so you know what they really mean.
“Priced to sell”
“Let’s be clear; every house on the market is being priced to sell,” says Paul. “But the language is being used to help the buyer feel like they are getting good value for their money by including the phrase ‘priced to sell’. The keyword is often linked to the belief that the price is already as low as possible, or that the seller is happy to negotiate. But beware, the comparable sales may not translate to the actual price being great value at all.”
“Gentrifying suburb”
“This phrase typically means that the area is still underdeveloped and that there’s a lot of ‘gentrification’ to take place before it actually becomes a desirable suburb,” says Paul.
“Time does have a knack of gentrifying just about any major metropolitan suburb, but it could take up to 30 years for a suburb to actually see cafes, restaurants, schools and amenities that make it a truly desirable location. Don’t believe the hype. Check out the high streets, schools, night life and transport hubs yourself before you jump in with both feet.”
“Updated”
“I’ve lost count of how many times I’ve had a client say the property is ‘updated’ and therefore worth more. In my experience, the word ‘updated’ in listing descriptions often misleads buyers,” says Paul.
“They often think ‘updated’ means newly renovated, but what ‘updated’ typically means, is that some updates have been made to the home over time, such as new appliances in the kitchen. However those ‘updates’ could have been completed 10 years ago, and because the house is 50 years old, technically it is updated, but that does not mean it adds any value.”
“Will suit first home buyers”
“Who hasn’t heard this one? You might think you’re in for a bargain, but this property is likely so unappealing that only rookie buyers and investors would touch it with a 10-foot pole. If this line is used, there is usually a very good reason for it. Figure that reason out.”
“Subject to Council Approval”
“Subject to council approval – or (STCA) – can be an alluring phase used by agents to convince you that there is actually move value in the property than just the home itself,” says Paul.
“Flagging potential for improvement is a nice selling line for agents, but buyers need to beware. Agents add STCA to their marketing campaigns with little to no knowledge of what’s actually possible. Instead, you should ALWAYS check these details with the local council you are buying in, as you might be buying nothing more than the home itself.”
“Close to transport”
“This is a very well-worn line and it can be cause for alarm bells. When the agent says ‘close’, do they mean your windows are rattling every time a train goes past or a plane takes off? Test out the noise at different times of the day and beware of school hours and peak traffic hours to really know what ‘close’ means.”
“Plenty of potential”
“The rise of the renovation show has turned every would-be home buyer or investor into a Block contestant. A coat of paint here, new carpet there and BAM you’ve increased the value $20,000 – or so you might think. Buyers have to be realistic on renovation projects and not to get starry-eyed with grand renovation dreams. Unseasoned buyers are far more likely to face lost time, lots of heartache and the opportunity to part with plenty of money they didn’t budget for.”
You might also like:
The BHG guide to home ownership
4 things most people forget to check when buying a property
Survey reveals nice lawns improve property value by up to $100K
Related stories
Native ad body.
Native ad body.
Native ad body.
