Q. How do I know that I’m getting the best “Market Value” for my property?
Out of the Square adopts a 5-step process to establishing the best market value at the listing meeting.
- We run the seller through the CMA considering the market’s high, medium and low values. With the seller’s input and our brokers extensive local knowledge of the market, we work together to establish a market price the seller is comfortable with for the property.
- Based on this market price for the property, our broker will guide the seller through an offer and acceptance based scenario with the seller.
- We work together to calculate how much the seller would receive in-pocket at settlement, using conventional methods. I.e. Sales price less commission equals in pocket price.
- It is at this point the broker will offer this amount or slightly higher to ensure the seller is happy with the amount on offer. (Agreed price-in-hand)
- If the seller is happy with the amount offered we can complete the paperwork. If the seller is not happy with the amount, Out of the Square will welcome the seller to list with us conventionally with no price guarantee.
Q. How does out of the Square act in the seller’s best interest?
Armed with local knowledge and factual evidence supplied by RP Data we can ascertain a detailed picture of current market trends and prices obtained in the area for similar matching properties. We are not in the conditioning market where an unrealistic listing price is given to obtain the listing, it doesn’t work with this model. We are the only agency/brokerage to offer a guaranteed price in the seller’s pocket, something that the common person wants in today’s market. The unknown factor then falls on the shoulders of the broker to perform and make money over and above this amount.
Q. Why Doesn’t Out of the Square do things in the conventional way?
In today’s market the conception of conventional real estate is being challenged with lack of transparency, lack of accountability and no initiative to grasp change in the market place. Out of the Square can do conventional transactions if that is what the client wants however we are not limiting the seller’s options. As the market changes, Out of the Square will change with the market to ensure the seller obtains the desired price without compromise.
Our services are an addition to conventional methods. If the seller desires we’re able to service the clients using conventional methods.
Q. How do I know that I am getting a reasonable price for my property?
The broker will provide a current Comparative Market Analysis (CMA) form RP Data showing a range of properties within your area that have similar characters to your property. The CMA will give the seller a price range from a minimum to a maximum. With this information at hand, the seller and the broker can ascertain an ‘in pocket’ price for the property.
Q.What if I have a unique property that nothing compares to on the market?
If you have a unique property that is hard to ascertain the value, the seller and the broker will work together to achieve an amount acceptable to the seller.
Q. What’s the difference between “Listing” Price and “In Pocket” Price?
- "Listing price" the price the property will be advertised for i.e. the advertised price for sale, and;
- "In-pocket” price is the guaranteed amount the seller will receive at settlement, negotiated upfront between the broker and the seller.
Q. What is your Commission?
Out of the Square brokers earn their commission as an amount achieved above the in-pocket price. Being an which is fair and reasonable for the brokers performance of service.
Q. How can you guarantee my agreed ‘in pocket price’?
Out of the Square works with the property seller as a joint venturer. A joint venture is where you as a seller bring the property to the table and out of the Square brings their skill set to conduct the marketing to find you a buyer that is offering the right money to buy your property. We work as a team to achieve the result you want.
Q. How do we know that OOTS is not offering a lowball in-pocket price and running off with a majority of the sale?
Full disclosure is made to the seller at the time of making the agreement of the price OOTS intends to market the property for. This is reflected on the Form 6 & 7 (or state equivalents) as the advertised price. See our comprehensive 5-step process.
Q. Why do you Joint Venture with the seller in addition to the Form 6?
There are 3 main reasons we introduce this paperwork
- It allows us to work as a team with the seller to guarantee their ‘in pocket’ price from the start.
- It allows us flexibility to provide In House Deposit Assistance to qualified buyers by using a portion of the profit made over and above the agreed ‘in pocket price’.
- By offering Deposit Assistance we open the opportunity for buyers to enter the market who just fall short with their deposits. We therefore open the market to more buyers for this property.
Q. What other fees and charges can I expect?
OOTS requires Vendor paid marketing. This fee is dependant on the sellers requirements. The seller is responsible to pay for the rates and water adjustments, to pay out the mortgage to the bank’s satisfaction and any associated costs incurred in the settlement process
Q. If the property sells for less than the advertised price, will it affect my guaranteed ‘in-pocket’ price?
No, Providing the price is above the seller’s agreed price, the sale can proceed with consideration of the brokers worth. The agreed price is payable to the seller, the only unknown factor is what the broker gets in the transaction.
Q. Do we have to list our property as an agreed price? Can we list it with OOTS conventionally?
Certainly. If you wish to list conventionally using agent percentage deductions, OOTS can facilitate the transaction. OOTS offers the consumer a larger range of options to best suit their requirements.
Q. What happens if the market doesn’t meet my guaranteed ‘in pocket’ price?
If it becomes evident that the property will not reach the agreed amount the seller may revise the agreement with the broker and establish a new agreed price, change the listing to a conventional commission deducted agreement or terminate the agreement as per the form 6. Appointment of a property agent.
Q. Do I pay for marketing?
Yes. We do ask the vendor to pay for marketing as with standard agency agreements.
Q. Does OOTS deal with residential and Commercial
OOTS deals with Residential, Commercial and Business transactions. We have specialised brokers to handle each transaction types.
Q. What if I can’t sell my property for what I owe on it?
Out of the Square offers in-house debt negotiation service enabling us to talk with the Financial Service Provider to achieve an amicable outcome for the seller and the bank.
Q. Can we buy a house through OOTS normally?
Q. What is the difference between buying a house through OOTS and a real estate agency?
The only difference is that OOTS can offer the consumer more opportunity to purchase a Property or business if they require assistance.
Q. What opportunity can OOTS offer me as a buyer that I can’t get from an agency?
OOTS can offer deposit assistance to approved buyers if required. Please refer to FAQ Deposit assistance for further details.
Q. Are there fees and charges associated with buying a property through OOTSRE?
There are NO fees and charges to the buyer from OOTS unless the buyer employs our service to specifically find a property for them, otherwise there is no charge from OOTS when buying a property through us conventionally. Consumers must be aware that they will need to employ the services of a legal practitioner for conveyancing purposes and be aware that stamp duty may apply. The normal costs associated with buying a property remains the responsibility of the buyer.
FAQ Deposit assistance
Q. What is deposit assistance?
Deposit assistance is a top up loan that OOTS can supply a buyer to build up their deposit to purchase a property. (Suitable to approved applicants only / T&C's apply).
Q. Do I need to show any form of savings?
Yes. OOTS will require evidence of some form of savings and the buyer will need to present a nominated amount towards the purchase of the property. (The nominated amount will be on a property by property basis)
Q Can anyone apply for Deposit Assistance?
Providing your credit score is good and you have an income that can sustain repayments within the guidelines of responsible lending practices, our mortgage broker will ascertain if we can provide you with the required funds.
Q. What are the repayments like?
OOTS provides a fixed 7% loan to deposit assistance recipients. The term of the loan will comply with responsible lending practices.
Q. What security do you hold from us?
Out of the Square will hold a caveat or second mortgage over the property until the loan is paid. The caveat or mortgage will be lifted upon payment in full.
Q. If I find a home that isn’t on your books, can you supply me with deposit assistance?
Not really. If you find a home that you like, there may be a possibility that we can obtain the listing it has been on the market for a period of time. It is worth a call to see if we can help.
FAQ Bridging tools and other services.
Q. What other services does OOTS offer?
- Negative to positive investment strategies to landlords
- Loan management platform for the bank of Mum and Dad etc.
- Debt negotiation service