ASK AN AGENT l Part 2
Whether you are buying, selling or renting property, never be afraid to ask the agent what an unfamiliar real estate term means. Real estate terminology can seem daunting. We bring you the second half of the A to Z of common terms explained.
Part two: N – Z
Off market sale – When a property is for sale, but it has not yet been publicly advertised. These days, you also may hear the term ‘pre portal’ used.
On the market – When the bidding at an auction has reached the vendor’s reserve price and will be sold to the highest bidder.
Pass in – If auction bidding fails to reach the vendor’s reserve price, the property is passed in for further negotiation. The highest bidder usually has first go at negotiating.
Pre-approval – This means the bank has given you conditional approval of your home loan and will indicate how much you can spend when you go to auction.
Reserve – The minimum price the vendor will sell for at auction. It can be amended during bidding.
Settlement date – The date the sale of the property will be finalised between buyer and seller.
Stamp duty – A tax applied to transfers of property and mortgages. Stamp duty amounts vary from state to state, and discounts are available for certain purchasers, including first-home buyers.
STCA – Subject to council approval. This signals the buyer will need council approval before carrying out a demolition or renovation.
Turn-key property – A property that is ready to be moved straight into, with no further works required.
Unconditional offer – Not subject to any other conditions such as building, pest inspection or financing. All auction sales are unconditional.
Under offer – When an offer on a property has been accepted and the vendor and buyers are in the settlement stage of the transaction.
Under the hammer – This means a property is going to be sold during the auction process, rather than passing in and selling afterwards.
Vendor bid – A bid placed by the auctioneer on behalf of the vendor to set a baseline for future bids.
Wear and tear: The depreciation of an asset due to ordinary usage.
Zoning: Local planning authorities control the present and future development of land.
