Selling property can be a daunting and complex process, however, with the right understanding of how the process works, you get to know how to go about it when the time comes for you to decide selling your property.
There are essentially two common methods of selling a residential property which is through a Private Treaty or an Auction.
A Private Treaty is when a property is being sold at a fixed price, a price range, or “by negotiation” or “offers over.”
An Auction, on the other hand, is a bit more complex as it involves several processed such as the seller has the option to sell the property to the highest bidder, agree to a reserve price and settlement date, a seller may be able to test the market because a reserve price may not be made available to potential buyers, and an auction provides a sense of urgency when disposing or selling a property, just to name a few.
After you have decided to determine how to sell your property, the next step is to find a real estate agent. Ideally, working with one who has been recommended by friends or family can be a good idea, especially those that they have dealt with previously.
In choosing a real estate agent, make sure that the agent is accredited by an authority or regulatory agency that regulates the professional practice to protect the interests of citizens. Similarly, real estate agents with industry certifications and accreditations are those you may be comfortable working with.
Under certain laws in Australia, there are commonly three types of agent appointments for selling property which are sole agency, open listing or exclusive agency. When you determine which ones to choose, it would be indicated in your agent appointment document.
Some experienced agents recommend the exclusive agency model since the appointed agent will be dedicated to the sale of the property and will only maintain one set of marketing costs to promote the sale.
The next step is to promote the sale of the property and is usually done through advertising and marketing. Setting up a campaign to promote the sale of property makes people aware of the sale and using the right channels is critical to maximising exposure.
Some of the most popular options include listing in property websites, using signboards, open houses, email marketing campaigns, social media marketing, and mass media advertising such as television, print, and radio ads.
There are several ways to help determine the property’s listing price to help you take advantage of the maximum price for the value of your property.
You can ask your agent for a comparative market analysis (CMA), which contains details of at least three properties of a similar style and nature as yours that have been sold in your area recently. This will help you understand the potential price limits and thresholds.
Make sure to avoid overpricing as it could put off potential home buyers from making an offer. Who knows, the buyers may have their own ideas of how much your property could be worth and use it as a benchmark.
Also, be amenable to adjust your price when possible. However, make sure to inform your agent about your limits and make sure to put it in writing so that your instructions are supported by an agreement with the agent or agency.
Improving or sprucing up your property may help increase its value. Freshening up your property can do wonders in making it more appealing and marketable to buyers.
Homebuyers are usually attracted to clean, bright, and airy houses. Among the preferred aesthetics are neutral colors, landscaped gardens, spacious outdoor living spaces, good smelling, and pleasant acoustics.
The possible turn-off from buyers is dingy and dark houses with unpleasant smells, such as cigarette smoke and animal odours, cluttered spaces, filthy rooms, and poor acoustics that does not filter outdoor and indoor loud noises.
When preparing your property, it is recommended that you clean out the cupboards, take out unnecessary furniture, make repairs on basic and functional fixtures, tidy up the garden, clean and deodorise carpets and curtains, touch up chipped or cracked paint, and change dark coloured items such as carpets and accessories with neutral-coloured ones.
Allow the property inspected when there is good natural lighting to showcase your property in ample lighting conditions.
Agents usually encourage sellers to avoid being present during inspections so that buyers potentially have the freedom to inspect the property on their own without making them feel they are intruding into your private space.
The buyer usually often makes the offer for an initial price by signing the contract documentation after which it is presented to the seller.
Should the seller not agree with the price and makes a counteroffer, the changes are applied to the contract once a deal is reached between both parties.
At this stage, it is important for both parties to review the details which should reflect the agreements reached by both parties and presented for review and signing of the final contract document.
The agent’s commission must be stated in a written contract undertaken by both the seller and agent, which should clearly state the percentage of the commission and the time when it shall be made payable.
The commission should be expressly agreed by both parties, where it indicates if the commission is based on a flat fee or a percentage of the sale price agreed for the property.
Other costs that may be associated with the sale are those incurred for advertising and marketing, legal and financial fees, valuation reports, building and pest inspection reports, repairs or renovations, and stamp duties.
Speak to one of our friendly real estate specialists today to find out more.