Selling your home is obviously one of the most import transactions you’ll ever make, and it’s usually only something you do a few times in your lifetime. With this in mind, we have created a summary below covering the complete process of selling your home and the details you should consider.
Choosing the right real estate agency and agent to work with you is a highly important part of the selling process. Sellers often wrongly presume that all real estate agents and agencies are the same. Your chosen agent can be the difference between a poor or great sale price, and an easy or hard sales experience.
Many sellers unfortunately choose their real estate agent on the basis of who gives them the highest estimated selling price with the lowest commission. Understandably, sellers want to get the highest end result; however, choosing an agent on these factors alone is near-sighted.
Some agents will overprice your property to get your business. This inflated price means that when your property is “on the market” you are targeting the wrong buyers! This can leave you in a position with no buyers and a predicament where you need to sell quickly at less-than-market value.
Before choosing an agent, you should do your homework, ask people who have recently sold, observe online and print marketing, and general activity in the area. From this you will be able to select some agents for a Market Appraisal.
The duties of your agency's selling consultant are to:
In choosing a real estate agency you should look into the following:
You'll need to decide on the type of agreement with your agency for selling your property. There are 5 methods:
The most common strategies for selling your property include:
One of the most important decisions you'll make in selling your property is deciding on its "asking price", or "reserve" if selling at auction. Your published "asking price" will be considered as the highest point for negotiations by buyers. Your accepted price will likely be lower than the "asking price".
It's important to set a price that reflects the full market value of your property, yet is realistic and remains attractive to buyers. To determine how much your property is worth, you must take into account:
The real estate market is always moving. No sales consultant can tell you exactly what price your property will achieve. To gain an estimate of what your property is worth, your sales consultant should show you the latest sales results and compare your property using comparative market analysis. This will help you establish a realistic price that will attract buyers.
You need to decide what you are selling with the property, or whether you want items excluded from the sale.
To acquire a market opinion, a real estate selling consultant will inspect your property and offer an estimate based on a working knowledge of the local property market and recent sales prices. There is no obligation to employ the selling consultant. Many people obtain more than one market opinion.
You should be given a quote to sell your property, detailing a predicted selling price and the agency's fee. Be wary of consultants that offer to sell your property for a higher-than-market price. Unfortunately some consultants overprice properties to get your business, and then can't sell the property. Make sure you get the consultant to go over the comparable sales data to arrive at the predicted price for your property. Also ask your consultant for a complete list of what they'll do in the process of selling your property. You will soon see that the agent with the lowest commission fee is not necessarily the wisest economic option in selling your property.
If you're still unsure of your property's worth after speaking to some real estate agencies, you should employ an independent and registered valuer.
When selling your property, an aggressive yet effective advertising and marketing campaign will ensure more inspections, more offers, and a maximum result in the shortest amount of time. Your sales consultant should organise a complete campaign plan to get the right buyers viewing your property.
Advertising and marketing campaign options should include:
You should get your property ready for inspection days. You should consider appealing to your potential buyers' senses of sight, sound, touch and smell in preparation for inspection days.
While the inspection is being conducted it is best for you as the vendor to go out and see a movie or take the dog for a long walk. Buyers will not be comfortable giving honest feedback in your presence, and your chosen sales consultant should know how to run the inspection.
Your chosen sales consultant should be thoroughly skilled and trained in the art of negotiation, working in your best interest at all times. The sales consultant should be working to get the price planned for your property.
Once the price has been agreed, the contracts signed and deposit paid, the "cooling-off" period will commence. The "cooling-off" period is an entitlement by the purchaser of exclusivity to your property for a period of 5 business days. The 5-day period allows the purchaser to carry out all inspections, while retaining the right to withdraw from the contract. If the purchaser withdraws from the contract, prior to the expiration of the 5-day "cooling-off" period, the penalty is 0.25 percent of the selling price (taken from the deposit), which will then become payable to you.
By entering into this "cooling-off" period, you are offering an unconditional commitment to the purchaser to sell under the agreed terms and conditions of the signed contract. Contracts can also be exchanged by way of an "Unconditional Exchange" - this is signed by the purchaser's solicitor, which waives the "cooling-off" rights under the contract.
The period of time between exchange of contracts and the completion of the sale is commonly 42 days (6 weeks). Within these 6 weeks you will be required to sign legal papers with your solicitor/ conveyancer to facilitate the transfer of property title and to organise the disbursement of funds.
The payment of your Real Estate Agent's fee is the final step in settlement.