Selling a property can be a daunting process, and if you’ve never done it before its vital that you understand how it all works. There are many decisions to make along the way such as which real-estate agent or vendor advocate to choose, when to sell and what method of sale will work best for your property.
Selling a house can be time sensitive so it’s important to have a plan before you start to avoid delays or extra fees.
There are a few key stages to the process of selling a property which are important to understand. Let’s run through them.
The Stages Of Selling A Property
Research. The first thing you should do after deciding to sell your property is do a search of your local area to see what is for sale and how much it is worth. Finding similar properties will give you an indication of how much your property is worth. It is also a good idea to find the latest auction results in your area.
Valuation. Consider getting a valuation from a property professional. They will give you an accurate estimate based on comparable sales, using data which is not easily accessible by the public.
Find a vendor-advocate. Vendor advocates are the middle-man between you and the real-estate agent. Real-estate agents work for a commission, and have other interests which will not necessarily be in-line with yours. A vendor advocate charges a flat fee and therefore has no incentive to sell quickly or drag out a sale longer than necessary. Having someone who will work in your best interests can save you a lot of money and hassle.
A good marketing strategy includes online and print advertising, brochures and signboards. The more exposure your house gets in the market, the more potential customers you will have to compete for your property. Ensure that you have some good quality photos and videos, and well-written descriptions of your property.
Open homes and auction. Once you have a strategy in place, and you have made sure your house is ready for inspection, you can put it on the market. Most inspections are held on Saturdays, but you can also stage them on weeknights. Buyers will submit offers to your real-estate agent and your vendor advocate will make sure everything is above board and put in writing. Your vendor advocate will also advise you whether it is wise to accept the offer, or wait for a better one. If you are preparing to sell at auction, this will usually happen after your property has been on the market for four weeks.
When you finally accept an offer, your agent will negotiate all the terms between you and the buyer. After 6 weeks, the normal settlement period, your house will be officially sold.
How to get the best price for your home
How you present your home is one of the most important aspect of attracting sellers who will pay a good price. First impressions are integral in the property market. Timing is also important. Here are a few tips to make sure you get the best price and sell at the optimal time.
Know the local market
Your vendor advocate and real-estate agent will be able to update you with current market trends and what method of sale suits your property best. They can give you unique insights about your suburb and what strategy will give result in the best deal.
Getting the timing right
The most amount of property is sold in the autumn and spring months. Winter is generally quieter and very few properties sell between Christmas and February. Although it is generally best to sell when there are plenty of buyers looking, this will also mean there is more competition on the market so having the right strategy when selling is important.
Improve the value of your property
A good agent will also make suggestions on how you can improve your property to add some value. Simple repairs, paint jobs, fixing the garden and tricks like removing furniture from rooms to make them appear larger can all add up to a significant bump in price when you sell.
How much is my property worth?
Finding out how much your property is worth can get complicated, especially if it hasn’t been on the market for a while. A common mistake that many sellers fall prey to is having an unrealistic idea of the value of their property. They may have made some renovations or added a few personal touches, but this won’t always mean a significant increase in value.
This is why it is important to get an accurate valuation, to avoid disappointment and any nasty surprises from low offers.
Get an estimate. com.au and domain.com.au have free valuation tools which can give you a ballpark figure based on recent sales in the area of comparable properties. Be careful though, this is a very rough estimate.
Get a professional valuation. It is highly advisable that you get a professional valuation from an objective source. Valuers have access to data which is not easily accessible to the public so they are well placed to give you an accurate figure. They can also give you advice on things you can do to improve the value of your listing, and any potential issues which may be hampering you from getting the best possible price. Finally, they will provide you with a written report which you can show your agent and potential sellers.
Development potential. Your property may have the potential to be subdivided which will add to its value. If there are restrictions on the number of dwellings that can be built on the block, then a valuer can apply to have these restrictions lifted.
Know the negatives. A valuer will also tell you what the negative aspects of your property are, so you are prepared when potential buyers try to negotiate a lower price. Sometimes you can do things to ratify these problems, but other times you will just have to negotiate well to get the best price.
Appraisal is not a valuation. Real estate agents are likely to offer you a free appraisal of your property, but this is not the same a valuation. Appraisals are simply estimates real-estate agents use to convince you to choose them over other agents. A valuation is professional service performed by a valuer who has extensive experience in the property market, and will charge a flat fee for their services.
What fees are involved in selling a house?
There are a few fees you should be aware of when selling a house. Here are some guidelines on what you should expect to pay.
- Real-estate agent – usually a commission of 2% of the final sale price, but this may vary on the state and the value of the property.
- Solicitors – around $1500 – $2000
- Marketing – no more than 1% of the sale price. Don’t be afraid to negotiate.
- Auctioneer’s fee – around $1000
- Moving costs – $400 – $2000, depending on amount of furniture to be moved and the distance of the new property.
- Staging – $2000 – $4000, depending on the size of the house
- Capital gains tax – varies on the property
- Renovations and repairs – depends on what sort of renovations your property requires.
Remember that everything is negotiable in the property market, so don’t be afraid to shop around and negotiate price and the services you receive for that price.
If you cover all these things, your property selling experience should be relatively pain free, and you can be confident that you are receiving the best price for your property.