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Selling Real Estate
SELLING
There are some important decisions that need to be made and steps to follow
when selling probably a person's most valuable asset - their home or real
estate investment. Below is a list of steps to consider and decisions that will
need to be made:
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Choose your agent
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How will you sell?
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Decide what's for sale?
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Prepare the contract
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Choose your method of sale
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Set the price
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Prepare your property
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Negotiating and accepting offers
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Settlement
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Make the big move
Choosing an Agent
You will probably never sell anything more valuable than your home. While you
may be tempted to save some money and go it alone, the best advice you can take
is to seek the help of an expert. That means finding an agent you can trust to
give you good advice and act in your best interests. The value of obtaining a
realistic price, using the most efficient method of sale and selling your home
sooner will far outweigh the cost of employing a professional. So, what can you
expect an agent to do? In essence, they will:
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Provide a realistic market appraisal
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Advise on the best method of sale
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Decide on the most effective advertising and promotion for your property
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Implement that advertising and promotion
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Advise on the presentation of your home to the public
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Bring the property before as many potential purchasers as possible
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Protect your security by accompanying only genuine purchasers into your home
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Present all offers
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Negotiate the best price with the purchaser
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Ensure all requirements in the official sale of your home are fulfilled
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Be involved in the exchange and settlement as required
What should you look for when choosing an agent? You should
seek advice from at least three different agents. You want to know:
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How much they anticipate you would get for your home
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How much it will cost you to secure their services, and what specifically is
included in that cost
Each agent will provide a quote on their commission fee and
charges to sell your home. Don't automatically choose the agent who quotes the
lowest commission fee and the highest selling price. Ask for the valuation to
be substantiated. What prices have similar properties recently been sold for?
Find out exactly what charges are involved and what your commission fee covers.
Usually it should cover the agent's time to promote and sell the house, the
cost of advertising and promotion and the administrative costs of the sale, but
get specifics. Open houses, for example, can be the most effective method of
promoting your home but they're also expensive for the agent. So find out what
forms of promotion you'll be getting-newspaper advertising, letterbox drops,
open houses-and why your agent has selected these methods. Remember, like most
things in life - you get what you pay for. Choosing an agent purely on the fee
that is charged may get you minimal service that jeopardizes your opportunity
of getting a sale "in the quickest possible time and at the highest possible
price".
Types Of Agreements - Choosing the Best Method of Sale
Once you've chosen your agent you'll need to sign an agency agreement.
There are a number of options to choose from when deciding how to sell your
property. Local conditions, general market trends and the nature of your
property will all influence the decision and your agent can explain each
option.
Exclusive Agency Agreement
Under an exclusive agency agreement you appoint one real estate agent to
undertake the sale of your house. The benefit is you get to build rapport with,
and only deal with, one person who is concentrating their efforts on selling
your property. This type of agreement can cover both the auction and private
treaty methods of sale.
General Listing/Open Agency Agreement
Through general listing you contact a number of agents and agree for them to
list your home on their books. You only pay the commission to the agent who
finds the purchaser and secures the deposit. While this may sound like a good
way to get extended coverage and more service, in actual fact it can be the
opposite. Open listings are not given the same level of time and effort as
exclusive agency agreements. You could end up paying duplicated advertising
fees. From a buyers point of view, more than one 'For Sale' sign on your
property gives the impression you're desperate to sell. Basically, it's better
to be one agent's top priority than the lowest priority of four agencies.
The best way to get the personal service of an exclusive agency agreement but
the comprehensive coverage of numerous agencies is to multiple list your
property.
Multiple listing
When choosing to multilist you deal exclusively with one agent who is part of a
whole network of agents working together to sell your home.
EAC is the largest such multiple listing agency in NSW with 2, 500
representatives throughout the State. The benefits for vendors choosing to
multilist with an EAC agent are many:
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Your property details are automatically distributed to all EAC agents in your
area
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Extensive coverage-through Realtor. Properties listed with EAC agents are
eligible for display in the home buyers 'bible'-the Realtor magazine. This
magazine is distributed throughout Sydney and regional NSW on a weekly basis.
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Extensive coverage-through the internet. Potentially millions of people around
the world would see your property when it is listed on the EAC website -
www.eac.com.au.
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Professional and Personal Service: EAC agents are subject to a code of conduct
ensuring every rule and regulation is adhered to. While we're a large
organisation, after nearly forty years in multilisting we know that the most
important thing remains personal service.
Inclusions and Exclusions - What Is to be included in the
sale?
You need to determine what removable fittings and fixtures are to be included
in the sale of your property. Exclusions need to be written into the contract.
Walk through your home and consider whether you want to sell such things as the
floor coverings, ceiling fans, white goods, heaters, water purifier, air
conditioners, alarm system, light fittings, television aerial, outside awnings,
clothes line and above ground pool.
Preparation of the Contract
A copy of the proposed contract for sale is required before an agent can market
a residential property. You will have to instruct your solicitor/conveyancer to
prepare this and to send a copy to your agent. A planning certificate from the
local council must be attached to the contract and you may be able to speed
things along if you get this certificate.
Ask your solicitor/conveyancer.
Which Method of Sale?
The aim of the agent is to obtain your asking price in the shortest possible
time. To do so you have the option of selling your home through private
treaty or by auction.
Private treaty simply means you set a price and market the house accordingly
until it's sold. With auction, you set a reserve price, the minimum you are
willing to accept, and buyers bid against one another at a set time and place.
Once bidding passes your reserve you know you have an unconditional sale with a
full deposit paid and exchange of contracts taking place on the day. Your agent
will advise the best time of day and whether the auction should take place on
or off-site. Generally auctions work best for houses which are difficult to put
a price on because of a particular desirable feature.
Whether auction or private treaty your agent will know the best methods of
promotion for your property, whether that's an open house (where your property
is advertised as open for inspection at preset times), newspaper advertising or
a letterbox drop.
Auction
Some of the advantages of selling your property at auction include:
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Competitive bidding, which means there is no price barrier. This makes an
auction especially good for unusual or desirable properties which are difficult
to put a price on.
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a definite sale made under the hammer, assuming the reserve price is reached
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controlled open house inspections
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maximum exposure for maximum market impact
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protection for trustees, executors and mortgagees
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a set date of sale encourages potential buyers to act quickly
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identifies most likely buyer to negotiate with, if not sold on fall of the
hammer
Setting the Price
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Your agent will establish a realistic price for your property based on:
the property location, age, size, features
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market variables such as interest rates, property availability and buyer demand
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the sale prices of similar properties within your area. It's important the
price you set for your property is realistic. If it's too high you'll put off
potential purchasers. You'll need to rely heavily on your agent's knowledge to
set a realistic price and on their negotiation skills to obtain the best
possible price.
Preparing the Property
Whether potential buyers will be seeing your home through individual
inspections or 'open house' your property needs to be prepared. First
impressions count so make sure the outside of your property looks inviting.
Fresh paint, clean and tidy paths and sparkling windows make all the
difference. Nothing improves atmosphere more than brightness, so let plenty of
light into your home. Open drapes and switch on lights if it's a dull day. You
want your home to feel comfortable so if it's cold, heat the rooms. If you've
got an open fire, light it. Alternatively in summer turn on the air conditioner
or let a cool breeze blow through a window. Take the time to fix those niggly
problems you never get around to-dripping taps, broken tiles, loose knobs,
cracked window panes, sticking doors and the squeaky gate. Have your carpets
professionally steam cleaned. Bathrooms and kitchen are often the most
influential rooms so make sure they're fresh, clean and tidy. And don't forget
the garage. Does it need a coat of paint or a major clean out?
Should you stay at home during inspections? It's often preferable that you
don't. Nothing personal but buyers tend to feel less like intruders when owners
aren't around, besides, you can trust your agent to best emphasise the features
of your home. If you do decide to stay, remove distractions by turning off the
television and radio and keeping pets and children well out of the way. Be
courteous but don't force conversation on potential buyers and don't apologise
for the appearance or condition of your home. Leave the negotiations to your
agent and certainly don't ever allow an inspection to take place without your
agent.
Negotiating and Accepting an Offer
Your agent should handle all negotiations and if you're approached directly you
should politely direct the purchaser to your agent. Any offers will be
presented to you by your agent. You can either accept the offer or counter it
with a price acceptable to you. Your agent will advise you on whether the offer
is acceptable, taking into consideration price, suitability of the deposit,
ability of buyer to pay, terms of finance and the settlement date.
Settlement
Once you and the buyer have agreed on a price, the contract can be signed and a
10% deposit paid and held in trust by your agent. Until signed copies of the
contract are exchanged neither the buyer nor the seller are legally bound to
the transaction. Purchasers in NSW are subject to a cooling off period (usually
five working days). If you are selling and buying at the same time you might
need a requirement that the buyer forgo the cooling off period rights. Your
agent can advise you on this. The buyer also has rights to carry out
professional inspections such as pest or building inspections.
Your solicitor or conveyancer will handle the transfer once the contract is
signed. Transfer includes the arrangements for the balance of the purchase
price to be paid either directly to you or into your bank account. Agents
normally deduct their commission fee from the deposit after settlement and
forward the balance to you. The property remains legally your responsibility
until settlement day when the keys are handed over and the purchaser takes
ownership.
Making the Move
If you're moving to a new home after selling your house you've still got a big
job ahead of you. This is best tackled with plenty of planning and preparation
and some very detailed lists. As soon as possible before moving, start
organising:
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Removalists-Obtain quotes from three removalists. Discuss costs, insurance,
packing, loading, delivery and claims procedures. Book the one that best suits
your needs.
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Do it Yourself Removal-If you're moving yourself, get quotes from truck rental
companies and book a vehicle in advance. You'll need to work out how many cubic
feet of non-boxable and boxable possessions you need to move so you know what
size truck to book. Don't book open trucks, it's bound to rain. Source boxes as
well. Often truck rental companies can help here. Possessions-make an inventory
of all your possessions. Is it time for a garage sale or a trip to the Salvos?
Do you need to organise storage? If so, source quotes
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Floor plan-Draw a floor plan of your new house and start deciding where
furniture will go. If you're packing yourself, box everything by room and label
the boxes accordingly.
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Services-Make a list of all the services to be affected by your move. Which
ones will you no longer use, which ones just need to know change of address?
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On moving day, it's good to have some things close at hand, so pack these to be
carried with you:
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Scissors
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Utility knife
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Masking tape
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Tea & coffee making facilities (including the kettle)
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Toilet paper
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Soap and toiletries
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Bath towels
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Garbage bags
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Pencils and paper
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Local phone book
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Cleaning products
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Kids' toys
Kids and Pets And Moving
Moving house isn't just stressful for you; it's a major disruption for children
and pets as well. With a little sensitive planning this disruption can be
minimised.
Prepare your children for the move, talk to them about where you're going and
why and let them talk about how they feel. Try to avoid changing the children's
routine too much. Involve young children in the move. They can pack at least
one of their own boxes and unpack when you arrive. Perhaps the children can
make the labels or some other important task. When you arrive, organise the
children's rooms as soon as possible so they are surrounded with familiar
objects.
Older children will need help saying goodbye to friends and encouraged about
the prospect of making new friends. Involve them in the move completely and let
them know their help is appreciated.
Pets will be disorientated when you move, so it's best to keep them inside for
a few days. Keep an eye on them when they're outside and give them lots of
attention.
Just think, according to the statistics, you'll be doing this all again in 7.2
years time!
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