The preparation you put into getting your property ready for sale can be the difference between getting a standard price and getting a great price.
The process, or indeed art, of presenting your property for sale is an important one to master. Colonial State Realty offers a tailor-made solution to selling your property. Whatever your motive for selling, you can count on that; ‘Our service is your Success’.
Before you home is officially put on the market there are a number of matters you must cover. There are legal requirements to be satisfied; a marketing plan to be designed that will attract people to your property, and you must prepare your home for sale. Quick links to key sections are provided below.
- Step 1: Obtain a Market Appraisal
- Step 2: Choose an agent
- Step 3: Choose a solicitor
- Step 4: Decide on a method of sale & timing
- Step 5: Agree on appropriate marketing
- Step 6: Decide on a desired list price
- Step 7: Sign an agency agreement with agent
- Step 8: Prepare your property for sale
- Step 9: Prepare your contract of Sale
- Step 10: Arrange for buyers to inspect property
- Step 11: Negotiating and accepting an offer
- Step 12: Sign a Contract of Sale
- Step 13: Settlement and transfer of property
- Step 14: Pay selling fee to the agent.
Step 1: Obtain a Market Appraisal
Colonial State Realty will give a market opinion on inspection of your property, which will provide a true estimate of your property’s value. The market opinion will be based on evidence from various sources such as data sources, recent advertisements, recent sales, sales made by other agents and any valuation from a registered valuer.
You too should also do some research on similar properties in your area. Start by looking at the sold properties prices and be sure to attend local open for inspections and auctions.
Step 2: Choose an Agent
If you are happy with your market appraisal and decide to sell, you should choose an agent to sell your property. Choosing an agent you're comfortable with is an important step towards a successful sale. An agent's level of professionalism and commitment can take the stress out of selling and can impact the sales price.
Step 3: Choose a Solicitor
Choose a solicitor who can conduct all the legal requirements from preparing the contract, managing the exchange and settlement.
If you are looking for a solicitor we can recommend the legal services of Kristofferson Legal Services who have a broad business experience as well as legal and property qualifications. For further information contact Peter Kristofferson on (02) 9557 7559.
Step 4: Decide on Method of Sale and Timing
Speak with your agent and decided on the best way and time to sell your property. When it comes to selling your property, there are two popular methods to choose from:
- Private Treaty – private sale through an agent where you negotiate and agree on a price
- Public Auction - most effective method for properties located in the top 50 suburbs & also allows competitive bidding to increase the final sale price.
Both methods have there own advantages and it is advisable to speak to your agent about the benefits of each. Most auction marketing periods run for about four weeks.
Buyers for properties can be found all year round however depending on your location you may need to decide what is the best season and month to sell. For example if your property is located in one of Sydney's beachside suburbs our research indicates that the spring and summer months produce superior results.
Step 5: Agree on appropriate marketing
Marketing plays a very important role in achieving a successful sale. A carefully planned, well-executed marketing plan will bring the best result. You agent will recommend a marketing campaign that is suitable for your property.
The program will set out a period for promotion, the various media to be used and the cost of the campaign. Each program is carefully prepared to suit each individual property and the agent is responsible for carrying out the campaign, which will generally include advertising, signboard, newspaper editorial, letterbox drop-flyer, internet and real estate websites and finally an open home. Keep in mind that a superior promotion will generate greater exposure and a better result.
Step 6: Decide on a desired list price
One of the most important decisions to be made when selling your property is setting the price. By now you should have developed some knowledge on property prices in your area after conducting the research in step 1, so should be able to decide on a desired list price.
Step 7: Sign an agency agreement with agent
Once terms and arrangements are clear, you will need to sign a contract called an agency agreement which is a legally binding contract that authorises an agent to act on your behalf in relation to the sale of your property.
The agency agreement usually has a specified term and includes an estimate of the selling price, the service the agent will provide and commission you must pay the agent on the sale of your property. It may also include details of advertising and marketing costs. It is very important that you agree on the price set and the agent feels it is realistic. If the price is unrealistically high, enquiry will be limited and your property will not sell.
There are three common agency agreements you may sign with your agent for the sale of your property which include; exclusive agency agreement, open agency agreement or auction agency agreement.
Step 8: Prepare your property for sale
They say in property that location is everything, but when it comes to making a successful sale and maximising your property's value, the name of the game is presentation.
The presentation of your property is critical in creating strong initial interest from potential purchasers and a critical factor in achieving the highest possible price. First impressions are lasting impressions. The emotional appeal required to stir the spirit of the buyers is unlikely to be generated by a poorly presented property. And a neglected building sends out 'warning signals' to prospective buyers and many of these problems can be fixed over a weekend for little expense.
Please review our selling check list for some simple suggestions that will improve the presentation of your property. Your agent will be able to advise you of any specific changes that should be made to your home that could add value or increase the attractiveness of your property.
Step 9: Prepare your contract of Sale
Before a residential property can be sold, a contract of sale must be prepared. The contract of sale must include all documentation relating to the property as required by each State or Territory’s law. The contract must also include any property inclusions and exclusions and the buyer’s cooling-off period. Your agent can explain the required documentation for your property.
Step 10: Arrange for buyers to inspect property
Before the open for inspection you need to decide how many weeks you will hold your real estate open house, e.g. 2 weeks, 3 weeks, etc… You also need to decide what day of the week and time. The agent needs to book your advertising giving date/s, day/s and time/s and have all the sale documentation ready beforehand. Finally, once again review the selling check list to ensure your home is ready to receive visitors.
Step 11: Negotiating and Accepting an Offer
Sale by Private Treaty
Good qualifying skills are vital when negotiating the sale of a property. Your agent has experience in this field and it is important they manage this part of the transaction. If you are approached by a buyer, you should refer them to the agent. Your agent will qualify the buyer and ensure they are in a position to buy immediately. Once the buyer is qualified, your agent will get an offer from the buyer, which you can choose to accept or reject. Your agent can provide advice on whether the offer is fair and should be accepted but ultimately it is up to you.
Sale by Auction
If the sale is by auction, you must advise your agent in writing of a reserve price, which is the lowest amount you are willing to accept for your property. If the bidding does not reach your reserve, the property will be passed in.
If your property is passed in, the agent will negotiate with interested bidders to achieve a sale. If a sale is not achieved your agent will then proceed to seek buyers on a private treaty basis.
If the property is sold at auction the successful bidder is required to sign the contract of sale and pay a deposit (usually 10%) immediately. A cooling-off period does not apply for properties sold at auction.
Step 12: Sign a Contract of Sale
Once you have accepted an offer on your house, a contract of sale must be signed by the buyer and the seller, with a copy of the signed contract provided to both parties.
When the contract is signed by the buyer and the seller, the buyer is required to pay a deposit, which is usually 10% of the purchase price and the remainder is paid at settlement.
Buyers of residential property may have a cooling-off period following the signing by both parties of the contract, during which they can withdraw from the sale. During the cooling-off period it is common for buyers to organise inspections of the property, e.g. pest or building inspections. The cooling-off period can be waived, reduced or extended by negotiation under certain circumstances.
Step 13: Settlement and Transfer of property
Settlement usually takes place between 4-12 weeks after the contracts have been signed. At settlement the buyer officially becomes the owner of the property and all responsibility is passed from the vendor to the buyer. Until settlement the property is still the vendor’s responsibility so it is important you keep insurances and rates are paid.
Step 14: Pay selling fee to the agent
Once the property is settled the agent should be paid the agreed selling fee as per the agency agreement.