Selling your home is a big decision that requires a great deal of thought and research. There are essentially three basic parts Preparing for the sale, making the sale and after the sale. We have gone into some further detail for you to assist in that decision.
Preparing Your Home
We always seem to remember first impressions. If your home looks fresh and well maintained outside and in, then prospective purchasers will be impressed from the start. Your Ray White sales consultant can assist you with your presentation options including recommending an expert stylist. Also see Presenting your Home Check List..
Deciding on The Right Price and Pricing Strategy
Getting the best possible price for your home and selling it sooner rather than later is no doubt the result you want. But no matter which selling strategy you use (auction or private treaty) you will need to discuss both your pricing strategy (marketing with or without a price) and your price expectations. These decisions will be based upon your individual circumstances including property type as well as your timeframe. The price should be based on the market rather than your needs. Here are some points to consider:
Which Way To Sell? Auction Or Private Treaty?
It is important to note that there is no single best way to sell your home. Each home and owner is different and each situation should be considered individually.
Ask your agent to compare the success of each method in your area for properties similar to yours. There is likely to be a trend for one of them and you may achieve greater success by choosing it. In brief here is how the two methods work:
Private Treaty
Your home goes onto the market with a predetermined asking price. There is no official sale date and your marketing strategy may vary depending on your individual situation, budget and timeframe. Potential buyers will either accept the asking price or, more likely, start by making a lower offer. It is in your best interests to have your agent handle the negotiations which will be aimed at raising the offered amount to your asking price.
This method of sale is effective in the long term and targets buyers looking in a specific price range, or concerned about overspending in a competitive auction atmosphere.
Some considerations about this method include:
Auction
Auctions are highly focussed marketing campaigns designed to expose your property to the maximum number of buyers, maximise your sale price and minimise the number of days your home is on the market. Your home is put up for sale to the highest bidder on a specified date and this is preceded by an intensive marketing campaign including selected “open days”.
The impending auction date creates a sense of urgency amongst buyers by putting a clear timeframe on your campaign. This method of sale also creates a competitive atmosphere on auction day that is aimed at letting the market determine the highest price for your home.
Making The Sale – The Marketing Plan
The marketing plan will be designed to achieve specific goals. It will generate awareness in the market that your property is for sale. It will attract inquiries about your property. It will be targeted to our database of prospective purchasers and other potential buyers in the area. Depending on the method of sale and your budget it may use a variety of tools such as display advertising, internet websites, signboard, direct mail and letterbox drops. Your Ray White sales consultant will recommend the best marketing plan for both the property and your budget.
Open Days And Inspections
Open days and inspections serve well in a competitive market to maximise viewings and reduce the stress and inconvenience to you as the homeowner. Prospective buyers like the convenience and pressure-free environment of open homes. Some final touches to your home on open days will help create a welcoming atmosphere. (see Presenting your Home Check List)
Dealing With Offers – Private Treaty
It is most important that your agent conducts all negotiations on your behalf. Offers will be discussed with you in detail so that you can decide if all the details such as price, settlement date and finance are satisfactory. Important points to remember are:
You are not obliged to accept any offer even if it is at the advertised price (although this is unusual).
If you accept a verbal offer, any holding deposit paid to the agent is fully refundable if the buyer changes their mind.
Conversely, the same buyer cannot hold you to the offer made if you decide to sign contracts with another buyer.
The agreed deposit (usually 10% of the purchase price) is held in the agent’s Trust Account as stakeholder.
In Victoria a three day cooling off period can apply in which the buyer may withdraw from the contract forfeiting only a small penalty payment.
Auction
Unless you have accepted an offer before the day of the auction, it will be on that day that your sale is most likely to be made, although some sales do occur after the auction and within the auction agency period.
Based on buyer feedback, the state of the market and other factors, your agent will assist you with setting a realistic reserve price for the auction.
Don’t be too disappointed if the property fails to sell on the day “under the hammer”. Many sales take place immediately following the auction or within the auction agency period. Important points to note are:
You are entitled to have a bid or bids made on your behalf during the auction. This can be useful to either open the bidding or to end it. This is to protect you and ensure realistic bidding.
Your reserve price protects you from underselling your property.
If your property is sold at auction it is on your terms and conditions. However, the terms and conditions can be negotiated by the purchaser following the auction if the property is passed in.
If your property sells at auction, the deposit is paid and contracts signed on the spot. There is no cooling off period.
After The Sale – Settlement Period
The deposit paid by the purchaser will generally be placed either in the agent’s Trust Account pending settlement. In most cases, settlement is between 30-60 days from the date of exchange. When all the formalities have been completed, the settlement amount will be accounted to you, according to your instructions. Stamp duty is paid by the purchaser.
YOUR HOME IS NOW SOLD. CONGRATULATIONS!