CHOOSING AN AGENT?

When selecting an agent, there are a few very important things to consider:

  • Experience - Go to a professional who has years of experience in real estate to have a seamless selling process and a great chance of securing the best price. There are far too many agents jumping in and out of the industry, an agent with years of sales experience will be able to give you the best advice on preparing your property for sale and negotiate you the best selling price.

  • Local Experience - Someone with years of experience of selling within your area is also very important. They will know the market and may have many potential buyers already in their database, creating competition between buyers will be a winning formula for you..

  • Commission - Don't choose the agent with the lowest commission and quotes the highest price. They may be cheap but are they the best? Where you may save $1,000 - $2,000 on commission, you may lose out on $10 000 - $30,000 or more from the sale of your property. An agent who cannot negotiate firmly with their commission will not be able to negotiate firmly with the price of your house.

  • Strong Sales History – Find an agent who has sold a many properties like yours in your area. They will likely know buyers that are motivated to purchase and after a similar property.

  • Marketing – It is important to find an agent who has a strong marketing plan. Spending a little more on quality marketing gives you much greater exposure, in turn giving you more buyers, competition and the maximum sale price.


WHAT ARE THE COSTS TO SELL MY HOME?

Associated costs and fees can vary depending on the type of property, what needs to be undertaken to present the property at its best and the agent negotiation the sale itself. Your agent can give you an estimate of the costs that will be associated with your sale. Some of these costs may include
  • Preparing your property for sale, presentation is crucial to achieving the best price.

  • Marketing fees to attract buyer to your property

  • Selling commission fee for the agent to secure an unconditional Contract of Sale

  • Conveyancer/Solicitor fee to produce a Contract of Sale & Vendors Statement (Section32) and settlement of the property.

  • Lender fees


WHAT IS THE PROCESS TO SELL MY PROPERTY?

  1. Appraisal to review recent sales and what properties are on the market that maybe in competition with your property.

  2. Develop a sales plan, timeline and preparation

  3. Make any repairs, final touches or upgrades to the property

  4. Market the property thoroughly to maximise exposure to the buying public

  5. Conduct open house inspections to the buying public

  6. Secure buyers to negotiate with

  7. Close the sale

  8. Settlement of the property


HOW WILL BUYERS BE ATTRACTED TO MY PROPERTY?

Your agent will prepare a marketing plan for you; this is something that comes from experience. The plan will be the best way to attract potential buyers and may include the following:
  • For Sale sign on the property

  • Office shopfront and agency sales list

  • Internet advertising (including listing it on the agents website)

  • Open House inspections

  • Local Database broadcast to active buyers

  • Newspaper Advertising

  • and much more

WHAT FACTORS IMPACT THE PRICE OF MY HOME

Here are some factors to consider in receiving the highest price for your property…
  • What is the current real estate market climate eg. buyers market, sellers market or level market

  • The knowledge and experience of your real estate agent, this will have a larger impact on the sale price than you may think

  • The property itself, such as the size of the land and home, the condition, landscaping, the quality of the interior and floorplan

  • Other factors to consider include location, school zones, special amenities and future growth of the area

  • Recent sales of comparable houses in the area

  • A tried and tested marketing plan

  • The buyers and vendors level of motivation


HOW DO I NEGOTIATE?

To begin the negotiating process, you need interested buyers. The best approach is to price a home just within the market value range with a small percentage on top. This allows room for negotiations, without sacrificing exposure and losing buyers to other properties.

Through competition the best price is achieved, competition is strongest in the first month on the market. Overpriced properties are hard to sell, there is no competition after 3-4 months on the market. With good competition in the first 30 days it is easier to negotiate the price up and even beyond the advertised price.

WHAT ARE THE DANGERS IF I OVERPRICE?

Potential buyers can be excited and very interested when they first visit a property; being overpriced will mostly scare them away from making a good offer. The owner will see a good offer as a low offer. The number of buyers that see the property is reduced, so the likelihood of an acceptable offer in the first 30 days is also dramatically reduced.

This results in more open houses, more time and effort from the owner to prepare the house for sale and maintain the high level of presentation. Eventually there will have to be a price reduction on the property, it may already be too late to get those once excited candidates back to make an offer as they may have already bought.

A buyer will undertake research for 2-3 months before making offers on any properties, if they see a property on the market for 2-4 months, after a price reduction they may get interested, with the likelihood of no competition the buyers will offer a further lower price, they will negotiate hard to secure a price below the price range.

It is always best to be negotiating with buyers in the first 30 days when they are emotional about the property and do not want to lose the property to someone else. Compared this to selling in month 3 or 4 where buyers are going to be bargain hunting.

When a home is priced too high for the market, it may:

  • Attract lookers and market browsers, not legitimate buyers

  • Imply you aren't motivated to sell

  • Reduce the number of inspections to motivate cashed up buyers

  • Help sell competitive listings look better value

  • Cause financing issues for the seller and buyer if the property doesn't appraise at the higher price

  • Ultimately force you to drop the price below market value in order to sell

WHAT IS THE BEST APPROACH TO PRICING MY HOME?

The best approach to pricing your home is within the market value. This will help selling the property within a reasonable time without having to reduce the price and overexposing it on the market.

There are properties that sell above the market and properties that sell below the market, the outcome is determined by the presentation of the property, negotiating with motivated/bargain hunting buyers, pricing the property correctly when the property is first listed for sale and having an experienced agent managing the process for you.

It is important to not fall into the trap of choosing the agent with the lowest commission and quotes the highest price. The net money in your pocket should be the focus and selecting the right agent can mean an extra $10,000 to $30,000 in your pocket for a property around the median house price.

WHAT IS MY ROLE IN THE SELLING PROCESS?

Although a good agent will take care of listing the property and the selling process, your role is still very important to help facilitate a smooth transaction. Here are some ways your participation can contribute to a successful sale:
  • Maintain the property at its best, the presentation of the property is crucial to achieving the highest price

  • Ensure the property is easily accessible for open for inspections, competition is created in a short timeframe

  • Be open in communications with the agent, listen to any constructive feedback and offers from the buyers

  • Remove or lock up valuables

  • Secure pets preferably in another location

  • Limit conversations with buyers about price and let the agent negotiate the best outcome