If you’re thinking of selling, it helps to be familiar with the stages involved.
From preparing your home to settlement, here are 12 key steps of selling.
1. Prepare your home
If you’re contemplating selling your home, the first thing to tick off the list is carrying out any maintenance or housework to ensure it is in the best condition possible.
This is the time when you should get around to re-painting that rumpus room, cleaning out the garage, mowing the lawn and cleaning the pool.
Making upgrades to kitchens or bathrooms can also add appeal and value to prospective buyers.
2. Decide when you want to sell
Deciding when to sell is an important step as season, time of year and housing market conditions have an impact on the sell-ability and degree of interest in your home.
Keep an eye on the housing market, auction clearance rates and house prices in your areas and surrounding areas. These indicators are helpful in determining how selling your property will fare at a particular time.
3. Get a property appraisal and choose and agent
Once your home is spick and span it’s time to get your property appraised, to get an estimate of the selling price and more information from an agent.
In an appraisal an agent will prepare an individualised report for your home and set out a plan for marketing and the sale.
They can also help you evaluate the best time to sell, if you’re uncertain.
4. Decide how you want to sell
Your agent will prepare options and advise of the best method to sell, considering your home, the local area, how properties in that area sell and current market interest. Common methods are often via auction or by private treaty.
5. Set a selling price
Your agent will research the local area, its trends and will look at similar house prices in the area, called ‘comparables.’ They will advise you on the appropriate selling price and present you with an individualised property report, detailing the comparative houses.
6. Review agreement with agent
The agency agreement is a legally binding contract and will detail any commissions, the estimated sale price duration of the agreement, advertising costs, process and much more. You should review the agreement with the agent.
Make sure you read it carefully and ask any questions and seek clarification if you are unsure.
7. Prepare section 32 statement
A section 32 vendor statement is important as it lists all important disclosures of the property and details information prospective purchasers will need.
Your conveyancer or solicitor will prepare the section 32 statement and a contract of sale.
8. Market your property
Your agent will help lead your marketing campaign – tailored to suit your budget and individualised needs. A marketing campaign will typically involve professional photos, drawing up your property’s floor plan, online marketing, a board at the front of your home, printed marketing material and letterbox dropping. This stage is important to ensure your property is displayed as widely as possible and reaches the largest number of prospective purchasers as possible.
3D virtual tours are also extremely useful in showcasing your home online during COVID-19 restrictions, when buyers are unable to inspect the property in person.
9. Go to market
At this stage, agents would typically organise open for inspections or private viewings.
However, during the current climate, opens are dependent on the current government restrictions in place.
During stage two, open for inspections can continue with a limited number of people. In stage three, only private inspections are permitted with a maximum of one potential buyer and one agent. In stage four, no physical inspections are permitted. In this stage, online marketing and 3D imaging software is imperative to virtually step serious buyers through your home.
10. Sell, be patient
For auctions, your real estate agent will maintain a list of interested parties, communicate with you the level of support, maintain contact with interested parties to garner interest and encourage their purchase of the property.
Your agent will then auction your property. During current COVID-19 restrictions, auctions are permitted to be auctioned online.
For private sales, once there are interested parties, prospective purchasers will offer a price to buy your property. Your real estate agent will negotiate with them to obtain the best price for you. The purchaser will sign the contract and pay the deposit and the contract of sale will usually include a ‘subject to finance’ clause.
11. Under contract (for private sales)
Once the contract is signed and deposit paid, the vendor’s and purchaser’s lawyers and banks will determine the details of the sale.
The purchaser will seek finance and if approved, the bank will loan any outstanding amount of the purchase price.
Settlement is usually 60 days, but can be longer or days, upon negotiation between the parties. On settlement day, the vendor hands over the keys and all their legal rights and entitlements to the property, in exchange for the outstanding balance of the purchase price from the buyer or their bank.