First Time Sellers FAQ

First time sellers

FAQ’s

Answers to your frequently asked questions all in one guide

Table of First time sellers Contents FAQ’s

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When is the best time to sell my property?

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Why should I choose a LJ Hooker agent to sell my property?

What are the steps to selling a property?

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What is happening in the real estate market now?

What is a sales agency agreement?

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What is a property appraisal?

What is a property valuation?

LJ Hooker ebook: First time sellers FAQ’s

How much is my home worth?

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What is the difference between an appraisal and a valuation?

Why is it important to get the price right?

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How should I price my home?

What is real estate agents commission?

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How long does the listing agreement last?

What is the best way to market my property?

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What are the common costs when selling a home?

What interview questions should I ask a real estate agent?

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When is the best time to sell my property?

Property sells all year round and there is no ‘best time to sell’. The right time depends on a huge variety of factors including the property itself, the surroundings and neighbourhood you live in, economic factors, market conditions and your personal situation.

Many people opt to sell their place in the warmer months when the garden is blooming and everything looks great, but there are also advantages to selling your property during the quieter periods such as in winter. With fewer properties on the market you often attract more interested buyers which can result in a quicker sale. Each local market is different and it is important to find out what is happening. Talk to your local LJ Hooker agent and ask for a local market report and their insights into what you should do and when you should sell your property.

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LJ Hooker ebook: First time sellers FAQ’s

Why should I choose an LJ Hooker agent to sell my property?

• LJ Hooker is the strongest name in real estate - voted Best Network of the Year 2015, 2014, 2013 at the national REB awards.

• LJ Hooker has the strongest digital presence in Australia and won the prestigious Digital Presence of the Year Award in 2016 and at 2017 at the national REB awards. We ensure your property reaches more buyers than any other real estate group.

• LJ Hooker has had 89 years selling property and sells a property every 3 minutes.

• You’ll reach an extra 2.5 million buyers with our complimentary online listing system.

• Receive 20,000 Qantas Frequent Flyer* points when you sell your property with LJ Hooker.

What are the steps to selling a property?

• • • • • • • • • • • •

Declutter and prepare your home Get a market update Choose an agent Pick a sale method Set a selling price (if selling by private treaty) Review and sign the agency agreement Market your property Contract of sale prepared Open for inspections Sale negotiated or property goes to auction Contracts are signed Property settles

*This is a once only, per property points allocation, with points being credited upon successful settlement of the property. The offer does not apply if the property is also listed with another agent other than LJ Hooker. To redeem points the name on the agency agreement must match the name on the Qantas Frequent Flyer membership card. If the name does not match then the points will not be transferred. The number of Qantas Points the vendor is entitled to must also be clearly stated on the agency agreement at the time of listing. If the number of Qantas Points are not agreed at the time of listing, Qantas Points will not be awarded.

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What is happening in the real estate market now?

Each market across Australia varies as do individual suburbs and even streets. Some areas are in a buyer’s market cycle while others are in a seller’s market. Your local LJ Hooker real estate agent is the best person to talk to about the local market. They can provide you with a local market report, an overview of what is selling and has sold in the area and a look at how the national economic trends are impacting your local area. As they live and breathe real estate in your neighbourhood, they are a great resource of local real estate information.

What is a sales agency agreement?

A sales agency agreement is a legally binding contract that includes all the necessary details for the salesperson to sell your property. It will include the property details, full name of the vendor and real estate agent, the agent’s registration number, agents genuine estimate of the selling price of the property, the selling price being sought, method of sale, duration of the agreement, rights of the vendor to terminate the agreement, commission to be paid to the agent if /when the property sells, inclusions and exclusions of the sale and signatures of both the real estate agent and the vendor.

How much is my home worth?

Your home’s value depends on a number of things; the land value, home improvements and renovations, location, real estate market, recent sales of similar properties and property characteristics. Your LJ Hooker agent, with their local market knowledge are the best people to ask about how much your home is worth.

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LJ Hooker ebook: First time sellers FAQ’s

What is a property appraisal?

Property appraisals are given by licensed real estate agents. Real estate agents specialize in answering the ‘how much is my home worth’ question and they do it by running a comparative market analysis which involves finding similar properties that sold within the last 90 days. The closer they are able to match your property to others sold in the area, the more accurate the appraisal will be. Agents also consider current competition, wider market trends, the properties structure and condition. Property appraisals are an excellent way of understanding your properties potential market value at that point in time.

What is a property valuation?

A property valuation is a calculated figure conducted by a qualified valuer and is often required when a definitive value is needed, such as in the case of a bank or home loan lender or when establishing the value of a deceased estate. It will cost money to get. Valuing is a complex task and will take into account – the location of the property, features of the home, building structure and condition, local council zoning, caveats and encumbrances on the property and any building faults. Property valuations are normally on the lower side and don’t take into consideration the emotion of a buyer – what they would be willing to pay if they fall in love with your property.

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What is the difference between property appraisal and property valuation?

A professional valuer may provide you with a figure that does not reflect or represent an individual’s interest in the home and is merely based on market analysis. This could mean a lower value figure, which could lead you to underprice the home.

However, an agent appraisal is informal and can differ between real estate agents. The figure an agent provides will reflect how much they think will be obtained if you list with them.

Why is it important to get the price right?

Price your home too high and it may end up staying on the market for a long period of time. In many cases, if a property stays on the market for more than 60 days it can get stigmatized. Buyers may start to think – what is wrong with the property which may force the vendor to reduce the price considerably to sell it.

But pricing your property below market value in an attempt to create interest and generate multiple bids, is firstly illegal in some states, but may also result in buyers assuming your home is only worth its listing price and therefore you don’t achieve the price you want.

The best plan is to know how much your home is worth and talk extensively to your agent during your marketing campaign.

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LJ Hooker ebook: First time sellers FAQ’s

How should I price my home?

Your real estate agent is the best person to advise you as to how you should price your property. If you are selling by private treaty, carefully consider the property appraisal the agent has given you, review local market reports and any recent sales of similar properties. Talking to your agent about this is key.

If you are selling via auction, make sure you communicate with your agent regularly throughout the marketing campaign. They will be able to gauge the market over the duration of the sales campaign. The open for inspections, number of contracts out and the price point the market believes your property to be at, will help you set your reserve price before auction day.

What is a real estate agents commission?

Commission is the fee paid to a real estate agent for selling your property.

This is the way they get paid. Commission is the agents reward for a successful result, no sale for you means no commission paid to the agent.

The agency agreement will detail the percentage of commission to be paid to the real estate agent if your property sells.

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How long does the listing agreement last?

A normal agreement between a vendor and a real estate agent is 90 days.

What is the best way to market my property?

Promoting your property is an essential part of achieving a successful sale.

LJ Hooker are experts at marketing properties to achieve outstanding sales results. Our secret to success is making BEST use of the multitude of tools we have available to showcase your listing and present it to market. When working our your marketing plan with your agent you should consider the following options for best results: • • • • • •

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Professional photos and copywriting to capture your home Signboards for outside your property Advertisements on real estate portals Promote property on the LJ Hooker website Promote property via LJ Hooker’s ‘Property Spotlight’ Promotion via LJ Hooker Boost (LJ Hooker’s industry leading social media advertising program) Promotion on international portals via our automated feedex link Print media advertising Local letter box drops to the neighbourhood Agent database marketing

LJ Hooker ebook: First time sellers FAQ’s

What are the common costs when selling a home?

When selling your home make sure you are aware of the following costs; legal and conveyancing, professional photography of your property, marketing and advertising costs, agent commission, property styling, moving costs, cost for any jobs that need to done to either complete the home or fix issues with the property before you sell, pest and building inspection reports.

What interview questions should I ask a real estate agent?

• • • • • • • • • • •

• • •

How long have you been a real estate agent?

Are you licensed by the relevant state authority?

What has your success rate been?

Which selling method do you most commonly deal with?

Can you provide me with references from past clients you have dealt with?

Can you give me examples of some recent successful sales?

What type of marketing do you use the most for properties?

Can you give me examples of some campaigns you have worked on?

How much does it cost to list with you?

How much are your commission fees?

Which is the best contact method, and when is the best time to get hold of you?

How much do you see my property selling for?

Do you host open inspections?

Will you be working with other agents in your office to sell my home

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We hope you find this eBook valuable.

For more free eBooks visit ljhooker.com.au/ebooks

Disclaimer This eBook does not necessarily reflect the opinion of the publisher.

It is intended to provide general news and information only. The content does not take into account your personal objectives, financial situation or needs.

While every care has been taken to ensure the accuracy of the information it contains, neither the publishers, authors nor their employees, can be held liable for inaccuracies, errors or omission.

Copyright is reserved throughout.

No part of this publication can be reproduced or reprinted without the express permission of the publisher.

All information is current as at publication release and the publishers take no responsibility for any factors that may change thereafter. Readers are advised to contact their financial adviser, broker or accountant before making any investment decisions and should not rely on this eBook as a substitute for professional advice. This information is to be used as a guide only and is subject to change at any time. Š LJ Hooker Corporation Limited 2018