Complete Selling Guide

YOUR SUCCESSFUL REAL ESTATE

SELLING GUIDE

When is the best time to sell? Tips to prepare your home for sale.

Understand the different ways to sell your home.

www.ljhooker.com.au

A complete guide to help you make the most out of your property.

Real Estate Selling Guide

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Real Estate Selling Guide

Table of

Real Estate

Contents Selling Guide

05. Pros & Cons of Buying or Selling First

06. When is The Best Time to Sell?

10. Selecting The Right Agent

14. Marketing Your Property for Results

17. Preparing Your Home to Sell

24. It’s Sold, Now What?

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Real Estate Selling Guide

Real Estate Selling Guide

Your Successful Real Estate Selling Guide Selling your home is an exciting and nerve-wracking experience.

There are a number of decisions you’ll need to make, including choosing a method of sale, determining a price and marketing your home.

These can all seem like hard decisions to make, but with an experienced real estate agent by your side, your journey will be a whole lot easier.

This guide contains a wealth of information to help make the decision making process simpler and a lot more transparent to ensure you enter the market with confidence.

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Real Estate Selling Guide

Pros & Cons of Buying or Selling First

Chapter 1

Pros & Cons Of Buying Or Selling First Moving to a new home means you’re going to have to do something about your old one.

But which action will you take? Will you sell it before moving? Or should you jump the gun and secure a new property while still living there? This is the age-old question that owners can spend a significant amount of time thinking over.

Weigh the pros and cons of these options to ensure you pick the best one for you.

pros

cons

Buy First

Sell First

• You will have a home already secured so you won’t stress if your old home sells quickly.

• The proceeds from the sale of your home can be used on your new one.

• May have the ability to use equity in your current loan as a deposit for your new home.

• You will know exactly how much you can spend on your next purchase.

• You can spend as much time as you like shopping around for a new home for sale.

• Time is on your side, so you’ll have the freedom to negotiate deals and offers for a better price.

• You might have to organise bridging finance between the two properties, giving you a time limit. This might limit the time you have to selling your old home.

• If your home sells quickly, you could be left to make a rushed purchase on a new home so you have somewhere to live.

• If your old home sells at a lessthan-desirable price, you may have to fund the difference in costs.

• You might feel pressured by time and accept a lower offer.

pros

con s

• Local property prices could rise in the time between selling and buying a new home.

• You might have to spend more to rent accommodation while between homes.

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Real Estate Selling Guide

When Is The Best Time To Sell?

Chapter 2

When Is The Best Time To Sell?

There has always been a debate about the best time of the year for selling a house.

Some swear by spring, while others claim that autumn is the best season.

Whichever season you pick, your decision may be affected by your personal situation and economic factors.

Spring

Autumn

This is the month for daffodils, lambs and spring cleaning, but it is also a time of positivity in the property market.

Plenty of vendors see this season as a great time to sell up.

By this time of the year, people will have settled back into their daily routines after enjoying the holiday season and will be ready to get on with life - possibly leading to a number of interested people in the market.

Many buyers take the opportunity to buy a house during this season so that it’s all ready and settled by the time Christmas rolls in.

Because it’s a popular time to sell, spring often brings a fierce level of competition from other sellers.

Summer During this season, temperatures are up, the sun is out and gardens are flourishing. These factors can make any property look its best and prompt many buyers to head out and about to attend open inspections.

However, many families, couples and singles head off on holiday over Christmas time, so sales and enquiries can be on the low side.

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Whether it’s setting a new year’s resolution of buying a new home or wanting to get settled before the next school term begins, there are usually buyers out and about.

Winter Most people think winter is a bad time to sell because people won’t want to attend open inspections in horrible weather. It’s a fair enough assumption, but not entirely accurate.

For one, if someone is planning on moving house, a bit of rain isn’t going to stop them. Plus, if these reservations cause some vendors to hold off from selling during these months, there will likely be fewer residential properties on the market at the time - giving your home a better chance.

Real Estate Selling Guide

When Is The Best Time To Sell?

Economic Factors Cash rate reductions can cause buyer confidence levels to rise. More people may think about purchasing property as a result.

Also, if the housing supply has dwindled in your suburb, there could be stronger demand for homes in your area

Market Conditions The current conditions of the market can also have an influence on when you decide to sell.

For instance, a buyer’s market occurs when the supply of homes for sale outweighs the demand. In this situation, you may need to set a correct price and ensure you have a comprehensive marketing strategy in place.

On the other hand, a seller’s market is one where buyer demand exceeds the number of houses for sale. This could lead you to obtain a high sale price, due to competition amongst buyers.

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Real Estate Selling Guide

How Much Is Your Property Worth?

Chapter 3

How Much Is Your Property Worth?

The price of your property may be incredibly influential to buyers; therefore, it’s an extremely important piece of information to get right.

But how do you know how much your property is worth?

Professional Valuation To determine the value of your home, you can get an inspection from a certified and professional valuer.

Valuations will cost money, are performed by professional, independent valuers, which means they are not associated with any real estate agency. They will provide you with an unbiased and informed assessment.

Information is compiled into a report and then sent to banks and lenders. A property valuation is often required when you apply for housing finance.

Valuers will usually use one of the following methods to assess your property: • Direct comparison: This assessment is based on a comparison of recent sales in the area of homes similar to yours.

• Capitalisation: Mainly used for investment properties, this method involves the application of an investment yield to determine rental income.

• Summation: This method involves the assessment of the value of the land. The value of improvements such as structural buildings can be added on top.This method is usually undertaken when there are insufficient comparable sales of similar properties.

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Real Estate Selling Guide

How Much Is Your Property Worth?

Agent Appraisal Real estate agents give free market appraisals and can apply their local market knowledge and expert judgment of recent sales in the area to provide you with a figure.

They won’t just include their own sales, but will analyse others in the area to give you a good idea of your property’s value.

This will give you an informal estimate of how much you might be able to receive from the sale of your home.

The figure you’ll be provided will most likely be based on recent results for the area and market conditions, plus the agent’s insight into the features of your home.

What’s The Difference?

Important Points To Consider

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.

Don’t set the price of your property based on one valuation. Instead, obtain a couple of quotes from various real estate agents and use that information combined with a figure determined by a professional. This will help you to set a fair and achievable price.

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.

Be aware of how your emotions may affect your decision. While everyone can think their home is worth $1 million, it’s not always the case! Be realistic about your pricing and talk over any areas of concern with your agent, as he or she is the expert.

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Real Estate Selling Guide

Selecting The Right Agent

Chapter 4

Selecting The Right Agent A real estate agent will be the person helping you achieve the sale of your home.

Their connections, local market knowledge and real estate expertise will all play an important part in this process.

Therefore, it’s crucial you choose an agent who is most suited to your requirements and will help you get the sales results you desire in the shortest time possible.

To ensure you’re choosing the best agent for the job, it pays to shop around and ask pertinent questions. You’ll need to feel comfortable with whomever you select.

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Real Estate Selling Guide

Selecting The Right Agent

Important Things to Look For Here are some important features you should look for in a real estate agent: • Licence: The agent should be appropriately licenced by the state government • Experience: Find an agent who has a good knowledge of the method of sale you have chosen (e.g. an auction specialist) • Trustworthy: Honesty and trust are key to any good relationship • Approachable: You’ll need to find an agent who is approachable, by you and prospective buyers.

Don’t be afraid to ask for references and referrals, as speaking with past clients can give you an idea of how the agent has performed previously.

Important Things to Ask Here are some questions you may want to ask an agent when interviewing them: • How long have you been a real estate agent?

• Are you licenced 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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Real Estate Selling Guide

Different Ways To Sell Your Home

Chapter 5

Different Ways To Sell Your Home There are many different ways you can choose to sell your home in Australia. Whichever option you decide on will depend upon a multitude of factors.

The four main methods for selling a house in Australia are auction, private treaty, tender and expression of interest.

Here are the features, pros and cons of each method to help you come to a decision:

Auction Auctions are a great tool to use if you’re listing your house in a seller’s market. As the owner, you can decide to accept pre-auction offers if a buyer chooses to make one.

pros

• You can achieve a good sale price due to buyer competition.

cons

• You will have a final sale date for your home (auction day).

• If your property doesn’t sell (passes in) on auction day, you’ll need to find another selling method to continue your campaign.

• Sales are unconditional, so you can achieve a quick settlement.

• Marketing campaigns to generate interest can be costly.

• There is no guarantee you will achieve the price you desire, as figures above reserve may be accepted.

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Real Estate Selling Guide

Different Ways To Sell Your Home

Private Treaty This selling method offers a great degree of flexibility, as you can set sales requirements and negotiate the price with prospective buyers.

pros

• You have the ability to negotiate sale prices with buyers.

cons

• There isn’t a definite sale date specified.

• As the owner, you can set specific requirements such as the settlement date.

• Selling your home could take a long time if you can’t negotiate your desired price.

• A marketing campaign can be cheaper than an auction.

• You may need to allow many open inspections at your home to show prospective buyers through.

Tender And Expression Of Interest These two methods of sale are quite similar to each other and are most commonly used for selling premium properties.

pros

• Vendors have high degree of control over the sale and can choose to accept whichever offer they think is best.

• Buyers aren’t aware of what others are offering, which can drive the sale price higher.

• Similar to auctions, tenders and expressions of interest have a closing date.

cons

• Prices for these properties are not always advertised, which may hinder prospective buyers from enquiring.

• The process can be quite lengthy and complicated, as buyers will need to provide written formal offers.

• Marketing costs can be high due to the advertising of tender and expression of interest close dates.

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Real Estate Selling Guide

Marketing Your Property For Results

Chapter 6

Marketing Your Property For Results When you first list your home with an agent, they will discuss a marketing plan with you and find a suitable strategy for your property.

There are many different channels you can use to promote your property. This includes print, online, signage and open inspections. For the widest level of exposure, it’s best to use a mixture of all channels.

Photography The first and most important step for your marketing campaign is to get your home professionally photographed. This is essential, regardless of the type of campaign you select.

Make sure your home is spotless, clean and well-lit to ensure it’s looking immaculate. This also goes for the exterior of the property, so fill in gaps in the garden, water the plants and mow the lawn.

Print Print media is a very popular channel for real estate marketing. This can be through newspapers, weekly property magazines, flyers, promotional articles and pamphlets.

Despite the rise of the internet, people still like to pick up and browse local newspapers, so these can be a vital part of your campaign.

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Real Estate Selling Guide

Marketing Your Property For Results

Online The internet is an extremely useful tool for those selling a property in Australia.

Websites such as ljhooker.com.au, domain.com.au and realestate.com.au are the very first port of call for many buyers and can result in high traffic for your property.

Through these channels, you can monitor how many views your property receives. This can give you a good idea of how your home is tracking and if you need to make any alterations to the listing to generate more views.

Online media also allows you to upload video walkthroughs. This is essentially a virtual open inspection and is a great tool to show off what your home has to offer.

Social media websites, such as Facebook, are an option you should consider using. These are a good platform to use to reach a mass audience.

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Real Estate Selling Guide

Marketing Your Property For Results

Signage An attractive signboard outside of your home will let people know your property is on the market for sale.

Depending on the size you select, these can contain basic information about your property and photos of the interior. They’ll also include contact details for the agent and scheduled open inspection times.

Appropriate placement for these signs is crucial, so have them installed near the sidewalk or pavement outside the property where they cannot be blocked by trees, parked cars or power poles.

Open Inspections Open inspections are an essential part of the selling process. Prospective buyers will want to view a property they are interested in, so it pays to have regular open inspections every week.

Make sure your home is neat and tidy for each inspection and be flexible with open inspection times. The next chapter will help guide you through how to prepare your home for sale.

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Real Estate Selling Guide

Preparing Your Home To Sell

Chapter 7

Preparing Your Home To Sell

There are a number of tasks you need to prepare for to get your home market-ready. This includes a deep-clean of your home, de-clutter of each room and the removal of personal objects to depersonalise the property.

It’s also important to make any repairs and fix maintenance issues to ensure settlement goes smoothly.

Take a look at each room and think of ways you could improve it to add value. It might be a fresh lick of paint, repairs or the installation of new features.

If your home is tenanted, then you’ll need to inform your tenants of your intention to sell the property. Check with your property manager, as this usually requires a period of notice.

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Real Estate Selling Guide

Preparing Your Home To Sell

Everybody knows first impressions are everything, so make sure your home is in tip-top condition once it hits the market.

Exterior and Entry

Kitchen and Bathroom

• Give your home kerb side appeal and make the entry way look attractive

• Clean all mould and mildew from walls, ceilings, windows, bathtubs and showers

• Install potted plants around the front door

• Re-grout tiles if cracked, mouldy or stained

• Ensure the pathway to the door is clear

• Fix leaky taps and cracked sinks

• Buy a new door mat

• Air out the room before open inspections

• Give lawns and gardens a trim and a good sprinkle of water

• Re-paint surfaces if damaged e.g. splashbacks and benchtops

Bedrooms

Living and Dining

• Depersonalise bedrooms by removing photos and other items • Make sure beds are made and clothes are out of sight • Consider adding storage, such as built-in wardrobes and drawers • Add an element of luxury by using cushions and quality bed linen

• Find a focus for your room • Get carpets cleaned or wooden floors polished • Assemble various remote controls and store them neatly • Open up curtains for natural light • Paint with neutral colours, such as creams and whites

Make sure you download our Home Improvement Guide for a more detailed room by room guide on how to prepare your home for sale

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Real Estate Selling Guide

What To Expect On Auction Day

Chapter 8

What To Expect On Auction Day

Auctions are an exhilarating and sometimes nerve-wracking experience - after all, it’s your precious home that’s going under the hammer.

As a seller, you’re probably wondering what auction day has in store for you. Here’s a small list of what to expect from an auction property sale.

What To Expect On auction day, prospective buyers are encouraged to view the property one last time before they bid. This means you should ensure your property is looking spotless and well-presented especially if you’ve chosen to host the auction at your property rather than an office or conference room.

Your agent will need to supply documentation of the property at least 30 minutes before the auction.

This is a requirement by law, so make sure this information is well displayed and easily viewable for all interested parties.

Pre-Auction Offers When you list your property for sale by auction, you still have the ability to accept pre-auction offers before the auction day deadline.

However, in order for this to be rewarding, the offer needs to be solid and stand out to catch your attention.

Otherwise, you could allow your property to go to auction and see what the market will give you for your home.

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Real Estate Selling Guide

What To Expect On Auction Day

Vendor’s Bid A vendor’s bid is used to encourage bidding from buyers. This is placed by the auctioneer or another legally permitted person on the vendor’s behalf to assist the property reaching its reserve price.

The amount of the bid needs to be below the reserve price, otherwise it could push the bid much higher.

If a vendor bid is going to be made then it needs to be declared before the auction actually begins.

The Auctioneer’s Job We’ve all seen the drama of an auction on TV – the auctioneer with their quick fire speech, waving hands, pointing fingers. But what do they actually do?

Essentially their role is to control a public negotiation process where potential buyers are competing to buy a property.

The auctioneer has to make sure the process takes place in an orderly and legal manner and while there is often an element of showmanship in the role, with humours asides and jokes, the auctioneer must always conduct him or herself professionally.

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Before the auction commences they will need to announce terms and conditions in accordance with state law and any rules that surround your auction in particular.

They will encourage bidders to go higher but at the end of the day, each bidder decides how much they are prepared to pay and the seller decides whether they’re prepared to sell at that price.

All bids must be acknowledged and recorded, often by assistants so there are no misunderstandings over who has bought the property and for how much.

A good auctioneer can read body language and create an atmosphere of fun and entertainment to take the pressure off a very serious process.

They know how to prevent disputes and how to handle any problems that can occasionally occur.

Legislation differs in all states and territories in relation to buying at auction so if you have any queries check with your agent and/or legal professional

Real Estate Selling Guide

What To Expect On Auction Day

Selling at Auction Some extra things to consider When you sell at auction there is normally no cooling off period – the contracts are signed and the deposit is paid on the day.

A 10% deposit is normally paid by the buyer/s with the balance due on the agreed settlement date The deposit is held on your behalf in the agency’s trust account for an investment account Prior to settlement the property remains your responsibility, so it is important to ensure you maintain your home insurance during this period Once the contract is signed the process of transfer can begin. You may use the services of a solicitor of conveyancing company to handle transfer on your behalf As part of the transfer process, arrangements will be made for the balance of the purchase prices to be paid as directed by you to your bank account or to any party or account you nominate.

Settlement day is the date when the balance of monies owing less costs are paid, keys are handed over and the property then becomes the responsibility of the purchaser.

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Real Estate Selling Guide

It’s Sold - Now What?

Chapter 9

It’s Sold Now What?

Congratulations! You have sold your property and now you can enjoy finding or moving into a new home.

Emotions may be running high at this point from successfully selling your home, but in order for the sale to be completed there are still a few things you’ll need to do.

Contract Of Sale

From Exchange To Settlement

When drawing up the contract of sale for your property, you and the buyer may have agreed upon some specific conditions.

During the time that occurs between the contract exchange to settlement, you’ll need to fulfil any special conditions that were outlined in your contract of sale. This means you’ll need to be in contact with your real estate agent to ensure these tasks are carried out before settlement day rolls around.

Usually, these conditions are there for the buyer’s purpose and may include a sale of their previous home, final inspection, or the acquisition of finance.

Sometimes there will be special conditions that the vendor will need to fulfil, too. This might be repairs, the completion of renovations, or other vendor responsibilities that were agreed to.

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Real Estate Selling Guide

It’s Sold - Now What?

Finance If you chose to buy a new home before you sold your old one, then you may have used bridging finance to pay for your purchase.

Bridging finance works by ‘bridging the gap’ between your purchases.

Essentially, this type of loan provides finance for both your old and new home for a short period of time, usually around three to six months.

Once the sale of your home is finalised, you can organise to complete your bridging loan with your lender. As these types of loans are usually interest-only, it’s best to organise the completion of the loan as soon as possible.

On Settlement Day

can expect to receive payment for the property on this date.

It may not just be the balance of the property’s price that will be paid at this time. You may also receive payment for utility bills and tax calculations outlined by your solicitor.

The buyer and their solicitor will also organise the deposit to be transferred to you. This deposit is usually held in a trust account by your real estate agency until settlement day.

On this day, you’ll also need to organise the handover of the keys to the new owner. Usually, you’ll need to give your keys to your solicitor, who will then pass them onto the buyer’s solicitor.

This means you’ll need to be fully moved out before settlement day to ensure the home is ready for the new owners.

As settlement day approaches, both the buyer and seller solicitors will contact each other to ensure conditions have been fulfilled and to organise finance.

You won’t need to actually be present for settlement to go ahead, as the solicitors can do this without you.

Settlement day is when the buyer’s lender authorises the payment for the balance of the home. This means you

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Real Estate Selling Guide

It’s Sold - Now What?

Handover At the time of the settlement, you’ll need to make sure the title of the home and land has been transferred to the new owner. Utilities, such as gas, electricity and water, will also need to be transferred, so you should organise a final reading for these services.

If your property has body corporate then you’ll need to organise the Body Corporate Information Certificate for the new owner.

Extra Charges When you sell your home, you might have to pay some extra charges for GST and capital gains tax, depending on where your property is located.

Generally, your property won’t be liable for GST unless it has a commercial use (such as a home and office).

If your home was purchased after 1985 then you might need to pay capital gains tax (CGT). This incurs for investment properties, not for the sale of your own home for residential purposes.

We hope you found this information useful. For more free eBooks visit myLJhooker.com.au

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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. Š2013 LJ Hooker Corporation Limited.

Real Estate Selling Guide

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