SAV I L L S SELLERS G U I D E
savillsresidential.com.au Savills Sellers Guide | 1
CONTENTS Selecting a real estate agent
4
How much is your property worth?
5
Agency agreement 6 Legal/conveyancing 8 Types of sales 9 Length of sales process
10
Presentation 11 Targeting potential buyers
12
Open homes 15 Negotiations 16 Acceptance 19 Settlement 20 Where are you moving?
22
Next steps 22
Selling your property is one of the most important transactions you will ever make. Making the decision to sell and knowing what to do next can be quite daunting. We are here to make the process seamless and the result exceptional.
Savills Sellers Guide | 3
SELECTING A REAL ESTATE AGENT Partner with someone you trust. Even if you are not quite ready to sell, meet with a real estate agent early. They can provide so much more than just marketing strategies to sell your property. They can tell you if minor or major improvements on the property will have a major result or if you should sell now or wait for a different market. Select an agent and build a line of communication; you will benefit from their advice. When you’re ready to meet with someone, do some research about real estate agents in your area who have a history of successful sales. Scour realestate.com.au and domain.com.au for recent sales in your street or suburb.
Recent results Knowing an agent can sell your property in the current market is vital. Did the agent sell previous properties for a good price? Did they sell them within a reasonable timeframe? Read reviews about agents on RateMyAgent – these are what other vendors thought of their experience with the agent.
Local area knowledge Has the agent got current listings in your area? Is his or her office local and has he or she been in the area long? Do they engage with the community through sponsorships of local clubs or organisations?
Rapport You want to be able to trust this person. They are selling what is potentially your largest asset and the result can have hugely positive or negative effects. If you’re keen on seeing them in action before officially meeting with them, go to one of their open homes. By popping into one of their other properties, you can see how the agent interacts with potential buyers, how the property is presented and what the agent’s support team is like. When you’ve narrowed the search down to two or three potential candidates, call them or send through an enquiry online for a market appraisal.
HOW MUCH IS MY PROPERT Y WORTH? This is the number one question real estate agents are asked, and rightly so. Your future decisions and investments rely on knowing how much you can get for your property. After connecting with a real estate agent, they will schedule a time to meet with you at your property to go through a market appraisal. During this market appraisal, they will walk you through:
Current market conditions – Whether it’s a buyers market, sellers market or a balanced market, will have an impact on what your property is worth and the time it may take to sell your property. Recent experience – What they have recently sold and what skills they have to sell your place. Recent comparable sales – What properties like yours have been sold for. Current competition – The price of other homes that are currently on the market and comparable to yours.
Marketing strategies – What marketing strategies will attract potential buyers? What your property is worth – Every real estate agent will tell you that your home is worth whatever a buyer will pay for it, and this is true, however they will likely give you a range or estimate of where they see the property sits in the current market. Campaign timeline – What happens when you list your property to the auction or sale date? Commission and costs – The costs for marketing your property and the commission that the agent charges. This is your opportunity to ask questions. The more questions you ask, the more answers you will get and this will help to put your mind at ease.
Unique selling points – What distinguishing features sets your home apart from the rest?
Savills Sellers Guide | 5
AGENCY AGREEMENT Once you’ve selected an agent to sell your property with, they will ask you to sign an agency agreement. This agreement is a legally binding document that outlines costs, fees, expenses and commission. Under the NSW Fair Trading terms, the agency agreement must state: the services the agent will provide for you t he amounts of any fees or commission you agree to pay for those services the circumstances in which the agent is entitled to payment - for example, commission is usually payable only when the property is sold how and when payment is to be made - for example, whether the agent can deduct their commission from the deposit money paid by the buyer warnings about circumstances in which you might have to pay commission to more than one agent a warning about the commission if the agreement includes a term that a commission is payable even if the sale of the property is not complete the extent of the agent’s authority to act for you - for example, whether the agent is permitted to exchange a sale contract on your behalf or make changes to the sale contract
the agent’s estimated selling price for the property. The price may be a single price or a price range. Note: If a price range is used the highest price cannot exceed the lowest price by more than 10%. An agent is required to amend their estimated selling price if it is no longer reasonable, notify you in writing and amend the agency agreement. Your consent is not required to amend the agreement with the revised estimated selling price. The agent must provide you with evidence of the reasonableness of their estimated selling prices.
Exclusive agency agreements
General listing / Open agency agreement
Exclusive agency agreements are commonly used for the sale of residential property. In this kind of agreement, you give exclusive rights to one agent to sell your property. This may entitle the agent to be paid commission if the property is sold during the fixed term of the agreement, even if the property is sold by you or by another agent. The agent may also be entitled to commission if the property later sells to a person who started negotiating for the property with the original agent.
This lets you list your property with a number of agents. You pay a commission to the agent who finds the buyer. Multiple listing agreement This occurs when you deal with an agent who is part of a network of agents working together to sell your home. It covers both auction and private treaty. You pay a commission to the agent you signed up with. Auction agency agreement This is effectively an exclusive agency agreement where the property is listed for auction.
Sole agency agreements This is similar to an exclusive agency agreement. You give rights to one agent to sell the property but you may find a buyer yourself. If you find a buyer who has not been introduced by the agent, then no commission is payable to the agent.
Savills Sellers Guide | 7
LEGAL/ CONVEYANCING
Conveyancing is the process of transferring ownership of a legal title of land (property) from one person or entity to another.
Both buyers and sellers need to use the services of a conveyancing professional.
Conveyancing is a necessary process in both buying or selling property. A professional conveyancer or conveyancing solicitor helps with the settlement and title transfer process by ensuring that their client is meeting all legal obligations and that their client’s rights are protected during this transaction.
Provide advice on effect of the contract
A conveyancer will do the following: D raw up the contract of sale and ensure any special conditions you require are in the final contract Represent you and respond to requests from the buyer – for example the request to extend dates, title questions etc Stamp required documentation Prepare settlement statements Liaise with mortgagors and financiers Attend settlement.
T YPES OF SALES Each property is different and knowing which method of sale to use depends on numerous variables. With the contract drawn up and the agency agreement signed, it’s best to decide on your sales strategy. That is, the type of sale process. Your real estate agent will outline these types of sales and will suggest the most appropriate for your property and market conditions.
Auction An auction is when prospective buyers gather to bid on your property. The highest bidder at the end of the auction becomes the successful buyer, provided the bid matches or exceeds your reserve price.
Private treaty This is when you set the price you’d like your house to sell for, and your real estate agent negotiates individually with prospective buyers to achieve a sale as close to this price as possible.
Off-market Off-market sales offer more time and flexibility to vendors who would like to keep the sale of their property private. This means, no advertising or marketing of the property will take place, instead the real estate agent will connect with his or her contacts to find a suitable buyer. Savills Sellers Guide | 9
LENGTH OF SALES PROCESS Everyone has a theory about how long it takes to sell a house, but what’s the reality? On average in Australia, it takes about 30 days from when you take the photos of your home until the date of sale. Settlement then takes usually 60 days, but can be anywhere from 30 to 120 days. In a hot property market, days on market can be closer to 20, whereas in a cooler property market they can stretch out to 45 to 60 days. Pricing a property correctly will drive more people through the front door and give you a better chance of achieving the desired result in the shortest possible time. Your real estate agent will outline the length of the sales campaign, usually around 5 to 7 weeks. This means styling, photos and floorplans will be done in the first week, then the market will be pushed through to the sales portals like realestate.com.au and domain.com.au in week 2, with open homes commencing and running through to the auction date or until a buyer or offer is found.
PRESENTATION You never get a second chance to make a great first impression. Your home will always have competition, so ensuring the presentation of your home is top-notch will leave a lasting impression on potential buyers. You can’t please everyone’s tastes but you can give yourself the very best chance to pique someone’s interest and spark the emotional connection they may need to purchase your property.
5 ways to make a good impression: 1
Curb appeal – Your home could be perfect inside but if it’s unkempt from the street, many potential buyers might not even step foot inside
2
Declutter and organise – Less is more when it comes to clutter. Your home will exude that feeling of spaciousness if you get rid of extra furniture you have in each room
3
Clean – The home should be neat, clean and free of all debris. Clean, clean and clean again
4
De-personalise – Give people every chance to imagine how the home would work with them in it. Remove all family photos and personal items from every room and store them with friends, family or in a storage centre
5
Add pizzazz – Fresh flowers, a nicely scented candle, plush towels in the bathroom – all these things add a little pizzazz to the home.
Savills Sellers Guide | 11
TARGETING POTENTIAL BUYERS The objective of marketing your property is to spark interest in potential buyers and draw them to the open home. A real estate agent can only negotiate for the best price if interested parties turn up, so marketing is a critical element of any sale campaign. A well planned marketing campaign will target the right buyers, at the right price at the right time. Your real estate agent will go through in detail what is included in their marketing plan. To effectively market a property, more and more savvy homeowners, looking to give their property an edge in a competitive marketplace and maximise its value, aren’t thinking twice about calling in stylists and home stagers to help give their residence a face-lift – anything from a cosmetic touch-up to a full-scale makeover. From there, marketing a property commonly includes:
Professional photos – Great photography is the key to every property marketing campaign. In a competitive market, quality professional property photos are essential in capturing the unique selling points of a property with vibrant, high-resolution imagery.
Floorplans – Similar to how a photo can bring a room to life, a floorplan allows the entire property to shine with one easy glance. Giving buyers another perspective will confirm for them questions they’ve been asking themselves, such as “will our bed fit in this room?” or “which room captures the afternoon sun?”
Copywriting – Real estate copywriting is an art form, one that tells your property’s unique story. Copywriters know what buyers are looking for and as such, they draw the reader’s attention to these elements in their eloquently written content.
Video – Thanks to the ubiquity of broadband internet and smartphones, video is now a “must-have” on many vendor’s marketing checklists. Give interested prospective buyers a guided tour of your home with the help of a video complete with voiceover and music.
Signboards – Property signboards are the local cornerstone of your property marketing campaign. Large format and sitting front and centre, the signboard signals your property is for sale and attracts the attention of all potential buyers.
Digital advertising – Property listings on realestate.com.au and domain.com.au target a massive database of potential buyers. There are additional advertising options on both of these platforms that your real estate agent can discuss with you.
Print advertising – Extending your campaign into print brings 48% more visitors to your open home and 43% more page views*. Options can include advertising in the North Shore Times or your local paper, Domain magazine, the Chinese Property Weekly and so on. * Ipsos MediaCT Real Estate Campaign Effectiveness Study August 2015
Brochures – Showcase your property’s unique selling points and stunning photography with a set of brochures to engage potential buyers.
Savills Sellers Guide | 13
OPEN HOMES This is the opportunity to let your property take centre stage and shine. With all repairs, maintenance, cleaning and decluttering out of the way, it’s time to let potential buyers explore.
5 tips for your open home:
1
2
3
4
5
Let the light in – Open all doors, windows, blinds and consider removing heavy drapery Comfort – Turn up the heating on a cold day, light the fireplace or turn on the wair-conditioning if it’s hot. You want potential buyers to spend a reasonable amount of time exploring and picturing themselves living here so make it as comfortable as possible Take a walk – This is where you let your real estate agent and their team take ownership of the process. Go out to the shops, walk the dog or go and get a coffee and come back once the open home has well and truly finished Pets should go on holidays – Pets and their bedding/supplies should be taken to a friend’s place for the inspection Lock up your valuables – You will be having strangers exploring your property so be careful and lock up your valuables or take them to a friends place.
Savills Sellers Guide | 15
NEGOTIATIONS You hire a real estate agent to negotiate on your behalf, so put your trust in them and clearly communicate for the best possible outcome. Should you be approached directly, always refer their enquiry to your real estate agent. The agent will discuss with all interested parties what they are willing to pay for your property. The agent will present any offer in writing, at which time you have the right to accept the offer or you can make a counter-offer of a price that is acceptable to you. Remember to trust your real estate agent and talk with them about the price you feel comfortable with. They are there to support you through this process and work to get the price you want, so open communication is vital.
Savills Sellers Guide | 17
ACCEPTANCE You’ve found a buyer congratulations! Once you have accepted a verbal or written offer the contract can be signed and commonly a 10% deposit will be paid by the buyer with the remaining balance due on the agreed settlement date. The contract exchange is a critical point in the sale process. Be aware of the following important conditions in the exchange of contracts: The buyer or seller is not legally bound until signed copies of the contract are exchanged Buyers of residential property usually have a cooling off period of 5 working days following the exchange of contracts during which they can withdraw from the sale If the agent arranges the exchange of contracts, the agent must give copies of the signed contract to each party or their solicitor or conveyancer within 2 business days The cooling off period can be waived, reduced or extended by negotiation T here is no cooling-off period for sellers. Once contracts have been exchanged, sellers are generally bound to complete the agreement T here is no cooling-off period when purchasing at auction. Once contracts are exchanged, the sale is legally binding and the process of conveyancing begins. Your conveyancer will handle this process.
Savills Sellers Guide | 19
“congratulations you’ve settled!” SETTLEMENT This is the final step in executing the real estate transaction. Settlement day is when the keys are handed over to the buyer and they become the new owner. Your priority will be moving out, cleaning the property and disconnecting utilities. Your conveyancer and real estate agent take care of the paperwork. The buyer will have the opportunity to do one final inspection of the property usually the afternoon before settlement day. This is just to confirm that the property is in the same condition as when the buyer viewed it. You don’t usually need to be present for the settlement as your representatives will meet to transfer and finalise documentation. Your real estate agent will advise well in advance when and where settlement will happen. Once the meeting has taken place, your representatives will call you to say “congratulations you’ve settled!”
SavillsSellers Sellers Guide Guide || 21 Savills 21
WHERE ARE YOU MOVING? Moving is a necessary evil of modern life, but planning in advance can help alleviate the stress. Planning 4 to 6 weeks out from the move will leave you in the best position to make it a stress-free experience. Download the Savills Moving House Checklist from savillsresidential.com.au/blog
CHOOSE THE HIGHEST SELLING AGENCY Savills consistently sells more properties on the North Shore than any other real estate agency.
200
Savills
175
TOTAL PROPERTIES SOLD IN KU-RING-GAI (1 JAN - 31 DEC 2018)
150
170
125
100
75
50
25
SA V
IL
LS
0
OTHER AGENCIES
Source: CoreLogic
We fulfil hundreds of our clients’ property dreams every year.
CAN WE HELP YOU? Gordon 9498 2388 | 785a Pacific Highway, Gordon St Ives 9488 8588 | Shop 25D, St Ives Shopping Village, 166 Mona Vale Road, St Ives Lindfield 9416 9393 | 9 Lindfield Avenue, Lindfield Roseville 8008 8521 | 21 Hill Street, Roseville
savillsresidential.com.au Savills Sellers Guide | 23
savillsresidential.com.au
Gordon 9498 2388 | Lindfield 9416 9393 | Roseville 8008 8521 | St Ives 9488 8588