It is no surprise selling a property is an intense process. There are many factors to take into consideration and steps to be taken. For this reason, we decided to share a quick check list on initial aspects you should start thinking about if you are planning on selling your property anytime soon.
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1. Is It The Right Time For You To Sell?
You might have your heart set on selling, however, is it the best time for you to do it?
Find out how long it’s taking similar properties to sell. What are the average days on market (DOM) for properties like yours?If you can see properties like yours are selling relatively quickly, this is a good indication that there is a decent amount of buyer demand in your area.
However, if you notice that there are a lot of properties like yours currently for sale, and not many are selling each month, there is a high chance that there is an over supply and the buyers who are out there looking aren’t rushing to pay the prices that sellers are requesting.
And if the latter is true for your area, you have two options. The first is don’t sell, especially if you don’t have to as it would be wise to hold off until the market picks up again. Two, show value, if it’s imperative that you sell your property, you will need to show value to your buyers using a competitive pricing strategy.
2. How Much Will It Cost You?
Selling a property can get expensive, especially if you don’t end up selling or you have to part with your home for less than you’d hoped.
So be aware of the minimum costs involved before signing an agreement with any agent and find out;
- How much your marketing will cost?
- Will you have to pay for it upfront or at settlement?
- If the agent doesn’t sell your home, will you still have to pay for your marketing?
- What will the agents fees be for selling your property?
- Is this a percentage of your sale price or a fixed fee?
3. How Much Competition Do You Have?
Ideally, you would like to be competing against the least number of similar properties as possible as the more options a buyer has, the less likely they will pay a premium price for a property they like.
You also want to be selling in a ‘sellers market’ when buyer demand is high, and stock is low. This high-demand, low-supply environment means buyers will see a lot of foot traffic from other eager buyers and if your property has been correctly priced you’ll likely receive multiple offers and sell quickly.
4. What Does Your Buyer Want?
You need to identify who your ideal buyer will be, and any decent agent should help you figure this out. An example could be, are you in an area where ‘renovators delights’ are selling quickly or does your market want to purchase a property that needs minimal improvements?
Knowing what your likely buyer will value beforehand, will help save you money and see you achieve a better return on the improvements you make.
5. What’s Your Agent’s Selling/Pricing Strategy And Why?
As we’ve mentioned before in a previous article on selling strategies, there is a lot more to the sale of a property than just sticking a price on it.
You need to ask any potential agent who you’re looking to work with, how they will sell your property, the type of marketing they want to use and why they think it will attract your ideal buyer.
Make sure they always provide you with current data to back up their appraisal as some agents are known for talking up a properties potential sale price just to secure a listing.
6. Eliminate Any Potential Surprises
Ensure you have all documents and paperwork required to sell your property before you put it on the market.
Find out if there is anything not council approved as you will need to either address the issue or disclose it in your contract for sale? Do you need a pool safety compliance certificate or a Capital Gains withholding clearance certificate?
Having all of these documents sorted before listing your property for sale will make for a smoother process, as buyers don’t appreciate surprises or unexpected delays.
It may also be worth paying for a building and pest inspection, especially if you have an older property. Having this information beforehand will help you identify problems you may need to address. It’s advisable to fix any known issues prior to listing your property for sale as an unfavourable building and pest report can turn off a potential buyer, have them second guessing the purchase of your property or worse rescinding their offer.
7. Choosing The Right Solicitor Or Conveyancer
Some people will choose just any solicitor or conveyancer to represent them when selling their home, often not realising that a bad one could cost them a sale.
Don’t just hope that you get a good one, ask friends, family or your agent for referrals or at the very least ring around and speak with a couple of different people before making your decision.
We deal with conveyancers and solicitors on a daily basis, and I promise you, the good ones, which are organised and on the ball, help make the exchanging of contracts and settlement process a breeze. On the other hand, the lazy, unmotivated, and inflexible ones can make this essential part of your sale a nightmare. We can only suggest conveyancers use, but we will not recommend them.
If you’ve never sold a property before, it’s hard to know where to start. Find out how to research the real estate market, work out the value of your property, and strategies to get the best price. Learn about the various stages in the selling process, and the costs involved with selling your home.
When is the right time to sell my home?
Certain events in life can trigger the need to sell up and move, such as a growing family, a new job, or retirement. The time of year may also affect the outcome. It’s hard to know when it’s the right time to sell, but watching the market and timing the sale well can give you the best result.
The auction, private treaty, or expression of interest – what are the differences, and which is best for your situation? Find out the pros and cons of each option, as well as how to set the price of your home, and when to accept an offer.
They’re the face of your marketing campaign, but how do agents help you get the best price for your home? Find out what to look for in a real estate agent, how much real estate agents cost, as well as the difference between a flat fee and commission agents.
To get the best price for your home, you need to show it in the best light. Find out how to clean and declutter your home and make simple repairs and smart updates to add value before the sale, plus tips and tricks for presenting your home and what to do if your home won’t sell.
The selling journey doesn’t end when you accept an offer. Find out all about the exchange, cooling-off periods and settlement, how to buy and sell at the same time, and whether you need to pay tax when you sell your house.
Research your local housing market.
If you have lived in your current home for at least a couple of years, you most likely have a general idea of housing prices in your neighborhood and local economic conditions. It is still a good idea to do some additional homework and research housing activity in your area.
Find out how many houses are currently on the market in your area and the average number of days they have been listed. It’s also helpful to look at comparable homes in your neighborhood to get a general idea of what the competition looks like. A comparable or “comp” home has similar features and is usually located within close proximity to your home. Examining the number of bedrooms, bathrooms, lot size, and other features are important when seeking out comparable properties. If you really want to go the extra mile in reviewing comparable properties, visit open houses and search real estate websites.
Set a reasonable asking price. Pricing your home correctly from the start is extremely important. Avoid making emotional decisions or anchoring your listing price to the home’s previous value.
If you live in a “hot” market, there are more buyers than sellers and prices are likely being driven up by that demand. You can often price your house more aggressively as long as you stick within reasonable price limits. In a “cold” market, buyers tend to be more selective and pricing usually needs to be at or slightly below market value to attract an offer.
Interview real estate professionals and other potential team members. Do your homework if you decide to utilize the service of a real estate agent. It is suggested to interview 2-3 potential agents to make sure you are choosing the best professional possible. You can use this guide to help you find the right questions to ask when talking with a real estate agent.
Improve your home’s curb appeal. When it comes to buying a home, first impressions have a significant impact. While significant landscaping updates aren’t likely to play a major factor in a buyer’s decision-making process, it does help to avoid anything that could detract from that positive first impression.
Get rid of the clutter. This step includes removing personalized photos, memorabilia, and other knickknacks. It often helps to get an independent, objective assessment of what should stay and what should go during the staging process. Major renovations aren’t usually necessary, but a fresh coat of paint and minor repairs can leave a potential buyer with a good first impression. It’s also helpful to have different pictures and furniture layouts available to provide buyers with a vision of how various spaces could be used in different ways to meet their lifestyle needs and desires.
Give your home as much social media exposure as possible. Realestate.com and Domain are a couple of examples of real estate websites that expose your home to potential buyers. You may also find success in getting the word out about your desire to sell via social media sites. Many realtors use YouTube videos, Pinterest groups, and blogs to obtain potential buyer lists and market their services. Facebook is another potential site to help get the word out that you are in the process of selling.
Estimate the potential profit (or loss). Before you ever get to the point of reviewing a purchase offer, you should already evaluate potential gains or losses within your acceptable price range. The selling price will be reduced by the following items:
- Real estate sales commissions
- Fees paid at settlement
- Title charges
- Government recording and transfer charges
- Any additional settlement charges
- Debt obligations related to paying off any existing mortgages
- Home repairs included in the sales contract or repair work completed prior to putting your house on the market.
- Preparation work to get your house ready for the market such as landscaping, painting, etc.
Whether you are absolutely planning to sell your home within the next year or simply reviewing your options, it is important to have an exit strategy. Your home may be the location for countless memories (both good and bad). However, avoid letting emotions drive your selling decisions and incorporate some strategies into your financial plan that will help you get your house sold on your terms with confidence.