Selling a property can be one of the most stressful and confusing tasks that you experience. This should not be surprising, as it will likely be the largest transaction that you are involved in during your lifetime. With so many selling options available, and processes to be aware of, it may feel like you’re drowning in real estate lingo! Here is a beginners guide to selling a property that will provide some clarity to the overall process, and jumpstart your sale!
Prior to selling any property, you will need to ensure that it is presentable. This will mean cleaning the property, mowing the lawn and fixing any problem areas. If you are concerned about the appearance of your home decor, consider consulting a company that specialises in home staging in Melbourne. Not only will this take the pressure off, but it will also increase the appeal of your home that could potentially lead to a quicker or more profitable sale!
This is perhaps the most important factor to consider when selling a property; make sure you are well informed before making any decisions. Choosing the correct real estate agent for your property can make a huge difference in the way it sells, and the amount it sells for. Choose a reputable agent that you are comfortable with, and has experience with selling properties similar to yours. Finding this agent can be tricky, so ask your friends and family for recommendations, or consider attending an open house.
If the agent appears helpful, knowledgeable and trustworthy, consider them for your own property. Another important aspect to consider is the valuation of the property, as this will likely determine the reserve price (lowest price the property can be sold at by the estate agent). Conduct some research into properties similar to yours in terms of size, location and age, and note down their selling price. It is important that the reserve price you set is reasonable, as the market is unkind to overpriced properties.
After choosing an agent, and agreeing on a reserve price, there will be some documents to review and sign. Firstly, there will be an agreement with the real estate agent that you have chosen. This document will cover the estimated selling price, whether the sale is exclusive or non-exclusive, length of the agreement, together with other relevant topics. It is important to carefully review this document, and clarify confusing parts prior to signing.
After this, a vendors statement will be prepared in conjunction with a legal practitioner. Also known as a Section 32, this document will provide the buyer with information about the property. It covers debts pertaining to the property, land restrictions and other relevant information.
Plan your marketing strategy around the buyer that you want to attract, whether that be local, national or even international. Your estate agent can then help you formulate key-words to incorporate into your advertisements in order to attract these buyers. Invest in good quality photographs of the property, and highlight its unique gems.
When enough interest has stirred, take the property to market, and schedule some property inspections. During this phase, it is important to keep the property in good nick. Some move out of their home during this phase, however this may not be possible for everybody. If you cannot afford this luxury, obtain a detailed schedule of the inspections so you can be prepared.
The final stages of the transaction will differ depending on your mode of sale. If the property is being sold at auction, the highest bidder is the unconditional buyer of the property (if the reserve price is met). If the sale is private, the buyer has a three day “cooling off period” during which they can reconsider their offer. There are exceptions to this, so be sure to check the eligibility, and take it into consideration when accepting an offer. The last stage in the process settlement, which includes the date proposed in the contract on which the buyer pays the purchase balance and receives the rights to the property.
So, there we have it; a beginners guide to selling a property. The overall process will be difficult, so make sure you have a support system in place to assist when things become difficult. For more information about buying or selling properties, visit the consumer affairs website or consult a local real estate agency. Good luck!