Getting ready to sell your property
Selling your property is a big event in your life – but before listing your home for sale, you will have to answer a number of questions, such as;-
- have I chosen the right time to sell?
- should I renovate the property prior to sale?
- will I price the home correctly?
- will I choose the right agent?
- how much should I spend on advertising and marketing?
- will I choose the best method of sale?
- should I sell by auction or tender?
- will I find a buyer quickly?
- will I have to take a drop in my price?
- what if my property doesn’t pass the building a pest inspection?When is the best time to sell?This question is usually decided by a personal timetable of having to relocate because of a job, new school, illness or lifestyle changes including upgrading or downsizing.If you have the ability to choose the time that you want to sell then January and February are good months as are the Spring months – the Winter months usually have the lowest buyer activity.The economy affects the housing market so a low unemployment rate and low interest rates bring out the buyers who are owner occupiers and the investors.Should I renovate before I sell?Unless your home is derelict and will not pass a building and pest inspection, then there is little need to renovate because every dollar you spend you will be paying GST and although you may attract the best buyer in the market there is no guarantee you will get a better price or recoup your investment in the renovation.However, in sought after areas and suburbs, a renovated kitchen, or bathroom or an additional room can result in a much higher price which would cover the cost of the renovations.Remember, many buyer love to renovate themselves to their own taste so if you renovate, you may have to ask a higher asking price to cover the cost of renovating and you may “price yourself out of the market”.How do I choose the market price?If you ask a real estate agency to suggest the best price for your property, you will be given a Competitive Market Analysis (CMA) of properties that have sold recently and those currently in the market that are similar to your property. If you ask more than one agency to give you an option of the best market price be prepared to get the same suggest asking price from all the agencies because they all use the same evidence to determine the best market price.Based on the evidence provided by the CMA, you could market your home at a realistic price to attract the majority of buyers which would give you a quick sale – or if you want a “premium price” it could mean spending more money on advertising to attract the best buyer.If you price your home below the CMA price you will get a quick sale and will not have to spend a lot on advertising, but the higher you set the asking price above the average the CMA price for your property, then the more you have to spend on advertising to attract buyers.How do I choose the best agent?In today’s real estate market, salespeople promote themselves through advertising, letterbox drops and signboards.Chose an agent that has an innovative marketing plan to get you the best buyer at a premium price.The most active agents are easy to spot as they have most of the sales and listings in your area so start your search with them.You will get a higher price and a quicker sale if you get on with the salesperson as selling a property is a team effort with you and the agent working together to obtain the best result.How much should I spend on advertising and marketing?The days have gone when sellers believe the agency should pay for the advertising – their job is to sell the property through advertising, promotion and personal selling – it is the seller’s responsibility to decide how much they will spend on advertising and in some cases, it could be between 1% and 2% of the listed price.To obtain a premium price, the agency may suggest internet advertising with banner and feature adverts plus newspaper and magazines adverts whilst for an average sale, internet advertising may be all that is required.Will I choose the best method of sale?Approximately 80% of all properties listed for sale in Australia are by the Exclusive method of sale - that is one agency selling a property, with an asking price. The remainder are sold by a “no price marketing” method either auction, tender or “by negotiation”.Should I sell by auction or tender?Of the 20% that are listed without a price, most are sold by auction, which is a popular method of sale in Melbourne and certain suburbs of Sydney, Brisbane and Adelaide.If you want to obtain the best price in a competitive bidding environment in a short period of time then action may be a solution because there are 3 chances of a sale – before the auction, at the auction or after the auction.There is no “cap” on the price obtained when selling by auction so you have the chance of getting a “premium price”. N advantage for the sellers of an auction is that the buyers can't have any "subject to" conditions added to the contract.Will I find buyer quickly?Depending on the market conditions and buyer actively, if you price your property realistically, you could sell within days.Will I have to take a drop in my price?Most sellers choose a listing price above the CMA price and real estate statistics show that many owners drop up to 6% of the asking price to get a sale.What if my property doesn’t pass the building a pest inspection?It is wise – but it costs money – for a seller to get an independent building and pest inspection on the property before listing it so there are no surprises and any problems can be fixed so when the property is sold, the sale goes smoothly!