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Whether your decision to sell comes easily or requires much deliberation there
are many factors which should be taken into consideration.
One of the first considerations is “do I sell first, then look for my new home
or do I wait until I have found something suitable then put my property on the
market”?
Both options have advantages and disadvantages. Obviously if you sell first,
you run the risk of not finding a suitable home in time for settlement. In
situations like this you may be forced to think about alternative
accommodation. This may entail moving in with relatives or renting a home,
whether it be short or long term. You should avoid rushing into buying a
property that is not entirely suitable.
The advantage to this situation is you know exactly how much money you have and
when you will be receiving it. You are in a position to offer a cash contract
and have the flexibility to offer a shorter settlement period. This could
certainly put you in a strong position to negotiate on price and terms. In this
instance you should include a ‘subject to settlement’ clause in your contract.
Speak with your solicitor or REOL property consultants for more details.
Another way to help combat this situation is to request a longer settlement on
the sale of your property. It may be the case that your agent is able to
negotiate a 60 or 90 day settlement. This would provide you with extra time to
find and ‘settle’ your new home. In this instance a ‘contemporaneous
settlement’ may make the process easier and save you money. Speak with your
solicitor or REOL property consultants for more details.
Take note: Your home may be ‘Under Contract’ this does not mean it is ‘Sold’.
The contract of sale may be subject to a number of conditions which could allow
the buyer to get out of the contract. Never commit to another contract without
knowing exactly where you stand.
If you decide to find your new home prior to putting your home on the market,
you must consider the following. If you find your ‘dream home’ are you going to
commit to buying it.? Are you going to ‘go to contract’? If you don’t you may
lose it to another buyer. This situation creates a dilemma which might
influence your course of action. You may decide to buy the home in the hope
your house will not take long to sell. Be careful. Consider the consequences.
If this situation does occur there are a few options you can utilise.
Ideally you should make the new contract ‘subject and conditional upon the
satisfactory sale and subsequent settlement of your existing property within a
specified time frame’. Consultation with your solicitor is strongly advised.
You may attempt to negotiate a longer settlement period. This will give you
more time, but you will still be legally obliged to ‘settle’ on the new home,
so always ensure you are capable of doing so.
Banks and lending institutions now offer finance packages to cater for these
situations. They might be referred to as ‘relocation loans’ or ‘bridging
finance’. Always do your homework and speak to the appropriate people.
When to sell
Some people have preferences as to what time of year they think is best to
sell. It may be spring when the weather is fine and the gardens are in bloom,
or it may be summer when the southerners are up here and the children are on
school holidays.
The market conditions are always a factor to consider. Is it a ‘good time’ to
sell. Is the economy having an impact of the property market. Have ‘things’
slowed due to interest rates etc. Many people believe the property market
operates in cycles.
It is our experience that regardless of all of the above mentioned conditions
people still buy and sell property. If you buy and sell in the same market you
are on a level playing field. To buy and sell in the same market offers an
element of protection. You should also consider the amount of competition in
the market place. Are there a lot of similar homes on the market? If so, are
they selling? They are your competition. Your home must complete for the buyers
interest. That is a vital phase in securing a good ‘contract of sale’. At REOL
our primary objective is to generate the maximum level of buyer interest in the
homes we launch onto the market.
We’re on the market!
Right, your home is going on the market. You have decided it will be sold.
The preparation you put into your property prior to being put on the market
will impact on the eventual result and outcome of the sales process.
Presentation is a key consideration. If your property presents well buyers will
find it easier to envisage it as their future home.
When you get a contract it will most likely be subject to a satisfactory
building and pest inspection. Whilst no house is perfect it is in your interest
to ensure the condition of your property will not adversely affect the sale.
For example, it helps if there is no live termite activity.
Which agent!
Your next step is to choose an agent and have your property appraised. There
are plenty of agents to choose from, but not all agents are created
equally.
It is advisable to contact a couple of agents and have a chat with each of
them. You should feel comfortable with the agent you choose. Do not fall into
the trap of choosing an agent based solely on the price they have quoted you.
Talk is cheap. There are agents in the industry who will attempt to win (Buy)
your listing by simply trying to flatter you with very high figures. This is
not only unethical it is highly detrimental to the sale of your home.
Overpricing your home is one of the worst things you can do. Your property
should be listed at a premium but achievable price. Insist on the agent backing
their opinions up with facts. Ask what sales they have recently made in your
area. What experience do they have? What systems do they have in place to
ensure your property will generate the maximum level of interest? How are they
going to professionally and comprehensively market your property? Do you feel
they would be the best person to represent your home? Do you think they would
be a strong negotiator? Do you trust them?
Signing an Agency Agreement
By law an agent cannot market your property without a fully signed ‘appointment
to act’ (PAMD Form 22a). This is a legally binding contract between you and
your real estate agent. The form specifies several important elements to the
agreement. These include the services to be performed by the agent, the agreed
commission as well as other fees and charges including advertising and
marketing costs. It is important that you fully understand the terms and
conditions of the agreement.
There are essentially three (3) categories of appointment. The agreement form
explains the difference between each one. Below is a brief description of each
category.
Open Listing
You can appoint any number of agents to market your property. Only the agent
who sells the property will get paid. You have the right to sell the property
in which case no commission is payable. This appointment can be ended by either
you or the agent at any time. This category does not usually result in a great
deal of commitment by any of the agents. The attitude often associated with an
‘Open Listing’ is
“ If I sell it, I sell it, if I don’t I don’t”. There is no real commitment by
either party.
Sole Agency
You appoint one agent to market and sell your home. You have the right to sell
the property yourself in which case no commission is payable. If the agent or
another agent sells the property, commission is payable. If you are interested
in marketing and selling your own home this type of agreement would be
suitable. You usually get a good level of commitment from your agent, but there
are a few drawbacks. Each appointment is for a maximum of 60 days.
Exclusive Listing
You appoint one (1) agent to handle the marketing and sale of your
property. You only deal with this agent. They are responsible and accountable
for the entire process. This agent would be in constant contact with you and
the level of commitment is usually very high. If and when your property sells
this agent will get paid. Each exclusive appointment is for a maximum of 60
days. If you have any questions with regard to these agreements please speak
with your solicitor or your local REOL agent.
Marketing your home.
The level of marketing your home receives is up to you. Different homes require
a different level of marketing. A well prepared and well placed marketing
programme will pay dividends. Experience tells us that maximum buyer interest
often equals maximum Price. How and where you should spend money is the big
question!
Do not be fooled into costly and unnecessary advertising. It is expensive, not
always needed and often is placed more for the benefit of the agent than the
seller.
Bear in mind ‘no advertising costs, usually means no advertising, full stop’.
At REOL we will design a marketing programme to suit your property. Our first
objective is to ensure it will be effective in generating buyer interest. At
REOL you will benefit from our online systems which are designed to ensure no
stone is left unturned when it comes to finding that ‘buyer’ who loves your
home. We utilise every form of effective advertising and have two separate
window displays in Burleigh Heads. Speak with one of our consultants, we will
keep you happy.
Methods of Selling
There are essentially two methods of selling your home. One is with a price,
this is called a ‘Private Treaty’ sale. You put the property up ‘For Sale’ with
an asking price. It is your agents job to achieve a price as close to this
figure as possible.
The other is without a price, as in ‘Auction’ or ‘Tender’. The property is
marketed without a price. The buyers are put in an environment where they
compete for the property.
Both methods have advantages and disadvantages. There are a lot of factors to
consider before deciding which method best suits you and your home.
Open houses?
Whether you have your home open for viewing is up to you. I have heard agents
use scare tactics to dissuade sellers from ‘open house’ and I have heard agents
tell sellers “they are a waste of time.” Personally I believe they are a
valuable marketing tool. Yes, you may get your neighbours and sticky beaks but
you will also get red hot buyers walking through your front door. There are
many buyers in the market place who utilise their Saturdays to go ‘House
Hunting.’ If your house is open they will probably have a look. At REOL we
discuss each aspect of the sales process but we always respect your final
decision.
Negotiating
When it gets down to the business end of the deal you want a strong
negotiator on your side. The negotiating strengths and skills of your agent
often translates into dollars in your bank account. At REOL we ensure all our
property consultants are equipped and capable of controlling this important
phase of your sale.
Signing the ‘Contract of Sale’
Once you sign, it’s done. Your property is ‘under contract’ and hopefully
‘Sold’.
This should be a time to celebrate knowing you got the best possible price and
your agent did the best job possible. This result will impact on your financial
future. Do not leave it to chance. Appoint a professional property consultant
to protect your interests.
Commission Fee
The standard REIQ commission is 5% of the first $18,000.00 and 2.5% of
the balance, plus 10 % GST. The commission fee is negotiable, but more
importantly appoint an agent who is going to earn it.
If you are thinking of selling now or in the future or would just like an up to
date market appraisal we would be delighted to hear from you.
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