DETACHING FROM YOUR HOME
No matter the reason, once you have decided to sell, detaching from your home can be a difficult and emotional task. Here are 3 steps to help make it a little easier;
First - take photos, videos and spend time in each of the rooms to help with capturing your favorite parts of the home. Make sure you do this prior to packing anything away.
Next - Starting the process of decluttering and packing can help move your thoughts from "this is my home" to "this is my property". This important mindset shift will help you detach especially as you start to pack up things to take to your next home.
Lastly - Focus on the benefits of moving to your new home so that you start to look forward to that next phase.
PROPERTY PREPARATION
Preparing your property for sale is the most important part of the entire process. It requires more than decluttering, painting and tidying the gardens.
Premium Price created - It's at this stage where the sale price is maximised as the property is transformed into a product that buyers will make an emotional connection with and pay a premium to secure. A quick and basic low-scale update won't extract the highest possible price and you only get one chance to get this right.
Consistency - Buyers who pay a premium want a modern, consistent, turn-key property they can move straight into. Along with any necessary repairs, this consistency starts from the street appeal and runs throughout each room in the property finishing with any outdoor space.
Plan - The right design, planning, and team will get you to this point in as little as 5 weeks. If the property requires more extensive work, prioritising the budget will ensure the largest buyer objections are taken care of first.
Budget - To avoid overcapitalising, the average budget for a renovation must be no more than 5% of the current property value. You can determine the current value by looking at sold properties in your area that are similar to yours. Make sure you only look at the last 3-4 months as anything earlier may set you up with the wrong price expectation.
Caution - Doing only part of the preparation work is like doing parts of a jigsaw puzzle. It will look unfinished and disconnected and attract low offers. This is also not the time to learn about DIY as the timeframe and quality needed are unlikely to be achieved by a first-time renovator.
SOLICITORS VS CONVEYANCERS
Conveyancer - Generally used for straightforward property transactions. They will prepare all the necessary documents ensuring the correct legal compliance so that the property can be transferred from one party to another.
Solicitor - Will do the same as a conveyancer through has greater knowledge of all the possible legal aspects of the contract of sale and can help guide you should any issues arise that may require the correct legal process. They are fully qualified lawyers and can handle the more complex and or risky property transactions.
Contract of Sale - Either your conveyancer or solicitor will prepare this for you. This is the official document that contains key information such as ownership details, lot number, land size, inclusions, and certificates from various council and government bodies. If selling a strata-titled property, the by-laws will also be included.
REAL ESTATE AGENTS
Whilst some people don't like them, real estate agents are a very necessary part of a successful sale. They take the inquiries, conduct the open homes, and most importantly, negotiate with the buyers to present you with the right price.
Agency Agreement - This is generally a standard agreement giving the agent the right to market and sell the property on your behalf. Usually, this is an exclusive agreement for a 90 day period, however, other options exist.
Marketing Fees - The agent will outline their marketing fees which vary by area & property type for the online platforms. Most other items like brochures, photos, floorplan, and signboards are usually a set cost.
Commission - There are multiple commission structures including a fixed % of the sale price, a fixed % to a certain amount then a higher % for anything above, and a couple of other combinations. Discuss with your agent what works for both of you.
Strategy - All agents will have a preferred strategy for sale that they should be able to outline to you along with why it works with the marketing campaign. If they can't, move on.
Volume - An agent will only be able to give your property as much attention as they can divide between all the other properties they are selling at the same time. If yours is one of 5 you will probably get the right level of attention, if it's one of 15, you might find the more expensive properties get their attention over yours.
MARKETING
Once your property is transformed into something amazing, marketing gets potential buyers' attention and brings them to an inspection. This part has 3 key ingredients.
Photos - A professional property photographer will take a number of shots to showcase the property using appropriate lighting and edit these afterward. Your agent will book this in.
Online - By far, the best way to get your property in front of buyers is by listing on the major platforms. Try and limit the number of photos to just 4 or 5. This builds curiosity with buyers and gets them excited to come and see more. The "copy" or words used to describe the property are also important to give buyers a feel for what is around the area such as schools, shops, dining options, and transport.
Signboard - This gets the attention of people passing your property who may not have been looking to buy there until they see what is available. The signboard should contain that 1 lifestyle image that will grab the attention of people quickly and compel them to find out more online.
SALES CAMPAIGN
Open for Inspection - A set time will drive a volume of potential buyers and make the property look and feel in demand. This coupled with your amazing transformation and presentation will drive competition between buyers and help drive the price upwards.
Agent Reporting - It's important for your agent to send you a weekly report on the number of buyers along with their feedback on the property. This will give you a good indication of whether there is enough competition building up towards solid offers or auction.
PRIVATE TREATY SALES
Sometimes, a private treaty sale is the best way to sell your property. The agent will guide you on this based on the market, the area, and their experience. The key benefit here is that, unlike an auction, other buyers don't see how much someone else is offering. So your agent can push them to the top of their budget rather than them slowing down at an auction because of what someone else is bidding. A cooling-off period may apply.
SALE BY AUCTION
If you agree to sale by auction, there are a couple of things to keep in mind.
Reserve Price - Whilst most people think this is the minimum they would take, the key to getting this right is to take some risk and keep the number attractive enough to spur on more bidding. The auctioneer will only reveal the property is "on the market" meaning "we are playing for keeps" if the reserve price is reached and bidding slows. So keep this number a little below your minimum and let the auctioneer work the rest.
Contract of Sale - If the property is sold, you and the purchaser will need to sign the contract of sale straight away and put up that all-important SOLD sticker. Generally, there is no cooling-off period with an auction sale.
SETTLEMENT
Settlement is outlined in the contract of sale as a certain number of days from the sale date.
Seller Purpose - This gives time to your solicitor or conveyance to prepare the required admin tasks so that the property can be transferred from you to the new owners. This usually includes pro-rating of any water or council rates. It is also during this period you need to vacate the property, notify your energy and insurance providers of the date you will move out so a final bill can be prepared.
Buyer Purpose - Gives the buyer time to finalise their finances via any bank loan to purchase the property.
Settlement Meeting - The actual settlement meeting is reasonably short as all parties come prepared to complete the required admin and transactions to formally transfer the title to the new owner.
Completion - On completion, your conveyancer or solicitor will transfer the funds (less any bank payout) to your bank account.
The buyer's conveyancer will request the agent release the keys to the property.
Your agent will also transfer to you the deposit collected on sale less any commission or other fees they are owed. This might occur the following business day.
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