Property Tips and Selling Advice
Selling Property and Selling Your Home the Right Way
Have you been looking into selling your home or investment property? Taking a hands-on approach to selling your property is the most effective way to help you reach your property goals.
What comes first when selling your home?
1. Choose your Real Estate Agent/Salesperson
Choosing the right agent/salesperson for you and your property is a critical decision that shouldn't be rushed. There are many real estate agents/salespeople available to help you with selling property, but finding the right one takes some thought. Your chosen agent/salesperson should be an expert negotiator and marketer of property, but there are some other options to consider.
When choosing your real estate agent/salesperson:
- Search for an experienced agent/salesperson who understands local trends and market characteristics.
- Interview more than one real estate agent/salesperson to understand the different options available to you.
- Learn about their marketing techniques and their suggestions on how to sell your house.
- Consider your interviewees' negotiation style as this will be on display when you first meet.
- Watch out for agents/salespeople who lower their commission quickly — they may do the same with your property's sale price just as quickly.
- Always check over customer testimonials to ensure you're dealing with an honest agent.
- Trust your instincts and remember that you will be spending a lot of time with your chosen agent/salesperson.
- Remember that being comfortable with your agent/salesperson will increase the chances of a smooth selling process.
2. Appointing your agent/salesperson by way of a 'Listing Agreement'
- A listing agreement is a contract with the seller and real estate company & agent/salesperson that grants permission for the agent/salesperson to offer the property for sale
- This is normally for a fixed period of time
- The contract will contain the seller's instructions to the agent/salesperson regarding the method of sale, promotional program, marketing plan, agreed budget for advertising etc.
- It will also include any special instructions from the seller such as the inclusions and exclusions and access to the property etc
- It does not give the agent/salesperson the authority to commit the seller to a sale
- The seller is only committed to sell when they sign a contract of sale, and not before
- For further advice on listing agreements, contact your local industry body, such as the local Real Estate Institute.
3. List your property
Listing your property is the first step you'll take in your journey as a property seller. At Century 21, we help our clients sell their real estate in a timely, stress-free manner.
What about marketing the property?
Marketing your property successfully can help to find the right buyer quickly and ensure a smooth selling process. A successful marketing strategy can be broken down into 3 important elements:
- Price
- Method of sale
- Promotion
1.Price
There are two major considerations to be made in regards to price. Firstly, the price at which the property will be promoted, and secondly, the sale price expectation.
The selling price of a property is determined largely by the collective sentiments of interested buyers and in particular, those who actually negotiate a price. Potential buyers have all kinds of information available to establish their own opinion of a property's value and enlisting the help of an expert real estate agent/salesperson will assist in achieving the best price possible.
There are three considerations to be made when working with your agent/salesperson to set an asking price for your property:
- Is your property in a desirable location or a less desirable location?
- Is your property in good condition and well maintained or does it need some repair work?
- Is your property equipped with modern and desirable amenities?
After establishing the value of your property with your agent/salesperson, it's time to work out the best pricing strategy to suit your requirements.
Fixed Price or Price Range
When using a fixed price or price range indicator it's essential that the price you're promoting is in line with current trends in the real estate market. Setting a price to high will discourage potential buyers and setting a price too low will leave you little room to negotiate upwards. There are also legal factors related to the advertised price which your agent/salesperson will discuss with you in full.
No Price
By using a 'no price' strategy, your agent will seek to target a particular type of buyer or target market. They may be buyers looking for a home in a suburb or a particular property type in your area. Once your agent/salesperson establishes the needs of a potential buyer and the current trends in the market, a price can be established.
2.Method of sale
There are two main methods for selling you home, through an Auction or a Private Treaty. An experienced agent/salesperson will advise you on the method that is best for your circumstances. It's important to remember that you, the seller, will always have the final say as to which method is chosen.
Auction
- Based on an intensive promotional campaign over an extended period of time
- Designed to attract a wide range of potential buyers to bid competitively for your property
- Creating more competition for your property means more aggressive bidding from buyers
- You're legally obligated to settle the full proceeds of sale on the date of settlement specified in the auction conditions
- Should an attractive offer arise before auction, you could consider taking that offer
- A 'reserve price' will act as financial protection should bids not reach the minimum price at which you would be willing to sell
- This allows your agent/salesperson to negotiate with interested buyers post auction if there is no sale
Private treaty
- Negotiations are carried out 'in private' between the agent/salesperson and the buyer
- This method of sale usually involves a 'fixed price' or 'price range' and the property will be advertised in this way
- 'Public tender' is another form of private treaty where interested buyers 'tender' up to a closing date
- The seller then has the option to accept or reject offered prices
3.Promotion
- Your agent/salesperson should promote your property in order to attract the most amount of interest possible
- The more competition for your property, the better the price and condition can be
- The agent/salesperson should have the details of interested buyers as part of the agent/salesperson buyer management process
- The agent/salesperson should then implement a marketing campaign through the media, including print and online channels
- Including information about the terms and conditions, time and items included with the property can make it more attractive to buyers
Seller feedback
- After prospective buyers have looked at your property, your salesperson should follow up to get their feedback
- This information is very important for evaluating the effectiveness of your strategy
- Your real estate agent/salesperson will be able to advise you on the best approach, incorporating seller feedback into your overall marketing plan
For more help with selling a house or selling your home, contact your local Century 21 branch today.