METHODS OF SELLING YOUR PROPERTY

Private Treaty

This is a process where buyers negotiate with your agent to meet a sale price set by you at the outset. Your Real Estate Agent will negotiate as close to your listed price as possible and the sale may be conditional on inspections or home loan pre-approval. A cooling-off period of two business days applies here, wherein the buyer can withdraw from the sale.

 

Auction

An auction is a single event, rather than an ongoing process like private treaty. You set a reserve price (no more than 110 per cent of the price outlined in your sales agency agreement) and buyers register before placing bids at the auction.

If the reserve is reached, the highest bidder is obliged to buy the property and pay a 10 per cent deposit on the spot – there is no cooling-off period. If reserve is not reached, the property is passed in and buyers may negotiate with your agent for a fair price. It is important to set a realistic reserve – your agent can give you advice on this.

 

Tender

The tender process is one whereby you receive offers accompanied by a deposit from purchasing parties. You can reject these and accept one you deem satisfactory. This is a confidential process with no limit put on the offered bids.

 

Marketing your Property

No matter the method of sale for your property, the marketing process is going to be vital – this dictates the exposure and interest your home generates. Your agent can provide valuable advice on the best way to advertise, but there are two main methods:

  • Online advertising – All big newspapers have online listings now which can provide excellent exposure.
  • Combine this with sites like realestate.com.au and domain.com.au.

     

The Costs of Selling a Property

Every cost, big or small, should be factored into your planning. When selling property, it can include the following:

  • Agent commission (this is stated in your sales agency agreement)
  • Fees for conveyancers and solicitors ($1,500 to $3,000)
  • Pest and building inspections (can be between $500 and $700 for a full interior and exterior building check)
  • Marketing fees and any reimbursement of your agent’s expenses (outlined in sales agency agreement)
  • Rates and taxes up until the settlement date
  • Paying off the remainder of your home loan, or fees for establishing a new mortgage with your lender (up to $1,000)
  • Moving costs (between $500 and $3,500)
  • The costs of cosmetic work (a few hundred dollars) or renovations (as much as $15,000 for a full plumbing fix)
  • Auctioneer fees, which can be $1,000

Your real estate agent can help you stay on top of every cost that will be incurred when selling your property, so you can budget accordingly. Nobody likes to be stung with hidden costs, so research and planning is essential.

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