Home selling process step by step
Selling your home doesn’t have to be a stressful and complex process if you know what to do.
The first thing you should do before putting your property on the market is to ask yourself the all-important question:
Is selling my home going to improve my lifestyle?
If it will and If the price you get allows you to make the move and improve your lifestyle, you should sell.
You will find the following tips and suggestions helpful in guiding you through the selling process so you can start enjoying your new lifestyle sooner.
What price is your house?
Before you speak to an agent, get an idea of what similar properties are selling for in the area. Check the sold section of the main real estate portals but avoid subscribing to any of the websites that offer to give you a price on your home. All they do is refer you to an agent and they get paid a fee. When you have an idea what your home is worth you are less likely to be taken advantage of by an agent who may lie to you about the price of your home to win your business and then further commit you to unnecessary and expensive advertising with a long authority to give themselves the time to condition you down to the real market value.
Choosing a real estate agent and the method of sale
The agent you choose is the most important decision you will make. Find an agent with a good reputation. A good start would be to check their online reviews to see what other clients are saying about them.
Next, the method of sale you want to use will be a deciding factor on which agent you should choose. You want an agent with the best experience in that method of sale.
There are several methods of sale you can use to sell your home but the main three are: Private sale, public auction and sale by tender.
Private sale is by far the most common method of sale. Close to 80% of all sales in Australia are sold using private sale. It offers you privacy, direct negotiation and control. The property is marketed and put up for sale with an asking price. Interested parties can submit an offer and if you are not happy with it you can reject it outright or you can ask your agent to go back to the interested buyers and negotiate a better offer. Hence if you are selling by private sale you should choose an agent with experience in this area. All agents claim to be good negotiators but if their agency sells mostly by auction you need to ask yourself how much experience do they really have with private negotiation when they specialise in auctions. There is no negotiation at auction.
Do your research. Your home is one of your biggest assets, so choose wisely and use an agent who knows how to get the highest price buyers can pay – this is an art not many agents possess.
Auction is the next most popular method of sale with close to 20% of all sales in Australia. This is a method that is generally accompanied by a greater amount of advertising commitment, hence favoured by many agents because they get greater advertising exposure for their agency, for free, because you are paying for it. It’s also favoured by the media because they make millions of dollars from the large amount of advertising that goes with auction – so it is in their best interest to promote it as the best way to sell, which they go to great lengths to do.
A sale by Tender is not that common and is reserved for certain type of unique properties or expensive commercial properties. It is more like a private sale in that all offers are submitted privately and examined after a set date.
There is another method of sale which is fast becoming popular for being able to achieve the highest possible price. It uses the private sale as its base but with some variations that benefit the seller and not the agent, which explains why not many agents will recommend this process to you.
The Smart Sale is an internationally acclaimed sales process achieving amazing results with the least amount of stress. All offers are negotiated privately with each buyer, sealed and kept confidential until they are opened by the vendor in the presence of their agent.
Benefits of the Smart Sale:
- No costs – there is no risk of losing money
- Private, secure and confidential
- The entire sales team works on finding the best buyer for your home – it’s not just limited to the listing agent and their assistant
- Private bidding removes the risk of underselling, as often happens with a public auction – instead each buyer offers their maximum price, the highest price they can pay. If they don’t, they risk losing the property to buyer who offers more
- The vendor, is in control – you can accept, reject or negotiate any offer
An efficient and hassle-free professional sales process that achieves the highest possible price for your property with no hidden costs. Our sellers love the Smart Sale process and so do all genuine buyers (see our reviews).
List your home for sale with your chosen agent
Once you decide on the method of sale choose the agent who is best suited and most experienced in that area and sign an exclusive authority for the sale of your property. Be mindful of signing for too long with the agent.
Set your price
Quote the price you want not a misleading ‘bait’ price some agents may recommend you do. Today’s buyers, with easy access to information online, are more educated and have access to all information on comparable sales in the area. If you price it honestly you are more likely to get your price, even more with the right agent working for you. The bait price strategy works for the agent but not for you. Don’t compromise on this, be honest and you will be rewarded.
Presentation of your home
Buying a home is emotional. Buyers say, “We loved that home and that’s why we bought it.” So, make sure you present your property at its finest so buyers will fall in love with it.
The right appearance outside, followed by the right feel inside, give you the best chance to sell fast and for the highest price. If you are not sure about your presentation you should speak to your agent about how to best stage your home for excellent results.
Inspections – Open house or by appointment with qualified buyers?
Make it easy for the right buyers to view your home. Open house for half an hour a week may be convenient for the agent and some sellers, but don’t restrict buyers from viewing your home at a time that suits you and them. Buyers who are ready to buy will see houses they can view at a time that suits their busy lifestyle and may buy before they see yours. The best open house times is flexible inspection times that are suitable for both parties.
Open houses also attract many undesirable strangers into your home, like sticky beak neighbours and others who are just driving around, as well as mostly buyers who simply can’t afford your home.
Offers on your home
If the marketing is right and you have set a fair price you will receive offers on your home. When you get an offer, you have three options – reject it, negotiate the terms and/or price or accept the offer and sign the contract. Give careful consideration before rejecting early offers. Some of the best offers often come early from ready to buy buyers who have been in the market for weeks.
Once the contract is unconditional then you can commit to buying your new property. Don’t buy before you sell unless you have the money to settle on the new purchase without the proceeds from the sale of your existing home.
Preparing to move
Once you have an unconditional contract you should start preparing your move by booking a removalist and advising all the various utilities. Also don’t forget to redirect your mail for a few months.
Settlement day
On the day of settlement your solicitor will take care of all the legal proceedings including transfer of title to the new owners once he pays out any outstanding mortgages on your property. The balance of funds will be forwarded to your account. Your solicitor’s office will advise you when the property has settled. The agent will also be advised so they can release the keys to the buyer.
From an article By Paul Kounnas
