Understanding the Market

The property market will always fluctuate, so it’s helpful to know what sort of market prevails at the time you’re selling your property. Knowing the current market gives you an indication of what sort of properties are being sold, how quickly, and for how much. Each type of market has its own set of characteristics.

Buyer’s Market:

• Number of properties on the market are greater than the number of buyers.
• Properties usually take longer to sell.
• Buyers often dictate the selling price.
• Prices are stable or sometimes they fall.
• Good opportunity for first time home buyers to enter the market.

Seller’s Market:

• Number of properties exceeds number of properties available for sale.
• Properties sell faster.
• Prices generally rise.
• Sellers may receive offers from more than one buyer.
• Sellers achieve prices close to or above the listed price.

Balanced Market:

• Number of properties for sale is about equal to number of buyers.
• Sellers will consider reasonable offers.
• Prices are generally stable.
• Properties sell within a reasonable time.
• A good number if prospective buyers see the property.

Choosing an Agent

To give yourself the best opportunity of selling your home in the shortest timeframe and at the best price, you need to select the right real estate agent. They should be qualified, and have all the knowledge, experience and skills to deliver you a great result.

Presentation and communication

These skills are vital in the agent you choose to promote and sell your home, so make sure you’re comfortable with the way they communicate and present themselves to you. Some sellers make the mistake of selecting a real estate agent offering the lowest commission or promising the highest selling price for the home. These tactics often overlook the market conditions and your property’s potential. It can mean your property may take longer to sell because the agent isn’t fully invested in selling the property or has it prices outside the market.

Experience and local knowledge

A good real estate agent with local knowledge and proven results will give you a realistic appraisal of the market worth of your home. They’ll also compare homes sold in the area which are similar to yours.

Agent questions

To make the process easier, here are a few questions to ask a real estate agent before making a decision:

• Can you give me an example of how successful your company is?
• Can I see your profile?
• What do you know about the market in the area?
• How many homes have you sold in my area and what evidence can I see?
• Will you be personally responsible for selling my home or will I be dealing with a team of people?
• Can I contact two previous and two existing clients who can testify to the quality of service your agency provides?

What is a Home Appraisal?

A home appraisal is an inspection of your property by a real estate agent to help determine a realistic selling price and to identify opportunities that will make the property as marketable as possible. The agent can make a comparative assessment of the property’s worth based on recent sales figures in your local area.

How does it Work?

Your agent will make a time with you that is convenient to complete the home appraisal. During their visit, they’ll be looking for the key selling points that first attracted you to your home. These features will also help shape what’s appealing to potential buyers. They’ll also estimate the replacement costs of internal and external finishings, including floor coverings, window treatments and additional features such as a patio area, swimming pool or spa.

It is also valuable if you’re able to supply information including:

• A plan of your property which will give an exact size of the land your home is constructed on.
• Building plans for your property. The building plans will give the agent important information about the construction of the home, the name if the builder and any renovations that may have been introduced. This will enable them to better estimate the replacement cost of the building.
• Lists and age of special features such as ‘smart wiring’, alarm system, air-conditioning, solar power systems/panels or ducted vacuum systems. These features can impact the selling price.
• Any improvements you may have made to the property which may not be immediately apparent, eg. garden, reticulation or insulation.

Positioning your Property

The information the agent has collected will then be used to develop a marketing campaign that will accurately position the property in the marketplace. The agent will identify any aspects to maximise its market appeal, with any recommendations based on a specific cost benefit.

Setting a Sale Price

The largest number of potential buyers will be attracted to your property in the first 30 days. So it’s important your property is priced to suit the market in which you’re selling. Research shows that if a home is overpriced when it first comes onto the market it attracts fewer buyers, takes longer to sell and eventually sells at a lower price than a correctly priced home. Underpricing can also have potential buyers wondering what’s wrong with the property.

Process for Listing

A listing agreement, or authority to sell, gives an agent the ability to act on your behalf when selling your property. It’s usually the first document you’ll be asked to sign. Make sure you take the time to read and understand it before you sign, including the correct address of the property being sold, your name(s) and correct details.

The listing agreement will set out the following:

• Names of the registered owners.
• Legal address of the property being sold.
• Price (if applicable).
• Method of sale (e.g. auction, tender).
• Sales terms.
• Fees
• Marketing budget.
• Period of authority.

Owners should disclose information that may impact the buyer, such as:

• Restrictions affecting the property.
• Planning and road access.
• Outgoings and statutory charges payable (e.g. rates).
• A list of services connected to the property (e.g. sewerage, gas).
• Building approvals granted during the owner’s ownership.
• Guarantee of any owner/building activity.
• Any notices from a public authority or government department affecting the property.

Listing Options for Selling Your Property

There are a few options for you to consider when preparing to list your property.

Exclusive Agency

Generally, this is the recommended option that will give you the complete attention of your agent, allowing you to control the term of the sale and more often attract bonus activity in the market of your property.

Open or General Agency Listing

Occurs when you list your property with several real estate agents in your area. No one agency is responsible for the sale and achieving your goals. This method of sale often includes distributing several sets of keys for your home, plus multiple ‘For Sale’ signs.

Are Multiple Agents Better than One?

Many people believe open listings will make agents complete against each other and work harder to sell your home to get the selling fee. Our experience shows this to be a myth, as buyers in these cases will go to all the agencies and choose the best price. With a lower level agent commitment, there’s also a high likelihood you won’t achieve your desired sale result.

Accepting an Offer on Your Property

When a buyer is ready to put an offer to your agent, it will be presented for your consideration.

Sale Conditions and Contract of Sale

The initial off to purchase should have details of any conditions to be put upon the sale, which may include a specific time within which to organise finance, a settlement date, a satisfactory building inspection report and anything else that may be necessary to complete the sale. Advice on a contract of sale may be obtained from your agent or legal practitioner. This contract will be presented to you immediately after it is drawn up for consideration. Assuming the contract is approved and any conditions are satisfied the next state is ‘Settlement’.

Unconditional Offer and Deposit Amount

If the offer is unconditional and you accept the contract, it becomes binding and the buyer is expected to provide a deposit. A deposit is typically paid by the buyer upon signing of a legal contract. However this may vary depending on the conditions of the offer. The deposit amount and when it is paid may be part of the buyer’s offer to purchase. If a contact is unconditional and the buyer does not proceed to settlement, the buyer may forfeit their deposit under the terms of the contract.

Conditional Offer

If you have a conditional offer, satisfying the conditions of the agreement will be subject to a time frame. Once the specified time has expired, the conditional agreement should be confirmed as unconditional, or where the conditions cannot be met, any deposit will be returned to the buyer. If you receive an alternative offer during the conditional period, you’ll need to discuss with your agent and legal advisor the details of any options before you accept a secondary offer and give the required notice.

Settlement on Your Property

Handing over the keys on settlement day is the end of one journey and the beginning of another. Once you have accepted the offer and signed the contract, your Professionals sales agent will forward the contract to a legal practitioner/conveyancer of your choosing. They’ll administer the settlement, including exchange of titles and transferring of funds. There are occasions when a sale cannot be completed due to conditions not being fulfilled. To reduce the chances of this happening, your agent will seek to resolve any issues and make this a stress free as possible while completing the sale if your home.

Pre-Settlement Inspection

Prior to settlement it’s normal practise for the buyer to conduct a pre-settlement inspection so they can ensure the property is in the same condition as when they agreed to purchase it. It’s therefore important you maintain the property between the contract date and settlement date.

Settlement and Possession Day

Once the financial settlement has occurred, the keys of the property are handed over to the buyer on the agreed date. Your agent and legal practitioner will have completed all the paperwork so now’s the time to start celebrating!

Why Choose Professionals?

Since 1976, Professionals Real Estate has established a thriving property group, with more than 250 offices across Australia and New Zealand and a network of over 3000 passionate people. Our brand has made a name for itself as a dynamic, award winning agency group across buying, selling and renting. Our members offer a deep knowledge of the local market, and are fully committed to the community they serve. Because real estate is still fundamentally about human relationships, we have a simple but powerful brand purpose – to create customer happiness. For us, it’s not just about a single transaction: we want to earn the right to be your first choice when it comes to property now and into the future. This is why it’s our mission to be famous for customer service.