The process of selling property in Australia can be somewhat daunting and even scary, so what are considered to be the ten commandments on where to start?
Even just two short years ago, Australia’s real estate sector has continued to surprise us all. Despite fears that the global pandemic would send our nation’s property market into a tailspin, the reality is that it seems to have done quite the opposite. With a change in spending habits, record low interest rates, and an almost global desire to reassess our day to day lifestyles, Aussies have embraced real estate in record numbers.
People sell property for all types of reasons. For some, they might want to capitalise on the current state of Victoria’s real estate market, while others, it might be a simple case of upsizing or downsizing. Now more than ever, selling property in Australia can be both stressful and exciting. While some things have certainly changed, the good news is that the process of doing so has remained relatively unchanged. As a means to keep the process as streamlined as possible, we’ve compiled our very own step by step guide on what to do – and when to do it – when it comes to selling property.
The Process Of Selling Property Explained
From accurately estimating the true cost of selling a home all the way through to exiting an existing mortgage, it can be difficult to know where to start in the world of selling property. However, once you’ve actually made the decision to do so, the good news is that there’s somewhat of a tried and true formula to follow.
1: Do Your Research – Before you start making choices – or guesses – on how much you think your property is worth, what constitutes a good real estate agent in your area, or even your method of sale, do your homework on what the current market outlook is for properties similar to your own. Doing a bit of research now will help you to make smarter decisions down the track.
2: Get An Appraisal – While getting a formal property valuation can be done through a real estate agent, enlisting a professional appraiser will ensure you receive an unbiased opinion. To value your home, they assess things like the type of construction, its size, the condition of the property, its location, and recent sales of comparable properties within its vicinity.
3: Choose A Method Of Sale – You’ll need to decide on going to auction, or a more traditional private sale, and which real estate agent you plan on using. The decision on which option to choose usually involves a variety of contributing factors, such as the type of property being listed, it’s style, the location, the level of interest it’s received and even the time of the year.
4: Prepare Your Property – Did you know that property styling can add between 5-10% to the final sale price of a home? While renovating to sell isn’t a good idea for all homes, paying attention to minor repair work and the overall presentation of your dwelling for an open home day can make the world of difference when it comes to attracting the right types of buyers.
5: Enlist The Professionals – Selling property is a legal process. While you are not required to have a conveyancer or lawyer manage the settlement process, managing the documentation and settlement of your property’s sale can be complicated. As such, hiring one of these licenced professionals can help to ensure that your contract of sale has no loopholes in the fine print.
6: The Marketing Starts – If you want your property to ‘get seen’ by potential buyers, then professional real estate marketing via photos, floor plans, internet listings, brochures and even social media campaigns are all necessary evils. As a general rule, aim to invest 0.50% to 1.00% of the value of your home into the marketing efforts.
7: The Offers Start Arriving – Unless you’re going to auction, it’s at this point during the process of selling property that people will start making offers to formally buy your home. Your real agent will then negotiate on your behalf until you are happy with the price or any other special terms, until you reach a mutual agreement with a prospective buyer.
8: Deposit Is Paid – Once the buyer and seller have agreed to sell the property or it has been sold by auction, the first step to legalise the sale is to sign and exchange the contract of sale. At the time of the exchange, the buyer will be required to pay a deposit, which is normally 10% of the purchase price, and this will be held in trust by the real estate agent or your conveyancer.
9: Settlement Day – As settlement day approaches, your conveyancer or lawyer will work with the buyer’s settlement team to ensure all the legal obligations of the contract have been fulfilled. Assuming that all goes to plan for both parties involved, final payment will be made to the seller and the keys will be handed over to the new buyer.
10: Celebrate Your Win – Selling property can be stressful, but it’s at this point that the seller deserves a pat on the back for seeing it through. Unfortunately, this also comes with the final exit factors such as mortgage discharges and new property purchases if applicable, as well as the final moving out period.
Especially considering the extremely hot real estate market that Australia is currently facing, there’s arguably never been a better time to be selling property. However, there are a number of factors involved with making the decision to sell, so it’s not a move that should be deployed without a great deal of thought and consideration. Depending on your circumstances, you might even be better off renting the property in question as opposed to selling it, which is why it’s always a good idea to get an unbiased opinion from the professionals first.
Should you be looking to sell your home or purchase a new one, enlisting the services of a free property advisor like ESPA can often be a game changer. As an example, your advisor would likely research the property, local agents, check the zoning, evaluate market conditions, and communicate clearly with you regarding all of your options – but where do you find one?
Take The Stress Out Of Selling Property
As a completely free service, Emergency Services Property Advisors provide property advisor services to Police, Fire, Ambulance and S.E.S personnel and their families right across Victoria.
Luke and the team at ESPA are passionate about providing support to some of Australia’s most valued public servants. Along with key industry insights, ESPA also works with a broad range of service providers linked to the real estate industry such as conveyancers, trades, legal practitioners and mortgage brokers.
If you are an emergency services worker looking to potentially buy or sell property in the future, please get in touch with Emergency Services Property Advisors today to discuss how we can turn your real estate dreams into reality, or call Luke directly on 0414 757 705.
