Sellers Guide - Country Realty

Sellers Guidewww.countryrealty.com.au

CONTENTSDeciding to Sell Your Property .............................. Page 3Okay, You’ve Decided to Sell ... Now What? ... Page 4-5Marketing Your Property ........................................... Page 6-7There’s a Contract? ......................................................... Page 8The Selling Process ......................................................... Page 9Presentation ......................................................................... Page 9-10We Have an Offer! .......................................................... Page 10-11You Have Sold! ................................................................. Page 11Happy Ending ...................................................................... Page 11

Deciding to Sell Your PropertySelling a property is not something that people do on a dailybasis hence they may not be as familiar with it or as comfortablewith the process as they would like. After all, most people, mayonly do it a few times in their entire lifetime.The property market does attract a lot of interest for a number ofreasons and we seem to be forever talking about it even thoughwe rarely engage in it. The reason there is so much interest is thatfirstly it’s a sort of barometer of the economy in general. When theeconomy is flourishing so is the property market and vice versa.The other reason is the fact that for most people, it is the biggestsingle asset or investment they are likely to make in their lifetime.It’s also intrinsically tied to where they live, their lifestyle, theirfriends, family, clubs and the activities they may enjoy. It can alsoreflect their financial wellbeing.When it comes to the decision to sell, it can have a major impacton people’s lives and financial situation. So the last thing theyneed is more concern, confusion, pressure or stress to add to theprocess.People sell for any number of reasons.Often it’s simply a change of circumstances — a growing familyneeding more room, an ageing couple needing to be closer tofacilities or downsizing, a job transfer, or a desire for a change oflifestyle or location. Some move to facilitate a better educationfor their children, or be closer to children and/or grandchildren,maybe they just want a better home or it may be a financialdecision.People decide to sell for any number of reasons, but what they allwant is a process that delivers the maximum realistic price at thelowest realistic cost, with minimal stress and disruption.We are here to help! Page 3

Okay, You’ve Decided to Sell...When people want to sell or buy something, they usually becomesensitive to any related information and soak it all in. For instance,if you are about to have a child, baby ads for nappies all of asudden seem to be everywhere. Or you have just purchased anew car and you see a similar vehicle at every set of lights youstop at.Subconsciously or otherwise you will have looked about yourneighbourhood and noted what’s on the market and the askingprice. You will have also seen different “For Sale” signs fromvarious Real Estate Agents.So the starting point is what is the “value” of your property. Thatalso may help with any decision on what and where to buy.There is a saying that a property is worth what someone isprepared to pay for it, however that’s not strictly correct. Aproperty is worth what a financial institution is prepared to extenda loan against.There is a distinction between a valuation by a “Sworn Valuer”and an “Appraisal” given by a Real Estate Agent. By Law (in WAat least) a Real Estate Agent cannot give you a valuation. Theycan only give an appraisal.Real Estate Agents take into consideration similar aspects asValuers, but we also include local market conditions, that special“wow” factor of a home or features such as views or a spectaculargarden. We also add a negotiation margin. Every buyer wants tonegotiate and feel as if they have secured a great deal.However, if finance is to be sought by a buyer then the Valuationis crucial. Finance will be declined if the contract sale price is notsomewhere near a Valuation by a Sworn Valuer.So, it’s very important that a Real Estate Agent understands howa Valuation is arrived at and not overprice a property just to gainthe Listing to sell it.Similarly, owners tend to place a value on a home based on theirneed to relocate, or on what they see as the asking price of similar Page 4

... ... ... Now What?properties in the area. The crucial question is to find out what theproperty actually sold for and not just look at the asking price.For this very important first step, you need to call in at least threeReal Estate Agents. What you want from them is obviously anappraisal price but more importantly, information and evidenceon how they arrived at that price.Part of that evidence is the sale price of similar properties in yourarea. You will also want to know what your competition is; afterall you will be competing for buyer attention from other propertieson the market. You then will want to know a statistical comparisonof properties such as how long those properties have been onthe market; what have been their price movements; and what isthe percentage drop from the asking price to selling price. This willhelp you when it comes to negotiations.Country Realty will provide you with all this information and moreas part of our appraisal process.Despite all that, there is every temptation to accept the highestappraisal price. After all who doesn’t want to make a few extradollars!The reality is that buyers are also armed with an abundance ofinformation courtesy of the electronic age. If they perceive thatyour property is overpriced, it will be quickly dismissed as anoption.Your only choice at that point is to then drop the price to attractany attention and research suggests that you will have to dropway below the original suggested listing price to regain anytraction.OK so you now have three potentially similar appraisals. Whichselling agency do you choose? Page 5

Marketing Your PropertyWhilst we hope you choose Country Realty, we suggest youchoose the person you are most comfortable with. The onlyproviso is that they are also the person you feel confident canget the job done for you — that is, “SELL YOUR PROPERTY”!The success of the marketing program is enhanced by theAgent’s ability to present your property with a point of differenceto help it stand out from the competition.We try to find those unique selling points that will enhancethe appeal of your property to a potential buyer. We takedifferentiation very seriously. This is demonstrated by the factthat we often draw up floor plans at our cost; use quality digitalSLR cameras to capture the property in the best light; haveused drones; and use quality printing to best effect.Some agents call this smartmarketing, or new agemarketing — we call it normalmarketing.As part of a full appraisal theAgent will also present youwith a proposal that includesa marketing campaign withselling fees and reasons whyyou should choose them.To sell any property one must seek maximum exposure to helpfind your buyer. Today, that’s done almost exclusively throughthe Internet. More precisely it’s done through “Portals” for realestate specific transactions. The most popular portals arerealestate.com, REIWA.com and domain.com. As a minimumyou must be on these three sites. But there are many more.At Country Realty we advertise our properties on up to 13 websites depending on the property. For instance, there are websites specifically for people interested in horses. Page 6

Newspapers do still have a role but for limited specific orspecialised properties. In 98% of cases, your buyer will beintroduced to the property via an electronic medium.These portals also have the ability to reach out to buyers ratherthan just waiting for them to find your property amongst themany on the market. So make sure that where possible, theAgent uses electronic brochures. These are sent to potentialbuyers looking for similar properties to yours.You can also increase your exposure by purchasing highlightedpackages from these portals that make your property standout from the others. It’s a small investment that could payhandsome dividends.Colour brochures, window displays, home open days anduse of data bases to match buyers and sellers are all part ofCountry Realty’s marketing tool box, to help sell your property.Please note: Some agencies charge fees for marketing on topof their selling fees. Some however will not include GST in theirfee disclosure to look more cost effective — but will charge it atsettlement.Selling fees are not payable until settlement day, and if there isno sale there are usually no other fees to be paid except for anymarketing fees you agreed to up front. It is illegal to charge afee you have not agreed to up front and included, in writing, inyour Contract to list the property for sale with an Agency. Page 7

There’s a Contract?By Law a Real Estate Agent cannot offer your property for salewithout a contract.That contract must contain certain specific details, the mostimportant being the agreed fee if and when the property is soldand settled.That fee is negotiable and can take various forms. For instance,it can be a fixed fee, a percentage of the selling price or a slidingscale again based on the selling price.The contract should also contain details of the property to besold, how long the contract is to remain inforce, any agreed feesfor marketing, and your general rights should there be a dispute.Most sellers get a little hung up on the fee. Yes, there will bevariances but the price won’t necessarily reflect the level ofservice you’ll receive. Remember the point of the exercise is tosell the property.As suggested earlier, go with the Agency you feel will get the jobdone irrespective of the fees charged. There is no point payingtop dollar to an agency in the belief that it guarantees the bestservice — because it won’t! Similarly, there is no point opting forthe cheapest quote if they don’t sell the property because in thatevent you have saved nothing.Please read the contract carefully especially in regard to the termof the agreement. Some will try to tie you down for 12 months,some as little as 3 months. We believe that 6 months is a faircompromise.What you need to ensure is that it is not a set and forget scenario.In other words the property is posted online and the same advertwith the same words and photos are there 12 months later! AtCountry Realty we change the script and photos regularly. Page 8

The Selling ProcessSo... now you have chosen an Agent, agreed on the listingprice and spoken about what is acceptable as far as an offer isconcerned, signed a Listing Agreement and you’re ready to go.The Agency now needs to take photos of the property and“upload” the property with a good descriptive script onto themany websites they have access to.Sometimes the Agency may use a professional photographer.Other times they may do it themselves. Whatever the processthis is a very important part of the marketing campaign.Most buyers will look at the photos long before they read anythingabout the property. So the photos have to be top quality. Ifthe agent turns up with a mobile phone to take the photos beconcerned. Whilst they are very clever devices they do not havethe depth of field nor the ability to manipulate light as a dedicatedcamera has. And ask to see them before they are uploaded onlinealong with the advert.However, taking a good photo involves having a good subjectmatter. PresentationThe property needs to be well presented all the time duringthe selling process. It has to be clean, neat and tidy but mostimportantly — uncluttered. This applies to the outside of thehouse as well, including patios, garages, sheds and everythingelse on the property.This will also help with the selling process during buyer inspectionsor home opens.I cannot stress enough the importance of an uncluttered property.The rule of thumb is get rid of 50% of whatever you have! In apractical sense that may not be possible, but you might considermoving “stuff” into a shed or to one area rather than spreadthroughout the property.For your own checklist consider these points:• What does it look like from the street? Page 9

• Can the property be seen to be more appealing by creating a sense of space and cleanliness?• Could the eaves, gutters or fascias do with a paint?• Are there unpleasent smells from cats, dogs, other animals or foods that should be taken care of?• Is that brightly coloured feature wall from a reality TV show still appealing?• What are the unique selling points of the property that we need to emphasise?What we are doing is trying to increase buyer appeal. Theseitems won’t necessarily increase the value of the property butwill increase the likelihood of getting an offer, and that is a greatstarting point.One final point is that when there is a viewing, the owners shouldnot be there. Let the Agent do their thing. An overzealous ownerwill want to point out every conceivable feature of the property,but the reality is that buyers are not looking at features — theyare buying a dream, a feeling. We Have an Offer!The Agent calls and says “good news — I have an offer”! Nowwhat?The agent will write up an offer on a Contract of Sale documentthat sets out details of the buyer, the property they want topurchase, the offer price and any deposit they plan to place, plusthe method of payment such as cash or by application for finance.Other details include any special conditions they wish such asa Timber Pest inspection, Building Inspection, compliance withregulations such as swimming pool fences, smoke alarms, RCD’sand to make sure that any plumbing, gas and electrical equipmentis in good working order. There may be other conditions but theabove covers the majority, but don’t be surprised if they includethings such as your furniture, ride on mowers etc.You as the seller then has the option of agreeing to the termsand conditions offered or you can vary them. In effect you canmake a counter offer. You do that by varying or adding terms and Page 10

conditions, initialling and dating the changes and then havingthe Agent present that back to the sellers. They then accept or infact could make further amendments. You Have Sold!... ... Well not quite. You are technically “under contract” but not“sold” until the terms and conditions are met.Some of the terms and conditions are critical, such as financeapproval, others are not. For instance, if you agreed to leave aride on mower and it broke down or was stolen, you could agreea financial settlement but failure to meet that condition won’tstop the sale proceeding.You will have appointed a Settlement Agent or Conveyancer aspart of the Contract of Sale. They are the people who will finalisethe Contract of Sale and transfer the Title and monies on anagreed date.They will also do things such as: arranging a split up of rates andtaxes, transfer the Title, bank monies for you, pay the real estateagent their fees etc. They will provide you with a schedule ofincome and expenditure for the transaction.The agent can continue to be of assistance by helping to arrangefinal Inspections prior to settlement and aiding with Timber pestor building inspections.If you are living in your home, you have till 12 PM the day afterSettlement to vacate the property otherwise the buyer can takepossession immediately. Happy EndingThousands of properties are transacted every year and whilstone or two have some issues, generally speaking the processworks well.Your level of satisfaction will depend heavily on the choice ofAgent, being realistic with price and expectations of service andmaintaining the property as best you can during the sales process.Happy Selling! Page 11

Fulfilling Dreams... P: 1300 149 091 F: 9574 2599W: www.countryrealty.com.auE: [email protected]