Tips on selling
Tips on selling
selling at auction
An auction, held at a certain place, time and date after a marketing campaign, is a competitive and transparent selling method.
Auctions are governed by strict rules and regulations, which can differ between states and territories. But in essence, a licensed real estate agent runs the auction, onsite or in an office, and sells the property once a reserve price – the lowest amount the vendor will sell for – is reached.
As they can be emotional affairs, auctions create urgency and competition among buyers, driving the price up, which is good news for the seller. They’re especially suited to properties that are in high demand or unique or will appeal to multiple groups of buyers, as it creates a contest. Also, there’s no cooling-off period.
With a public auction sellers can go away safe in the knowledge they got the best possible price for their property. Not everyone likes the public nature of auctions though. In that case, it’s possible to have a private auction, with only invited bidders.
Selling via private sale
Ideal for properties in areas with less demand and where comparable sales data can ensure the seller can set the right asking price, a private sale is when a property is listed for sale through an agent, with a price attached.
In a private sale, the property is marketed and then prospective buyers make offers to the agent, who presents them to the seller, who then decides whether to accept or not. It’s viewed as a less stressful option than an auction by many.
Offering more privacy than an auction – where the final number is public knowledge – private sales can also be less costly than going under the hammer. On the down side, there is a cooling off period, which gives the buyer time to change their mind.
Prepare for open insepctions
The simplest piece of advice to follow is to present the property in its best possible light. Make sure everything is neat, tidy, cool and fresh; all the things we know buyers look for when they inspect a property. Open doors, ensure lights are turned on and even light a few good-quality candles to cater to all the senses.
Finding the right agent
All the property experts agree sellers should look for an agent with a history of strong, recent results in your suburb. Things like the average days on market and auction clearance rates give a clear, fact-based insight into how good an agent is, without any of the marketing spin.
A good agent should know as much about the area as possible, from what buyers in the area are looking for to what the historical trends are, which method of sale works and even down to things like which is the better of the suburb’s two primary schools.
When should you sell?
Main motivators among clients are up or downsizing, a change in lifestyle or desire to be close to family.
But before pulling the trigger and going to market, owners need to weigh up a number of factors to work out if it’s a wise move or not.
Buyers need to consider the current market conditions, their motivation to sell and how their type of property is currently selling in the market. Only after serious consideration shoulder owners move ahead.
What Is Pre-approval?
Pre-approval refers to the bank providing a conditional loan to the prospective buyer, subject to a number of conditions, such as a valuation being done to ensure the property is purchased at market value. Clients armed with pre-approval will feel more confident when purchasing property as they have a relatively good idea of their budget.
HOw much does it cost to sell a house?
The three main costs are conveyancing, marketing and the agent’s fee or commission.
When it comes to choosing an agent, a vendor’s decision should never be based purely on the costs placed in front of them.
As a vendor, you need the best candidate to look out for you in the sale, as they represent you.
If you have a mortgage on the current form you’re selling, you’ll need to pay your lender a discharge or early exit fee. Each lender charges their customers a different amount for this service, but it usually falls within the range of $150 and $1500.
Your lender should have their own mortgage discharge forms to fill in, with the entire discharge process usually taking between 14 and 21 days.
What Should I Offer?
In the case of a private sale where you may not be aware of offers of other competing parties, you should make the highest and best offer you are able to make. In other words, if you do not end up buying the property, you should leave with no regrets.
Can I Ask You for Advice?
Of course! Please contact Cherrymont to receive an obligation free appraisal of your property.