For most people, property can be the single largest investment they have, with the decision to sell one of the most important and daunting financial decisions they make.
PRICE EXPECTATION
With the abundance of information available, active buyers are becoming more educated and savvy when it comes to comparing value in a specific market. A realistic price in most instances is the main factor determining whether the buyer will show further interest in a property ie request an inspection, additional information or even make an offer.
It is advisable to conduct area specific research on recent comparable sales and discuss price expectations with an agent. The agent should have access to specialised information which will assist in determining price expectations.
CHOOSING YOUR AGENT
Just because an agent has a lot of properties listed or quotes the highest market value for a home doesn’t mean they will get the best result. Usually these agents are more interested in listing more properties than getting their clients the best result.
They are typically time poor and don’t give the priority with their time once listed instead resorting to “conditioning” the client. Have a list of specific questions and find out if their price estimates for the sale are realistic or not (based on market data research/results). Be totally confident in their ability to achieve the best result.
TIMING OF YOUR SALE
Timing can be everything: selling in a rising market will always prove easier than a flat or falling market. Even if the home seller has an inflated opinion of value, the rising market will usually catch up with the seller’s price expectation. In a falling market, the gap between price expectation and the market reality grows wider.
One of the most effective ways of determining seasonal price trends is to conduct area specific research on seasonal property sales to ensure that the price expectations are realistic. The agent can provide this information as well.
METHOD OF SALE
In Australia, there are three standard methods of sale which are used: Private Treaty, Auction and Public Tender. For residential properties, private treaty and auction are the most common methods of sale.
Be wary of an Agent who suggests Auction that they aren’t employing a tactic known as conditioning. Ensure thorough market research has been completed and liaise with the agent to choose a method of sale. Collectively make a decision that will achieve the best result.
MARKETING
A well-planned, seamless and targeted marketing campaign is imperative to achieve the best result when selling a property. This should not be the time a property is considered “the best kept secret”.
Warning:
INSPECTIONS
There are many ways to add to the appeal of a home for prospective buyers. It is advisable to meet with the agent before the inspection to discuss and assist with any details.
After the inspection, debrief with the agent to receive initial feedback and if any prospective purchasers requested contracts.
OFFERS
Throughout the course of the sale interested purchasers will request a copy of the contract. The number of contracts issued is usually a good barometer of the level of interest. If the property is offered at a reasonable market price then there should be several contracts issued.
Offers can be verbal, in writing or by way of contract. Verbal offers are normally just to feel where the vendor is positioned and is not binding. Offers in writing are usually with more intent but are once again not binding. Offers on a Qld Law Society/REIQ contract is a binding offer which can purchase the property if the vendor is willing to accept.