your home can be a nail biting
experience. It’s a move most of us only make once or twice in a
lifetime so it pays to do your homework first.
article will help you
prepare for the sale of your home:
residential property cannot be
advertised for sale until a Contract of Sale has been prepared.
contract must contain a copy of the
title documents, drainage diagram and the Zoning Certificate (s 149)
issued by the local council. Property exclusions must also be
included and a statement of the buyer’s cooling off rights must be
attached. The draft contract must be available for inspection at the
agent’s office. It is important that you consult your solicitor or
conveyancer about preparing the contract to make sure that everything
is in order.
are two main ways of selling a
residential property, by private treaty and by auction:
you sell your home by private
treaty, you set a price and the property is listed for sale at that
price. In general, the price is negotiable with the seller often
asking a higher amount than they expect to sell the property for, and
the buyer making an initial offer much lower than the asking price.
process of a sale by private treaty
offers the following benefits:
privately is often just as
tense as a public auction, and you will be faced with important
decisions when you are presented with offers which are lower than
your asking price.
are risks with selling by private
treaty which also should be considered:
control over the sale
to consider offers by potential
ability to extend the time for
which your home is for sale indefinitely
purchasers must make offers
for your property 'blind', without knowing what other buyers think it
should also be aware that when a
property is sold by private treaty, the buyer has a five day
cooling-off period during which they may withdraw from the sale.
the price you set is too high, your
property may not sell
the price you set is too low, you
may miss out on maximising the selling price.
sell through an auction process, the
amount you want for the property is generally not revealed to
potential buyers who are encouraged to attend the auction and bid for
the property against other potential buyers.
have become an increasingly
popular way to sell or buy residential property, but before you
decide to go down that path, do your homework and familiarise
yourself with the process and what it involves.
a reserve price
reserve price is the lowest amount
you are willing to accept for your property. Before bidding begins,
advise your agent what you nominate as the reserve price. This is
usually not told to the prospective buyers.
the highest bid is below the reserve
price, the property will be ‘passed in’. You will then either try
and negotiate a price with interested bidders or put the property
back on the market.
the bidding continues beyond the
reserve price, the property is sold at the fall of the auctioneer's
successful bidder must sign the
sale contract and pay you a deposit on the spot (usually 10%). There
is no cooling-off period for anyone who buys a property at auction.
If the property is passed in at auction but contracts are exchanged
on that same day, the cooling-off period still does not apply.
sale contracts is the legal
part of selling a home and happens regardless of whether you sell
your property by private treaty or auction.
will be two copies of the sale
contract: one for you and one for the buyer. You each sign one copy
before they are swapped or ‘exchanged’. This can be done by hand
or post and is usually arranged by your solicitor, conveyancer or the
agent. At the time of the exchange, the buyer will be required to pay
a deposit, usually 10% of the purchase price.
contract exchange is a critical
point in the sale process:
buyer or seller is not legally
bound until signed copies of the contract are exchanged.
of residential property usually
have a cooling off period of five working days following the exchange
of contracts during which they can withdraw from the sale.
the agent arranges exchange of
contacts, the agent must give copies of the signed contract to each
party or their solicitor or conveyancer within 2 business days.
cooling off period can be waived,
reduced or extended by negotiation.
is no cooling off period for
sellers. Once contracts have been exchanged, sellers are generally
bound to complete the agreement.
is no cooling off period when
purchasing at auction.
is the conclusion of the
sale transaction and usually takes place about six weeks after
contracts are exchanged.
key to successfully selling your home
is choosing the right agent. Before making your choice, we suggest
you talk to three agents and:
law says that there must be a
written contract between between the seller and the agent, called an
sure they have a valid licence by
doing a licence check online or over the phone on 13 32 20
a list of all their fees
out if they have a good knowledge
of your area
if they adhere to a code of ethics
quotes from them regarding their
commission, fees and charges
them what their fees, charges and
services cover - these usually cover the time they spend promoting
and selling your home, advertising and promotion costs and
them how they plan to promote your
home - newspaper advertisements, letterbox drops, open houses etc.
without an agent
you decide to that you want to sell
your property without the assistance of an agent, you will need to do
quite a bit of homework before tackling the job yourself.
first thing you need to know is
that a residential property cannot be advertised for sale until a
Contract of Sale has been prepared. It is important that you consult
your solicitor or conveyancer about preparing the contract to make
sure that everything is in order.
of the benefits of selling your
property yourself is the chance to make a financial saving through
not having to pay commission to an agent.
broad steps involved in selling
your property without an agent are as follows:
deciding to go through with the
sale of your property without an agent, you should thoroughly
research what you will need to do at every stage of the sale process.
your property valued
the purchase price