SELLING YOUR PROPERTY
Methods of selling
There are 2 main methods used for selling property – private sale and auction – and both have merit. However, there are some important issues such as the type of property, the state of the market and your individual preferences which should be considered before a final decision is made as to the method of sale to be employed.
With a private sale, the owner and the agent agree on a price range, then negotiations are conducted with interested parties on behalf of the owner by the agent. When agreement has been on price between the owner and the buyer, a deposit is paid and the terms of settlement are set. With a private sale a property can sell at any time from the day it is placed on the market.
An auction is a public sale carried out at an advertised time and place where people interested in purchasing the property bid against each other. Unlike private sales, auctions have a high degree of emotion as interested parties compete with each other to obtain the property they have set their heart on owning. The emotive nature of this can often lead to bidders exceeding their pre-determined price limit to secure the property.
There are other forms of selling and your Kellys agent will be pleased to discuss these with you. The most important thing is for you to feel totally comfortable with the method of sale to be employed to sell your property.
We're here to help
There are legal and other requirements involved with the sale of a property, but don't worry our experienced consultants will guide you through the process and can be relied on to provide any assistance you may need.
We strong recommend you engage a solicitor or conveyancing firm to handle the legal aspects of the sale to protect your interests and ensure the transaction proceeds as quickly as possible.
Once you have appointed us to handle the sale we will write to your legal representative and ask them to prepare a Contract for Sale. The Contract for Sale includes copies of the title documents, any zoning affecting the property, drainage diagram, building approvals etc, details of planning and road access etc. You should have all this information ready to give to your representative.
The Authority to Sell (Agency Agreement)
Before we can commence selling your home it will be necessary for you to sign the authority for us to act on your behalf.
The Agency Agreement specifies:
* Names of the registered owners
* Address of the property to be sold
* The method of sale employed
* The period of time the authority is valid for the terms of the sale
* The price or, if it is an auction, the reserve price
* The amount you have agreed to spend on marketing
* Our remuneration
The Contract for Sale
As the vendor, it is your responsibility to provide the Contract for Sale, however if you would like us to attend to it for you, we will be happy to contact your legal representative and arrange for the documentation to be prepared.
The Contract for Sale includes details such as:
* The name and address of the agent
* The address of the property
* Inclusions ie carpets, light fittings, blinds
* The price
* The name/s of the seller
* The name/s of the buyer
* The deposit paid
* Terms of the sale
* Any special conditions applying to the sale
If you are selling at auction, specific conditions governing the conduct of the auction will be included in the contract.
We fully understand that you'll want to minimise the disruption to your daily life during the sale period, one option is to allow us to conduct ‘open for inspections' to reduce the number of private appointments. You will know well in advance when the ‘open houses' are to be held, making it a lot easier for you to plan ahead and ensure your home is presented to buyers at its best.
Buyers often feel more comfortable at ‘open houses' because they don't have the feeling of intruding on the daily routine of the seller's private life. In fact, many sellers prefer not to be home during inspections. At open houses buyers are able to have a good look around and consider the particular features of your home.
We'll be at every inspection
We are very mindful of the responsibility entrusted to us for the sale of your home and one of our consultants will always be there when potential buyers inspect it.
When a buyer signs a Contract for Sale to purchase a property, they must pay a deposit to the agent who issues them with a receipt and a copy of the contract. The agent must pay the deposit into their trust account. In some circumstances, the seller is able to obtain the deposit – less commission, marketing costs and statutory charges , before settlement. If you'd like to know more about this please ask – we would be happy to explain the details to you.
Cooling Off Period
The cooling off period does not apply when a property is sold at auction.
In some other circumstances, when someone buys a residential property they are entitled to a ‘cooling off period' of five clear business days after they sign the Contract for Sale. During this period they are legally able to withdrawn from the sale if, for any reason, they change their mind.
If a buyer terminates the contract during the cooling-off period, the deposit money must be returned to them but the seller is entitled to retain .025% of the purchase price.
We would be pleased to answer any queries you may have about any aspects of the legal provisions relating to the cooling off period.
You are obliged by law to hand your home over to the new owners in the same condition it was in when they signed the Contract for Sale. Therefore it is your responsibility to carry the risk of loss or damage to it until settlement.
It is essential for you to maintain the insurance on your home from the time you sign the Contract for Sale until you have received full payment for it.
Assistance to Purchasers to Obtain Finance
If the buyer of your property has not previously arranged their finance we can refer them to experienced finance consultants who will assist them to obtain the loan they require. This service is provided primarily to assist with the smooth passage of your sale, however, should you need to discuss your finance requirements for a subsequent purchase, we'd be happy to provide you with a referral.
Your Marketing Campaign
You're an important part of the marketing campaign
A well-planned and executed marketing campaign is critical to the success of the selling process. It must be designed specifically for your home and communicate the features that will attract the maximum number of potential buyers to inspect it; in essence, the better the marketing campaign, the greater your chances are of obtaining the best price.
At Kellys we want you to participate in planning the campaign, therefore we take whatever time is necessary to talk through the various options with you for marketing your home. Our people possess a clear understanding of the principles of marketing residential property and will put forward suggestions but we respect the fact that it's your home and you - better than anyone else - know the features which make it special.
We will then develop a marketing strategy which is appropriate for the sale of your home and present it to you for your approval.
The costs associated with marketing your home
We never work to any pre-determined cost structure for marketing but present you with a suggested budget after we have completed the planning process. Our objective is to develop a marketing campaign that will effectively deliver the right message to buyers at a reasonable cost to you. There is no point in over-spending on the marketing campaign and we will ensure the budget recommended is entirely adequate for selling your home.
The costs of marketing vary from property to property and generally larger budgets need to be applied to more expensive or unusual homes. However, we strongly recommend you invest an amount in marketing your home that will achieve the required impact. It can be false economy to limit the marketing budget because your property will not get the exposure it deserves and potential buyers may never know it's available, consequently there will be less competition for it and you may limit your chances of obtaining the optimum price.
The function of advertising is to create an awareness of a product or service and to arouse the interest of those to whom it is directed. When it comes to the sale of residential property, some sellers view advertising as an expense, when in reality it is an investment in obtaining the best return from the sale of your home.
We are mindful that advertising can be expensive and we place great importance on getting the creative approach right. We'll develop an advertising schedule which maximises exposure for your home and returns value for money on your outlay.
There are numerous avenues available for advertising homes for sale throughout the Inner City/Inner West. Your Kellys representative will discuss those that have proven to return the best results and then recommend the most cost-effective method for communicating your home's features to potential purchasers through the media.