Selling Your Home the Right Way
Are you considering selling your home or investment property? Taking a hands-on approach to selling your property is the most effective way to help you reach your objective. It doesn’t matter if you have had previous experience when it comes to selling real estate or if it’s your first time. You should always:
- Set the right sale price for your home
- Leverage modern and effective marketing techniques to showcase your property’s features
- Make the small but meaningful improvements that can elevate the value of your property
What comes first when selling your home?
1. Choose your real estate agent
Choosing the right real estate agent for you and your property is a critical decision that shouldn’t be rushed. There are many real estate agents available to help you with selling a property, but finding the right one takes some thought. Your chosen agent should be an expert negotiator and property marketer, but there are some other things to consider as well.
When choosing your real estate agent:
- Search for an experienced agent who understands local trends and market characteristics
- Interview more than one real estate agent to see the different options available to you
- Learn about their marketing techniques and suggestions on how to sell your house
- Consider their negotiation style
- Watch out for agents who lower their commission quickly — they may do the same with your property’s sale price
- Always check customer testimonials to ensure you’re dealing with an honest agent
- Trust your instincts and remember that you will be spending a lot of time with your chosen agent
- Remember that being comfortable with your agent will increase the chances of a smooth selling process
2. List your property
Listing your property is the first step in your journey as a property seller. Your Better Homes and Gardens® Real Estate agent can help you sell your property in a timely, stress-free manner.
What about marketing the property?
Marketing your property effectively can help to find a buyer quickly and ensure a smooth selling process. A successful marketing strategy can be broken down into 3 important elements: price, method of sale, and promotion.
There are two major considerations to be made in regards to price – the price at which the property will be promoted, and the expected sale price.
The selling price of a property is determined largely by the collective sentiments of interested buyers and in particular, those who actually negotiate a price. Potential buyers have all kinds of information available to establish their own opinion of a property’s value and enlisting the help of an expert real estate agent will assist in achieving the best price possible.
There are three considerations to be made when working with your real estate agent to set an asking price for your property:
- Is your property in a desirable location or a less desirable location?
- Is your property in good condition and well maintained or does it need some repair work?
- Is your property equipped with modern and desirable amenities?
After establishing the value of your property with your estate agent, it’s time to work out the best pricing strategy to suit your requirements.
1. Fixed Price or Price Range
When using a fixed price or price range indicator it’s essential that the price you’re promoting is in line with current trends in the real estate market. Setting a price too high will discourage potential buyers and setting a price too low will leave you little room to negotiate upwards. There are also legal factors related to the advertised price which your estate agent will discuss with you in full.
2. No Price
By using a ‘no price’ strategy, your agent will seek to target a particular type of buyer or target market. They may be buyers looking for a home in a specific suburb or a particular property type in your area. Once your agent establishes the needs of a potential buyer and the current trends in the market, a price can be established.
Method of sale
There are two main methods for selling your home, through an auction or a private treaty. An experienced real estate agent will advise you on the method that is best for your circumstances. It’s important to remember that you, the seller, will always have the final say as to which method is chosen.
- Based on an intensive promotional campaign over an extended period of time
- Designed to attract a wide range of potential buyers to bid competitively for your property
- Creating more competition for your property means more aggressive bidding from buyers
- You’re legally obligated to settle the full proceeds of sale on the date of settlement specified in the auction conditions
- Should an attractive offer arise before the auction, you could consider taking that offer
- A ‘reserve price’ will act as financial protection should bids not reach the minimum price at which you would be willing to sell
- This allows your agent to negotiate with interested buyers post auction if there is no sale
- Negotiations are carried out ‘in private’ between the agent and the buyer
- This method of sale usually involves a ‘fixed price’ or ‘price range’ and the property will be advertised in this way
- ‘Public tender’ is another form of private treaty where interested buyers ‘tender’ up to a closing date
- The seller then has the option to accept or reject offered prices
- Your agent should promote your property in order to attract the most amount of interest possible
- Generating more competition for your property will deliver a better price and more favourable conditions
- The agent should have the details of interested buyers as part of the agent’s buyer management process
- The agent should then implement a marketing campaign through the media, including print and online channels
- Including information about the terms and conditions, time and items included with the property can make it more attractive to buyers
- After prospective buyers have looked at your property, your agent should follow up to get their feedback
- This information is very important for evaluating the effectiveness of your agents marketing strategy
- Your real estate agent will be able to advise you on the best approach, incorporating seller feedback into the overall marketing plan
Appointing the agent by way of a listing agreement
- A listing agreement is a contract with the seller and real estate agent that grants permission for the agent to offer the property for sale
- This is normally for a fixed period of time
- The contract will contain the seller’s instructions to the agent regarding the method of sale, promotional program, marketing plan, agreed budget for advertising etc.
- It will also include any special instructions from the seller such as the inclusions and exclusions and access to the property etc
- It does not give the agent the authority to commit the seller to a sale
- The seller is only committed when they sign a contract of sale, and not before
- For further advice on listing agreements, contact your local industry body, such as the local Real Estate Institute.
For more help with selling a house or selling your home, contact your local Better Homes and Gardens® Real Estate branch today.