For Vendors - Important steps in the selling process
Thinking of selling?
Some helpful tips for selling and how it all works.
Selling a house is a big thing to do and not many people do it more than a few times in their life. It can also be a very stressful and emotional time for a myriad of reasons.
We hope that the following bits of information will be helpful in guiding you through the next steps, once you have decided to sell, and help alleviate stress.
Choose an agent.
Always remember, the agent is working FOR YOU, so ensure it is someone you can talk with and whom you feel will ‘have your back’. Any agent can list a property, but one of the most important roles they play is in their communication, both with you and any prospective buyers, to achieve the best outcome for you. Your agent should always be available to you and be in regular contact regarding the marketing process. That is what you are paying them for. Your agent should be your stress relief sponge, absorbing the bumps and helping soften the difficult bits.
Sign a Selling Agency Agreement (SAA).
This is a legal agreement which then authorises the agent to act on your behalf i.e. with conveyancers, talking to buyers, photographers, listing on the internet, building inspections, pest inspections, viewing council files etc. The SAA also states the terms and conditions of your agreement with the agent, including commission, marketing costs and your agreed listing price.
Engage a conveyancer.
Most conveyancers, even within legal firms, will have a set fee for a property sale. The conveyancer will prepare a draft contract of sale and do all the title searches etc. They are invaluable and are your legal representative, there to guide and protect you in the business transaction.
Prepare your house for sale.
Presentation is everything - they say people make an (unconscious) decision in the first 8 seconds when viewing a property.
A zenned and uncluttered space will not only make the room/house look and feel bigger, it will also enable a buyer to imagine themselves in the space. ‘Less is more’. This is the key.
Clean windows are preferable and make a profound difference to the feel of a house.
Removing personal photos and clearing benchtops of day to day living items etc will make a huge difference.
It may not feel quite like ‘home’ for you anymore, once the personal items are away, but that is also helpful in the letting go process. And…while you are decluttering, start packing and culling, as this will be so helpful when it is actually time to move.
Photos.
Professional photos and floor plans are the best money you can spend on marketing. It is not a huge cost but it is priceless. In this era, people shortlist property they wish to inspect by the online photos. This is the emotional drawcard where they first engage with the property.
Once the property is zenned (and a good agent will guide you here), the photographer will do their magic. At Burchell Higgins Property Sales, as soon as the photographer processes the photos and returns them to us, we are ready to launch, having everything in place in anticipation.
Marketing
The decisions of marketing, listing price etc are always your decision but your agent will guide you.
There are different approaches to marketing and agents will approach selling in different ways.
Open House and By Inspection Only are the most common.
We believe Open House inspections, for the first few weeks, can be beneficial for some properties.
The reasons these are so valuable, in our opinion, is that:
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You only need to have the house ready for a half hour, once/twice a week instead of a different person wandering through every other day.
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It allows a higher volume of people through the property than you will get with private inspections, and selling is a numbers game. This is also a place to weed out the tyre kickers.
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Some people do not want to commit to an inspection with an agent, but will come ‘anonymously’ to an Open House.
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Lookers tell buyers. You may get a number of local folk just wanting a peek-a-boo but then they tell their cousin Fred and family as, ‘Fred has always wanted a house in the Bega Valley’. Word of mouth is one of the old fashioned tools we still have and… well, people just love to chat.
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If a buyer/s want a second inspection, then we will arrange to take them through privately to allow them time to look in private
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The first 4 weeks are when the initial flurry of excitement will be strong. Channeling interested parties through the property together, in this peak period, creates a sense of FOMO and a heightened emotional response, which is what we want. We want people to see, fall in love and then take action so they, ‘don’t miss out’.
After each Open House and/or private inspection, we will be in touch and let you know how it went, what the feedback was and if there are any adjustments at the property that might need attending to (eg, if we found a loose decking timber or a pot had broken in the garden etc).
By Inspection Only can be a preferable option for more exclusive properties, or for vendors who are not comfortable with Open Houses. The potential buyers are more closely screened by the agent during their inspection, to qualify their financial suitability.
Offers
By law, all offers must be presented to the vendor, even if they are ridiculously low. The agent’s job is to be the negotiator between vendor and buyer, which can be a delicate balance but again, this is why you are paying your agent.
Your agent knows your expectations and personal needs and should be working for your best outcome at all times.
The best outcome will include the conditions of sale, settlement time etc and is not always the highest price but the best ‘overall’ outcome for you.
The vendor, you, ALWAYS has full agency and makes the decision to accept an offer or not.
Curiously, in our experience, we have found that often the first offer is the best.
Exchange of Contracts and Deposit
Once an offer has been agreed upon by both parties, the Agent will send a Sales Advice to the legal representatives of both parties, informing them of the pending sale. This letter will include details of both parties, the conditions of sale and the proposed settlement date.
The Solicitor/Conveyancer will then liaise between themselves towards bringing the Contracts to exchange ASAP.
The purchaser will pay the 10% deposit (or agreed %) into the Agent’s Trust Account and the Contracts will be exchanged. ONLY THEN is the sale secure as either party can withdraw before then.
Both parties then work towards the Settlement date at which time the balance of the sale price is paid to the Vendor and the property changes hands.
If you have any questions about any part of selling your property, don’t hesitate to get in touch with us.
We hope this is helpful information. Please feel free to call us to have a chat about any of the selling processes.
Warm regards,
Peta and Guy