Real Property is often the most valuable and personal asset that people will hold. The selling process should be informative and exciting, not draining and stressful. Education and an empathetic professional are vital in the process, so below are a few steps in an ordinary sale so you are better prepared when the time comes.
How to sell a property
The selling process can be broken down into a number of steps.
Preparation will depend on the property you are selling, and the reason you are selling. Generally, selling property is no different to selling any other significant asset. Before taking the photos and listing, you will want to prepare. Basic landscaping, internal touch ups, a thorough clean, replacement of any non-working fixtures and fittings are all things to consider. Give special consideration to the difference between repairs and improvements to keep your spending in check. Improvements should add more value than they cost, repairs should simply ensure the property is in a safe, working and liveable condition.
Engaging an Agent
Ideally engaging an agent happens early in the process, as they will be able to offer insight into property presentation and preparation. Ultimately, the agent is responsible for the marketing and sale of the property, and preparation is a vital role in the overall property narrative that an agent is selling to the broader public. An agent will also explain different selling methods based on your property specifically, as well as your individual goals, objectives and time frame.
During this process a selling price will also be set by you, taking into consideration the comparative market analysis (CMA) prepared by the agent. At this stage an agency listing agreement will likely be entered into.
Preparation is done, your property looks beautiful and the agent is confident they have enough to work with. Now you will want to use professional photographers to convey your property's beauty to an audience that is often overloaded with choice. This is one of the most important steps in the selling process, as it directly correlates to the number of views and enquiries on a property.
The agent and the vendor ideally work together with the photographer to determine what type of media will best exhibit the property attributes. Considerations and media options include drone footage, traditional photography, videography, lighting and time of day, staging, virtual furniture and virtual walk throughs.
Now that we have the media, it is time to convey the information to as many suitable people as possible. Every agent will maintain a list of marketing packages or options that are configurable depending on your budget, and also on the agent's recommendations for what type of marketing best suits your property, method of sale and timeframe.
Real Estate agents should also have staff specifically trained in Facebook Ads, Google Adwords and other forms of paid digital media, as the competition for clicks is fierce and becoming increasingly technical.
Receiving offers is an exciting time. It means that the media and marketing has worked, and people are interested in the property. The timing of offers will depend on the price point, method of sale and temperature of the market. In a hot market, supply is not meeting demand, and first offers may be pleasantly surprising.
When you receive an offer that is within your price range, that offer may contain certain conditions. Most commonly, a 'subject to finance' clause and/or a building and pest inspection condition. The timeframe of these conditions are all vital points in the value of the offer and serious negotiating topics, particularly when you are selling a home that you currently reside in.
If you accept an offer, the contract for sale will be prepared and formally signed. At this point it is vital to engage your solicitor or conveyancer to ensure the contract is sound and all obligations are met in a timely manner.
During this phase of the sale, most of the responsibility will fall on the buyer to meet any conditions they have inserted in to the contract. The vendor may also have conditions imposed on them, and it is vital to the successful sale of the property that all conditions are met on time by both parties.
Unconditional Date and Settlement
The unconditional date occurs when all conditions are met and both parties agree to go unconditional, or when the time period for the conditions expires and conditions are met. This period of time is often a personal one where both parties are waiting for settlement. It is best to stay in regular contact with your solicitor, and also consider and mortgage discharge forms that you need to request and submit to any financial institutions that have a mortgage over the property.
During the contract negotiation, a settlement date would have been set. Make sure you are immediately available on the day of settlement. Settlements are incredibly time sensitive, so regular contact with your solicitor or conveyancer during this time is vital.
Looking to start the process?
There is a lot of information in the steps above, and the importance of some of them cannot be highlighted clearly enough on this page. If you are considering a property sale at anytime in immediate future, reach out sooner rather than later. A well formulated plan is your greatest resource in the sale of your most important asset.