Thinking of selling your house? Here’s how to prepare.
Whether downsizing or looking to upgrading your property, taking control and understanding the current market and the sale process is critical. Considerations include: How do you choose the right agent? What is our property worth? When is the best time to sell? What work needs to be done to prepare the property for sale? These factors are important, and all play a big part in achieving a successful sale.
Riverhaven Real Estate understands that the process of selling your ‘biggest asset’ can be overwhelming that’s why we’ve put together our top tips for selling your house, to help you get the best price and a quick sale for your property
Selling property: Do your research?
As with any major decision, it’s important to do your homework to help you make you price your property correctly achieving potentially a quicker sale when it goes to market at, most importantly the highest possible price. Research should include:
- The current status of the property market: Ask your Real Estate agent for a list of recent sales in your neighbourhood; examine properties that have similar features/size to your own. In addition, request a report on current properties listed for sale to effectively understand your competition and length of time on market. Riverhaven Real Estate can provide and present the latest CoreLogic statistics and reports on the most recent sales activity in your area.
- Examine average time on the market: This differs depending on the area, but average sale periods are as follows:
- 30 days: the average time from taking photos to the date of sale.
- 30-120 days: the average settlement period.
Auction vs. private treaty vs. EOI: Which is better?
There are three main ways to sell a house in Australia: auction, private treaty and expression of interest (EOI). Choosing which approach is best depends basically on the seller’s circumstances like how quickly you want your property to sell, the current market conditions, location and a host of other factors you’ll need to take into account with the help of your real estate agent
Following is a summary of the most utilised selling methods:
Method 1 - Auction
Sellers who want to attract more buyers and get the best potential sale price, particularly in a market that’s low in supply, high in demand often choose to put their house up for auction, a selling method that thrives on the element of face-to-face competition between potential buyers.
An auction is a publicly or privately held event organised by your real estate agent on a specific date. It’s the final point after weeks of marketing and advertising, with potential buyers gathering to bid on your property until the highest offer is made.
Before the auction begins, your real estate agent will help you set a reserve price – the minimum amount you are willing to accept for your home. This way, you are guaranteed a selling price that is equal to or greater than the amount you want.
- Pro: Considered the most effective way to sell, because they attract attention and create competition, often leading to higher sale prices.
- Con: Auctions can be daunting for prospective buyers and deter them, and may not work as well in certain areas.
Currently many properties are selling prior to the auction via private treaty as in a sellers’ market buyers look to secure the property ahead of a public offer. This can lead to an excellent sale price being achieved.
Method 2 - Expression of interest (EOI)
The goal of a sale by expression of interest or sale by tender is to gather buyers’ best offers by a specific date and time without disclosing the final price the seller is willing to sell for. How is this beneficial? The buyers will submit their best offers in writing from the start – there is no negotiating involved, which helps the process move on quicker.
Once you’re ready to sell, your property will go on the market for a few weeks. Potential buyers will have the opportunity to take a look at your house, make sure their finances are in place to make an offer, and any other thing that needs to be sorted out on their part before putting in an offer.
- Pro: EOIs are great for selling expensive properties, because you can receive offers with very big gaps in price.
- Con: The price may not fall within your expectations, which means you may need to relist your property.
Method 3 - Private treaty or sale by negotiation
Your property is advertised at a ‘Set Price’, ‘Offers Over’ or a ‘Price Range’, then buyers inspect the property and submit their offer to the agent.
Pro: The sale process is less stressful for buyers. Private treaties are also good if there is a high demand of a certain property type.
Con: Private treaties come with a cooling-off period for a buyer to inspect the property. Buyers can also take more time to determine the final price.
Contact Simon Gordon for more information
0422 966 774 | email@example.com