Marketing Your Home
The Sales Process
Choose an Agent
When selecting your real estate salesperson, you need to ensure that you feel comfortable with them and their capabilities.
Your salesperson should have a sound knowledge of the market in your area. You can check this by asking about their recent sales in the area, how long they have been selling in the area, and what the market share of their office is.
A sign of a good salesperson is that they can provide you with testimonials and a resumé and that they should have a high ‘list to sell’ ratio. If asked, they should be able to provide you with sample brochures, adverts and feedback reports from past sales.
Understand your rights
Read the consumer information provided by the real estate agent or from the Real Estate Agent's Authority
Decide on your selling plan
Each individual selling situation is different. So, it is important to tailor a selling plan to suit your needs. The result is a clear-cut plan with objectives such as:
- Getting you the best possible price for your house;
- Selling your house within your time-frame;
- Marketing your house with minimum inconvenience to you; and
- Keeping you informed every step of the way.
There are several different methods for selling your property, each has its own advantages and disadvantages. Your salesperson can help you to determine the best option for you based on their knowledge of the market and potential buyers that it will appeal to.
The marketing methods are:
- For Sale by Negotiation
- Exclusive Agency with an Asking Price
- General Agency
- Private Sale
Click here for more information about each marketing method.
Establish a pricing strategy
The next step is to determine a price for your property. This is one of the most important factors in selling your house. There are many different pricing strategies available to you.
When setting a fixed price it is vital that your home is priced correctly from the start to maximise your chances of attracting as many buyers as possible. Your Salesperson will be able to help guide you in this regard. It is vital to price your house correctly.
Below is a list of some of the factors that may influence the price you receive for your house:
- Location of the property;
- Size and land area;
- Present buyer demand;
- Prices of comparable, recently-sold properties;
- Prices of comparable properties currently for sale (the competition);
- Condition of the property; and
- The marketing and negotiating skills of your Real Estate Salesperson.
Why it's vital to price your house correctly
Many people believe that if they set the price for their house high to begin with, they can always lower it later. Setting the price too high runs the risk of attracting fewer buyers and taking longer to sell. Potential buyers will be scared off by the price and won't even take the time to view your house. Those who can afford a house at your asking price will soon realise they can get better value elsewhere. Eventually the price is likely to come down to the market value, but by that time the house has been on sale too long and has already lost exposure to a large number of buyers.
On the other hand, if you set your price too low, you may achieve a quick sale, but you may also have people wondering if there is something wrong with the property.
Pricing your house correctly ensures that an optimal number of buyers will consider your property. It is the competition between these buyers that produces your premium price. The right market price may also result in a quicker sale time. Therefore to achieve a maximum price for your house in the quickest possible time frame it is important that we set the right market price.
The market type may also affect the price of your property (i.e. Buyers Market, Sellers’ Market).
- The number of homes on the market is greater than the number of buyers.
- Homes usually take longer to sell.
- Prices stabilise.
- The number of buyers exceeds the number of homes on the market.
- Homes sell quicker.
- Prices generally increase.
- Sellers may receive offers from more than one buyer.
- Number of homes for sale is basically equal to the number of buyers.
- Sellers will consider reasonable offers.
- Homes sell within reasonable time frames.
- Prices are generally stable.
Authorise a listing agreement
The best Selling Plan for your house has been decided and an accurate market estimate of your property has been determined. Now it's time to form a partnership with your Salesperson. By authorising a listing agreement, your agent will start work for you to help achieve the best result for you.
Prepare your home for showing
‘First impressions count'. This expression couldn't apply more to the Real Estate industry! That's why it's important that your house looks its best while it's on the market. As there's no doubt that presentation adds value to your home, we've included a checklist to help you prepare your home for showing.
Your Salesperson will market your home
It's now up to your Salesperson to market your house to potential buyers. Their job is to make your house shout 'Buy Me', particularly during the first 30 days.
The first 30 days is the time when the largest number of potential buyers will be attracted to your house. Your Salesperson will have a pool of buyers and investors who, right now, may be interested in your house. It's during the first 30 days your house is on the market that these people will sit up and take notice of your property. Once these people have viewed your house, the potential buyers left will be those entering the market.
Where buyers may come from
Marketing a house is a complex process which involves attracting buyers from a variety of different sources. Your Salesperson will have a pool of buyers and investors from which you could benefit. Your Salesperson will keep in regular touch with these people and market your property to them and will also make contact with new buyers through open homes - and from clients whose houses they have sold recently. It is the competition created by all these buyers that achieves the best possible price for your property.
Receive regular progress reports
Your Personal Selling Plan is being implemented. What happens now? Your Salesperson will keep you informed on the progress towards the sale of your house. It's naturally important that you know what's going on that's why your Salesperson will make a personal commitment to keep you up-to-date every step of the way!
Consider and negotiate offers
Our goal is to bring as many genuine buyers as possible through your property. When an interested buyer is found, they will make an offer in writing on a sale and purchase agreement form. You need to consider all offers and their various components.
Negotiating the offer
Your Salesperson will negotiate an offer with potential buyers on your behalf. The key to getting the best price for your house rests with the negotiating skills of your Salesperson. The difference between negotiating well or poorly could amount to thousands of dollars. Once your Salesperson has an offer he or she will present it to you. You should assess each part of the offer and either counter-offer, accept or decline.
Price. The buyer will offer a price for the property that, depending on the market and the discretion of the buyer, may differ from your asking price.
Deposit. The deposit shows the buyer's intent or good faith and will be applied against the selling price once the sale is unconditional. Your Salesperson can advise you on the suitability of the deposit.
Conditions. These are requirements that must be met before the sale is completed. Conditions are always subject to a stated time and commonly include:
- subject to finance being arranged;
- subject to sale of the buyer's home; or
- subject to completion of certain work on your home.
Your Salesperson will explain all the details relating to these conditions.
Chattels. Chattels are the items you will leave behind and can include fixed floor coverings, blinds, curtains, heaters, dishwashers, stoves and television aerials. These are important in any sale and your Salesperson will go through all of these carefully.
Crucial Dates in an offer
There are three important dates tied to any offer:
The Date on the Contract. This is when negotiations conclude and the agreement is signed by both parties.
Dates for Satisfaction of Conditions. This is when any special conditions must be satisfied by all parties.
Settlement and Possession Day. The date you will hand the home over to the buyer. It is also the day on which you collect the balance of the money owing - that is, the purchase price less the deposit already paid.
Accept an offer
You've received one - or possibly several - offers. You've considered all the components and you've decided to accept an offer. The next step is for the buyer to ensure that all conditions, if any, are satisfied and pay the deposit.
If the offer is conditional and the buyer finds he/she cannot satisfy the conditions, then the deposit is returned to the buyer. If the conditions have been satisfied it is unlikely the buyer will cancel the agreement and he/she does not get their deposit returned.
Contract is forwarded to your solicitor
Once you've accepted an Offer to Purchase, your Salesperson will forward the sale & purchase agreement to your solicitor who will administer and take care of settlement and conveyancing matters.
'Sold' sign goes up and you plan your move
Congratulations on the sale of your house! Your Salesperson will now put up the 'Sold' sign … and it will soon be time to move to your new home. To make planning your move easier see our checklist for preparing to move.
Gain confirmation that settlement of the sale has been completed. Make sure you hand over all the keys you have for the house and any other surrounding buildings, e.g. shed or garage, and you leave the property tidy for the new owners.
Congratulations! We wish you and your family every happiness in the future.
If you require any further assistance in selling your property, please contact us today.