Here are some of the most frequently asked question when selling a property.
This is usually the first question asked by a potential seller and it’s quite an important one. By contacting us you’ll receive a free no obligation estimate on your homes value,
There are normally three main costs involved in the selling process:
- Marketing
- Commission
- Legal Fees
Commisson varies from agency to agency with some cheaper than others but larger agencies generally seem to be 4% of the selling price up to $400,000 – $500,000 and then 1.5% to 2% there after and an admin fee of $500 to $600. There is GST to be added as well.
Legal fees will also vary in between firms and will depend on the type or complexity of the sale , ie a single person selling or a trust with several people involved and also with or without mortgages to attend to. As a rough guide expect to pay $1,200 to $1,700 but your lawyer will be able to clarify these figures.
Our fees are already below what most in the industry charge, so no we don’t discount as such, but what we can do is agree to a “flat fee” at the time of listing instead of a sliding scale. we find that some sellers like the surity of knowing exactly what the final cost will be.
Absolutely, provided we aren’t already working with that buyer for your property, this is called a conjunctional sale and involves our agency and the other agent doing an internal split of 60% / 40% of the net commission charged after any fees are deducted. A form is provided by us to the other agencies owner / manager and once signed and returned they then get access to your property. Apart from us not already working with the buyer the only other requirement is that they are physically present to show the property to the buyer themselves.
Firstly we’ll arrange a meeting with us to go over your requirements for when you’d like to enter the market and to discuss what your options are for marketing, methods of sale and preparation of your property, allow a lead in time for any repairs or sprucing up. Prior to us meeting we would have supplied the REA “Selling your property guide” which will explain the process as well. We legally have to supply an apprasial of your properties value as well when listing.
Assuming your happy to proceed we’ll get the listing form completed and AML verification process under way. For the AML this will involve producing either a passport or drivers license and a utility or bank statement with your name and address on it and completing a form ( all owners will be required to do this and in some cases this will extent to trustees etc. We’ll guide you through this process). Re the listing form, it’s quite a detailed document and basically is used to capture all the details about the property and whats included in the sale. re chattels, fixtures, property layout, rates, land area, cap value etc.
Once all of this is done there is still a week or so required for photos and preparation of flyers, websites etc especially if the weather doesn’t help out. The good news is once the photos are done it’s an indication your nearly ready to hit the market and let us get to work!
While not compulsory most home sellers run with open homes which are normally Saturday or Sunday for 30 mins. If your involved in a short intensive marketing campaign then it may be two opens a weekend. Generally the first two – three weeks will see the most foot traffic and this will be through the opens. Serious buyers will start surfacing if they see the value and start coming back for second visits, they may even bring in builders etc. Your job is allowing us access when requested and keeping the property spic and span. Normally its not a good idea to mix buyers and sellers together as many a sale has been stopped dead in the water due to an over talkative seller.
An unconditional or “cash” offer is the best type of offer you can get, if your happy with the form and content of the sales contract and sign, then it means your “SOLD!” As the name says, there are no conditions to be meet.
A conditional offer means your not sold till every condition in the agreement is satisfied. Normal conditions will depend a little bit on the age of the property as some won’t apply to newer builds. The following is a guide to some of the more common ones and approximate time frames involved (all days will be working days).
- Subject to a valuation ( 10 days)
- Subject to an electrical inspection ( 10 days)
- Subject to finance (10 days)
- Subject to a lim (15 days)
- Subject to property file (10 days)
- Subject to a building inspection (10 days)
- Subject to sale of another property (42 day)
Once “unconditional” the lawyers step in and the agent normally steps back apart from property inspections etc closer to settlement. As a rule settlement is normally between 4 -6 weeks from unconditional date, but these dates can vary either way. As mentioned above an AML check will also be done by your lawyer and then they will arrange for papers to be signed for the transfer of title, mortgages etc. We advise engaging a lawyer at the begining of the sale process and also keeping your accountant informed. Your lawyer will guide you through this.
It will feel like your in limbo once sold as the selling activity ceases and the numerous agent calls will slow down. As far as your obligations, go they are keep the property up to the same agreed standard as when the contract was signed and be ready to give vacant possesion to the buyers on settlement day. There will be a final “Pre Settlement” inspection normally the day before or morning of settlement by the buyer to check that everything is in place as agreed. We personaly advise if possible to organise a move out at least a day or two earlier than settlement as this gives time to finish the clean up and is a lot less stressfull.