Selling Process

SELLING YOUR HOME

Selling your home, probably your greatest asset, involves some of the biggest decisions you’ll ever make. It is also one of the most emotional periods of your life and for most people it will involve surrendering control and entrusting a professional real estate agent to facilitate the process of sale.  If you have considered selling then you will have already had thoughts of when you want to sell, for how much and what’s involved. I’ve created this booklet to help clarify your thoughts and better inform you of the process involved in selling a property. In turn I hope this will render you greater control, allow you to make more calculated decisions and make the process of selling your property one that is pleasurable and hassle free.

THE SALES PROCESS

1.The Appraisal

The first step to selling your property will involve having an experienced real estate agent appraise your property. A quality agent will inform you of the following:

  • current market conditions
  • where does your property sit in the market
  • method of sale (private treaty, auction, expressions of interest)
  • how your home will be marketed
  • the internet capabilities of the agency
  • how will the right buyers be found and how will the right price be negotiation
  • how long does it take to get a property on the market
  • preparation for selling your home
  • how will feedback be provided to you
  • service fees
  • what are the next steps


2.The Exclusive Agency Agreement

This document allows your chosen agent to market your property, show prospective buyers through, bring you offers from interested parties and outlines service fees and costs involved.


3.Preparing Your Property For Sale

You don’t get a second chance to make a good first impression, so please refer to the “Raine & Horne home style guide” for some tips to get a quick sale at the best possible price.


4.Pre Listing Preparation

Having discussed and agreed upon the most effective strategy in which to market your property, your selected agent and support team now set about the preparation work for getting your property on the market.


5.On The Market

Your property will be opened for inspection usually at a set time on Saturday and Wednesday and possibly by private appointment as is most convenient to you. Once inspections are complete we will report back to you the buyer’s comments – both good and bad – so you are fully informed of the Market’s response to your home.


6.Negotiation

The key to achieving a premium price rests with the negotiation skills of the agent. The difference between an excellent and poor result could be as much as 10% of the property’s value. A top agent will help you better understand the negotiation process and therefore allow you to make more informed decisions. All offers will be presented to you. Once the best possible price is negotiated with the buyer, you choose whether to accept or decline the offer.

7.Paperwork

With your approval on price, arrangement will be made to have the “Contract for the sale of land’ to be signed. There are three options as to how the property can be ‘exchanged’ including:

Option 1 - Unconditional Exchange

This means the purchaser’s solicitor has signed a 66W certificate. This certificate will waive any cooling-off period and makes both parties committed to an instant, legally binding relationship. There is no turning back. This option also applies when a purchaser is the successful bidder at an auction (where contracts are unconditionally exchanged).

Option 2 – Exchange of contracts subject to a 5 day cooling-off period

The signing of a 5-day cooling period provides the purchaser with full protection against the vendor pulling out of the sale or another purchaser paying more for the property. With the contract exchanged, the purchaser has the opportunity to organize inspections and reports, and to allow their legal representatives to check the contract. The period for withdrawal lasts for 5 working days and allows the purchaser the right to rescind the Contract of Sale for any reason. This period commences upon exchange and terminates in New South Wales on the fifth working day at 5pm E.S.T. Remember that Saturday and Sunday, along with public and bank holidays, are not business days. The vendor may extend this period by a clause in the contract or by notice in writing given before the end of the period. This protective method requires commitment by the purchaser by means of a deposit in the amount equaling 0.25% of the purchase price. If the purchaser fails to pay the required deposit after the agreed cooling-off period, then the 0.25% deposit is forfeited to the vendor.


Option 3 – a purchaser does not wish to sign anything without their solicitor’s approval

In this case Raine & Horne Crows Nest will issue the potential buyer with what is known as a Sales Advice. This contains all the relevant details of the sale. The buyer’s solicitor/conveyancer will then make contact with the vendor’s solicitor/conveyancer and proceed with reports and reading of contracts with no determined time-frame for exchange. However it is important to note that whilst this is taking place, the property will remain on the market, and anybody wishing to make an offer can do so. By law, every offer that is put forward must be presented to the vendor. An offer may be accepted by the vendor and the interested party can sign the contract under the cooling-off period as outlined in Option 2. The property is then secured leaving the first buyer no option to purchase the property.


8.Under Offer

While the conditions on the offer are being met, your property is off the market. We will keep you up to date during the sale to settlement time period (usually 42 days) and arrange all necessary inspections.



9.Sold & Settlement

Once all the conditions on the offer have been met your property is now sold awaiting settlement. Your solicitor/conveyancer will administer the settlement which includes exchange of titles and transferring of funds. It is a condition of sale that within 5 business days prior to settlement date the buyer is allowed a pre-settlement inspection to ensure the property is in the same state as when they agreed to purchase and that all gas, plumbing and electrical fixtures and fittings are in good working order. It is therefore important that you look after the property between contract date and settlement date. Completion of the sale when the purchasing price is paid to the seller and the buyer becomes the legal owner.


10.Next Chapter

A new chapter in your life awaits you.