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Steps of Selling a Property in Australia

Selling a property

You’ve decided of selling a property or an investment property. It’s a significant choice, but deciding to sell is just the beginning. If you’ve never sold a property before, it may be a time-consuming and difficult procedure. We break down the steps to ensure your transaction go as smoothly as possible. 

Steps to selling a property

Prepare yourself:

To increase your chances of selling, take care of any house maintenance and have a clear-out.

It’s also a good idea to look into previous sales in the area to get a sense of what kind of selling price you might be able to receive.

Select a real estate agent:

To choose a professional real estate agent, contact family and friends for referrals or go to open houses to see how they sell houses. Once you’ve narrowed down your choices, interview a few to see who is the ideal fit for you. Ask about their charges right away, and don’t be afraid to argue.

Pick a suitable sales method:

You’ll need to decide on a sales strategy. Private treaties and auctions are the two most common types. Your real estate agent can assist you in determining what works best in your community, for your particular property, and in the current market.

They may also help you determine the value of your home and set an asking price (in the event of a private treaty sale) or a guideline price.

  • Private treaty:

You can have a longer sales campaign and more time to analyze bids with a private treaty. However, if your asking price is too high, your home may not sell, and if it is too low, you may miss out on the best possible price.

  • Auction:

Auctions generate buyer competition, which can increase the sale price. They’re riskier since you don’t know how interested bidders are or how much they think your house is worth until the auction day.

Formalize the agency agreement:

The agency agreement governs your relationship with your real estate agent. It specifies whether and for how long they have exclusive rights of selling a property, their fees, and any other charges such as marketing (online advertising and for sale boards) and administration fees.

Prepare a statement from the seller and a sales contract:

The seller’s statement is a legal document that explains if the property has a mortgage, any covenants that limit what the owner may do with it, any rights, and whether the land is subject to council zoning and related declarations.

Sales campaign:

This includes preparing your home for showings, having marketing photographs taken, and hosting open houses, all of which will be coordinated by your real estate agent. Sales campaigns typically last 4-6 weeks.

Getting rid of your mortgage:

If the property has a mortgage, make sure it is paid off before closing. This includes sending your lender a completed discharge of mortgage form. Because the process might take several weeks, you should contact your lender as soon as possible after exchanging sale contracts. Getting rid of a mortgage is generally expensive. It would help if you spoke with your lender before listing your home for sale to be aware of any charges and the process involved.

Settlement:
Settlement takes place six weeks after the contract of sale is exchanged, and your conveyancer or solicitor oversees the process. This is when you get the wholesale price minus the deposit, the amount owed on your mortgage (paid to your lender), your conveyancer or solicitor’s costs, and your real estate agent’s expenses. 

The sale is complete once a settlement is completed, and you must leave the premises immediately.

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