First National Real Estate Mudgee - Selling Information

THERE COMES A TIME IN LIFE WHEN YOU NEED TO MOVE ON.....


Whether you are making a job change, retiring, or just need a change of scenery, one thing is certain: your main objective is to determine the best and most realistic price for your home and to achieve it in the lease expensive and shortest period of time.

You may think selling a house is easy and that the first person who walks through your door will fall in love with your home.  But if you ask yourself how many houses you inspected before you bought your current home, and how many other people may have been through the home before you purchased it, you’ll realise that there is a lot of work and expertise involved.

 

PERHAPS WHAT YOU REALLY NEED IS A GOOD REAL ESTATE AGENT


Your home will probably be the most valuable possession you will ever sell and First National Real Estate Mudgee is here to help.

The following information will guide you through the process, from selecting the right real estate agent, realistically valuing your home or property, preparing your home for a quicker sale at the right price, and finally the move.

Of course, if there is anything else you need to know, just ask, you’ll find First National Real Estate Mudgee happy to help.

 This is an important and exciting time in your life and we want to make sure it’s enjoyable and that all goes smoothly.

 

THE MAJOR STEPS IN SELLING YOUR HOME OR PROPERTY


·          Obtaining a market appraisal.

·          Choosing the right real estate agent.

·          Deciding the method of sale.

·          Setting a price for your home.

·          Developing a marketing plan.

·          Negotiating and accepting an offer.

·          Signing the Contract.

·          Settlement.
 

 TIMING

Buyers for a property can be found all year round however it's not often that a purchaser for your home is out there, just waiting for you to put your home on the market.

Timing, presentation and advertising are all required to bring buyers and sellers together for the best result.

Spring is often considered to be the best time to sell. It's a time of optimism and with the weather clearing, more potential buyers will be out and about. It is also a time when more sellers will put their homes on the market so there will be more competition.

Winter usually presents fewer buyers, but the buyers are usually more focussed on purchasing and traditionally there will be fewer homes on the market to choose from.

Prior to placing your home on the market, allow an additional two weeks to prepare both the property and the marketing material.
 
 

PRESENTATION


A tidy home says "Welcome". Your home should be kept neat and tidy during the period of inspections. It should not necessarily be a "show place" but appear a comfortable home in which to live. Fresh flowers or indoor plants always brighten up a home.

While you’re cleaning, think about each room and what furniture really needs to be in it. Rooms look smaller when they are crowded. Clear out anything that's not needed to create a feeling of spaciousness.

Make sure that all minor repairs are completed. Sticking doors and windows, loose door knobs, faulty plumbing, peeling paint or faulty flywire may affect your sale.

Let plenty of light into your home. Nothing improves atmosphere more than brightness. And on a dull day switch on some lights prior to arrival of prospective purchasers.

A warm comfortable heated home on cold days adds a feeling of cosiness; on a hot day don't forget to turn on the air conditioner or fan (or simply let the breeze flow through).

Avoid having too many people present during inspections. Be courteous but don't force conversation with a potential buyer. The prospective purchaser wants to inspect your home - not pay a social call.

As a general rule it is advisable to turn off radio and television sets during inspections as they can be very distracting. Keep your pets out of the way (preferably out of the house). Let the buyer and agent talk, free of disturbances.

Don't apologise for the appearance or condition of your home (this does nothing but emphasise the faults). Don't discuss the details of the transaction or allow a prospective purchaser to inspect your home without your agent.
 

METHOD OF SALE


If you submit your property for Auction this means that prospective purchasers will bid against one another at a date and time suitable to you.

You can set a reserve price, which is the minimum you will accept, and once bidding has passed that level you know you have a sale, as it will be unconditional and a predetermined deposit must be paid on the day.

Sale by Private Treaty means that you set a price at which your property is to be marketed to the public through the marketing plan agreed to by you and the agent.
 
 

THE ROLE OF THE REAL ESTATE AGENT

The Real Estate Agent’s role is to help you achieve your aims in the most efficient manner possible.

 The agent acts as a market reporter, providing experience and advice on what the market may pay for your home / property and the most effective way of reaching a potential purchaser.

Selling you home can be an arduous task but the right real estate agent will help make the process an easy one.  Listen to their advice as the agent is acting in your best interests.

 First National Real Estate Mudgee have access to potential purchasers and they have the experience of knowing what the market has paid for similar homes to yours.

 The additional money that you gain through obtaining a realistic price, implementing an effective marketing plan and selling your home sooner, outweighs the cost of employing an experienced agent.

 In summary, the major role of your real estate agent is to:

·          Provide a realistic market appraisal.

·          Advise on the best method of sale.

·          Assist you in developing the most effective marketing plan.

·          Implement the marketing plan.

·          Advise on presentation of your home to the public.

·          Bring the property before as many potential purchasers as possible.

·          Present any offers in writing.

·          Negotiate the best price with the purchaser.

·          Ensure that all legal requirements in the official sale of your home are fulfilled.

·          Co-ordinate the settlement.
 

SELECTING THE RIGHT REAL ESTATE AGENT


Making sure you have the right agent working on your behalf is also vitally important.  Here are some areas which you should consider when choosing your agent.

·          Is the salesperson well presented?

·          Does the written material look professional and business like?

·          Do they place importance on high ethical standards?

·          Are they well trained in sales skills, negotiation, marketing and the legislation applied to selling property?

·          Do they have a wide range of marketing options?

·          Do they have a good knowledge of the local market place?

·          Does their company have significant sales activity?

·          Do they have the support of a larger network?

·          Do they keep full and ongoing records of the sale’s progress?

·          Have they the ability to present your home to a wide market place?

·          Do they have testimonials from other satisfied sellers?

·          Are they considered a market leader?

·          Do they provide a guarantee?

·          Are their company brochures and advertising well presented?

·          Are you comfortable with them?

·          Do they promote to broader markets by attending Field Days, Property Expos in Sydney etc?

·          Do they have a fully qualified team of Marketing Consultants?

·          Are they involved in the community?
 

 
WE'RE LOCAL

Like all First National members, First National Real Estate Mudgee is part of the community we live in so we know local values.  In fact many of our First National Real Estate members are second and third generation agents in their area.

 To ensure that you make an informed decision, we analyse local sales trends and price movements on properties similar to your own.  Then we give you an appraisal – one you can rely on.

 And if you start with a fair and realistic appraisal you’ll start with a better chance of achieving the “right price”.
 

WHEN TO INVOLVE A REAL ESTATE AGENT

 The best time to involve the agent is ideally when you are making the decision to sell your property.

For example, you may need more room and be considering extending your home, rather than selling.  A good agent knows the value of the area and may advise that by extending your home, you could exceed the value of the neighbourhood.

 You may be unsure of whether a move will be financially feasible; once again the agent can advise, and may be able to assist with both the sale of the current property and the purchase of a new property.

 Once you’ve make the decision to sell, the sooner your property is on the market, the more opportunities you will have to sell.  New buyers enter the market every day and yours may be just the home they are looking for.
 
  

TYPES OF AGREEMENTS


When you do decide on an agent, you will be asked to sign an Agency Agreement which will contain an estimate of the fees, charges and expenses you can expect to pay the agent when your home is sold.  This is important because it will help you determine a proper budget for selling your property.

 Accurate budgeting is vital, particularly if you are selling in order to “trade-up”.

You need to be sure before you put you property on the market, that after all the expenses such as the solicitor’s and agent’s fees, any repairs and your removal costs are accounted for, what you will safely get for your property will enable you to comfortably purchase the property you wanted.

Before you sign any agreements with an agent you should read it carefully and make sure you understand it and you obligations.  There are several kinds of agreements and real estate agents will willingly tailor one to meek your needs.

The main agreements are:

1. Exclusive Agency Agreement

An Exclusive Agency Agreement covers a set period with one real estate company and allows the agent to concentrate all their efforts into the sale of your property.  This type of agreement includes Auction or Private Treaty methods of sales.

2. Open Agency Agreement

You can sign this kind of agreement with a number of agents.  The agents who introduces the purchaser and holds the deposit is entitled to the commission.  However, it must be pointed out that quite often you may not get the same amount of service from agents on an Open Agency Agreement and therefore it may take a longer period to sell your home.

 Remember that real estate agents do not get paid unless they successfully close a sale.  If a house has not sold during the agreed period it is likely that the price placed on it is too high.
 
  

AUCTION OR PRIVATE TREATY


If you submit your property for Auction, this means that prospective purchasers will bid against one another at a date and time suitable to you.

You can set a reserve price, which is the minimum you will accept, and once bidding has passed that level you know you have a sale, as it will be unconditional and a predetermined deposit must be paid on the day.

 Sale by Private Treaty mans that you set a price at which your property is to be marketed to the public through the marketing plan agreed to by you and the agent.
 
Through expert local knowledge your agent can establish a realistic price for your home, based on its location, age, size, features and market variables such as interest rates and the availability of financing.

Avoid the temptation to be influenced by the experiences other people have had in the sale of their homes.

 The sale price of your home should be based on prices achieved recently for similar properties within your neighbourhood.

Questions the motives of anyone who may suggest that you could obtain a higher price.  Remember, the true value of your property will ultimately be determined by the purchaser.
      

WHAT IS YOUR PROPERTY WORTH?

One of the major decisions to be made, is what price to put it on the market at.

 It is vital that a sound, realistic strategy is provided in setting a price that can assure you of two things.

·          Obtaining your asking price or very close to it; and

·          Getting the sale sooner

Through expert local knowledge your agent can establish a realistic price for your home, based on its location, age, size, features and market variables such as interest rates and the availability of financing.

Avoid the temptation to be influenced by the experiences other people have had in the sale of their homes.

The sale price of your home should be based on prices achieved recently for similar properties within your neighbourhood.

 Questions the motives of anyone who may suggest that you could obtain a higher price.  Remember, the true value of your property will ultimately be determined by the purchaser.
 

PRICING FOR THE MARKET

If your price is too high, you could shut off the most important ingredient of real estate selling – a constant flow of qualified prospective purchasers who are looking for homes in the price range you establish.
 
Overpricing may give purchasers the wrong impression and they may look at your property with higher expectations.  Others will quickly reject those they perceive to be overpriced, often not even bothering to inspect them.

 While a prospect might submit a lower bid and give you a price to at least begin negotiations, this certainly won’t happen automatically.  Many prospects are embarrassed to make offers that are substantially below your asking price.
  
 

BUYER / SELLER PSYCHOLOGY

In any buyer / seller relationship it’s normal for the seller to ask him or herself “I wonder if I could have asked for more?”  On the other hand the buyer may questions whether he / she could have paid less.

 The professional art of negotiating for the best price is a skill that your agent should have mastered.

 Knowing when the time is right to stand firm requires specialised experience.

 One key to obtaining a speedy, successful sale, of course, is starting with a realistic price in the first place.
 
 

TIME IS MONEY

When it comes to selling your home, time is money.

Every day a home does not sell because it is incorrectly priced can mean extra expenses that the owner has to incur for repayments of principal, interest, taxes, insurance and maintenance, and a home that is on the market too long because of an uncompetitive price sends out signals that “something must be wrong with it”.

Your agent shares your interest.  Remember, like you, they have a keen interest in getting the best possible price for your property.  Sound, up-to-the minute market experience provided by the agent will help your home to sell!

 First National Real Estate Mudgee agents can prepare a comparative market analysis of recent sales and, by comparing your home with similar properties, give a good indication of a fair market price.
 

WHATS FOR SALE?


It is important to determine from the outset what is to be included in the sale of your home.  For instance, fittings and fixtures that are easily removed without damage, such as decorative light fittings, wall units and drapes are not necessarily included in the contract.

 It is impossible to make sure everyone is clear on what is included, particularly if it will add value and appeal, BEFORE your property is put on the market.  Any exclusion, particularly, needs to be written into the contract.

  

MARKETING FOR THE BEST PRICE IN THE LEAST TIME


It’s not often that a purchaser for your home is out there, just waiting for you to put your home on the market.

 Timing, presentation and advertising are all required to bring buyers and sellers together for the best results.
 

WHEN IS THE BEST TIME TO SELL?

Any time you are ready.

 Spring is often considered the best time to sell.  It’s a time of optimism and with the weather improving, more potential buyers will be out & about.

Although conveyancing times may vary from State to State, it may represent a marketing opportunity to be “in by Christmas”.

But, it’s also a time when more sellers will put their homes on the market so there will be more competition.

 Winter usually presents fewer buyers, but the buyers are usually more focussed on purchase and traditionally there will be fewer homes on the market to choose from.

 Of course, the further North, the less difference in the seasons, and accordingly, the less variation in selling conditions.
 
 

WOULD I GET MORE IF?


First National Real Estate Mudgee can advise you if improvements could realise a better price for your home.  But generally, while improvements may make your home more saleable, perhaps even shortening the sale time, they will not necessarily achieve a better price.

Of course, there are exceptions, and a small investment could be worth the outlay, especially if you don’t intend to sell in the immediate future.

 First National Real Estate Mudgee will be happy to advise whether you may be overcapitalising, even if you are just considering an extension or a renovation.
   

REACHING POTENTIAL BUYERS

Selecting the best marketing plan to ensure your home is exposed to the maximum number of buyers is important in achieving the best price.

 However, expensive  or extensive marketing is not always the answer; a smaller, well planned campaign aimed at the right market can often bring the right result in a shorter time, especially if your home has features which will make it attractive to an identifiable group.

For example, a home beside a popular golf course could be advertised to members of the golf club.

Perhaps the value is beyond the reach of the average person.

In all cases it is important to select the newspapers, magazines and target areas which contain the most potential buyers for your type of property.

 First National Real Estate Mudgee will advise you of the right advertising mix.

 Almost always, the first item on the list will be a signboard.

 Research indicates that a large proportion of homes are sold to buyers in immediate areas, which is why the signboard is so important.  It not only identifies your property to those who have seen the home in the agent’s window display, but also to someone who may have admired your home and drives or walks past everyday.

And that may be the person who will buy your home.

 Signboards come in a number of shapes and sizes, and of course, prices.  A simple board may be all that is required, or if the exterior of your property does not indicate the quality within, a picture board can be used to give a glimpse of the interior features.

 The next part of the marketing will be the advertising.  A combination or internet, news press and radio advertising usually form the largest part of the mix.  The agent may use just one newspaper where there is a choice, having tried them all and found one more cost-effective than the others.  In our case we also market at Field Days such as Mudgee Orange & Gunnedah as well as participating in Sydney Real Estate Expos to ensure we maximise exposure or your property to potential purchasers.

Real estate magazines are another tool used by agents.  Some will take space in the existing publication; others may publish their own.  These are sent to known potential customers as well as being available from the agent.

Your agent also may suggest a letterbox campaign with cards or flyers of your property distributed in areas considered to contain potential purchasers.

“Open For Inspections” are popular with some agents and not with others, depending on their own experience of the marketplace.  An “Open” is where an agent will invite inspection of properties for a limited time, usually on a weekend.  Anyone interested can look over your home while it is open.

An increasingly important advertising medium is the internet.  Potential buyers from anywhere in the country or the world can look at your property, sometimes inside and out, and decide whether it is of interest before contacting the agent.

 With a sophisticated referral network such as that operated by First National Real Estate, buyers from interstate or other suburbs and towns can contact their local agent, and be shown properties available through offices in areas they may be interested in.

 Specific details of interest can be photographed and placed on a website or emailed to the interested agent, where they can be views so buyers can make an informed decision about your property before even setting foot on it.

 Many agents also use a similar viewing system in their office to assist buyers to narrow the options.  This means less time wasted with inspection of houses that may fit the buyers’ criteria but do not appeal aesthetically.

Of course, one of the most powerful, yet often underestimated, marketing resources is the agent’s window display.

 Your property needs to be seen in the best possible way in a powerful, ever-changing display that attracts buyers, which agents window in Mudgee would you like your property displayed in!
 

WORKING AS A TEAM

You and your agent should always work as a team.  If you feel your agent has overlooked some important selling points, feel free to discuss them privately (perhaps a phone call to the office).
 
 
 

NEGOTIATING AND ACCEPTING AN OFFER

Always have the agent handle negotiations.  Should you be approached directly, it is wise to politely redirect the prospective purchaser to your agent.

 First National Real Estate Mudgee will present any offer in writing, at which time you have the right to accept the offer or you can counter the offer at a price acceptable to you.

You must understand that if the purchaser does not wish to accept your “counter offer”, they can withdraw their original offer.

 When considering an offer, take the following into account:

·          price

·          suitability of the deposit

·          terms of finance (either cash or subject to finance being arranged)

·          settlement date

Take advice from your agent when considering the offer.
 
 

SO YOU’VE FOUND A BUYER, WHAT NOW?

Once you have found a buyer and agreed on the price, the contract that had been initially drawn up can now be signed, and normally a 10% deposit will be paid by the purchaser with the balance due on the settlement date agreed.

In the case of purchase at auction there is normally no cooling off period and the deposit must be paid and contract signed on the day of purchase.

 Cooling off periods for normal sales (Private Treaty), however, can apply and your agent is the best person to advise you on the legalities.

 The deposit will be held in trust by your agent.

 The purchaser has the right to organise any inspection of the home, whether it be by a pest exterminator or a building consultant.  This will normally be included in the contract.

 Once the contract is exchanged, it is a legally binding document and the process of transfer can begin.  Some people have the knowledge, experience and time to handle the transfer themselves, but this is fairly rare.  Normally a solicitor, a conveyancing company or settlement agent will handle the transfer.  They are experienced and knowledgeable of what can be very complex process.

 

THE STAMP DUTY IS PAID BY THE PURCHASER

Settlement day is the point at which the keys are handed to the purchaser and the property becomes their responsibility.  It is important to note that until that date the property is still legally yours and therefore such aspects as insurance remain your responsibility.  It is normal for the agent to deduct the commission and any advertising costs (if applicable) from the deposit after settlement.  As part of the transfer process, arrangements will be made for the balance to be transferred to your bank account or paid direct to you.
 
 

WHAT ABOUT YOUR NEXT HOME?

While you are selling your current property, First National Real Estate Mudgee can also be working on finding your new home.

 We will help you by identifying your needs in relation to your new home and can assist you in finding a home to suit your family and your budget.

By dealing with a network like First National Real Estate, that home could be in the same street or anywhere in Australia, as well as many other parts of the world.

 First National Real Estate Mudgee should also be able to help with a rental property while you look around.

 First National Real Estate in Australasia’s largest real estate network with approximately 600 offices throughout Australia and New Zealand.  First National Real Estate also has other affiliations overseas.

 Whether it is across town or across the nation, First National Real Estate can take the hassle out of moving.

 First National Real Estate Mudgee can source information about your new area to help you relocate with a minimum of fuss.