Selling Information & Tips
I'm looking to sell property
The greatest problem facing home-sellers is lack of information so here are some costly mistakes made by home-sellers and some handy hints to help you achieve your goals...
Get A Guarantee
All agents will ask you to sign an agreement before you sell and you don’t want to sign something you will regret. The solution is simple: if the agent wants you to sign, you must insist that they sign your guarantee first - a Real Estate Consumer Protection Guarantee for Home-Sellers. Have your solicitor or legal representative provide you with some paperwork which is free and can be used with any agent. The best agents will gladly guarantee their services.
Trust The Agent
If you don’t trust the agent, don’t hire the agent. A major ingredient in any relationship, personal or business, is TRUST. Before you choose your agent, ask yourself the BIG question: “Do I feel comfortable with this person handling the sale of my family home?” If your answer is ‘no’, do not hire the agent. Once you hire the agent, give the agent your trust and confidence to make decisions and find the right buyer for your home. The best agents are worthy of your trust, they won’t let you down.
Most real estate advertising is a complete waste of money, you just need to make sure it is not your money that is being wasted. Home sellers are often pressured to pay thousands of dollars in advertising, which contributes to raising the agents’ profile, promoting their company and their profits at your expense. Basic marketing of your home should be a service that is built in to your commission, or better yet, complimentary. Don’t sign anything that asks you to pay money in advance.
Some agents will tell lies to win your business. Don’t be fooled. Be very careful that you don't choose the agent who tells you the biggest lie about the sale price of your property, this is called ‘buying your business’. If you choose an agent based on the price they quoted you, you could find yourself badly disappointed. If you suspect that an agent is attempting to ‘buy’ your business, insist they give you their estimate in writing AND charge you nothing if they sell for less than the estimated price.
Cheap Agents, Cheap Prices!
Be careful choosing an agent based purely on their fees. Better to pay an extra 1% for a selling fee than to receive 10% less on your selling price. Good negotiators rarely give big discounts on their fees and if they get you the best market price, they are worth the fair fee. “If agents give their own money away, what do you think they will do with your money?!”
A Database of Buyers
The best agents keep detailed records of buyers. Most agents get dozens of enquired from buyers each week. It would then make sense that these agents keep in contact with these genuine buyers instead of advertising your property to for ‘self promotion’, so be careful. The best agents will be able to produce a list of legitimate buyer enquiries that are suitable for your home BEFORE it even goes on the market. One of these buyers may be the ONE!
Open or Exclusive?
Do not place your home with several agents in an open listing. You may think this will increase your chance of finding a buyer quickly but in fact it decreases your chance of getting the highest price for your property. The agents will be in a hurry to sell your home before the other agents does make the sale most important and the price forgotten. Put your eggs in one basket and choose an agent that you like and trust.
The Auction Trap
Auctions are riddled with deceit. Be wary of agents who try to talk you into auction by telling you stories of incredible prices thousands above reserve. You ‘reserve’ price is your lowest price, the minimum you will accept under pressure and auctions are needless pressure. Auctions go up in price because they start low, so insist on an agent who focuses on you maximum price, not your minimum price. You will always get a much higher price by starting high.
Negotiation skills are vital to ensuring you get the highest possible price.
A good negotiator can easily create up to an extra 10% on your selling price. Ask an agent to quote some principles of negotiation to you and you will soon discover who the best is.
Revealing Your Reason
No one, other than the agent you trust, should know your reason for selling. Your reason for selling is confidential and can severely hurt your chance of obtaining the highest price. If buyers are privy to the information that you “must sell because you have financial problems”, it can weaken your negotiating position. Don’t let the reason for selling your home be the reason you receive a lower price.
Be careful what you spend on major improvements to your home in the lead up to selling. What suits you may not suit every buyer and waiting for a buyer with the same taste as you may take years. The main purpose of home improvements is to improve your enjoyment, not to improve your price. Remember, you rarely get back more than half the cost of your improvements when you sell.
Do not confuse improvements with presentation, make your home sparkle and your price will shine. Pay attention to little things which create a big impression. Cleanliness is vital and a pleasant scent creates a pleasant mood. The smell of your home is one of the most important and overlooked aspects of selling a home. Bad odours are an instant repellent to a buyer. Remember: Dull homes get dull prices.