Williams Bespoke - Overview Guide

an initial guide to the sale process

WELCOME TO Williams Bespoke

Every home and property is uniquely special, with its own combination of personality, style, features, location and environment, deserving a thoughtful, bespoke approach when offered for sale.

Bespoke Real Estate SA has partnered with Williams Real Estate and Williams Luxury, South Australia’s most highly regarded real estate agency for selling premium homes and lifestyle properties, to create an innovative boutique real estate agency that can design and action the perfect campaign to sell your quality home or lifestyle property for the optimum price in a timely manner.

Our Premium Selling System includes

• Our partnership with Williams Real Estate & Williams Luxury enables us to promote our client’s properties via their website, Saturday Advertiser Real Estate Magazine and their substantial database of high net-worth clients

• State-of-the-art technology with highly effective methods of sale

• The option of utilising private inspections just for serious buyers

An exceptional brochure with comprehensive property information

• A world-class website that displays detailed information on the property

• A premium sale sign that elevates the brand and status of your property

We sell from ‘Metro to Coast’, spanning metro Adelaide, metro Beachside, Adelaide Hills and the South Coast.

We specialise in selling;

• Quality family homes and holiday homes of all styles

• Low-maintenance luxury executive homes, courtyard homes and duplex homes to buyers who are down-sizing

• Land, knock-downs or ‘originals’ to buyers who prefer to build or renovate

• Lifestyle properties from ‘metro to coast’

At Williams Bespoke we provide our clients with the best of all worlds … the personalised, expert service of a boutique agency combined with the marketing power of arguably South Australia’s most powerful real estate brand.

End Result … an excellent sale at the optimum price in a timely manner.

Experienced

Nick has been selling real estate for over 38 years and has dealt with every possible sales situation. This means you will have a mature real estate professional with exceptional sales, marketing and negotiating experience, handling the sale of your property.

And it’s that calm, confident, ‘cool under pressure’ presence, and ablilty to deal with any issue that may arise during your sale, so your interests are protected and your sale result is optimised.

Thank you

.. for the opportunity to advise you on the sale of your property.

Choosing an agent and deciding how to sell your property can be a confusing task. Make the right choices and everything will go smoothly with a positive experience. Make the wrong choices and it can cost you a lot in time on market, lost opportunity and a lower sale price.

To help you make the right choices with confidence, this booklet gives you an overview of the real estate sale process, the important dynamics involved and the options available to you.

In due course, I look forward to covering this information in more detail with you. And at the end of your evaluation process, I hope that Williams Bespoke will be your Agent of choice.

Nick Baranikow

Principal & Master Auctioneer 0400 601 100

Experienced | Professional | Down to Earth

nick@bespokere.au

Bespoke Real Estate SA • RLA 292077

nick@williamsluxury.com.au

Williams Real Estate • RLA 247163

Professional

Past Board Member, Real Estate Institute of SA

Past President, Society of Auctioneers & Appraisers (SA)

• Master Auctioneer and Golden Gavel Auction Champion

• Winner of Multiple Sales Awards

• Company Director for over 28 years

Down to Earth

If you want an Agent who is ‘glossy’, ‘pushy’ or ‘gushing’ … I’m probably not for you.

If you want a confident, reliable, friendly and down to earth approach with a touch of humour thrown in, then I’m your Agent.

I will always advise you as it is, without varnishing the facts and details.

Better still, you should have a look at what my past clients have to say.

The best time to get the best price

• The first 6 weeks on the market is the positive selling period

• The first 3 weeks on the market is the ‘New Release’ phase on the market and the perfect time to sell

Buyer interest drops significantly after week 6

The Price Pyramid

How the Real Estate Market really works

Before we look at the sale process, it’s important to understand the psychology of the real estate market and how the dynamics of buying and selling integrate with each other.

So let’s review the Three Golden Rules:

The first 6 weeks on market is the positive selling period and the first 3 weeks, the New Release phase, is the perfect time to sell.

This is when the ‘A-Grade’ (hot) buyers present themselves and we can generate emotional competition if the property is marketed properly and the right selling method is utilised.

A buyers journey from the base of the Price Pyramid, where they start ‘logically and low’, to eventually buying ‘emotionally and high’ at the Price Peak has three stages: 1 2 3

First Stage

It is essential that the property is picked up by a buyer’s ‘price radar’, so they are compelled to spend their time and effort to inspect the property.

If the price/range set on the property is beyond their ‘price radar’, they won’t inspect the property and the journey up the Price Pyramid does not even start.

Buyers start looking for a property ‘logically’ at a lower price that suits their budget comfortably, and then finally buy a home ‘emotionally’ at a higher price, if the sale/negotiation is structured properly.

Buyers don’t pay more for a property just because the Vendor sets a high price.

In fact, ‘overpricing’ could have a very adverse effect on your sale as it will take longer to sell, probably require one or more price reductions and usually ends up selling at a lower price than could have been achieved.

Second Stage

So now we get buyers inspecting the property.

If they like it, their emotional interest is now engaged and their price decision now changes quite dramatically from;

“What do we prefer to pay?” (logical and low)

TO

“What are we prepared to pay?” (emotionally and higher)

Third Stage

A professionally managed selling strategy will create emotional interest and generate buyer competition, resulting in a sale to the best buyer who is prepared to pay the highest price with the best terms.

The 5 P’s of the Sale Process

Now that we understand how the market works, let’s look at the 5 P’s of the Sale Process:

1 2 4 3 5

Price

How do we estimate the Market Value of your property?

Presentation

What should you do to present your property for sale?

Process

What selling method should you use?

Promotion

What are the marketing options for your property?

Performance Fee

What do you pay us?

1. Price

How do we estimate the Market Value of your property?

Technical Value (TV)

Technical Value is an objective assessment of a property’s market value which takes into account recent comparable sales, underlying land value and a market value for the residence and improvements.

This is very similar to what a Valuer would do and is also called ‘Cold Value’ or ‘Bank Value’.

Potential Emotional Value (PEV)

A property can also have a higher Emotional Value to one or more special buyers and this can add a price premium of 5%-10%, or sometimes even more because it’s impossible to measure emotion.

These special ‘A-Grade’ buyers always present in the first 2-3 weeks on the market when the property is a ‘New Release’. They are highly motivated to buy, may have missed out on some other properties and they will act as soon as the right home comes onto the market. They are also prepared to compete for the property and can usually buy cash-unconditional.

2. Presentation

What should you do to present your property for sale?

This is all about taking your home from ‘Live In‘ mode to ‘Sale’ mode.

At Williams Bespoke , we have a comprehensive e-booklet, Dress to Impress , which provides you with all the advice and information you need to create a fantastic first impression.

We also have access to a great team of Trades and Stylists that we can recommend to you.

If it’s a major job, or you are time poor or perhaps you would rather leave it to the experts, we have specialists who can co-ordinate the entire sale preparation process for you!

3. Process

What selling method should I use to sell my property?

At Williams Bespoke , we offer three methods of sale.

You can choose the method that you feel is right for your property and that you are comfortable with.

A basic selling method where the property is advertised with an asking price or a price range

• There is no deadline to the sale so buyers can make an offer at any time, or sometimes procrastinate on making an offer

• Buyers can make offers with conditions; for example, subject to finance approval and/ or a satisfactory building inspection

• Buyers have a Cooling-Off Period so they can cancel the contract within 2 clear business days after purchase

METHOD 1 ASKING PRICE METHOD 2

SET DATE SALE (SDS)

Most Agents offer what is usually called ‘Expression of Interest’ or ‘Best Offer’. Our Set Date Sale System takes this process to another level with even greater effectiveness and flexibility. Here’s how it works:

Registration of Offers is required by a set date and time at the end of a 3-week marketing campaign

• However, the property can be sold at any time, if a buyer makes a strong offer that the Vendor is happy to accept

• All offers remain confidential ... only the Vendor and Agent can see all of the offers via our online platform

• Buyers can make their offer ‘cash-unconditional’ or ‘conditional’ (subject to finance approval, building inspection etc.), so it is open to all buyers

When Registration of Offers closes (unless the property is sold before), we review all offers and move to Phase 2

• If one offer stands out above the other offers, the Vendor can accept that offer, or we can negotiate with that buyer

• If there are several offers around the same mark, we go back to those buyers and ask them to now submit their Best and Final Offer (their best price and best terms), as the Vendor (you) will make a selling decision on the clear assumption that every buyer has now made their Best and Final Offer Alternatively, we can easily convert the sale process into an Online Auction, so buyers can compete for the property under Auction Conditions (‘cash-unconditional’ contract with no Cooling-Off period). This is the Vendor’s decision to convert to an Online Auction. This entire process is carried out using our Online System, so the Vendor can see all offers made in real time. For example, you may initially open the sale to conditional and unconditional offers, but as the sale campaign progresses you may decide to only deal with buyers who make unconditional offers

METHOD 3 AUCTION

We offer both Onsite Auctions and Online Auctions and they offer the following advantages to a Vendor:

Auction creates a ‘buying deadline’ at the end of a 3-week campaign, so buyers cannot procrastinate ... they have to offer (bid) for the property, or they miss out

All bids must be ‘cashunconditional’; their offer/bid cannot be subject to the sale of a property, finance approval, building inspection etc.

• The successful buyer does not get a Cooling-Off Period, so they cannot change their

Onsite Auction

I’m not only your Agent but also your Auctioneer, which is a major advantage as I get to know all the buyers personally, along with their underlying buying motivations.

I am a Golden Gavel Auction Champion and accredited Master Auctioneer.

I have also served as President of the Society of Auctioneers and Appraisers SA Inc. for 3 years.

Online Auction

The additional advantages of an Online Auction, compared to an Onsite Auction, are:

• Online Auctions are held privately online and restricted to bidders only, unless you (the Vendor) authorise observers

• There is no need for you to experience the added stress of a ‘street get-together’ on Auction Day, as no pre-auction open inspection is required

• Online Auction is very convenient and easy for country, interstate and overseas buyers to participate in, or if buyers are away on holidays or business

• Online Auction is unaffected by weather related issues ... the weather is always perfect online!

• Most buyers prefer the ‘discreteness’ of an Online Auction, where they do not have to physically display themselves while bidding

• An Online Auction literally starts from Day 1, and you can sell the property at any time if you get an exceptional offer (bid)

• Buyers must register as a Bidder well in advance of the Auction so they can view and participate in pre-auction bidding

mind and cancel the Contract within 2 clear business days

The property can be sold before Auction if a strong offer is received This process flushes out the ‘A-Grade’ buyers for your property; buyers who are highly motivated and ready to buy now, they can buy ‘cash-unconditional’ and they are prepared to compete for the property

Buyers are also required to place a preliminary ‘bid’ as part of their Bidder Registration; this authenticates their interest and ‘fuels the competition’ right from the start, as each buyer sees more bids and interest Given the above, we will know who is interested in bidding on the property well ahead of the Final Auction. This is better than an Onsite Auction where buyers don’t have to register to bid at the Auction until 30 minutes before the Auction

• You can see the bids as buyers make them in real time, via our Online Platform

• Online Auctions are usually held on a Tuesday or Thursday evening at 6pm so it doesn’t impact on work, school sports or weekend related issues

• Our Online Auctions also take place before the Onsite Auctions of any ‘competing’ properties, which are usually held on a Saturday morning or Friday afternoon. This means we get first crack at the hot buyers!

• For Deceased Estates: Interstate Executors / Beneficiaries don’t have to fly to Adelaide to attend a physical Auction ... they can observe the Auction online in real time and speak with the Auctioneer (me) in complete privacy during the Auction

4. Promotion

What are the marketing options for your property?

Off-Market

If you are not ready to commence a full marketing campaign or prefer to initially test the market in a more discrete way, we can pre-release your property via Bespoke Off Market and Williams Black Book to our registered Priority Buyers.

There is no set time frame for doing this but it would usually run for a 2-3 week period before a full market release, giving you the opportunity to sell quickly and discretely if a great offer is made.

Or you can escalate into On-Market mode with a full campaign at any time.

On-Market

Our marketing team can tailor the perfect marketing campaign for your property, so it’s guaranteed to be seen by every potential buyer.

This can include a combination of the following, depending on the budget and buyer-reach you want to set:

Online marketing (websites) including realestate.com.au, domain.com.au, williamsproperty.com.au, bespokere.au and many others

• Social media, video and sophisticated brochures

• Newspaper and magazine advertising

Press editorial

5. Performance Fee

What do you pay us?

We have a Performance Fee Schedule which we use as a foundation to tailor a value-for-money package in discussion with you.

Buyer Inspection Options

At Williams Bespoke we offer two formats for buyer inspections.

Open Inspection

This is the traditional form of inspection in Adelaide; very easy and convenient for buyers to attend.

Inspection by Registration

• We pre-set inspection sessions (30 minutes to 45 minutes sessions depending on the size of the property) one week in advance

• Buyers must register online via our web site to inspect at any of these times

• These times are not advertised publicly

This format engages serious buyers and filters out people who are ‘just looking’ and the ‘nosy neighbours’

We will also know in advance who will be attending the inspection sessions

The Steps to Selling your Property

The Steps to Selling your Property

A Sales Agency Agreement is prepared and authorised

• Sale preparation of the property gets underway

• Legal Searches are ordered; Contract and Form 1 are prepared

Marketing Copy and Features Summary drafted; sent to Vendor for approval

Photography, Floorplan, Site Plan, Video are done when the property is ready

Brochures are prepared

• Sale Sign ordered and installed

• Off-Market Pre-Release if designated by Vendor, OR

Full Market Release via web sites and social media, initiating a 3 week campaign (unless sold before)

Inspections: we pre-set 2 inspection sessions per week and can also arrange inspections by appointment if required and authorised by Vendor

Regular Buyer updates + Weekly Campaign Reviews

Registration of Offers closes for Set Date Sale or we have a Pre-Auction Meeting, depending on method selected

• Final negotiations or Auction … SOLD in 3 weeks or less!

Form R1 Sales Agency Agreements

RIGHTS & OBLIGATIONS OF VENDOR

Land and Business (Sale and Conveyancing) Act 1994 section 20(2)

An agent must give you, the vendor, this guide outlining your rights and obligations before making a sales agency agreement with you.

Choosing an agent

Agents, including companies that are agents, must be registered under the Land Agents Act 1994. You can check whether they are registered on the Consumer and Business Services website: www.cbs.sa.gov.au.

Choosing the best real estate agent to negotiate the sale of your property is important. The services provided and the associated costs may vary significantly so it is a good idea to obtain advice from several agents before signing an agency agreement. You should ask them for their proposed marketing plan — what they will do to market your property and what will be your financial contribution to the marketing of the property. It may not be in your best interests to choose the agent who provides you with the highest estimated sale price of your property because this price may be unachievable and could delay the sale.

When the agent provides you with an estimated sale price of your property you should ask how they have determined the estimated sale price. It is a requirement to include recent sales figures for comparable properties in your area and any other information the agent relies upon for their genuine estimate of the selling price in any sales agency agreement you choose to sign with an agent. You can also engage a qualified valuer to prepare an independent valuation if you so choose.

Role of the agent

When you list your property with an agent, you are employing them to sell your property for a price that is acceptable to you. The agent should always act in your best interest and engage in good business practices. The agent will charge a fee for their services either in the form of a commission, a set fee or a combination of both.

The agent should outline a marketing plan for your property and undertake various searches. You can generally expect the agent to:

• Advise on a method of sale

Advertise and market the property

• Organise and attend open house and other inspections

Attract prospective buyers

• Communicate offers to you

Organise an auction, if this is the preferred method of sale

• Arrange the signing of the contract of sale

• Assist in the preparation of the disclosure statement to be given to the purchaser.

The sales agency agreement

An agent must not act for you unless they have been authorised by a sales agency agreement that is dated and signed by you, the vendor, and the agent. This contractual agreement sets out the rights and obligations of both you, the vendor, and the agent. A copy must be given to you when you sign it or at a later time within 48 hours as agreed by you and the agent. Every sales agency agreement for residential property must include:

• A description of the land that is the subject of the agreement

Your full name and that of the agent

• The agent’s registration number

The chattels that are included in or excluded from the sale

The services that will be provided by the agent or another person for which you will be separately charged (e.G. Advertising and marketing)

The nature, source and amount of rebates that the agent expects to receive in relation to separately charged services (e.G. Advertising and marketing)

• Details of the circumstances in which the agent will be entitled to receive commission or fees for the sale of the land, and also the circumstances in which the sale may not be attributable to the agent

The duration of the agency agreement (maximum term is 90 days for sale of residential land)

• The agent’s genuine estimate of the sale price of the property (a single figure)

The selling price you are seeking or would accept (a single figure)

• Comparable sales data and any other information the agent relies upon to support their estimate

The manner of sale of the property (e.G. Auction, private treaty or tender)

• Your rights to terminate the agreement

Whether the agreement is a sole agency agreement

Whether the agent has authority to accept an offer for the property on your behalf

• A term warranting that the agent will comply with the act and will act in your best interests.

Advertising and marketing

The sales agency agreement must specify all services that will be separately charged for, including advertising and marketing, and whether those services will be provided by the agent or by a third person. Amounts to be charged for the services and the time for payment must also be specified.

You should make sure you have a clear understanding of how the agent intends to market your property and what this will cost you. The cost of advertising and marketing a property varies significantly depending on the type of advertisement and where the advertisement will appear, e.g. the internet, The Advertiser. Some agents may charge a low commission rate but charge more for marketing and advertising your property.

You may be charged the up front cost of advertising with a particular publication, but agents commonly receive a rebate as a result of placing large numbers of advertisements.

You should make sure you ask the agent questions about the amount of advertising rebate that the agent expects to receive. You are within your rights to negotiate with the agent to receive some benefit from those rebates.

You should determine whether the amount you are paying for advertising and marketing a property is reasonable. The agent must disclose the nature, source and, if known, the amount or value of any rebate, discount, refund or other benefit they expect to receive in relation to these services. You can also include in a sales agency agreement a clause requiring the return to you of some or all of the rebate when it has been paid to the agent.

You must also ensure that any information provided to the agent about your property is factual and up-to- date. If a buyer can show that advertising of a property is false or misleading, the buyer may be able to take legal action. Under s36 of the Act, significant penalties apply to making false or misleading representations for the purpose of inducing another person to purchase a property.

Duration of the agreement

You should consider the length of the sales agency agreement because you may be obliged to continue under it even if you are unhappy with the services provided by the agent.

Under the Act, the maximum duration of a sales agency agreement is 90 days.

Towards the end of the sales agency agreement, you and your agent may decide to extend the sales agency agreement or enter into a subsequent or new sales agency agreement.

Price

In a sales agency agreement the agent must specify the agent’s genuine estimate of the selling price of the property. It is important to note that this genuine estimate is not a valuation but rather the agent’s best estimate of the likely price you could expect based upon a whole range of factors – it is in no way any guarantee that you will receive that price in the market place. The price must be expressed as a single figure without any words or symbols (eg $300,000). In addition, the agent must provide you with details of sales of comparable land and any other information on which the agent will rely in support of their genuine estimate of the selling price.

The agreement must also specify a single figure sale price for the property that you would find acceptable to ensure any price advertising is not misleading or deceptive. If you are auctioning your property, you cannot increase your acceptable price in the agreement.

To help you decide on a price you should:

Consider the agent’s estimated selling price Research sale prices in your area

• Consider seeking an independent valuation by a qualified valuer Not allow emotion to cloud your judgment.

Having a realistic idea of the likely sale price of your property will help you avoid both disappointment and the risk of purchasing another property based on an unrealistic expectation of the sale price of your own property.

Prescribed minimum advertising price

The price that you and your agent list in the sales agency agreement will affect the price for which the property can be advertised. For example, if you advertise a likely sale price for your property, the price cannot be lower than the higher of the:

• Amount you specify as acceptable in the sales agency agreement and Amount the agent has estimated as the sale price.

Reserve price

The reserve price for the land must not, at any time before or during the auction, be set at an amount exceeding 110% of the amount that you have specified as your acceptable price in the sales agency agreement. For example, if you specify $400,000 in the sales agency agreement as your acceptable selling price, then the reserve cannot be more than $440,000.

Manner of sale

The sales agency agreement must specify the manner of the sale.

The most common ways to sell a property are by auction or private treaty. Your agent should advise you of the most appropriate way to sell your property. You should ask the agent about the advantages and disadvantages of both methods of sale before you decide what to do.

Termination of the agreement

A sales agency agreement must specify your rights to terminate the agreement. An agreement may limit your rights in this respect to certain circumstances, or provide for costly termination fees. An agreement may also deem termination to occur in certain circumstances; for example, if you sell the property privately, or through another agent. In such circumstances, depending on the agreement, the first agent may still be entitled to a commission. You should seek independent legal advice if you are unsure about your rights or the consequences of termination of an agreement.

Sole agency agreement

The agreement must specify whether the agreement is a sole agency agreement.

Sole agency agreements are the most common form of agreement in South Australia. Your agent will most likely suggest a sole agency agreement, particularly where sale is to be by auction.

Under a sole agency agreement the agent has the exclusive right to sell the property and is entitled to receive the agreed commission whether or not they are the one to actually sell the property. In other words, if you sell the property yourself you will generally still have to pay the agent their commission. This will depend on the wording of the agreement.

Authority to accept an offer

The sales agency agreement must specify whether or not the agent has authority to accept an offer on your behalf, for example when circumstances make it difficult to contact you at the time an offer to buy the property is made.

If an agent signs a contract of sale on your behalf, then the contract is binding on you. So, if you think it is appropriate for the agent to be able to accept an offer on your behalf then the contract should clearly state when and in what circumstances you consider it acceptable for the agent to accept an offer.

If, on the other hand, you retain the right to accept an offer yourself, then your property cannot be sold unless you agree to the offer.

Disputes and complaints

If you have a dispute with an agent you should first try to resolve it with the agent. If that is unsuccessful, you can contact Consumer and Business Services on 131 882 for advice.

If you engage a Conveyancer or legal practitioner for selling a property, a formal process to verify the identity and right to deal applies. Your conveyancer or legal practitioner must sign the settlement documents on your behalf and have a Client Authorisation signed by you to do so

Disclaimer: This publication is a plain language guide to your rights and responsibilities. It must not be relied upon as legal advice. For more information please refer to the appropriate legislation or seek independent legal advice