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COMPLETE GUIDE TO SELLING REAL ESTATE IN 2020
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Ask. Selling your property is a big step and preparing to sell can be a little tedious. We’ve prepared this guide to answer some of the more common questions we are asked throughout the selling process.
FREQUENTLY ASKED QUESTIONS // Should we sell or buy first? When is the best time of year to sell? What should we do to the property before we sell it? Do we auction or put a price on it? What price should be put on our property? How do we attract the right Buyer?
This guide is designed to help you sell smarter & faster and go to the market with confidence.
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SHOULD WE SELL OR BUY FIRST?
OUR TOP THREE TIPS // 1. Do your research on your current property & what you want to buy. 2. Speak to a financial consultant to get the full picture.
Deciding whether to buy or sell first is not an easy decision; there are pros and cons to each option.
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3. Choose a competent agent for a smooth process
To buy or sell first is one of the major decisions that you’ll make when selling property. There are so many factors that can influence your decision in either direction, including your financial situation, the property market and your property itself. SELL FIRST //
BUY FIRST //
You’ll know the exact amount of money you will have to put towards your next purchase.
You could avoid moving into a rental property and multiple moving fees.
You’ll have less urgency to sell in a hurry, so you can wait until you are happy with the sale price of your property.
You could avoid having to find a new house to buy in a hurry.
There isn’t a need to apply for a bridging loan to finance both properties. You won’t be in the position of having to pay two loans at once. There may be nothing suitable on the market when you need to buy. You could end up having to move out with nowhere to go. You might have to pay for rent and have the added expense and hassle of having to move twice. Prices might go up after you sell and you might be priced out of the market, or not able to find the dream home for the right price.
You could take advantage of a rising market and potentially get more for your money, and make more from your subsequent home sale. You may need a bridging loan in order to finance the new property. You’ll have the extra cost and stress of having to repay two mortgages at once. It may force you into selling your original property at a lower price, if you need the money to meet your loan obligations. Bridging loans must be repaid within 12 months. If you can’t sell your existing home for the price you need or expected, you may have to source additional funds to cover the shortfall. If you’re making a conditional offer on a property, you might need to make a higher offer to convince an owner to hold the property while you sort out your circumstances.
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WHEN IS THE BEST TIME OF YEAR TO SELL?
Springtime is flagged as the prime real estate selling season, but opportunities exist in all markets provided your agent knows how to position your property effectively. Other factors such as economic and market conditions as well as your own personal situation will also always play an important role in timing your sale.
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DECEMBER TO FEBRUARY
MARCH TO MAY
Warm days filled with sunshine and school holidays make summer one of the top seasons for selling. It carries with it a number of advantages for attracting buyers, particularly those with children.
Autumn may provide an ideal opportunity for sellers. As the buying frenzy of summer dies down, you have the advantage of the lingering sunshine and buyers who are potentially ready to move.
Buyer activity is generally higher during this period and some buyers could even find themselves some strong competition more often than they would at other times of year.
Buyers may wish to purchase prior to the slower winter market so autumn presents a good opportunity for both home sellers and buyers.
JUNE TO AUGUST
SEPTEMBER TO NOVEMBER
During winter, buyers have a good chance to see how a property is impacted by heavy wind, rain, and other wintry mixes. It’s also easier for them to get an idea of how much a home may cost to heat during the winter.
Springtime see the property market warm up like clockwork each year.
During winter, buyers generally have more time to research and take note of other potential inconveniences that they wouldn’t spot in the spring.
Buyers benefit from a wider range of properties than in winter, while sellers benefit from higher turnouts at open for inspections and stronger buyer competition. The downside is that the market can quickly get flooded, with stiff competition that can affect prices.
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WHAT SHOULD WE DO TO THE PROPERTY BEFORE WE SELL IT?
First impressions really do last when it comes to presenting your property for sale.
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That means a tidy and presentable interior and exterior, as many people will drive-by before deciding whether to inspect it on open days. Your property is usually just one in a very long list of properties a buyer will see, so it’s crucial that they see it in the best possible light. The more desirable your property appears, the better your sale price is likely to be.
CHECKLIST //
It’s important to make sure your property looks its best from the moment it goes onto the market. Pavement appeal: Make sure the front of your property looks appealing and inviting with a weed-free garden and some attractive pot plants. Clean and bright: Before every viewing give your property a once-over, ensuring that windows are clean inside and out – it’s surprising how much difference it makes to the light. Cut the clutter: You want the prospective buyer to be able to imagine their own belongings in the property, so de-clutter to keep things tidy. Less clutter will also help make rooms appear larger. Set the scene: You may want to hire furniture to create the look you desire. This is a great way to transform your home and give it extra appeal. Fix it: From leaking taps to a broken bulb, make sure the minor repairs are taken care of. A lick of paint will freshen scuffs and scrapes in the woodwork. Basic maintenance work will help to ensure buyers don’t find any faults. Freshen up: Get rid of smoke or pet odours. Open the windows, brew some fresh coffee and brighten the place up with fresh flowers. Lighten up: Increase the sense of space with mirrors and lights and leave all internal doors open. Pets: Always clean and tidy up after your pets and take them out of the property during open times. Warmth: Create warmth by preparing your home to suit the temperature of the day. If it’s cold, light fires, turn on patio heaters and heating. If it’s hot, turn on fans and cooling systems.
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DO WE AUCTION OR PUT A PRICE ON IT?
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“A sale by public auction is arguably one of the most exciting, effective and rewarding methods of buying and selling property,”
AUCTION //
PRIVATE TREATY //
Auctions are popular in the market at the moment and we suggest you familiarise yourself with the auction process.
A standard residential property transaction is known as a Private Treaty sale. This is when you set the price you’d like your house to sell for, and your real estate agent negotiates individually with prospective buyers to achieve a sale as close to this price as possible
As a seller you will set a reserve price with your agent, this is the minimum price you will sell your property for. Don’t worry you can amend this at any point during the campaign. a 4-6 week marketing campaign will be undertaken to ensure the whole market is captured. Potential buyers are then invited to the auction, either at the property, or at a function venue where an accredited auctioneer conducts an auction on the specified date. The highest bidder at the end of the auction becomes the successful buyer, provided the bid matches or exceeds your reserve price. Auctions can result in a higher price for your property as there can be a sense of urgency and competition amongst buyers, however the prospect of an auction can also put buyers off. It’s important to discuss with your agent what the best way to sell your property is for you.
Setting a sale price offers greater flexibility for negotiation. For instance, a contract can be signed ‘subject to’ certain conditions such as a building inspection or finance approval. With private treaty the length of time your home is listed for sale is flexible: unlike an auction, you are not working towards one specific date. You could expect some cost savings on the marketing and promotional expenses of an auction campaign should your property sell quickly. It may take longer to sell your home compared to an auction campaign. You might need to make your home available to prospective buyers for frequent viewings and inspections.
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WHAT PRICE SHOULD WE PUT ON OUR PROPERTY?
Putting a value on your property can sometimes be difficult when emotions and past expenditure come into play, this is why a professional agent’s opinion is so important.
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PRICING INDICATORS // 1. 2. 3. 4. 5. 6. 7.
Recent comparable sales Current market stock Buyer enquiry Market Trends Location Property Condition Property Presentation
Request a professional agents opinion on price by contacting your local MMJ agent.
There are many variants to pricing a property and a good agent will take into consideration the following factors. Recent Comparable Sales Comparable sales would be one of the most valuable assets to have when pricing your property. Comparing pricing indicators with properties recently sold, will give you a clear picture about what range your property would sit in. Current Market Stock Having an accurate understanding of what is available on the market at the time of your property. Buyer Enquiry Your local agent should have a thorough indication on buyer enquiry, not just for their stock but across the whole market. This information would be used to determine buyer demand. Market Trends Things like interest rates, government incentives, employment trends all contribute to determining a price on your property. A good agent will research these factors and be able to see how they apply to your property.
Location Location, location, location they say. But what is it about your location that may attract or detract buyers from looking at your property. The side of the street, the direction it faces, the local amenities, the proximity to schools and beaches. All big factors when pricing a property. Property Condition The condition of the property is a big factor when pricing a property, having a property in poor condition can negatively impact a result. Small things can make a big difference. Tidy the gardens and create a great first impression at the front of the property or give the walls a lick of paint. Property Presentation Fixing all the broken or run down things is great, but in today’s market presentation is a must. Interior styling and hiring display furniture will create a big wow factor and contribute to the emotional connection of buyers. This can also affect the price.
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WHAT IF OUR PRICE IS TOO HIGH?
Setting the right sale price for your property is imperative.
BUYER INTEREST
The highest level of activity is when a property is new to the market.
NO. OF WEEKS ON MARKET TIMING IS KEY A new listing will generate interest from agents and potential buyers. After they have viewed the property, interest will decline which makes it crucial to list your property at the right price when it first goes on the market.
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2%
+5%
30%
FAIR
60%
-5%
80%
-10%
92%
LISTING PRICE
LISTING PRICE
+10%
NO. OF POTENTIAL BUYERS
The higher the asking price of your home, the fewer interested buyers you will have.
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How do you attract the right buyer? HOW DO WE ATTRACT THE RIGHT BUYERS?
MARKET PROFILING
ONLINE ADS
BUYER DATABASES
OPEN HOUSES
SIGNAGE
PRINT ADS
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DIGITAL + SOCIAL
ATTRACT BUYERS VIA ADVERTISING
ESTABLISH INTEREST LEVELS
OFFERS RECEIVED
NEGOTIATION
$
KEY ELEMENTS TO FINDING BUYERS // Understanding & profiling the target market to tailor advertising. Capturing the entire active buyers market Gauging interest levels and market demand Extracting offers from interested parties Being able to negotiate offers into a sale Ensuring the correct legal information & documentation is processed Your Partners in Property
OFFICE LOCATIONS
NSW Wollongong
North
Dapto
South
Ground Floor, 6-8 Regent St, Wollongong PO Box 1167 Wollongong NSW 2500 02 4229 5555 mmjwoll@mmj.com.au
1/27 Princes Highway, Dapto 2530 Phone l 02 4261 8890 dapto@mmj.com.au
Sydney
251-253 Princes Highway, Corrimal PO Box 152 Corrimal NSW 2518 02 4285 5999 mmjnorth@mmj.com.au
231 Windang Road, Windang PO Box 31 Windang 2528 02 4296 4444 mmjsouth@mmj.com.au
Central Coast
Level 1, 75 Elizabeth St, Sydney 2000
70 The Entrance Road, Bateau Bay, 2261
Phone l (02) 8256 0222 Email l sydney@mmj.com.au
02 4334 2261 bateaubay@mmj.com.au
VIC
Melbourne
Suite 15, Level 2, 25 Claremont Street, South Yarra, VIC 3141 03 9041 0929 melbourne@mmj.com.au
ACT Canberra
Level 1, Manuka Court, 11 Bougainville Street PO Box 3611, Manuka ACT 2603 02 6260 6970 canberra@mmj.com.au
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WA
Perth
Level 6, 12 St Georges Terrace, Perth WA 6000 08 9325 5880 wa@mmj.com.au
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This document has been prepared by MMJ Real Estate Pty Ltd for general information only.
Any interested parties should undertake their own enquiries as to the accuracy of the information.
Information contained within this document is correct at time of printing - Jan 2020
MMJ Real Estate Pty Ltd excepts no responsibility for any loss, damage, cost or expense (whether direct or indirect) incurred by you as a result of any error, omission or misrepresentation in information. 2020.01
MMJ Real Estate Pty Ltd does not warrant or represent that the information in this document is free from errors or omissions.
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