MMJ Real Estate Selling Guide 2022

UNRIVALLED MARKET-LEADING REAL ESTATE ADVICE

BUYING

SELLING

GUIDE

INVESTING

|

RENTING

2022 EDITION

Our top three tips when selling.

WHAT PRICE SHOULD WE PUT ON OUR PROPERTY?

AUCTION, ON-MARKET OR OFF-MARKET?

(c) MMJ Real Estate

This guide is designed to help you sell smarter & faster and go to the market with confidence.

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Selling your property is a big step and may seem a little daunting, however, with the right advice and preparation it can be a smooth & successful process for all.

We’ve prepared this guide to answer some of the most common questions we are asked throughout the selling process.

If you have any other questions please feel free to reach out to our team.

SHOULD WE BUY OR SELL FIRST?

WHEN IS THE BEST TIME TO SELL?

WHAT IMPROVEMENTS SHOULD WE DO TO THE PROPERTY BEFORE WE SELL? AUCTION, ON-MARKET OR OFF-MARKET?

WHAT PRICE SHOULD WE PUT ON OUR PROPERTY?

HOW DO WE ATTRACT THE RIGHT BUYER?

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Should we buy or sell first?

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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.

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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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Our top three tips when selling.

Choose an agent with a strong track record.

Price your property on facts and know your market.

Prepare your property and invest in marketing.

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When is the best time to sell?

When you’re ready is the best time !

There is no right time to sell your property, it really comes down to your individual circumstances.

Other factors such as economic and market conditions will also always play an important role in timing your sale.

Opportunities exist in all markets, provided your agent knows how to position your property effectively.

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DECEMBER TO FEBRUARY

MARCH TO MAY

1. The weather is generally better and allows agents to showcase the property at its best, both inside & out.

2. Buyer interest levels increase in the summer months 3. Holiday destinations could benefit from additional traffic to the area 4. Many buyers are wanting to fulfil their New Years resolutions in Jan/Feb.

1. Buyers have settled back into routines and are ready to make bigger decisions like purchasing a property.

2. The weather turning presents some spectacular opportunities for gardens and outdoor areas.

3. The autumn market offers a good balance between active buyers and moderate stock levels.

JUNE TO AUGUST

SEPTEMBER TO NOVEMBER

1. Less stock on the market leading to less seller competition 2. Buyers are often highly motivated given the lack of stock 3. New financial year may present fresh opportunities for investors

1. Springtime generally sees the property market warm up with stock & buyer activity.

2. Buyers benefit from a wider range of properties, while sellers benefit from higher turnouts at open for inspections and stronger buyer competition

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What improvements should we do to the property before we sell?

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It’s important to make sure your property looks its best from the moment it goes onto the market.

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First impressions count.

First impressions really do last when it comes to presenting your property for sale.

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.

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CHECKLIST // 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. A professional stylist is also worth the investment giving you guidance on your current layout or fully styling with hire furniture to maximise the property’s potential.

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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Auction, on-market or off-market?

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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, however, all methods have a place in the market.”

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AUCTION // Auctions are popular in the market at the moment and we suggest you familiarise yourself with the auction process.

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.

Method of sale.

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.

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PRIVATE TREATY //

OFF MARKET //

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

Qualified buyers are invited to inspect properties before they are advertised to the public.

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.

This gives the seller an opportunity to test what the market response will be like, gain positive and negative feedback and gauge pricing expectations.

Offers can be submitted, reviewed, negotiated, and accepted without advertising the property to the public.

If there is strong demand for the property, advertising to the public could result in a higher sale price.

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?

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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.

There are many variants to pricing a property and a good agent will take into consideration the following factors.

• • • • • • •

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. mmj.com.au/contact-us

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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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Setting a sale price.

Setting the right sale price for your property is imperative. Timing is also important.

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.

BUYER INTEREST

The highest level of activity is when a property is new to the market.

Week 1

Week 2

Week 3

Week 4

Week 5

Week 6

NO. OF WEEKS ON MARKET

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Week 7

TOO HIGH

If your price is too high, you will have less interested buyers and it will take longer to sell.

LISTING PRICE

Setting your listing price at a competitve market level will achieve the best possible result.

TOO LOW

If your asking price is too high, you will reach a lower percentage of the market and attract fewer interested buyers.

If your price is too low, you will have more interested buyers but achieve a lower market price.

NO. OF POTENTIAL BUYERS

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How do we attract the right buyer?

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KEY ELEMENTS TO IDENTIFYING SERIOUS BUYERS & EXTRACTING OFFERS THAT LEAD TO SALES // Understanding & profiling the target market to tailor advertising.

Capturing the entire targeted buyers market by engaging in broad reaching advertising.

Gauging interest levels and market demand.

Extracting offers from interested parties.

Navigating objections and negotiating offers into a sale.

Ensuring the correct legal information & documentation for a smooth process.

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MARKET PROFILING

BUYER DATABASES

TARGETED DIGITAL + SOCIAL

PROPERTY PORTALS

OPEN HOUSES

STRATEGIC ADVERTISING

POTENTIAL BUYERS

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SIGNAGE

OFFLINE MARKETING

ATTRACT BUYERS VIA ADVERTISING

ESTABLISH INTEREST LEVELS

OFFERS RECEIVED

NEGOTIATION

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NSW Wollongong

North

Ground Floor, 6-8 Regent Street,

251-253 Princes Highway,

Wollongong NSW 2500

Corrimal NSW 2518

02 4229 5555

02 4285 5999

mmjwoll@mmj.com.au

mmjnorth@mmj.com.au

Dapto

South

1/25 Princes Highway,

231 Windang Road,

Dapto NSW 2530

Windang NSW 2528

02 4261 8890

02 4296 4444

dapto@mmj.com.au

mmjsouth@mmj.com.au

Sydney

Central Coast

Level 1, 75 Elizabeth St,

570 The Entrance Road,

Sydney NSW 2000

Bateau Bay NSW 2261

02 8256 0222

02 4334 2261

sydney@mmj.com.au

bateaubay@mmj.com.au

VIC

WA

Melbourne

Perth

Shop 2/126 Wellington Parade,

Level 2/5 Mill St,

East Melbourne VIC 3002

Perth WA 6000

03 9041 0929

08 9325 5880

melbourne@mmj.com.au

wa@mmj.com.au

ACT Canberra Level 1, 11 Bougainville Street Manuka ACT 2603 02 6260 6970 canberra@mmj.com.au

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RESIDENTIAL SALES TEAM, WOLLONGONG

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 2022.

MMJ Real Estate Pty Ltd accepts 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.

2022.01

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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