What selling a property involves
A guide to selling in Australia sets out nine stages. It notes that committing to sell is only the first step, and that a first sale can take a long time.
One sellers' guide gathers its material under headings such as what not to do when selling, how much it costs to sell, and disclosure when selling.
“The guide says the buyer who bids the highest wins, provided the amount is above the reserve, the smallest amount the seller is willing to accept.”
Getting the property ready and choosing an agent
The guide says preparation starts with dealing with reasonable maintenance issues and simple renovations, and with presenting the property as well as possible. The guide also suggests researching recent sales in the local market for a sense of what a property might achieve. This preparation is the first of the guide's nine steps.
Choosing an agent comes next. The guide suggests asking family and friends for recommendations, and attending open homes to watch local agents at work. From a shortlist it suggests interviewing several, asking about fees and charges upfront, and being ready to negotiate. It also suggests checking an agent's knowledge of the area before signing.
Private treaty and auction
The guide names two common sales methods: private treaty and auction. In a private treaty sale, it says, the campaign can run longer and there is more time to weigh offers from interested buyers. The guide says the risk runs both ways: an asking amount set too high can leave a property unsold, while one set too low may mean missing out on a higher amount.
The guide says competition between buyers can push the sale amount up, but notes auctions are riskier, because how interested buyers are and what they think a property is worth stay unknown until auction day. The guide says the buyer who bids the highest wins, provided the amount is above the reserve, the smallest amount the seller is willing to accept. The guide says if the bidding falls short, the property is passed in, though a sale may still be negotiated afterwards with one of the bidders.
Contracts, campaigns and settlement
The guide says the agency agreement is the contract between the seller and the agent. The guide says it covers whether the agent has exclusive rights to sell the property and for how long, along with fees and extra costs such as online advertising and boards. The guide says alterations can be suggested before signing, and notes that seeking legal advice is an option for anyone unsure about the terms.
The contract documents follow. The guide says some states use a document it calls both a vendor's statement and a Section 32; it describes the document as covering matters such as whether there is a mortgage on the property, covenants that restrict what an owner can do, easements, and council zoning. The guide says a conveyancer or solicitor is likely to prepare it, along with the contract of sale, which includes the title documents, a drainage diagram and a planning certificate from the local council. The guide says inclusions and exclusions are outlined as well, with standard inclusions covering fittings and fixtures, naming floor coverings, window coverings and light fittings. The guide notes requirements differ from state to state.
The guide says the sales campaign covers marketing photographs and open homes, which the agent coordinates. The guide says sales campaigns generally last four to six weeks. The guide says a private treaty buyer usually has a cooling-off period, which can vary by state, while an auction sale has none, and there the buyer signs the contract and pays a deposit straight away. The guide says settlement usually follows six weeks after the contracts are exchanged. Where a mortgage remains, the guide says a discharge form goes to the lender before settlement, and that this can take several weeks.
Questions
How does selling a property work?
It runs through a series of stages. A guide to selling in Australia sets out nine, beginning with preparation and the choice of an agent, then moving through the sales method, the agency agreement, the contract documents, the sales campaign, securing a sale, discharging a mortgage and settlement.
What is the difference between a private treaty sale and an auction?
The guide says in a private treaty sale a campaign can run longer and the seller has more time to consider offers, with the risk that an asking amount set too high leaves the property unsold. The guide says an auction creates competition between buyers that can lift the amount paid, but notes it is riskier because interest stays unknown until the day.
What is a vendor's statement?
The guide says it is a document used in some states, also called a Section 32. The guide describes it as setting out matters such as a mortgage on the property, covenants, easements and council zoning, and notes that requirements vary between states.
How long does a sales campaign last?
The guide says sales campaigns generally last four to six weeks, covering marketing photographs and open homes arranged by the agent. The guide says settlement usually follows six weeks after the contracts are exchanged.
How do people choose a real estate agent?
The guide suggests asking family and friends for recommendations and attending open homes to see local agents at work. It suggests interviewing several, asking about fees upfront and checking local knowledge before signing.