Selling a house or an apartment in NSW FAQ’s
When is the best time to sell my property?
- ‘Should I sell now?' Or ‘when should I sell my house?' While some feel seasonal influences play a role, there is no right answer. The timing to sell depends on many aspects, but most crucially on your requirements and circumstances.
- Common reasons why homeowners sell include:
- The necessity for more family space or a remote work lifestyle.
- You live in a hot seller's market and wish to profit from it.
- Changing priorities.
- The kids have moved out.
- You're moving to another city or suburb.
- To benefit from recent home renovations.
- Cheap mortgage rates allow you to upsize your home.
- Financial reasons.
What are buyer and seller markets?
Property markets favour both buyers and sellers, but not exclusively. For example, most NSW cities have suburbs where demand exceeds supply, producing buyer's and seller's markets. There are a few general features:
Buyer’s Market: time on market is longer, rental yields higher; Seller’s market: auction clearance rates are higher and property prices are higher.
When is the best season to sell a property?
The best season to sell varies, and even more so now as a result of the pandemic fuelled housing boom. Here are some seasonal patterns to look out for:
Spring - is traditionally the busiest selling season. Buyers are out in force, wanting to buy before the summer holidays. Spring means more buyers, which means more competition when selling your home.
Summer - sales are extremely popular with purchasers looking to buy a home before the new school year. Because there are fewer houses on the market, it can be a great time to sell.
Autumn - buyers eager to buy before the weather changes can help sellers. Autumn has become a ‘second spring' in recent years, with houses hitting the market and buyers flocking.
Winter - is generally the slowest season for home sales, but it may be great for your climate or property. Less competition and a chance to reach buyers before the spring rush.
How do I research the real estate NSW market?
Knowing the local and national real estate markets is the first step in selling your home. Your local real estate agent is the ideal person to ask about the local market, upcoming market trends and demand. Ask for a local market report, which contains lots of useful information. There are also various free online resources that provide detailed demographic, median property value, and suburb specific data, including:
What is the role of the real estate agent?
If you are a homeowner trying to sell your house, your goal is to get the best price possible. A real estate agent works with you to achieve your property goals. A skilled real estate agent will complete a property appraisal and examine the current market to generate a selling price guide for your property. They will develop a high-impact marketing campaign to reach active and passive buyers and identify your property's best attributes and highlight them throughout the campaign. Your agent will also:
- Set up professionals to photograph and video the site
- Manage open houses or private property inspections
- Manage a sale or an auction
- Assist with legal contracts
- Manage final inspections, settlement, and key handover
How do I find a high performing real estate agent?
With so much information available online, you can simply investigate your local agents to pick the ideal one to meet your goals, communication style, and level of support. You can research your local agents in several ways, including consulting local agents' websites for current listings and sales data, reading their blogs or articles to gauge their expertise, looking up their Google My Business evaluations, social media profiles, and newsletters. And you can ask questions and attend open inspections and auctions to see how they handle these.
How do I find out what my property is worth?
Your local real estate agent can help you here. They will appraise your property and provide you with a property price guide or an estimated property worth. An appraisal will analyse:
- The market - what is selling and what has sold in the last 90 days?
- Property Size: covers land, building, room, outdoor, and garage sizes.
- Features: number of bedrooms, ensuite, built-in wardrobes, views, pool.
- Items that can be used in the sale price, such as a dishwasher, washing machine in the laundry, downlights
- Proximity to schools, shops, and public transportation.
- Building structure: are there cracks, obsolete guttering or roof, etc.?
- Overall look and feel
- Is it easily accessible?
- Is there any planning or zoning?
What are the different ways to sell my property?
Auction - a real estate auction is a public sale of property conducted by a licenced real estate agent acting as auctioneer. An auction is posted for a specified place, time and date. Buyers are invited to bid. If the property hits the reserve, the property will be sold to the highest bidder.
Private Treaty - unlisted property sold by private treaty has an asking price or range. Buyers can submit a written offer to the agent, who will then present it to the seller. The seller's representative will then negotiate on their behalf until both sides are delighted.
Expression of Interest or Tender - sale is a closed or silent auction where purchasers are invited to make an offer by a specific day and time following a focused marketing campaign. A week or two later, the seller and agent will analyse the tenders and begin negotiating acceptance or rejection.
Off-Market - includes marketing the property to a buyer's database and in many circumstances, promoting it through buyers' agents. It has faster sales potential and works well if the seller lives in a popular suburb with few available houses.
What is real estate agent commission?
Real Estate agents charge a commission to sell a property. There are generally two types of real estate agent commissions: fixed commission is based on the sales price so if you sell a home for $700,000 on a 2.0% commission, you’ll pay $14,000 to the agent. A tiered commission is based on performance. So, you might agree to pay 2.0% commission if the property sells for under $700,000, or $2.5% if the property sells for over $700,000.
What goes into a successful property advertising campaign?
Advertising is a vital part of any sales operation. Key ways to promote your property include:
Professional photography and copywriting - use a professional photographer and filmmaker to capture the best features of a property. The copy used to describe your property is also vital and will appear throughout your marketing campaign, so accuracy is critical.
Online ads - on-line advertising is now one of the most efficient ways to sell your property to potential purchasers. Online advertising has several alternatives, including social media and websites and real estate portals.
Signboards - property marketing relies on signboards. They inform your neighbours that your home is for sale, identify passive purchasers and are beneficial for purchasers who wish to drive by a house before deciding on an inspection.
Print ads - Print advertising options include brochures, flyers, and print advertising (newspapers): While most active buyers will view a home online, there are many passive purchasers who didn't know they were looking until they saw the ideal property on paper.
What is the role of a conveyancer or lawyer?
A professional conveyancer or property lawyer is trained and qualified to conduct real estate transfers. They will prepare the legal documentation and the sale contract, perform title and planning searches, arrange a land survey to verify the property's boundaries and complete all council inspections to verify your building is compliant. They will also represent you in negotiations and manage the settlement and key handover to the new buyer.
What is the exchange to settlement process in NSW?
The exchange to settlement procedure begins when both parties sign a sales contract. The buyer must then pay a deposit (usually around 10%). Your agent or conveyancer holds this in trust. It takes about six weeks until settlement, giving purchasers time to sort out their finances and sellers time to meet any conditions of sale. A pre-settlement inspection will ensure the property is ready for purchase. On settlement day, your conveyancer or solicitor will liaise with the buyer's legal team to ensure all contract requirements are met. They will contact your lender, arrange for the loan balance to be settled and register the new buyer's loan against the property title. Taxes, land transfer duty and water charges shall be paid as well as the transfer documents filed with NSW Land Registry Services. Finally, the keys are handed over and the sale is complete.
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