The property website Domain are currently running a series of articles on selling a property, covering aspects from presentation and market advise, to sales tactics and the conveyancing process itself.
The below article is definitely worth a read, as it goes in depth on why it’s so important to hire a professional real estate agent and solicitor when selling your house and the valuable skills they can bring to the table to get you the best price and also ensure the process runs as smoothly as possible.
If you are looking to sell your property in 2019, we’d recommend a read of this article, as it contains some handy tips, and also some information about what a professional agent and a conveyancing solicitor does during the process:
What do real estate agents do for sellers?
Your real estate agent is the public face representing you in the sale of your house. They are the communication channel between buyers and you, and may be the difference between an acceptable offer, and a champagne price. Their skill set incorporates client and market knowledge plus finely tuned negotiation skills.
Agents use well-honed sales techniques to display the advantages of each home they present. Their local market knowledge is also a huge asset as they will have developed a database of buyers looking for homes just like yours. Their knowledge of successful marketing campaigns specific to your area is another strong plus.
Each market has differing criteria which influence the best way to market a property. In a sellers’ market, it is easier for the agent to attract buyers, whereas in a buyers’ market, there will be a different approach.
The agent will need to understand your reasons for selling and the time frame, and take these aspects into consideration when creating a plan to sell your home. Strategies they may suggest include online real estate listings, print advertising, flyers, signboards and open homes.
Agents will want your property to present itself in the most positive light and, in planning the open houses, may suggest hiring a stylist and professional photographer. This may result in a significant increase in the price you achieve for your property.
Sales methods are another discussion you will have with your agent, including whether it is best to sell by private treaty, auction or expression of interest.
Why do I need a real estate agent to sell my home?
Plumbing issues? Health issues? You would always consult a professional, so why would you sell your house DIY when there are real estate agents ready to look after your prime investment?
Real estate agents will help you implement these key selling strategies:
Presentation: Help make the property stand out from the crowd
Marketing: Embark on the right marketing strategy to maximise the sales price
Pricing: Determine the estimated sales price
Communication: Ensure the client is given feedback from potential buyers
Buyer engagement: Nurture buyers to commit to the sale
Negotiation: Deal with multiple buyers to get the best result for the seller
Strategy: Create an environment that will yield the best result for the seller
Real estate agents can give you the right advice, negotiate and advise on marketing, presentation and professional photography. But even more than that, they will most likely help you to maximise the sale price for your home, and have potential buyers on their books already.
Selling your own home without an agent can be an emotional experience. Buyers will not feel they can be as open with you as they can with an agent. If, for instance, the buyer doesn’t like the kitchen and makes derogatory remarks, you may feel offended, whereas an agent, who is removed from the emotional attachment, can discuss options and manage the process.
At the end of the day, the real estate agent’s commission may seem high, but they are there to help you achieve the maximum return on your property, and the outcome will most likely exceed what you could have achieved had you sold it yourself.
How to choose the right real estate agent
Finding the real estate agent who is right for you can be like an interview process, so it’s wise to have three or four agents view your house and give an indication of how they would market your home.
Choosing who to trust with selling your home can be challenging, but these are some of the key attributes to look for.
Experience: Including skills and education, market knowledge, resources and contacts. Relevant sales experience in your area – or one like it – is essential. There is absolutely nothing wrong with asking to see their resume or references. Make sure they have at least a few years’ experience in real estate, and be wary of someone whose past employment varies wildly – they may just be drifting and trying this job on for size. You cannot afford to go with someone who doesn’t know what they are doing, or who is not serious about their job. Be sure to Google potential agents’ names. It is amazing what you can find out about a person from a simple search!
Attention to detail: From their business card, to their listings, to the way they present themselves online, on the phone and in person. This will all reflect their attitude to their job, and will be a great indicator of how they will treat you as a client. You want someone who will be able to offer you great tips on staging your home, who has an eye for the things potential buyers may or may not like, and who will sell themselves as well as they sell your home.
Honesty: While some agents may offer an inflated indication of the price your home can achieve, the best agents will provide an honest opinion based on recent sales and hard data. Go into your meeting with any potential agents with your internal lie detector turned way up. A real estate agent who you can keep an open dialogue with is more likely to understand your needs and, as a result, can better accommodate you.
Communication: You want someone who will keep you in the loop at all times, who will answer your phone calls and emails promptly and with clarity, and who won’t keep you dangling. You also want your agent to be in constant communication with potential buyers who may be interested in your property to provide valuable feedback throughout the campaign.
Word of mouth: You want an agent whose reputation precedes them. Ask anyone you know and trust who has bought or sold recently for their honest opinion. This is possibly the best way to make sure you are going to get an agent who knows what they are doing and who won’t take you for a ride.
Flat rate agents vs commission agents
Real estate agents traditionally charge a standard commission for the sale of your property, which usually amounts to about 2 per cent of the sale price. This includes an appraisal of your home, managing open houses and their skills to negotiate the final deal.
Agents sometimes use a “tiered” commission structure, where they charge a higher rate for every dollar over a certain amount, for example 2 per cent for every dollar up to $500,000, then 5 per cent for every dollar over. This is designed to give the agent an incentive to achieve a higher sale price.
Additional costs will be added depending on your marketing strategy and budget. These include photography, writing text for your ads, a floor plan, signboards and flyers. There is also the cost of placing advertising online or in print. A traditional agent will strive to get the best price as it is mutually beneficial.
As an alternative, “flat-rate” agents typically charge about $7500 and claim to offer the same service as traditional agents. Fees may or may not include marketing or auctioneer’s fees, so check what’s included before committing.
Knowing exactly what your expenses are may suit some sellers. But as the agent’s fees are the same regardless of the sale price, it’s possible that a higher price may be possible if the agent has the right incentive to work harder to get the best deal.
Why do I need a solicitor or conveyancer to sell my house?
While your agent handles marketing and negotiation process, a solicitor or conveyancer is essential to the process. Conveyancing refers to the legal work involved in drawing up your contract for sale and mortgage and overseeing the settlement of your property. This can be undertaken by a solicitor or a licensed conveyancer. They will also provide legal advice to take you through the process of selling a home
It can be useful to enlist a legal advisor early on as they can review the terms of your real estate agent’s agreement, as well as provide important insight into your property’s condition for sale by organising building inspections, valuations and survey reports.
Your licensed conveyancer or legal representative will undertake the conveyancing process, which can include:
conducting property and title searches to check legal ownership
organising property inspections, valuations and survey reports
examining the contract for sale and advising on the conditions
managing the exchange of contract for sale and attending settlement
calculating utility and tax obligations at settlement
examining mortgage agreements
overseeing the transfer of title on the property.
Licensed conveyancers and solicitors are required to have professional indemnity insurance, which covers you in the event they make a mistake. Other than checking your prospective legal representative’s qualifications and credentials, you should consider their fee structure and just how hands-on they will be in the process.
Often firms charge a fixed conveyancing fee – it is important to know what services are actually included within the quote so you don’t receive any surprises later on. Otherwise, review an itemised fee structure carefully and estimate your anticipated conveyancing requirements. Finally, check if there are any repercussions if your sale falls through.
Article written by Daniel Butkovich and originally published on domain.com.au.