Why TPC: Selling Tips

There are a number of important considerations which need to be addressed when selling your home. Firstly. Are you ready and is it the right time for you to sell? You may need to consult your financial advisor and/or your family to determine whether it is the right time for you. And then, contact a member of our office to see if it the right market for your home to achieve its maximum return.

Once you have decided to sell, we then need to look at the right type of Selling Agency Agreement for you. The three main agency agreements used in todays market are Exclusive Agency Agreements, Sole Agency Agreements and Open Agency Agreements.

Exclusive Agency Agreements

An Exclusive Agency Agreement provides complete control of the listing to one agent only. There is an agreed time frame for the agent to effect the sale, and receives commission for the sale of the property as negotiated in the agency agreement.

An Exclusive Agreement is generally the preferred type of agreement as it provides the agent with complete control over the listing, and ensures the agent applies his full attention to your property.

Sole Agency Agreements

A Sole Agency Agreement is similar to that of an exclusive agreement, however, the vendor is entitled to sell the property themselves without accounting for the agents commission. There is still only one agent, with an agreed time frame to effect the sale.

Open Agency Agreements

An Open Agency Agreement allows for a number of agents to sell your property, and also allows you, as the vendor to sell the property. There is an open time frame, and the individual agents has no control over the listing. The vendor is only required to pay commission to the agent who introduces the buyer to the property.

The next, and arguably the most important decision would be the method of sale for your home. There are two main methods used in the market today, being a Sale by Public Auction and by Private Treaty. Remember! each property is different. So consult with a member of our sales team for advise as to the best method for your home. However, in order to assist you in your decision-making, we note a number of advantages and disadvantages associated with each method.

Auction

Sale by public auction invites all purchasers openly competing against each other by bidding up the sale price. The open competition between buyers creates an emotional and urgency facet to the sale process, helping to secure the best possible price for your property. The main advantage of a sale by Auction is that the sale is unconditional. Upon the fall of the hammer, the highest bidder must sign the contract, pay the 10% deposit and no cooling of period is applicable. Also, the auction process also results in buyers bidding up the sale price, whereas the private treaty general results in buyers bidding below the asking price.

In presenting your property by sale of publc auction, you will be able to set a Reserve Price. This ensures that the property is not sold below your recommended minimum. You will also have the option of accepting any suitable offer receieved before the auction date.
This is the recommended method for most properties listed on the market today. The current shortage of properties on the market has made it a sellers market whereby purchasers compete for the few quality properties available, resulting in premium prices paid.

Private Treaty

A sale by Private Treaty involves presenting your property to the market with a nominated asking price. The vendor is able to accept or refuse any offer made. In proceeding with this method, it is critical that the property is offered at the correct asking price, as any price set too high will deter buyers, while an asking price too low will not achieve your maximum return. Sale by Private Treaty also usually involves bidding down of the sale price, as buyers try to achieve the best price. It is therefore general accepted that an allowance be made for negotiations.

However, as there is not a set time frame for the sale, as with an auction date, there is a more relaxed feel to the process whereby the vendor can consider all offers made and purchasers can feel confident in making an offer, as they know it will not be their last. This process also involves a cooling off period of usually 5 working days, whereby purchasers can undertake their due diligence before proceeding with the sale.

Presenting Your Property To Potential Buyers

Before opening up your property to the general market, it is important that your property looks clean, tidy and presentable. This will enhance the markets view of your property in order to achieve its maximum value. All prospective purchasers should walk into your property and feel right at home. Remember! The purchaser needs to picture themselves living within your property. This creates an emotive sense to the sale of your home and in most cases will result in buyers paying premium prices. Nobody wants to live in a pigsty.

Therefore, it is important to arrange a complete clean and may be best to undertake a few minor upgrades to your property. This may involve:-

  • Trim/Clean your garden areas and landscaping
  • Spring clean inside.
  • Remove any cluttered items.
  • Fix any damaged items.
  • A coat of paint does wonders. It creates a bright and fresh atmosphere to your home.
  • Open up all windows and blinds. Sunlight is important.