You’ve made the decision to sell your primary residence or investment property. It’s a significant choice, but deciding to sell is just the beginning. If you’ve never sold a home before, it may be a time-consuming and difficult procedure. We break down the steps to ensure your transaction goes as smoothly as possible.
Everything you need to know about how to sell your house in NSW can be easily found in this article. Selling your home is one of the most significant financial choices you’ll ever make, but it doesn’t have to be one of the most stressful. We’ll walk you through the steps of selling your home in this tutorial. You should be able to avoid the main difficulties associated with selling a home if you plan ahead of time and take a methodical approach.
You have the legal right to sell your house privately in NSW, but the government entities in charge of regulation are all state-based. The tools and information in the following guide are relevant to each state and include methods and tips for selling your home.
Why should I sell my house?
There are several reasons why people choose to sell their homes. However, there are a few things that everyone should think about.
- First and foremost, it is beneficial to assess market circumstances before selling your home.
- Try to figure out where you are in the property cycle and, if at all possible, avoid selling at the bottom.
- Do some research to learn what comparable properties in similar neighborhoods have sold for. Most publications have large real estate sections that should inform you.
- Consider the season in which you’re selling your house. Spring and fall are often prime purchasing seasons, but think about what’s best for your house. Summer may be perfect if your home is bright and airy with plenty of shade. Winter may be ideal if you like a more confined and cozy environment with a fireplace. This might help you achieve a higher profit margin on your sale.
- Finally, make sure you have an exit strategy in place before closing the sale and selling your home. What are your plans for the future? When will you be able to move into your new home? Will you be renting in the interim? The process of selling your house will be made easier if you have a defined exit strategy.
Don’t forget that there are financing options available for consumers who want to buy a property and later sell it, such as bridging loans. As a result, you may enjoy the security of a second house while you look for a buyer for your first residence.
Selling my house in privately
The Services NSW website offers information for persons who want to sell their house or property without using an agent. This material demonstrates that any NSW homeowner is completely within their legal rights to sell their house privately.
The most essential point to remember is to get legal counsel from an lawyer/solicitor or conveyancer BEFORE you put your house on the market. You’ll see that you’ll need to do searches (details below) and fill out a Form 1 ‘Vendor’s Statement.’ Your solicitor or conveyancer will be familiar with this legal need and will be able to assist you with it.
Private home sellers should follow certain requirements, according to Service NSW:
- You can save money by selling your home yourself rather than hiring an agent since you won’t have to pay an agent’s commission.
- Examine comparable homes, collect comparable property sales information in your region, and research recent property sales in your area.
- You’ll have to do your own searches and fill out the vendor statement as required by the Land and Business (Sale and Conveyancing) Act 1994. You’ll also have to plan and pay for your own advertising, as well as be ready to take calls from potential buyers and show them through the house.
- Requesting all offers from potential buyers, including counteroffers, in writing is a smart idea. Contracts for the sale of land must be written to be legally binding.
- You should get legal counsel on the contract of sale, Form 1 (vendor’s statement), and any other legal documents. Before proceeding, you should acquire all quotations.
The NSW (REINSW) does not provide specific guidance on how to sell a home or property privately, but it does provide some information and ideas on how to sell with the help of an agent.
Individual Real Estate ‘Institutes’ (e.g. REINSW) are industry-based groups that help Real Estate brokers/agents in the areas of training, advising, dispute resolution, Government advocacy, compliance, and general support on a state-by-state basis.
Individual State Statutes and Acts governing property transactions (contractual duties, for example) are passed by State Governments and enforced by each of the State Offices of Fair Trading or Consumer Affairs, not the Real Estate Institutes.
For any updated or additional information regarding selling your own house, we recommend that you check the Service NSW website or contact them directly.
Steps to selling my house in Australia
- Get started
- Consulting a real estate agent
- Method of sale for a property
- Evaluating the price of my house
- Preparing a sale contract
- Property Title check
- Advertising property
- Showing your property to the target purchasers
- Discarding mortgage
- Other things you should consider
1st Step: Get started
To increase your chances of selling, take care of any house repairs and have a clear-out.
It’s also a good idea to look into previous sales in the area to get a sense of what kind of selling price you might be able to acquire. This might be aided by downloading an Real Estate App.
2nd Step: Consulting a real estate agent
It is feasible for you to sell your home on your own. You may even hire an auctioneer to put the property up for auction for you on private treaty. You should be aware, though, that it can be a lot of effort and may not save you money in the long term. For buying and selling houses in NSW with the best service, I can be your real estate agent and help you sell your house.
In general, you’ll be putting in a lot of effort simply to stay on the right side of the law, let alone the additional effort required to provide the same level of service as a professional real estate agent.
To potential buyers, it’s all too easy to come out as a nervous seller rather than a strong negotiator. You’re also missing out on a buyer database built up through years of home sales and industry relationships.
There’s a reason why the market share for for-sale-by-owner houses in Australia is so small — about 2% to 3%. For individual sellers, advertising on the largest real estate portals is more expensive, if not impossible.
When there is less advertising, there is typically less competition and a cheaper price. You’re undoubtedly losing money on the home sale because you’re saving money on agent and advertising fees. If you decide to go with a private sale, proceed with caution.
3rd Step: Method of sale for a property
You’ve chosen your real estate agent (or opted to sell privately), but you still need to determine which sale method to utilize.
There are three basic techniques of selling, each with minor variants. There are three types of sales: auction, private treaty, and tender. If you need more information or are having trouble deciding, have a look at our in-depth guides on each (with pros and disadvantages).
- By Live Auction: A live auction is a fantastic method to build a buzz and perhaps increase competitiveness. After an elaborate marketing effort, a group of prospective purchasers is collected on a certain day and urged by the auctioneer to place increasingly high bids. According to a poll of over 1000 agents in Sydney and Melbourne, 90% of agents feel that auctions result in a better sale price.
When selling via auction, there is a lot of uncertainty. You can establish a reserve price, but if you have unrealistic expectations, you will have problems selling it at the following auction. Even after spending money on a second marketing effort, this is the case.
- By private treaty: Instead, try selling by the private treaty if you want privacy and direct negotiation. It’s not quite as exciting, but it’s one of Australia’s most popular ways of selling. The property is advertised for sale and has an asking price. Interested parties can then submit bids, which can then be discussed.
You won’t have to pay an auctioneer, and you’ll be able to bargain with interested purchasers at your own speed, saving you time and money.
However, because private treaty prices seldom exceed the asking price, placing your asking price too low might result in a significant loss. You must be certain of the marketing price range for your home.
- By Tender sale: A tender sale is normally reserved for one-of-a-kind or high-end properties with no fixed price. It is similar to a private treaty in that proposals are presented confidentially; however, the main distinction is that the offers are only considered after a deadline has passed. After reviewing the bids, the seller might choose to accept one, negotiate with another, or reject all of them. Most of the time agent advertise as EOI (Expression of Interest)
This means that each buyer is operating on their own. They are urged to submit their highest bid right away, without first learning about the other bids on the property. You keep the confidentiality of the private treaty form of selling while also fostering robust competition.
If your marketing strategy, on the other hand, does not generate enough interest, you may end yourself paying for more promotion and spending time bargaining with purchasers to get a fair price.
4th Step: Evaluating the price of my house
One of the most crucial things to be clear about when selling a home is how much you believe the property is worth. A little market research might be well worth the effort in this case. There are a variety of websites that provide market reports for certain suburbs (sometimes for a fee). A formal appraisal from a competent real estate appraiser is also possible.
Alternatively, you may attend auctions of comparable houses in your neighborhood to get a sense of the market. Also, speak with local agents. They’ll be keeping an ear to the ground and should be able to offer you an estimate of how much your house may sell for.
In this situation, a real estate agent always can help you. If you are from Minto, NSW Estate Agent Kabir can be helpful for you.
5th Step: Preparing a sale contract
It’s a typical mistake to neglect to prepare a precise list of includes and exclusions when selling a home. Many purchasers will assume that everything they see when your house is open for inspection is included in the transaction.
It’s up to you to establish exactly what’s included and what’s not in the sales contract. There is less chance for uncertainty if you are explicit about items like curtains, burglar alarms, white goods, light fittings, awnings, clotheslines, an above-ground pool, and so on.
6th Step: Property Title check
If you are selling your home, you are required by law to provide a “good title” at the time of sale. This is a legal expression. It implies you must ensure that nothing is impeding the buyer from purchasing the property and that the buyer has all of the appropriate documentation to register as the owner.
Any person with a stake in the property will be listed in the title. It will, for example, name the registered mortgagee (usually a bank). It will also include any caveats, which are notices indicating someone else has a financial stake in the property.
There are also do-it-yourself conveyancing packages available for purchase online, allowing you to fulfill your legal requirements on your own. However, even a minor blunder might have far-reaching consequences, ranging from a delayed settlement to a denial of financing. Hiring a conveyancer or solicitor to assist you is typically a good idea.
Conveyancing entails much more than a basic title search; you’ll typically need to check into strata regulations, council rates/titles, property tax clearance, and other factors. These searches are done and paper works are written appropriately by a professional conveyancer or solicitor.
7th Step: Advertising property
Funding strong marketing and advertising strategy for your home are one of the finest investments you can make throughout the selling process. In such a competitive market, it’s critical to make sure your home is well-prepared and presents nicely.
It’s helpful to have a cost estimate when creating a marketing strategy. This is one of those occasions when you must have a serious conversation with your agent. Top real estate talent will usually organize images and/or films of your home, but they may also choose other techniques of promotion, which they should inform you about and provide bids for.
You may promote your home in a variety of ways. Most real estate agencies provide a variety of options for marketing your home, including online real estate portals (such as Domain or realestate.com.au), signboards, local mailbox drops, and newspaper advertisements. You should consider the tactics you can afford and should invest in with your agent to maximize exposure for your home.
- Professional photography is one of the most effective real estate marketing tools available. Professionally shot images of your inside and exterior are ideal for use in web listings, print adverts, and outdoor signs once your house is in good shape. High-quality photographs piqued the attention of buyers, according to 99 percent of polled agents, resulting in more inquiries, views of the property listing, and ultimately a higher sale price.
- When it comes to advertising your home, don’t overlook current technologies. Including aerial pictures and video in your listing might be really beneficial. You’re using high-definition video to show purchasers the area around the property or the inside. Aerial images provide prospective purchasers a bird’s-eye view of your home’s location in the neighborhood, as well as its closeness to local amenities like stores, schools, parks, and public transportation.
- Real estate agents have recently become increasingly interested in social media initiatives. They’re an excellent approach to reach a large number of potential buyers without them having to actively look for a property like yours on the internet. While reading through Instagram or Facebook, you may notice several examples of these adverts.
8th Step: Showing your property to the target purchasers
It’s not only about the photos on the listing or the brochures when it comes to marketing and property style. It’s important to attract and pique the curiosity of potential buyers who come to see your house.
- Because open houses are your chance to show off your home up close, everything must be in working condition before guests arrive. That involves at least a few weeks of preparation, even down to the weather on the day of the open house.
- According to Hossain Kabir (Licensed Real Estate Agent), it’s preferable to take advantage of a beautiful day to get as many people in the door as possible. Be wary of scheduling an open house on the same day as a significant event, such as the AFL grand finale.
- Make sure you’ve covered all of your bases when it comes to cleaning and preparing for the open house. To aid with judging open day inspectors, you could speak to a real estate agent or appraiser about the possible benefit from little modifications or touch-ups you could undertake.
- In general, make sure that every surface is clean and that the garden is tidy and groomed right before the open house. If you have little valuables, make sure they are hidden or put away, since some daring open house guests may check drawers, cabinets, and closets.
- Your real estate agent (and/or helpers) will be collecting information from potential buyers at the entrance and throughout the property. Following an open house, is one of the most significant forms of marketing since these are folks who are local and were interested enough to go through the door.
You could even get an offer at the open house if you’re lucky, subject to finance conditions. This is why having a nice open house is so vital; it allows buyers to see the property up close and allows your realtor to speak with buyers face-to-face.
Your agent could advise you to skip the open house. It’s a fantastic idea, according to the Australian Institute of Property, since it allows potential buyers to picture themselves living in the house. We believe it’s to keep guests from becoming agitated. After all, you’re allowing strangers into your home; who wouldn’t keep a close eye on them? You may relax as long as your possessions are safely stored.
9th Step: Discarding mortgage
If you have a mortgage on the property, you’ll need to make sure it’s paid off before settlement. This entails submitting a completed discharge of mortgage form to your lender. Because the procedure might take several weeks, it’s critical to contact your lender as soon as possible once you’ve exchanged contracts of sale. Discharging a mortgage generally comes with a price tag. You should speak with your lender before listing your home for sale so that you are aware of any expenses and the process involved.
10th Step: Settlement
Settlement occurs six weeks after the contract of sale is exchanged and is supervised by your conveyancer or solicitor. This is when you get the complete sale price minus the deposit, the amount owed on your mortgage (paid to your lender), your conveyancer or solicitor’s costs, and your real estate agent’s expenses. Settlement date can change upon agreeing by vendors and buyers.
The sale is complete once the settlement is completed, and you must vacate the premises immediately. If its leaded then subject to existing tenancies.
11th Step: Other things you should consider
Now you’re aware of everything you need to know regarding how to sell your house in NSW. But there are some other factors you should keep in mind too.
Any proceeds from the sale of your property may be liable to capital gains tax, depending on what it was used for (CGT). If your home was exclusively used as your primary residence, you’ll likely be free from CGT; but, if it was an investment, any profit from the sale may be applied to your assessable income in the year you sold. Your specific tax position should be discussed with your accountant or tax consultant.
Once you’ve gotten your ducks in a row, make sure your house is ready to sell. Best of luck!