What’s the Best Way to Approach House Sales?
When it comes to selling a house there are a number of things you can do to improve not only the sale price, but also the prospect of achieving a sale at all. Before you do anything else you need to know your market. It’s not just a question of familiarising yourself with recent sale prices, you also need to know who the prospective buyer groups are. This is when it is important to select a real estate agent that has sold similar properties in the locality and knows who the property is likely to appeal to.
Knowing your audience
Your property may be at a price point where it will appeal to first-home buyers. They will be relying on every dollar they have to meet LVR ratios and may exclude properties that are going to require post-settlement renovation. Keep in mind that they may also be subject to HomeStart price limits. Similarly, prospective investor purchasers fall into a number of different groups, some of whom will not wish to be involved in post-settlement renovation.
Home selling starting point
A good starting point will be to obtain your own builder’s report so that you are aware of anything that could imperil the sale if it only comes to light when a purchaser or prospective purchaser obtains a building report themselves. Where a builder’s report is obtained under a contract condition you will have committed to a particular purchaser and possibly lost the opportunity of selling to others who have made offers.
Once you have carried out recommended work, an updated builder’s report can be obtained and made available – if you wish – to prospective purchasers. Similarly, obtaining a LIM and making it available through your real estate agent can avoid prospective purchasers having to incur costs.
What do you need to achieve?
The aim should be to keep as many interested parties involved for as long as possible. Competition between possible purchasers not only improves the prospect of sale but will also ensure you obtain the best sale price. And for what can be a relatively modest cost, removing all your clutter and replacing it with home staging can dramatically improve the appearance of your property. First impressions are lasting.
How do you plan to make the sale itself?
Your agent will discuss with you the best means of selling your property which usually will be one or other of private sale listing, auction, tender or deadline offer. All have their place, but one will be best suited to your circumstances.
Auctions are often preferred where there is certainty of active buyer interest in the property. This is based on past experience of the agent, who may expect competition between bidders to result in a higher price. The downside can be that if the property doesn’t sell at auction you may be at a disadvantage in obtaining a sale subsequently, especially if purchasers know that it has not sold at auction.
Tenders have their place, particularly where the vendor wishes to control the terms upon which the property is to be sold. Deadline offers are becoming more common where purchasers are free to submit an offer on whatever terms suit them. The vendor gets to review the offers and choose between them at a deadline, with no offers being considered before that time.
Need help selling your house?
To help you navigate the real estate Wellington has to offer, get in touch with HomeLegal. Our lawyers can assist you each step of the way. We may also be able to assist you choose a real estate with experience in particular localities.
Contact the HomeLegal team for all your property conveyancing needs or ring us on 0508 HOMELEGAL today.