Lauren | Feb 3, 2018 | 0
What You Need to Know About Selling Your Home in Australia
The team at RateMyAgent provided Sydney Moving Guide the content for this post.
There comes a time when some of us are faced with the prospect of selling our homes. No matter the reason for selling, preparing your home for sale is a lengthy process that requires extensive planning and many important decisions to be made.
Selling homes in Australia is a little different to other countries around the world so we’ve documented the process and some key considerations below.
Finding an Agent
The great majority of homes sold in Australia are managed by a real estate agent. Although it may be common in other countries to sell privately and bypass fees, if you’re handling property in Australia, 99% of the time an estate agent is going to be involved in the process.
Estate agents are located right across the country so it isn’t difficult to come across a suitable agent to sell your property. Many homeowners decide to use sites such as RateMyAgent to find suitable agents in their area as all their options are presented in the one easy to use site.
RateMyAgent provides rankings and reviews of real estate agents across the country so makes light work of finding a suitable agent to sell your home. As Australia’s no. 1 real estate agent rankings and reviews website, you can easily find agents selling homes similar to your own.
To Sell Privately or at Auction?
Aside from looking at real estate agents to work with, you also need to consider how you’re going to present and sell your house on the market.
There are two key ways to sell a home in Australia:
- Private sale – Where you welcome buyers to submit offers to your agent
- Auction – Where buyers arrive at your home on a pre-determined date and time to bid on your property
We’ve broken down the pros and cons of each approach below to help you get a better understanding of the ins and outs of these unique sale formats.
Advantages of Selling Privately
- Private selling isn’t nearly as stressful as selling at auction
- Listing an asking price will attract homebuyers who have a specific budget
- Potential buyers won’t be intimidated by the whole auction process, which may result in greater offers being submitted
Disadvantages of Selling Privately
- Potential buyers can make offers without direct competition from other buyers
- The sales process can be drawn out as there is no specific deadline for sale to close
- Potential to over value your home which may result in a less than desired result if an early offer is accepted
Advantages of Selling at Auction
- All auctions are scheduled on a pre-determined date so buyers must make a quick decision
- Difficult for bidders to determine the market value of your home as they aren’t fully aware of your expectations
- If there is significant bidding competition on auction day, there is a possibility that your home may sell for significantly more than your asking price
- The property can be passed in on the day without any pressure to sell if you’re not happy with the result
Disadvantages of Selling at Auction
- The perceived level of competition at auctions may stop some would-be bidders from participating on the day
- Some buyers may not be comfortable buying through an auction format
- No guarantee that your property will sell on the day
- Auctions don’t necessarily guarantee the best sales price as someone who might intend on bidding high merely needs to outbid the competition on the day
Opening Your Home to the Public
Similar to the process of selling homes across the world, open houses are an important part of the selling process as they give buyers an opportunity to walk through your home and assess if it’s the right fit for their lifestyle
Open houses typically last for 30 to 45 minutes and require an agent to be present at your home in the event a potential buyer expresses interest. It’s most common for an open house to take place on a Saturday morning as this typically guarantees buyers availability, however, there are instances where agents want to walk buyers through during the week.
It’s important to consider the seasonality of Australian weather before listing your home for sale and allowing buyers in through the front door. Unlike in some countries with just two seasons, Australia features a full 4 seasons and these can present some less than desirable conditions for staging and selling homes.
Depending on your state of residence, summer can be much too hot and winter much too wet to effectively attract buyers. Selling your home in a season with relatively stable weather such as autumn of spring is generally the safest time to sell (providing you’re not in a hurry) depending on where you’re located in Australia.
Meeting Your Obligations
Remember that government requirements must be met when selling so it’s best to read up on the laws that apply to the state in which you reside. The Australian Taxation Office (ATO) provide a handy guide to buying and selling homes which serves as a useful reference when starting this typically confusing process.
Have you sold a home? Please do feel free to share any tips or tricks that you may have picked up through the process in the comments below.
Disclosure of Material Connection: This is a “sponsored post.” The company who sponsored it compensated me via a cash payment, gift, or something else of value. Regardless, I only recommend products or services I use personally and believe will be good for my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”