10 Things you need to know before selling your home
Thinking of selling your home? Here’s our list of tips to help you prepare your home for sale
Your kids have flown the coop and you’re living in a house too big for you. You find yourself wondering if you should sell your home and down-size, or chase long-held goals and dreams. But it’s been a long time since you’ve sold a home or this might even be the first time! And the thought of parting with a cherished house full of memories fills you with butterflies in your stomach.
Then there’s the daunting task of navigating the legal requirements and understanding the real estate market and it can all be a bit too much. Relax, we’ve got you covered. While this article is not exhaustive, we outline the basic things you need to know before pulling the plunge and putting your home on the market.
1. Find the best agent
The sales agent can make or break the success of selling your home. Get to know the agents in your area and interview them. It may sound like a job interview but basically, they are doing the most important job – selling your beloved home.
Choose the agent with the right experience, who knows the area, and who you trust and can communicate well with.
Ask the agent for a free appraisal to get an idea of how much your property might sell for. It might help to arm yourself with a list of questions to ask the agent at your free appraisal to lessen potential “surprises” down the road.
2. Assess your house
Consider getting a pre-sale building inspection report. This report identifies any structural or mechanical problems in your home. It might be a bit of a cost but it’s a good investment because it helps you identify any issues with your property that buyers will likely use to negotiate a lower price during the sales process.
The report will show you what may need repairing and depending on what the issues are with your property, you could consider doing the repairs yourself or hire professionals.
By anticipating any possible buyer objections, you’ll be able to do something about it beforehand and possibly correct it before listing your property for sale.
3. Spruce up your house
Do a preliminary sweep of your house and identify anything that can be tidied or refreshed at an affordable price. For example, a new coat of paint can increase the overall attractiveness of your property and can add 5% to the selling price.
Does your garden need a makeover? Think about affordable ways to create street appeal by investing in some well-placed plants. Overgrown shrubs blocking the view of the house from the street will negatively impact your property so think about pruning it right back or removing it altogether.
4. Get someone else’s eye over it
If you can, try getting a friend to look over your house and give you an unbiased opinion on the appeal of your house. If possible, when getting to know agents, ask them what they think can be improved upon in the house’s presentation and what buyers in the area might typically be attracted to.
Make sure your house will photograph well by getting rid of excess furniture, clutter, and any personal effects in the home such as photographs or other “kitschy” décor. Sure, you may love your snow globe collection from around the world, but keep in mind that buyers want to see themselves in your home so make it as neutral as you can to make that easier for the potential buyer.
5. Work out a budget and stick to it
After you’ve assessed your house and determined if any repairs, clean-up, or sprucing up might be needed, have a budget in mind and stick to it. Figure out how much it will cost you to hire professionals versus DIY.
But don’t spend money on needless renovations that might not ultimately increase the value of your property. The best bang for your buck reno work would be anything to do with the kitchen and bathroom, particularly storage options. Perhaps consider repainting old cabinets or replacing the doors and handles to update the look. Or a new coat of paint in a neutral colour or well-placed plants to bring warmth to the room.
6. Consider the tax implications of selling your home
Depending on your particular situation, you may have to pay a property tax when you sell your house so it’s important to get your finances sorted. Consider seeing a tax agent or tax adviser for advice on tax implications so you’re not caught by unexpected costs.
In most cases, if you’re selling your principal place of residence, you will not need to pay tax, but there are exemptions. Visit the ATO for more information.
7. Get your paperwork in order
Gather all the paperwork you have on your house such as Certificate of Title (if you don’t have a mortgage on it anymore), any occupancy certificates, original survey, and house plans.
If you’re selling an apartment or strata title, you will also need:
The property certificate for the lot and common property
The strata plan showing the lot
The by-laws that apply to the strata scheme
8. Decide how you want to sell your house
The common ways of selling a house are by private treaty or auction[MMP1] . Your real estate agent will be able to tell you what’s best for you depending on your goals.
A private treaty sale is good because it gives your property enough time on the market for you to consider all offers from potential buyers. The downside is if you’re asking price is too high buyers may be turned off and go elsewhere.
An auction is great because it creates competition between buyers which will drive up the property price, but the downside is that you don’t know how much buyers are willing to pay until the auction day, and it may not be the price you are after.
Weigh the pros and cons of each type of sale with your agent before you commit.
9. Talk to your lender
If you still have an outstanding mortgage on your property, talk to your lender about their requirements for discharging the mortgage, before you commit to selling your house.
The process to discharge the mortgage can take several weeks so it’s important to be prepared so you don’t delay your settlement down the track.
10. Make time for yourself
Lastly, don’t forget to make time for yourself. This can be a stressful and emotional time so it’s important to take time out so you don’t get overwhelmed. You’ll need a clear mind in the days and weeks ahead and you’ll make better decisions when you’re not stressed.
Looking to sell your home?
Talk to RPN Global Sales if you’re thinking of selling your home, and we’ll give you more great tips on how you can maximise the value of your home. Contact us on 0450 914 535 for a free, no-obligation appraisal.
