Selling a Residential Property Privately
“Selling a Residential Property Privately”
If you want to:
- stay away from Agent Commissions
- know more on how a Residential Property is SOLD
- decide if a private sale is right for you
READ THIS GUIDE
A Residential Property, usually gets most buyer attention very soon after it is listed, so use this information to prepare as much as possible to capitalise on this vital period.
Savings
What you will save by private sale is the Agent’s Commission. Depending on the sale price and area, these can generally range from 2.2% to 3.3%. If the median Residential Property Price was around $1,000,000, then private sale brings a MINIMUM of $22,000. SAVED
Knowledge
You, the owner, know your property best. The surrounding area and attractions, community insights, facilities and infrastructure are all second nature and you are the best person to talk about them to interested buyers. This also builds confidence and familiarity with a keen buyer, directly talking to an owner. You cannot expect an Agent to be as committed; he has other properties to sell beside yours.
Control
With an Agent, you are a passenger on their train, one with many carriages. In a private sale, you drive the locomotive and get help where and when you need it. Timing of inspections and their security, gaining all interested buyer information, type and method of advertising and more, all remain in your hands, not a third party’s.
PROPERTY VALUING
“Getting a Property Sale Price”
First Impressions
Buyers often decide on a property when they first see it from the footpath. The private seller needs to do all they can to make this a good impression. A Residential Property that is painted, clean, super tidy and with minor maintenance complete will achieve this. PropertyForSaleByOwner.com.au can give advice to help you do this but here are some points to consider,
- Paint the exterior where it needs it, using colours that blend in with the surrounding properties.
- Mow the lawns and clean up the garden, including the nature strip on your footpath, sweeping up when finished.
- Obvious repairs, such as rusting gutters or broken paving, should be fixed before inspections.
- Clean all windows, inside and out and paint cracked frames.
- Remove rubbish and clutter from around and in the property and keep the driveway clear.
- Have your interiors clean and bright, again with no clutter to detract from a good impression. Again, all minor repairs should be completed before inspections.
- Open doors and windows to ensure a fresh atmosphere in the house.
Photographs of Your Property
Use your own camera and upload or have PropertyForSaleByOwner.com.au refer a professional photographer for best results. Three or four shots of your exterior and three of each room is ample, but take them just after you have carried out all the steps mentioned in the last paragraph.
Promotion
Use your internet advertisement to prepare a brochure using PDF software. You can print or use a local printer for a really professional look. Most buyers are local so emphasise the attractions of the location and how near your property is to them.
Inspection by Your Enquiries
With brochures ready, have outgoings detailed, such as rates, and a description of local amenities, e.g., libraries, schools, parks, etc. For those inspecting, be ready to greet buyers and introduce them to the property. Take names and contact details of all who come and make sure a family member or friend is there at all times. No Fuss or Hurry – let buyers be relaxed.
Buyer Negotiation
Remember, the buyer may like your property as much as you do so use this friendly atmosphere to lead to a sensible conclusion on agreed sale price, without an Agent meddling between you both.
Have in mind your aims – the lowest price acceptable and how quickly you want to sell. Then, isolate concerns that keep from getting there with the buyer, without getting stuck on one issue. Often, best to see if you can come back to this point later, and move on to other matters that can be agreed quickly. Compromise is always going to be necessary, usually at a level that satisfies the buyer and also gets a price that delivers you the return that is appropriate in the market conditions.
Don’t set your opening price too low, as negotiation will probably bring it down further – give yourself a buffer to move down, but still get the price you will be satisfied with. Find out what the buyer wants and then move toward that need, without giving up your aims.
Be honest and acknowledge the need of the buyer, even if you can’t meet them. This may open the way to further discussion and concession on their part. Leave matters open if there is no agreement – often a good night’s sleep may bring the buyer back with a more accepting attitude.
Always have your own aims clear and be flexible as you move toward agreement on them.
Completing the Sale
Make it easy for the buyer to pay their 10% deposit by having the solicitor or conveyancer ready to receive it into their Trust Account; this confirms to the buyer your preparation and gives confidence. Keep in touch with the buyer to ensure they know settlement time and talk to PropertyForSaleByOwner.com.au for help.
If you have not engaged a lawyer or professional to arrange contracts and settlement, it is advisable to do so now. Unless you are experienced and confident of your capacity in property legal issues, you will need a professional to ensure all requirements are met for the sale.
Unless the buyer is in the unlikely position to pay in cash, you need to give them time to arrange or finalise finance for the purchase. Until settlement agreement, keep your property on the market and keep taking enquiries. It shows the prospective buyer they must not waste time. If they cannot settle, then you have not lost time or enquiries and can go on with your sale activities, without pause.
Settlement
When the settlement cheque is given to you and the sale has been done – you will have the great satisfaction of knowing you did it, without an Agent and without their Commission.
