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ESSENTIALSFOR BE$T PRICE

Welcome!


Although the path of selling your home for best price can be a straight line, it is a major process with many things to consider, decisions to be made and questions to be answered.

In unravelling this process let’s start with Innov8 Property’s 8 Essential Topics for a clearer approach.

The Best Time to Sell

Choosing the Agent for You

Preparing Your Property for Sale

Marketing Methods

Pricing and Methods of Sale

Negotiation

Preparing the Contract

Overcoming Contract Issues

Strap in, turn on your imagination and let’s start.

If at any time you want clarity on any matter throughout your selling process, feel more than welcome to touch base with us on 0447 770 457 or [email protected]

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ESSENTIALSFOR BE$T PRICE


BEST TIME TO SELL

There are many factors involved in deciding when it is the best time to sell however before we get into the examples, the most important consideration is Why - Why are you selling?

If you are not clear on that, then the whole process can become stressful, burdensome and more importantly, you could end up settling for a price you may be less than happy with.

Now, let’s discuss the when.

There are pros and cons for selling at different times of the year. The time of year that suits you best and lines up with your why, is the best time to sell.

For example, on the Sunshine Coast, December sales can bring great results because buyers are relocating in the New Year for change of jobs and new schools. Also, many sellers will not come onto the market then because they or the agent want to relax over the holiday period. That can provide for less properties on the market when buyers are keen to lock things away ready for their new year moves. Perfect combo for great prices! Then of course is the standard Spring season when everything comes into bloom, weather can be perfect, and buyers can be ready for new life and new

beginnings – another possible combination of meeting needs resulting in great prices. However, at that time of year there are often larger numbers of properties for sale thus giving buyers a little too much choice and resulting in not so strong offers being made.

Others will tell you not to sell in winter because it can be cold and rainy, in some states downright sludgy. That doesn’t really bother you on the Sunshine Coast because the variation in our climate is not that great and can in fact be a time for our friends from colder climates to more seriously consider moving out of their discomfort and into the wonderful world of the Sunshine Coast.

As you can see, there is no prime time covering all bases. Your decision is very much driven by why you are selling and what suits you. There can be other mitigating circumstances that might complicate matters. If so, it is always advisable to touch base with your agent and discuss the options.


CHOOSING THE AGENTBEST FOR YOU

As you can see there are many combinations of attributes that might appeal to you but at the end of the day, the agent best to serve your needs is the agent who actually knows how to be of service, has your and your property’s back at all times and is very clear who they work for – You.

How do you select that person?

If you don’t have past experience with them, check out their reviews and testimonials; ask for some past client contacts you can call.

Ask for a list of what they have sold and how did they make the process smooth, as stress free as possible along with the best price in the market result all wrapped up in a straightforward no nonsense friendly approach, and acting at all times with integrity.

Be sure to compare commissions and fees and be sure of what you are getting for your outlays. Usually the cheapest agent ends up the most expensive.

As with any endeavour, there are always obstacles and it’s best if you find this person likeable as well.

You will be in a business relationship for up to three months and there will be times when the likeability factor helps the cooperation levels in such a way as to overcome any obstacle.

Your home can be your most valuable asset and is not to be trifled with – be sure your agent has your back at all times and doesn’t chase a sale at any cost just to finance their “offerings”.


PREPARING YOUR PROPERTY FOR SALE

Now that you have chosen your agent, it is time to finalise getting your home market ready and this believe it or not, is when negotiation with your eventual buyer begins.

First impressions – there are no second chances here. Your buyer will make a preliminary decision based on what they have seen in the marketing. Then finally, how they feel about your home the minute they walk in and that is created by how well you have attended to the following.

Make sure your external presentation is tip top and maximises street appeal

Well maintained gardens, lawns and landscaping. Paths and driveways pressure cleaned.Fences, gates and letterbox in good repair. External walls clean and free of cobwebs.Remove the dog droppings.Be sure the paintwork is in good condition and check for blocked drains and gutters.Check on the roof – does it need a simple clean or maybe a repaint is in order.Be sure your pool is sparkling and inviting.

Declutter and spring clean

Overcrowded rooms and hallways look smaller -remove any unnecessary items - less is more. Buyers will open cupboards so make sure they are ordered. Store excess items offsite wherever possible and same rules apply for the garage and shed. Depersonalise where possible so buyers can imagine themselves in the space but don’t make it cold and impersonal.



Let there be light

Look for ways to create extra light – change light globes to crisp white light, paint walls a light colour, install a skylight or 2, use a lamp to light up a dark corner, trim trees and plants back, and above all else clean the windows and screens.

Kitchen capers

Be sure your kitchen is a warm inviting space – after all it is most often the heart of the home. Short of replacing your kitchen, clean it from top to toe including walls, cupboards, pantry, sink, appliances, light fittings, walls floors and ceilings. Check if the bench top needs renewing.Attend to all repairs and if necessary, re-grout splash backs, tiles and update tapware.Present for viewings by having fresh flowers, candle scents and clutter free.

Bathroom presentation

As with the kitchen, it needs to be clean and free of soap scum and mould. Re-grout and repair as necessary. Make available appealing products and towels and remove the floor mat. Remember this is a pampering space and do what you can to make it appealing.

Generally speaking, in preparing to go to market it can be tempting to take on major projects when simple attention to matters outlined above will suffice. Should you decide on anything major ensure your efforts will add value and interest and we advise to discuss any renovations with your agent to avoid over or unnecessary spending.

PREPARING YOUR PROPERTY FOR SALE


MARKETING YOUR HOME

There are many ways of marketing your home and the most important thing is that any marketing carried out is specifically tailored to you, your budget and your home.

In doing so, it is critical your home is presented in its absolute best light and at the same time that there is no exaggeration or distortion of what is on offer.

When buyers come to inspect, it is important they get what they expect to see and if anything, a surprise in some way is always good. Like a first date – reveal most but not all.

Important matters to consider in the marketing and advertising.

Step 1 – getting prepared creating the tools.Advertising copy is accurate and not misleading.Photos are professionally done – nothing worse than mediocre photos. Because the eye is three dimensional and photos are two, video is a great add on. Not just moving repeat photo images but a dedicated video extolling the benefits and features along with the lifestyle your home has to offer. Floor plans are a great tool as well.

Step 2 – using the tools. The landscape of presenting your home has changed – once upon a time, buyers were bundled into a car and shown around their preferences but no more. Today they insist on quality digital and print media.


Digital Media

In the least, your home should be featured on major real estate web sites in poll position.

There are a few critical factors here price, first few photos and headline to encourage buyers to discover more. In our world of instant, you have about 30secs to attract buyers or else they will move on.

It is not enough these days to just pop it on a website and hope.

As well as a good data base of buyers, your agent should have access to marketing on facebook, Instagram and google and the ability to utilise each of those effectively.

Buyers will nearly always look for more information and your agent should be able to supply that in a meaningful and timely fashion – well laid out, accurate and informative.

Print Media

The brochures your buyers take home should also be professionally presented reflecting your home.

Magazine and newspaper still have a place in property marketing – this media can bring in the dormant buyers. Those buyers who happen upon their dream home while browsing over coffee or lunch.

This medium in my opinion should be in support of the digital media outlined above.

Inspections

Ultimately after the marketing has made its impact and buyers want to proceed to their next stage, you need to discuss with your agent what given market factors, social and economic, will impact the best way to introduce and show buyers through.

Your choices can be by private appointment, open homes or virtual tours or all three.

Whichever method is chosen to introduce buyers, each step needs to have an end goal of completing the negotiation process started when you first prepared your home for sale.

MARKETING YOUR HOME


What goes along with marketing and critical to outcome is pricing.

As mentioned in “Marketing Your Home”, pricing along with front images and headlines is the first port of call and interest for any buyer and is critical.

The pricing method ought to:Satisfy the buyers’ curiosity. Satisfy buyer needs for an idea of what your price goal is. Encourage the buyer to move forward onto their next step in acquisition.Set the tone for negotiations.

There are many different methods of pricing:Some flirt with buyer desires for a bargainOthers flirt with the need of buyers to negotiate,Some simply state the desired outcome,Other methods require of the buyer to decide what they will put on the table.

Each has its own terminology and reason for use and in my opinion, there is no right or wrong method only those that work. Depending on buyer response or lack of, it is easily determined whether the method chosen is pursued or ought to be abandoned for another.

At the end of the day, you and your agent have to be comfortable with the decision. When that balance is struck, it often results in very favourable outcomes for you.

Discuss with your agent the differing methods of sale available to you and which one will suit your particular circumstance at the time.

These can include variations of: Auction, Tender, Offers Above, Fixed Price, By Negotiation, Expressions of Interest and Price Range Any competent agent should be able to talk to any of these strategies and discuss their differing benefits. Be warned, it is critical that in the Method of Sale, there is no form of bait advertising that might cause the Office of Fair Trading to step in.

For example, if you decide to sell with Auction in Queensland, a price range cannot be given.

If you choose to go with Offers Above, the price needs to be within certain parameters of owner expectations – in Queensland currently set at around 5%.

All methods will have a background “non-disclosed” or “hidden” price that buyers searching by price will become alerted to. Those also need to fall within similar parameters.

It is unreasonable and unethical to list a property’s background price at $500,000 if the owner’s expectations are at $600,000. That is baiting the buyer.

PRICING AND METHODS OF SALE


Property preparation, marketing and pricing along with your selection of agent will determine whether you get best price or not. A bad agent in front of a good buyer can create a disastrous outcome.

Everything leading up to the point of simply asking a buyer if they wish to move forward should be geared to handle the answer to “Would you like to purchase this property?” The number of times I have heard buyers tell me they weren’t able to make an offer because the agent was too busy, too this or too that to even ask if they wanted to buy.

And I’ve heard many buyers recollect that even when they told the agent “I want to put in an offer”, the process actually became very difficult.

To start the ball rolling an agent simply needs to ask, “Do you want to buy this property?”

To discover how effectively an agent, you are

considering might handle that situation, put them in a role play. This way you can gauge how confident you are of their ability to not only close a deal but how well they can negotiate to the maximum dollar you might be prepared to pay.

You might be surprised at the results. If role play is a bit confronting for you, ask them for examples of the outcomes of their negotiation and if they can’t or won’t, then maybe they are not your agent.

Another way is to ask them if they will negotiate their fee. Check their response.

If they are prepared to negotiate their fee down rather than discuss the benefits of their services, then again, maybe they are not your agent.

The agent’s ability to be flexible, negotiate and deal with all manner of obstacles and challenges is crucial, especially in the ever-changing landscape of today’s real estate world.

NEGOTIATION


PREPARING THE CONTRACT

The contract is not the end of the process.

You’ve now reached the top of the hill and are on the way down the slope toward the finish line. It is crucial that it does not become a slippery slope but one smooth traverse all the way to the finish line.

Again, all of your agent’s skills and expertise will come into play.

Preparing the contract requires contractual understanding, clarity of information and ongoing negotiation. The contract needs to be a legally binding one in so far as the extent of the law is concerned, and any legal matters ought to be conferred with solicitors or other appropriately qualified persons before being inserted into a contract or changed on any legally recognised form of contract.

If a contract is not properly attended to, it can easily be nullified, and agreements withdrawn at great financial, personal stress and time expense to all parties involved.

Many people think the contract is the be all and end all of a selling process. Admittedly, without a contract in place there is no possible end in sight however, although crucial, I believe it to be no more or less crucial than any of the 8 Essentials. It is the sum of the parts that completes anything, and it is the agent who ultimately brings it all together for you.



Once the price has been negotiated with the buyer and ready to present to you, more often than not there will be conditions the buyer wants attached to the deal as “Special conditions”.

This is when the agent’s ability to negotiate can take another full turn as some conditions can be potentially detrimental to the outcome for you the owner.

Each and every contract will be different in some form or another as each buyer and seller will have differing needs and “urgencies” that are to be met at some level.

The agent’s job is to have those conditions met to your benefit as the seller, but not necessarily to the detriment of the buyer. Things can and will fall apart if not handled effectively. Some matters brought into play by buyers are just unacceptable and sometimes such issues are easily dealt with by not accepting them in the first place.

A good example of that might be “Subject to sale” of the buyer’s property. Depending on where they are at in their own selling stage can determine if you accept such a condition or not.

It is impractical to give examples of all the many variations of conditions and how they ought to be handled but let’s take the basic two that accompany most contracts:Building and Pest and Finance.

Building and Pest inspections

The buyer has a building and pest done to assure themselves the property is structurally sound, waterproof and pest free with white ants being the most concerning.

An agent unfamiliar with or having had no experience in building, will most likely not be able to talk to any of the maintenance matters that so often show up and may confuse or scare the buyer into believing they are structurally unsound items.

OVERCOMINGCONTRACT ISSUES


Similarly with white ants, the history of white ant behaviour on a property is not necessarily indicative of current activity.

Both these examples need to be addressed on the day of inspection not sometime later when a complicated report comes in often confusing matters further and as a consequence the buyer either pulls out of the contract or as is often the case, looks to asking for a reduction in price

To be able to do so, it’s critical the agents’ experience, skill and knowledge come into play to either minimise any monetary claim a buyer may have as a result of such reports or, preferably, nullify such claims in their entirety. I’m confident you don’t want your contract price reduced.

Finance details

Most contracts will have a finance clause inserted and here you want to be as assured as you possibly can that the buyer can obtain the finance and move toward completion.

The ability to complete is a matter the agent should have discussed with the buyer from the outset to the extent of obtaining formal preapproval from the buyer’s bank or other financial institution.

Anyone today who has not got preapproval in letter form may find it difficult to move forward. Your agent needs to have the skill to ask for such personal information and the ability to “sus” out any potential discrepancies.

Then the discrepancies will need to be discussed with you so you can arrive at a sensible decision of moving forward or not with that particular offer. You wouldn’t want your contract to fall over.

Without an agent who can handle all matters in the 8 Essentials and those in the field, you may end up in a minefield. Too often owners are seduced by ill serving promises of riches and fortune in the form of unrealistic pricing and expectations. If you are thinking of selling – beware!

Thank you for considering this information and we wish you all the best.

Any questions? Contact us anytime.

Petro and Rene

OVERCOMING CONTRACT ISSUES

essentials for be$t price - innov8propertysc.com.au · comes into bloom, weather can be perfect,...

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