A Guide to: Home Selling

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1 A Guide to: Home Selling

2 Welcome If you are reading this kit, you are probably looking for a real estate sales agent who can not only sell your home but also achieve a top price for it. The last thing you will want to see is your home languishing on the market, with few interested buyers. Our well-developed process works by focusing our efforts on: > > > > > Understanding what the property is worth Presenting it in the best possible light, both visually and during a conversation Attracting potential buyers Nurturing relationships with the people who really want to buy Negotiating the sale at the end of the campaign Now to find out more about how we d approach the sale of your home with our five step sales plan, read on. 2

3 Contents Step One: Agree on the marketing strategy 4 Step Two: The buyer-attraction pricing strategy & agency agreement 7 Step Three: Keeping buyers hot & prepared to buy 9 Step Four: The art of negotiation & selling your home 12 Our fees 14 3

4 step one Agree on the marketing strategy Before we even meet, we know a lot about your property. We research it and the homes around it before we even step through the door. That s because we are formulating an opinion of value based on objective evidence and the surrounding market. We also know that as soon as we walk through the door, most vendors are going to be trying to convince us it s worth more!

5 The Right Presentation Now, even though establishing the right price is essential, most of this step is taken up with reviewing the property with you and discussing how we d promote it. The way we review the property is walk through the home with you, room by room. For example, the outdoor area pavers may have mould on them. This can send a message that there may be a water leak somewhere or the house is damp. We d recommend water blasting or bleaching them in that case. Along the way we are noting positive features that we d highlight in the campaign as well as small things you could do to present the home in a more appealing way. 5

6 Selling Style We believe presentation is king and it will always attract more people to visualise themselves in your property. That s why the best investment you can make when selling your home is to engage a professional stylist. Professional stylists will work with the agent to assess the demographic of the buyers and the style of the property. For example, it may be more appropriate to showcase the property s period features rather than the new. Sometimes properties will combine vintage building features with a modern extension. In these cases, stylists can showcase more than one style of living within the same home. It is the beautiful furnishings and dramatic works of art that buyers will remember, not whether there was a crack in the wall. The size of your investment will vary, but it will come back to you with interest. Here is a guide to approximate prices: > $2,000-$3,000 for a studio or one-bedroom unit, > $3,000-$4,500 for a two-bedroom unit, > $4,000-$5,500 for a large two-bedroom unit or small terrace house and > $6,000-$9,000 for a large terrace 6

7 step two The buyer-attraction pricing strategy & agency agreement It s not called the buyer-attraction pricing strategy for nothing. If pricing is too high, then you have no buyers. If it is too low, you are leaving money on the table. Our research prior to step one helps with getting the price right, as does our detailed walk through the property. However it s not really until this step that we discuss and agree on the pricing and the triggers for adjustments through the campaign.

8 Let s get factual One of the things we do to help is make sure we are all on the same page in terms of what has been selling around your property and for what kind of dollars. Together we take a look at the latest report from Australian Property Monitors that will illustrate the latest sales in the area comparable to your property. Using this report as a basis and our up to date knowledge of the market, together we agree upon a price range that buyers find unarguable. As the campaign advances, we will monitor buyers feedback on price and if necessary, we will suggest a price adjustment subject to your approval. Of course this is the stage when we also ask you to sign the agency agreement so we can get underway with your campaign. Most campaigns last four weeks and we recommend that for most properties they culminate in an auction. That s because an auction is a great way to make your campaign timebound and add a note of urgency to prompt buyers to take action. Otherwise they can think about it forever! 8

9 step three Keeping buyers hot & prepared to buy Our belief is that if buyers genuinely want to buy then they are happy to hear from us, so we don t just go through the motions when we call the people who have come to an inspection. We use the first couple of weeks to sort the buyers from the tyre kickers, and with the people who want to buy, we focus on advising and helping them get the necessary documents ready for the auction.

10 During the campaign we monitor how many people step through the door and how many ask for a contract. If we have 20 contracts out, for example, the price might be too low. Conversely, if we haven t issued any contracts or just a few, the price might be too high. Subject to your approval, we would adjust the price guide. We will have constant and open communication with you at all times during this period making recommendations and seeking any new instructions. Preparing buyers The third week is where we really do the business. If we need to reposition the price then we do. We also contact all interested buyers to outline the various scenarios on auction day. The conversation emphasises three possible scenarios: multiple buyers, two buyers or a sole buyer. As the vendor, a one or two buyer situation could seem really scary! But it can happen, although usually only in a soft market. And real estate markets aren t always strong. So when the market is soft, the most important thing is to position the property to be sold on auction day, and you can only do that if you have had these conversations with the buyers. 10

11 The key scenarios The most important conversation to have is about the one or two buyer scenario. Otherwise buyers may turn up to the auction and be so spooked that their confidence is shattered and they get cold feet and change their mind. So if you have already pre-framed that this may happen and have walked them through the process of exactly what it s going to look like, then they should still feel confident enough to go ahead on the day. The thing to remember is that buyers are on an emotional roller-coaster in the lead to an auction and as well as the vendor, they are excited and worried. We will need to have a conversation with the potential buyers before the auction day so they have time to absorb all the information and get ready. If we leave it to the auction day, they could run screaming for their car and not buy the property! In the event that there are multiple buyers, then we give each of them a sense of who the competition is. We are not too specific but we do give buyers a feel of what they might encounter on the day. The main aim of these conversations prior to auction is to build rapport with the potential buyers and confirm th expected price range. This will often involve a comparative analysis of nearby properties sold during the campaign. The main aim of these conversations prior to auction is to build rapport with the potential buyers and confirm the expected price range. This will often involve a comparative analysis of nearby properties sold during the campaign. 11

12 step four The art of negotiation & selling your home While 90% of the work is done at this stage, the auction is no walk in the park. One of the key things we do on the day is meet with you and the auctioneer so that we can discuss and agree on the vendor bid.

13 The vendor bid Many agents try to use the vendor bid as a lever to push up the price at the end of the auction. However, what often happens if the property doesn t sell at the auction is that the property now languishes on the market at the price set by the vendor bid. We adopt a different approach. We use the vendor bid to start the bidding at the right level because we know that anyone with a genuine interest will pay more. So we usually use this tool to get the auction started. Final buyer preparation On the day of the auction, we talk to many of the buyers again, particularly if there have been some late breaking developments. Sometimes people withdraw at the last moment or buy something else and it s important to let buyers know about that, especially if the auction has now gone from a two-buyer scenario to a one-buyer scenario. If your property is not sold under the hammer, the auction marketing campaign will have identified the most motivated buyers. The idea is to seal a deal before buyer s remorse sets in. Immediately after the auction we negotiate with the highest bidder and ask them to sign the contract at their highest offer price. If you decide to accept this offer, contracts can still be exchanged under auction conditions until midnight on auction day. 13

14 3 warning bells If you re about to sell your home, beware if your agent gives you any of these gems. We work as a team of networked agents to sell your property. Our buyer database is cross-matched to your property We ll try for a high price and if that doesn t work, we can always come down. What your agent should really be covering are the 5 agent must dos. If you call us, we d be happy to share them with you and put them into action selling your home. Seriously. 14

15 Our fees If you still have questions on how to sell your property or about our property management services, please contact us. Contact us now Give us a call on Or us: ian@exchange-property.com.au We look forward to meeting with you! Ian Comyns Director ian@exchange-property.com.au Kris Wardecki Director kris@exchange-property.com.au Follow Us Suite 5, 28 Kingston Road, Camperdown NSW 2050 P +61 (02) F +61 (02)