Guide to Selling a Property
There are many methods in which your property can be sold, we have listed the top two:
- Private Treaty
When you sell your home by private treaty, prospective purchasers submit private offers for you to consider. Your Raine and Horne real estate agent will negotiate all interested buyers to the most that they are willing to pay for your home. The benefits of this sale method allows you to have greater control over the sale, time to consider offers by potential purchasers and the ability to extend the time for which your home is for sale. The price can be also adjusted throughout the sale, based on buyer feedback and the markets conditions at that time.
To sell through an auction process, the amount you want for the property is generally not revealed to potential buyers who are encouraged to attend the auction and bid for the property against other potential buyers. The limited time window to complete the sale may work in your favour by prompting the buyer to finalize the deal instantly, pre-empting the risk of it falling through at negotiations stage. The Reserve price also helps as the property wont sell unless the bids reach an agreed level beforehand.
A residential property cannot be advertised for sale until a Contract of Sale has been prepared.
The contract must contain a copy of the title documents, drainage diagram and a current Zoning Certificate (s 149) issued by the local council. If the property for sale has a swimming or spa pool, one of the following must also be attached to the contract from 29 April 2016:
- a copy of a valid certificate of compliance, or
- a valid occupation certificate (issued in the past 3 years) and evidence that the pool has been registered, or
- a valid certificate of non-compliance.
This requirement does not apply:
- to a lot in strata or community schemes that have more than two lots, or
- for any off-the-plan contract.
Exchanging sale contracts is the legal part of selling a home and happens regardless of whether you sell your property by private treaty or auction.
There will be two copies of the sale contract: one for you and one for the buyer. You each sign one copy before they are swapped or ‘exchanged’. This can be done by hand or post and is usually arranged by your solicitor, conveyancer or the agent. At the time of the exchange, the buyer will be required to pay a deposit, usually 10% of the purchase price.
The contract exchange is a critical point in the sale process:
- The buyer or seller is not legally bound until signed copies of the contract are exchanged.
- Buyers of residential property usually have a cooling off period of five working days following the exchange of contracts during which they can withdraw from the sale.
- If the agent arranges exchange of contacts, the agent must give copies of the signed contract to each party or their solicitor or conveyancer within 2 business days.
- The cooling off period can be waived, reduced or extended by negotiation.
- There is no cooling off period for sellers. Once contracts have been exchanged, sellers are generally bound to complete the agreement.
- There is no cooling off period when purchasing at auction.
Settlement is the conclusion of the sale transaction and usually takes place about six weeks after contracts are exchanged.
More information can be found on the NSW Fair Trading website
If you are considering putting your market on the property contact us or request a free market appraisal today to discuss the market conditions and how we can best service your property to achieve the best results.