Marketing & Contracts
Marketing, Agency Agreements & Contracts
Before your home is officially put on the market there are legal requirements to be satisfied, a marketing plan to be designed, and you must prepare your home for sale.
Reaching prospective buyers
A carefully planned, well-executed marketing plan will bring the best result. Your agent will recommend a suitable marketing campaign. The program will set out a period for promotion, various media to be used and cost. Each program is carefully prepared to suit each individual property. The agent is responsible for carrying out the campaign, which will generally include:
- Newspaper editorial
- Letterbox drop-flyer
- Property magazine
- Internet – real estate websites
- Open homes
When you engage a real estate agent to sell your property, you must sign a contract called an agency agreement. This is legally binding and authorises an agent to act on your behalf in relation to the sale of your property. The agreement usually has a specified term and includes an estimate of the selling price, services the agent will provide and commission you must pay. It may also include advertising and marketing costs.
There are different agency agreements. The most common are:
1. Exclusive agency agreement
Exclusive agency agreements give the agent exclusive rights to sell your property.
2. Open agency agreement
This lets you list your property with several agents but many agents will only agree to exclusive listings. You pay a commission to the agent who finds the buyer. Open listings are not available in all states or territories.
3. Auction agency agreement
This is effectively an exclusive agency agreement where the property is listed for auction.
Contract of Sale
Before a residential property can be sold, a contract of sale must be prepared. The contract must include all documentation relating to the property as required by each state or territory’s law. Your agent will explain the required documentation. The contract must also include any property inclusions and exclusions and the buyer’s cooling-off period.