Selling a property can be quite challenging and stressful for the vendor, especially if they are not familiar with the buying and selling process. As an expert buyer and seller advocate, representing clients in all locations in Melbourne, it is my intention — via this document — to help you through these situations by educating you about the buying and selling process, ensuring a more enjoyable and rewarding experience with your selling agent whoever is representing you for your sale. It is important to note that this information also has been compiled, based on my own experiences when I have exclusively represented vendors in selling real estate transactions.
“What should I do if other agents approach me and say they have buyers for my property and their commission rate is low?”
It is pleasing to know that ethical agents will NOT contact you once the signboard on your property is displayed. Unscrupulous agents however, may contact you with these comments via direct mail, leaflets and possibly phone calls once your signboard has been erected. The purpose of this contact is to derail your relationship with appointed selling agent and create doubts in your mind as to whether you have chosen the best agent to sell your property. If another agent does happen to contact you whilst you already have it listed with your current selling agent, you should NEVER discuss your price expectations before speaking with your current selling agency. This is because they may be calling on behalf of a potential buyer who wants to buy your property at a much lower level.
“Will I or won’t I accept an offer below my asking price?”
Difficult decision for you and a real pressure point. Should you hold out for a higher price? Should you wait for a better buyer?
This really is largely dependent on how realistic the vendor’s price expectations in terms of meeting the market price. Remember, a property’s market value is based on what someone is prepared to pay for it in a competition setting.
Competition occurs when buyers are most likely to make offers because of the fear of missing out or the fear of being outplayed by a competing buyer. However, many owners also get over-confident or become greedy on price if they know there are multiple potential buyers for their property. This can be incredibly dangerous as offers need to be carefully managed, as some buyers may become frustrated quickly and lose interest in the vendor’s property
If an offer is less than the vendor’s asking price, most vendors will predictably say ‘no’ to the offer, because they believe it has happened all too quickly as it hasn’t been on the market for very long. This is where vendors can lose thousands of dollars if they aren’t receiving the right advice.
This can be financially painful! History consistently provides numerous case studies of property owners selling for far less than they were offered in the initial negotiation stages. So, before you dismiss any early offers, consider the following:
- The selling agent may have been working with this particular buyer for many months.
- The buyer is keen to buy a home and has become frustrated and sick of looking.
- The buyer will pay a premium for the right home, meaning this buyer is the vendor’s best buyer by a country mile!
- If vendor rejects this buyer’s offer the buyer will then move towards other homes or leave the marketplace forever. This means that offer no longer exists.
It is not rocket science, however, all vendors who receive an offer from a buyer must compare that particular offer with other comparable property sales in their local area or similar sold properties which are in close proximity to their property. Review the research we provided you, showing current market comparisons.
Real Estate agents are skilled negotiators. When they have achieved the maximum offer from the buyer, it is the vendor’s decision whether to accept it or move on. Whatever decision a vendor makes, a good agent will always back you no matter what!
The surprise visit… “People want to see my house?!”
Be prepared for home inspections. Being on the market can be a testing time when it comes to home inspections. It has the same effect on you as drop-in visitors.
To ease this pressure, I suggest you keep your home ‘inspection ready’. First impressions through good presentation can make a huge difference when it comes to selling your home. If you know the selling agent is coming, open all the curtains and blinds and make the home as light and airy as possible. Unfortunately, you only get one chance to make that first impression.
“What should I do during home inspections?”
During the course of an inspection, it is highly recommended that the vendors are not present. If possible, go for a drive whilst the selling agent is showing the property to the prospective buyer. If this is not possible, perhaps you could be in the yard whilst the selling agent is in the house and vice versa. Buyers feel uncomfortable invading your space and will not discuss the property if vendors are within hearing distance.
“Will I or won’t I accept the offer?”
This is a testing time for the vendor. By law, all offers – irrespective of price levels – must always be submitted to you. Every offer is a sure sign of interest and normally only a starting point in the negotiations. To say no to an offer is better than no offer at all.
Offers are made by prospective purchasers based on their own impressions of the market. If the asking price is too far above the perceived value, most buyers won’t make offers. Every person handles their real estate purchases differently. Some can make a decision in an hour, while others take weeks. Don’t take offers below your expectation personally. You have the right to say no, in which case you still own your property.
“It’s not selling! Should I modify the price?”
The greatest homes in the world can remain unsold due to price! Remember the selling agent’s ultimate aim is to achieve the best price outcome for the vendor. The asking price could be looked upon as the starting point in the negotiation. If there are no offers however, or not enough inspections, it’s worth reviewing the pricing strategy.
When considering whether or not to modify the asking price, it is important that you compare your property to similar properties which have just been sold; not with those that are still available. You should also compare your asking price to those listed on www.realestate.com.au.
“How should I handle third party advice? My neighbour says it’s too cheap!”
Should you receive any well-meaning advice, ask yourself – how many properties has this person sold in this area and, in particular, within the last 12 months? It is a ‘no brainer’ however you should still thank them for their contribution.
“Who’s this at the door?”
Stranger danger! Never allow anyone into your home unless you know who they are and why they are there! In addition, don’t disclose the price you will accept or your reason for selling.
Should anyone knock on your door or make phone contact wishing to arrange an inspection direct, you should always refer them to your selling agent’s office for qualification. Buyers should only view your property accompanied by a professionally qualified agent.
At times you may encounter a lot of negativity in the press about real estate and the real estate industry and this can lead to a build-up of emotions, particularly when you are in the process of selling your own home. Just remember, every property sells the moment the selling agent meets the right buyer who is willing to pay the right price.
Finally, vendors are faced with many challenges every day when selling their property. However, as I have highlighted, if you approach each problem with the right mind-set, use common-sense and also have an experienced and expert agent representing and supporting you, many of these potential risks and challenges are easily avoidable. Happy selling!
MORE ABOUT THE AUTHOR…
Zac Newbold has always taken a keen interest in Real Estate, due to a strong family involvement within property development and investment over many decades. Zac provides his clients with over 24 years extensive experience, knowledge in all areas of the property industry and has been a fully Licensed Estate Agent since 2001.
Benefiting from a diverse background in Property and Asset Management, Corporate Real Estate Advisory Services, Commercial Leasing, Free-hold & Leasehold Site Acquisition, Project Management, Investment and Home Sales in addition Buyer Advocacy has seen Zac succeed in both Boutique Companies through to multiple National Companies and Government.
In particular, Zac has expert knowledge of the buying and selling process. He has strong negotiation skills and an extensive background in all facets of the property industry, including independently representing either the buyers, sellers, tenants and landlords in a variety of real estate transactions. Zac offers a personalised, objective and transparent real estate buying and selling advocacy services on behalf of his clients, ensuring his clients always receive an undeniable advantage.
Now heading up Your Australian Property, Zac has also developed a number of specialised tools aimed at providing his clients with objective information, so they can make informed and successful property decisions. Passionate and reliable, he is an avid investor himself, who loves to travel and spend quality time with his young family.
At Your Australian Property, we offer personalised, objective and transparent real estate buying and selling advocacy services on behalf of clients, servicing all locations in Melbourne. To find out more, please contact Zac Newbold directly on +61 (0)418 144 644.