If you’re looking at selling, chances are you’re already familiar with the process of buying a home. As it turns out, putting your property on the market is another story entirely.
In this guide, we’ll cover everything you need to know about how to sell your house. From preparing your home for sale to discharging your mortgage, we’re here to answer some of the most common questions that pop up when it comes to how to sell a house.
The home selling process
Selling a house in Australia involves several key steps to ensure a smooth process. Here’s what to expect.
Step 1: Prepare your home for sale
When it comes to selling your home, preparation is key. A well-styled home can make a strong first impression on potential buyers.
Often a basic clean and declutter is enough to enhance the overall appearance of your home. But if you’re aiming high, you might want to consider bringing in a home staging company to help your home look its best.
It’s also worth taking care of any general maintenance and simple repairs before putting your house on the market. While a chipped tile, broken window or stained carpet might not seem like much to you, these issues can be an instant turn-off for potential buyers.
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Step 2: Choose your selling method
In terms of selling your home, you’ve typically got three main methods to choose from:
Auction: Auctions are typically used in competitive markets, where buyers bid for the property. By nature, an auction helps to create competition among buyers, which can help to push the sale price up.
Private treaty: A private treaty involves setting a price and allowing buyers to make offers. From here, you can negotiate with potential buyers until you’re happy with the final sale price.
Expression of interest (EOI): With an EOI approach, buyers submit their best offer by a specific date. As the seller, this approach gives you the flexibility to negotiate with the best offer.
Step 3: Engage a real estate agent
Having an experienced real estate agent on your side to help guide you through the sales process can be a huge advantage, especially if it’s your first time selling.
But how much do realtors charge to sell a house? Real estate agents typically charge a commission between 1%-3% on the final sale price, so be sure to compare rates, experience and services if you choose to go with an agent. The real estate agent’s commission is a key contributor to how much it will cost to sell your home, so it really does pay to do your research to find an agent that works for you and your budget.
How to sell a house without a realtor
Some people prefer not to pay an agent’s commission and sell their home themselves instead. If you plan on selling your house privately, there are a few extra steps and responsibilities you’ll need to take care of yourself.
As a private seller, you’ll need to:
Determine your own sale price,
Source a contract of sale prepared by a conveyancer or solicitor,
Advertise your property,
Conduct inspections and home opens,
Manage inquiries, and
Negotiate with buyers
Selling your own home is a significant undertaking that comes with its own set of risks and responsibilities. With this in mind, it’s important to ensure you have a good grasp on your legal obligations and the general process of selling a home. While it might be tempting to go it alone to save some cash, for many homeowners, it’s often easier to leave it to the professionals.
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Step 4: Set a price and start your sales campaign
Once you’ve secured a real estate agent, it’s time to work with them to assess a fair asking price based on local market trends and recent sales.
Once the appraisal is complete, you can set your sale price and start the marketing campaign. Your agent should take care of everything related to property promotion, from listing your home to installing signage and even featuring your home on their socials.
During this time, your agent will conduct open houses or scheduled private viewings to allow potential buyers to view the property. As the seller, it’s important to make sure your home is clean and welcoming to help make a good first impression on potential buyers.
Step 5: Navigate offers and negotiations
All being well, you’ll start receiving offers on your property. If you’re selling your home via private treaty, interested buyers will submit offers to your agent, who will then review them with you. If you find yourself in a multiple-offer situation, be sure to consider each offer carefully. And don’t be afraid to go back to potential buyers to negotiate with them.
If your home is going to auction, the buyer will be the person to place the highest bid, so long as it meets the reserve price, which is the minimum price you’re willing to sell your home for. If your property doesn’t meet the reserve and it’s passed in, you’ll often still have the opportunity to negotiate with the highest bidder.
Step 6: Finalise the sale and settlement
Once you’ve accepted an offer, you’ll exchange a signed contract of sale with the buyer. They’ll pay a deposit as a gesture of goodwill and the settlement period will begin. During this time, all the legal and financial matters are finalised. This often involves obtaining finance approval and completing a satisfactory building and pest inspection. However, there may be other conditions listed in the contract of sale.
Once all conditions of sale are met, the contract becomes unconditional, and the countdown to settlement day begins. On settlement day, your conveyancer or solicitor will handle the final steps to complete the process. The property title is passed on to the buyer, and the remaining balance is paid out to the seller.
What happens when you sell a house with a mortgage?
So, what happens to your mortgage when you sell? As it turns out, you can sell a house with a mortgage. In fact, the majority of homeowners don’t own their properties outright, so it’s incredibly common to sell a home with a mortgage.
If you have a mortgage, you’ll need to arrange for it to be discharged before settlement. This involves completing a mortgage discharge application and submitting it to your lender. Keep in mind the discharge process can take up to three weeks, so it’s important to give yourself enough time to get it sorted. Once settlement day rolls around, your conveyancer or solicitor will make sure that the sales funds go toward paying your outstanding loan, along with any other fees and expenses, and the balance will be transferred across to you.
When’s the best time to sell?
Statistically speaking, November is the best time to sell in Australia. That said, there are a few differences across the capital cities, which could mean there’s a better time to put your house on the market, depending on where you live. The table below illustrates the best time to sell across the country.
Region | Best Month to Sell |
Sydney | March |
Melbourne | October |
Brisbane | October |
Adelaide | July |
Perth | November |
Hobart | November |
Darwin | April |
ACT | November |
National | November |
Source: PropTrack Market Insight: 25 October 2024
Tips to get your house ready for sale
Wondering how to sell your house quickly? Here are a few tips and tricks you can use to help sell your house ASAP:
Declutter your home and remove all personal items,
Give your house a good clean, paying particular attention to the kitchen and bathroom,
Fix any maintenance issues and consider giving your house a fresh lick of paint,
Give your garden a good tidy-up to help boost curb appeal and make a strong first impression,
Consider staging your home inside and out to help enhance appeal and highlight your home’s best features, and
Invest in high-quality photography for your online listings
Ready to make a move on your home? Whether you have questions about the sales process or taking out a new loan, your local Aussie Broker is on hand to help. Book an appointment to learn more.