Key takeaways:
Selling a house involves seven key stages, from preparing your property and paperwork through to completing settlement.
Your sale price isn't the same as your net sale proceeds. Selling costs, your outstanding mortgage and settlement adjustments can reduce the amount you receive.
There's no single best way to sell a property. Compare auction, private treaty and other methods based on your property, local market and circumstances.
Compare offers on more than price. Deposit, settlement timing, finance conditions and other contract terms can affect whether an offer suits your plans.
Start the legal and financial preparation early. Contract requirements vary by state or territory, while mortgage discharge requirements and timeframes vary by lender.
Selling a home involves several financial, legal and practical steps. If you're looking for ways to sell your home faster, preparation may help you avoid preventable delays, although no strategy can guarantee when a property will sell.
Some parts of the process are within your control, including how you prepare and position the property, choose an agent, market the home and select a method of sale. Local market conditions and buyer demand can also influence how quickly a property sells.
This step-by-step guide explains how to sell a house, from preparing your property for market and choosing a sale method through to accepting an offer, discharging your mortgage and settling.
The home selling process at a glance
While requirements vary, the home selling process generally involves seven steps:
Prepare your property and paperwork. Get your home ready for sale and organise the documents you may need.
Estimate your sale position and costs. Research what your property may sell for and estimate your potential net sale proceeds.
Choose your selling method and agent. Compare private treaty, auction and other methods, and decide whether to appoint an agent.
Set your pricing strategy and launch the campaign. Use your market research to position, price and market the property.
Review and negotiate offers. Compare the price, conditions and timing of each offer.
Agree to the contract. Have your conveyancer or solicitor explain the contract and your obligations before committing to the sale.
Prepare for settlement. Complete the remaining legal and financial steps, including mortgage discharge where required.
The exact process and timeframes depend on your property, contract, lender and state or territory. Preparing early can give you more time to complete each step and address issues before settlement.
1. Prepare your home and paperwork
Start preparing your property and legal paperwork before you list. Getting both underway early can help you identify outstanding tasks before your sales campaign begins.
Prepare your property for sale
Focus on presenting a clean, well-maintained property that buyers can inspect easily. Depending on your property, budget and timeframe, consider:
Decluttering and cleaning rooms and storage areas.
Completing necessary repairs and maintenance, particularly visible issues you want to address before inspections.
Tidying outdoor areas, such as gardens, lawns, balconies and entrances.
Doing property styling, whether you rearrange existing furniture or engage a professional stylist.
Repairs, renovations and styling can add to your selling costs and don't guarantee a higher sale price or faster sale. Before committing to larger projects, consider whether the likely cost and time involved are worthwhile for your property.
Rhett Dallwitz, General Manager of Agent Services at Aussie, says sellers focused on timing should concentrate on the parts of the campaign they can control.
"The biggest levers are getting the pricing strategy right from day one, presenting the property well and making it easy for serious buyers to inspect," he said.
Preparation may include decluttering, minor repairs, styling and professional photography, depending on the property, budget and sales strategy. Flexible inspection times may also make it easier for serious buyers to view the property.
Organise your sale paperwork
Contact a conveyancer or solicitor early so you know which documents you need and when to prepare them.
Depending on your state or territory and property, this may include:
Preparing or reviewing the contract of sale;
Completing required seller disclosures, certificates or other documents; and
Providing information about the property needed to prepare the sale documentation.
Contract and seller disclosure requirements vary by state and territory. Your conveyancer or solicitor can explain what applies to your sale, including which documents you need to provide and when.
2. Understand your likely sale position and costs
Before setting your price, research what your property may sell for and estimate how much you could have left after selling costs and any outstanding home loan are accounted for.
This is particularly important if you plan to use the proceeds towards your next property, as your sale price and net sale proceeds are not the same.
Estimate what your property may sell for
No property estimate can guarantee your eventual sale price, but researching the local market can help you make a more informed assessment. Consider:
Recent comparable sales: Compare recently sold properties in a similar location, with similar property type, land size, features and condition.
Your property's features and condition: Bedrooms, bathrooms, parking, land size, renovations and overall condition can influence how buyers compare your home with others.
Properties currently for sale: Local listings show what else prospective buyers may be considering.
Local market conditions: Buyer demand, housing supply and recent sales activity can affect your property's market position.
Property estimates and agent appraisals: Use these as additional reference points, not guarantees of what your property will sell for.
An Aussie Property Report can help you research property and suburb information. Consider this alongside other relevant market data and professional advice when deciding how to position your property for sale.
You might also be interested in: Your guide to reading the property market like a pro
Budget for the costs of selling a house
Selling costs reduce the amount you receive from your sale. Depending on your property and circumstances, these may include:
Real estate agent fees and commission;
Property marketing costs;
Cleaning, repairs or styling;
Mortgage discharge fees or other lender costs, where applicable; and
Other transaction costs relevant to the sale.
Costs vary by property, location, service provider and selling method. Where possible, get quotes before listing so you can build a more realistic selling budget.
You might also be interested in: The upfront costs of buying a home
Estimate your net sale proceeds
A simple starting point is: Estimated sale price – outstanding mortgage – estimated selling and transaction costs = estimated net sale proceeds
This is a simplified estimate. Your actual net proceeds will depend on factors including the final sale price, loan payout amount, settlement adjustments, fees and other amounts payable.
If you're planning to buy another home, estimating your net sale proceeds could give you a clearer starting point for your next-home budget.
3. Choose your selling method and real estate agent
Your selling method affects how buyers make offers and how you negotiate the sale. If you appoint a real estate agent, their local experience, marketing strategy and fees can also shape your campaign.
Compare the main selling methods
Common ways to sell a residential property include:
Auction: Buyers compete by bidding. A reserve price may be set in accordance with the rules in your state or territory. Auction procedures and vendor bidding rules vary by jurisdiction.
Private treaty: You advertise the property for sale, and prospective buyers make offers, with the price and other terms generally open to negotiation before acceptance.
Expression of interest (EOI): Buyers submit offers through a set campaign process, often by a nominated date, after which you can assess and negotiate offers where appropriate.
No single method suits every property. Consider your property type, local buyer demand, timeframe and preferred sale conditions when comparing your options.
You might also be interested in: Why more sellers may be choosing private treaty over auction
Compare real estate agents
If you plan to use an agent, compare more than commission. Dallwitz says agent selection should be based on more than the headline commission rate.
"That means choosing an agent based on their performance and track record selling similar properties, the quality of their proposed marketing campaign and their ability to execute, rather than simply choosing the agent with the lowest commission," he said.
Other things to also consider:
Local experience: How well do they know your suburb and its current market?
Comparable sales: Which similar properties have they recently sold?
Selling strategy: Which method do they recommend and why?
Marketing plan: How will they promote the property, and what will it cost?
Communication: How and how often will they update you?
Fees and commission: What will you pay, when, and are there additional charges?
Agency agreement: What are the appointment period, fees, termination provisions and other key terms?
Comparing several agents can help you assess their strategies, fees and local experience before deciding who to appoint.
Pro tip: Aussie Seller Assist service can research your local market and provide a curated shortlist of up to five real estate agents to consider. The service assesses publicly available third-party information, including sales results, listings, customer reviews and track records with comparable properties. You can compare the shortlisted agents and decide whether to appoint one.
4. Set your price and launch the sales campaign
Once you've chosen your selling method and, if applicable, appointed an agent, use your market research to set your pricing strategy and prepare the campaign.
Set your pricing strategy
Consider how recent comparable sales, competing listings, buyer demand and your property's characteristics relate to your chosen selling method. Property pricing and advertising laws vary by state and territory.
If you're using an agent, ask how they arrived at their recommended pricing strategy and how they'll advertise the property throughout the campaign.
Prepare your marketing campaign
Your campaign should give prospective buyers clear information about the property and opportunities to inspect it. Depending on your marketing plan, this may include:
Professional property photography;
A floor plan;
Online property listings;
Property signage; and
Open homes or private inspections.
Before launching, confirm what's included in the marketing package, what you'll pay and the planned campaign schedule.
Monitor the campaign
Once your property is listed, monitor enquiries, inspection attendance, offers received, buyer feedback and activity around competing properties. These indicators can help you assess buyer response but don't predict your eventual sale price or timeframe.
If interest differs from expectations, discuss the feedback with your agent and consider whether to review the pricing or marketing strategy.
5. Review and negotiate offers
When offers come in, compare the full terms, not just the price. Conditions and settlement timing can also affect whether an offer suits your plans. Consider:
Offered price: How much the buyer is offering.
Deposit: The proposed amount and when it is payable.
Settlement date: Whether the timing works with your plans.
Finance conditions: Whether the offer depends on the buyer obtaining finance and within what timeframe.
Building and pest conditions: Whether the buyer's offer is subject to satisfactory inspections, where applicable.
Inclusions and exclusions: Which fixtures, fittings or other items form part of the sale.
Other conditions: Any additional terms attached to the offer.
The highest offer may not always be the most suitable once you consider its conditions and timing. If you're using an agent, they can negotiate on your instructions. Ask your conveyancer or solicitor about the legal effect of proposed conditions before agreeing to them.
You might also be interested in: Negotiating a home purchase: What you need to know
What happens with offers at auction?
If bidding reaches or exceeds the reserve price, the auction may proceed to a sale in accordance with the auction rules and property laws in your state or territory. If bidding doesn't reach the reserve, the property may be passed in, and negotiations may continue afterwards.
Consider the price, conditions and timing before accepting or negotiating an offer, and seek professional advice where needed.
You might also be interested in: Auction bidding tips: How to win your next home in Australia’s property market
6. Agree to the contract of sale
Once you and the buyer agree on the sale terms, you document them in the contract of sale. This generally covers the purchase price, deposit, settlement date, inclusions and exclusions, conditions and other agreed terms. At this stage, the focus shifts from comparing offers to understanding what you're legally agreeing to.
Once the contract becomes binding, the seller and buyer have legal obligations under the contract. Depending on the state or territory and method of sale, the buyer may have cooling-off rights.
Before signing or otherwise committing to the sale, ask your conveyancer or solicitor to explain the contract, your obligations and any conditions that apply.
Buying another property at the same time?
If you're also reviewing the contract for your next home, Aussie's Contract Analyser can provide an AI-generated summary and flag clauses or areas you may want to review further.
Remember, Contract Analyser doesn't replace legal advice. Have a qualified conveyancer or solicitor review the contract and advise you before signing.
Once the sale contract has progressed according to its terms, you can prepare for settlement.
7. Prepare for settlement and mortgage discharge
As settlement approaches, you'll need to complete the remaining legal and financial steps. If there's a home loan secured against the property, this includes arranging to discharge the mortgage.
Arrange your mortgage discharge
Contact your lender early to find out what it requires to discharge your mortgage. You may need to:
Notify your lender that you're selling;
Complete its mortgage discharge requirements; and
Provide requested information or documents.
Processing requirements and timeframes vary between lenders. Starting early gives the relevant parties more time to complete the necessary steps before settlement.
Prepare for settlement
Your conveyancer or solicitor will coordinate the legal settlement process, but you may still need to:
Check the settlement figures: Review the transaction amounts with your conveyancer or solicitor.
Account for adjustments: Property-related costs may be adjusted between you and the buyer, depending on the contract and jurisdiction.
Maintain the property: Keep it in the condition required under the contract until settlement.
Arrange final inspection and access: Make the property available for any required final inspection and organise keys or other access.
Complete outstanding requirements: Provide any documents, information or signatures needed for settlement.
Settlement requirements vary by contract and state or territory. Your conveyancer or solicitor can explain what applies to your transaction.
What happens to the sale proceeds at settlement?
At settlement, the purchase funds are used to complete the transaction. Where applicable, this includes paying out your existing home loan and accounting for adjustments, fees and other amounts due. Any remaining sale proceeds are then paid to you or distributed according to the settlement arrangements.
You might also be interested in: Finalising your first-home purchase: Settlement and conveyancing explained
Ready to sell your home?
Selling a home involves more than finding a buyer. Preparing the property and paperwork, understanding your likely sale position and costs, choosing a suitable selling strategy and agent, assessing offers carefully, and organising the contract and settlement requirements early can help you stay on top of each stage.
Dallwitz says the decision to sell is easier to assess when homeowners look at both the reason for moving and the numbers involved.
"Selling is easier to assess when the decision is based on a clear comparison of the numbers and the reason for moving, rather than pressure or emotion alone," he said.
Estimating potential net sale proceeds after the mortgage and selling costs are accounted for can help provide a clearer picture of the financial position a sale may leave you in. Aussie Seller Assist can help if you're comparing local real estate agents, while Contract Analyser can help you review the contract for your next property alongside advice from a qualified conveyancer or solicitor.
If you're selling and buying another home, an Aussie Broker can help you understand how your existing home loan, explore bridging loan options and how potential sale proceeds could fit into your next-home lending position.
