FAQs
What is an exclusive listing?
What is an auction agency agreement?
Benefit of an auction?
What to do on Auction Day?
Selling by Private Treaty?
What is the agent's role at an open house?
Why should I be out during an open house?
Why is it important to declutter an open house?
How long should it take to sell my house?
How much should i spend on preparing my house for sale?
Can I sell my property while it is leased?
Do I pay a commission if I sell the property myself?
Can I sell my house by myself?
What is an exclusive listing?
With an exclusive agency agreement, you give Coleman and Co. Real Estate the rights to sell your property.
This entitles Coleman and Co. Real Estate to be paid a commission if the property is sold during the fixed term of the agreement, even if you or another agent were responsible for the sale.
An exclusive listing arrangement is most commonly used for the sale of residential properties.
A sales agency agreement exists between you and the real estate agent who is helping you to sell your property.
This arrangement outlines the amount of fees or commission payable by you for the real estate agent's services. A commission is usually only due when the sale of the property is completed.
The extent of the real estate agent's authority to act in your behalf - such as to exchange or make changes on a sale contract - is also stipulated within this document.
You have the right to negotiate with the real estate agent about the terms and conditions of the agreement and to ask for any legally-permitted changes to be made.
The sales agency agreement usually involves a fixed term - a specified amount of time during which time it cannot be ceased unless accepted by both parties.
In the event that you are unhappy with any of the real estate agent's services, it is essential to officially bring the sales agency agreement to a close before signing up with a new organisation - otherwise both might be able to charge you a commission when the property is sold.
What is an auction agency agreement?
An auction agency agreement is effectively the same as an exclusive agency agreement, except that it specifically applies to a property you are attempting to sell at auction rather than privately.
If the property reaches a sale at the auction, you will be required to pay the real estate agent a commission.
Benefit of an auction?
An auction date creates a sense of urgency for buyers and generates a competitive environment. If a buyer is looking for a house like the yours they will most likely be at the auction or make offers before the auction.
A shortage of quality properties in your area drives great results.
You’re protected by a reserve price and with no ceiling you’re more likely to exceed your expectations.
What to do on Auction Day?
On site auctions require preparation by the seller as there is likely to be a lot of people in your home for one last inspection, so be sure your home is still looking its best. You may pick up a buyer at the last minute and you certainly don’t want to deter buyers that are there to bid. Be sure to always keep valuable secure, there will be a number of people walking through the property and your agent will not be able to keep an eye on everyone at the same time.
A professional auctioneer will make sure the auction process happens in an orderly and legal manner. They will be able to encourage competitive bidding and a fun, energetic atmosphere.
Your agent will assist the auctioneer by encouraging buyers to bid and will also need to confirm with you once your reserve price has been reached.
Set up a suitable area to hold the auction. Usually it is held in the garden or on the front footpath, however your agent and auctioneer will be able to guide you.
Make sure you agree with your agent whether they want you to be present at the auction or to hide away. The auctioneer and/or agent may feel it is better that you are not present at the auction, as in your excitement you may telegraph your position to buyers and therefore affect further bids.
All bids at the auction must be acknowledged and recorded by the auctioneer or their assistant; this ensures there is no misunderstanding over who has bought the property and for how much.
Selling by Private Treaty?
Sale by private treaty requires the seller to set a price from the beginning of the campaign.
Your agents appraisal or Valuers valuation will assist you in deciding on a Price.
Many sellers have a tendency of initially setting a higher price as they think buyers are likely to negotiate the price down. Doing this can be counterproductive, so this is when an experienced agent becomes a vital source of information.
Ask for guidance from your Agent when establishing your asking price and refer to comparable sales in your area.
In general, sale by treaty gives the seller greater control over the sale, more time to consider offers by potential purchasers and the ability to extend the time the property is listed on the market (although this often leads to potential purchasers wondering why the property is not selling). Plus potential purchasers must make offers on your property 'blind', this means without knowing what other buyers are willing to pay.
Generally, private treaty sellers can negotiate the price and sale terms with the buyer. Private treaty sales usually have a cooling off period 5 days in NSW, this means that once a price has been agreed between buyer and seller, the sale is still subject to conditions. For example the buyer may have requested a building and pest inspection or may require finance approval.
What is the agent's role at an open house?
An agent's job at an open house inspection is to listen closely and observe attendees to gauge buyer interest and motivation.
By engaging in conversation, the agent can learn more about a potential buyer's specific circumstances and requirements. This helps the agent to discuss the aspects of the property relevant to the buyer.
At the same time, buyers may need to view the property without pressure and talk about it with someone they have brought along. A good agent will be aware of this and only engage in conversation at appropriate moments.
Why should I be out during an open house?
Getting a buyer to picture themselves living in the property - sometimes referred to as 'mentally moving in' - is one of the most effective ways to generate serious interest.
For this to be achieved, it is essential that they feel relaxed. Buyers do not wish to intrude on the current owner's space, so your presence can sometimes act as a deterrent for them to stay longer and continue to consider the property carefully.
Why is it important to declutter an open house?
Decluttering involves removing personal items prior to an open house, in order to help the buyer imagine themselves living in the property.
A first impression often lasts and excessive belongings can make a home seem smaller, darker and less airy than it really is. Too much clutter can leave buyers with the sense that finding storage space might be problematic.
How long should it take to sell my house?
Once your home is placed on the market, the length of time it takes to sell depends on a number of circumstances.
The biggest factor is how much you want to make for the property, with auction generally proving to be the most effective way to sell it for the best price in the shortest possible timeframe.
An auction can secure you a quick sale because buyers are compelled to act on the day or risk losing the property to somebody else.
How much should i spend on preparing my house for sale?
You do not want to over spend on preparing your house for sale, however, you do want to invest some money and time in presenting your house so that you get the best sale price.
While it is likely that any work you have done - such as landscaping or interior construction - will add value to the property, there is no guarantee that the full amount spent on these improvements will be seen in the eventual price of sale.
Can I sell my property while it is leased?
You are able to sell your property while it is being leased, but any potential purchaser must be told there is a current lease in place and that the property will not be sold with vacant possession.
The tenant has the right to occupy the residence until the end of the lease term, unless both parties negotiate and agree to terminate the existing agreement.
If your property has tenants it can be appealing to prospective investors. Good tenants may be an added advantage to an investor who plans on leasing the property. You may wish to consult the current tenant and ask if they would like to stay on in the property if it is suitable for the buyer.
Do I pay a commission if I sell the property myself?
It will depend entirely on the agreement you have signed with Coleman and Co. Real Estate.
In many cases you may still need to pay the commission as, for example, it is likely that the promotional activities undertaken by the agent exposed the buyer to the property on the market.
You should talk to your agent about this issue, or alternatively take a copy of the agreement to your solicitor or professional advice.
Can I sell my house by myself?
It is not a legal requirement to use an agent to sell your property - you may elect to undertake the process yourself.
However, there are many reasons why people generally engage the services of a professional to ensure the best price.
Aside from the obvious expertise in marketing, negotiation and selling that an agent brings, most buyers also prefer not to deal directly with the seller. If buyers know you are not paying for an agent, they will usually expect to see the house price reduced accordingly.
In the end, selling a property on your own might lead to a lot of work and pressure, without actually saving any money or maximising the end sale value.