Book Excerpts
(from Stage 1: Getting Organised and Getting Started)
Properties are most commonly valued by comparing them to similar properties sold recently in the same area. For residential properties, the term “similar” includes being of the same housing type (house or unit), having the same number of bedrooms, bathrooms and car spaces, and having roughly the same land size. As discussed earlier, there may also be a number of other positive features that enhance a home’s value and allow it to achieve a higher sale price. Every home is unique, and adjustments need to be made to reflect these differences.
For example, if your home is an older single-storey weatherboard house with 3 bedrooms and 1 bathroom, it is unreasonable to expect it to achieve the same sale price as a modern double-storey house with 5 bedrooms and 2 bathrooms, even if they are located on the same street. However, it is possible for an older, unrenovated house on a large block of land to achieve a higher sale price than a new townhouse on a smaller block, purely because of the development potential of the larger-sized block.
You can easily research homes that have sold in your area on real estate websites, such as domain.com.au and realestate.com.au. Once you start meeting with selling agents (discussed later in Stage 3), they must, by law, also provide you with comparable sales information. It is possible to go back as far as 6 months, but remember that economic conditions and property values can change quickly, and older sales may not reflect current values. Focus your attention only on those properties that are most similar to your home.
(from Stage 2: Preparing Your Home for Sale)
Stage 2 looks at the physical actions needed to get your home ready for sale. This can seem daunting at first, depending on the size, age and condition of your home. However, you don’t need to spend a lot of money. At an absolute minimum, any broken, damaged or unfinished items should be attended to. Your home should also be cleaned thoroughly. These simple steps will help eliminate any buyer concerns and achieve a faster sale.
Your overall aim when preparing for sale is to enhance your home’s features, eliminate any weaknesses and create a good first impression. You need to allow sufficient time for this stage. It may include efforts to de-clutter and add value through styling, minor renovations or other improvements. I would allow at least a month, depending on the work required, before you even think about contacting selling agents.
So, what’s the best way to get started? If there are other neighbouring or nearby homes for sale in your area, they are your competition! Don’t be afraid to inspect these properties yourself to see how they are presented and what makes them attractive. You can borrow ideas and apply these to your own home.
Following that, I strongly recommend taking the time to do a comprehensive audit of your home, both inside and out. This involves walking around in an organised way, noting any items that need attention and ideas to increase your home’s appeal. For example, you can think about how to rearrange major furniture items to create a greater sense of space and flow. You may also identify simple renovations or styling enhancements that are likely to add immediate value to your home.
(from Stage 4: Marketing, Advertising and Inspections)
Your agent should use the most cost-effective methods to market and advertise your home to genuine buyers. There is no point wasting your money on this activity if it isn’t targeted to the right people! Be aware that the buyer of your home may live locally, in other parts of the state, or even interstate. Of the homes I have sold over the past 20–25 years, 3 buyers lived in the same or nearby suburbs, one lived 100 kilometres away and one was interstate. To cover this spread of buyers, you will generally benefit from a mix of online advertising as well as more localised methods.
As noted in Stage 3, your agent will discuss the various marketing and advertising options available and the costs of each when you first meet with them. Total marketing and advertising costs are likely to start at several thousand dollars, and are separate to agent commissions. One thing to keep in mind is that if you decide to withdraw your home from sale, marketing and advertising costs must still be paid. Also be aware that advertising of homes for sale is a prime way for agents to promote themselves and their business.
It is ultimately up to you to decide on what marketing and advertising methods you want to use, and this will be agreed in writing on the Exclusive Authority form provided by the agent.
At a minimum, the following methods or strategies are recommended:
- Professional photography (including site/floor plan)
- Online advertising (on the major real estate websites)
- Physical (“For Sale”) signboard and printed brochures
JASON HERATH 