Once the decision to sell has been made, a lot of questions suddenly arise that had not required consideration up to that point. Asking and answering the questions that arise prior to acting will ensure a plan emerges to guide you through the process.
Is it best to buy or sell first?
Most people hope to buy and sell on the same day. Very few achieve this near impossible feat. Instead of aiming to buy and sell on the same day, the real goal should be to settle both transactions on the same day. So regardless of whether you buy or sell first, aim for a delayed settlement. Then use the delayed completion to execute the second transaction with a joint settlement date on the purchase and sale.
If you have a choice between selling first and buying under pressure or buying first and selling under pressure, it’s usually safer to buy under pressure. The risks are definitely higher when you buy first – knowing these risks is crucial prior to acting.
How many agents should you interview?
If you are a first time seller or selling for the first time in a long time, meet a multitude of agents. Whether you like and respect real estate agents or not, once you employ one, they are negotiating with your money. You owe it to yourself to locate the right one. If you are an experienced property seller, you will be in a much better position to identify the right agent, even if it’s the first one you meet with.
Does everything sell by auction?
Two facts, firstly real estate agents love auctions. They love auctions more than consumers do. Many consumers are talked into auction against their intuition. The second fact is the minority of properties in the Inner West and Sydney as a whole sell at auction. The vast majority of properties sell by way of negotiation. Agents will push the sense that ‘everything goes to auction in this area’ to justify the sale process. Understand the facts before falling for the spin.
Where should we price the home?
Price high? Price low? No price at all? It’s a challenge to know what the correct price for your home is prior to listing, particularly if there is a variance in the agent’s estimates. One seller in Newtown recently received a spread of $1 million from the five agents they interviewed. If you price too low, you mislead buyers & run the risk of setting a low expectation in the marketplace. If you price too high, you can turn the best buyers off your home.
The best price to list at is a market price. A market price is the price point where there is more than one interested buyer, without duping buyers into bidding on a property they are unable to afford. A few genuine buyers will create sufficient buyer interest and competition for you to ascertain the best buyer in the marketplace for your property.