NEWS
Home Selling Process: A Guide to Getting Started
Many Australians have various motivations for selling their homes. Whether it’s the need for more space, life changes, or simply a desire for something new. After careful consideration, pondering questions like “How do I maximise my homes value?” and countless conversations, hundreds of thousands of homeowners opt for the thrilling journey of selling their property each year.
Once this decision is firmly made, the question arises: Where should you start? The answer is quite simple—start from where you stand. It’s crucial to prepare your property to be as close to “ready for open homes” as possible. This involves decluttering, sprucing up the garden, and ensuring everything looks impeccable. Those walls you painted blue in a fit of creativity might not be as universally appealing to prospective buyers, so neutral tones often work best.
It’s valuable to speak to an agent in these early stages, as they can provide insights and advice on how to best prepare your home for sale. With the property prepped, you can then move on to deciding the timing of the sale, the desired price and the preferred selling approach.
Preparing for a successful sale
Deciding to sell your home is a significant decision that involves both financial and emotional aspects. Once you’ve made the choice to sell, you’ll need to navigate several key steps before your house can be listed on the market. Explore how to maximise and set your sale price, when and how you can sell, and what happens to the mortgage when you sell. The journey to prepare your home for sale is underway.
The question of how much your house is worth is an important one. Determining the value of your house involves considering various factors that influence the ideal asking price. You can assess the estimated worth of your property through:
– Local Real Estate Agent appraisal
– realestate.com.au
– domain.com.au
– property.com.au
These experts and online platforms take into account a range of essential data points to formulate an accurate valuation. This comprehensive analysis involves:
– Identifying the property type (e.g., house, townhouse, strata title)
– Evaluating the land size and geographical location
– Studying comparable sales (homes with similar features sold in the vicinity)
– Analyzing current and historical market trends
– Assessing property specifics, such as the number of bedrooms, bathrooms, garages, and the overall property size.
With this insightful assessment, you can obtain a holistic valuation that provides a solid foundation for making informed decisions about pricing your property for sale.
How do I know what my house is worth?
When selling a property, you must make several decisions, and one of the most important ones involves choosing the method of sale: auction or private sale. We cover this topic in another blog which breaks down the pros and cons of each method of sale, here.
Auctions, often featured on TV, foster a competitive and public process that can drive up the selling price by creating a sense of urgency among buyers. In contrast, private sale is a more traditional and popular method. Here, the property is listed with an asking price through an agent who markets the property and presents offers back to the seller.
It’s important to speak to your preferred agents and determine which method would be most suitable for your home sale.
Let’s talk about methods of sale and considerations. Should I sell my home via Auction or Private sale?
If your property is currently occupied by tenants, it’s important to take their situation into account. Tenant rights differ across states, and it’s essential to understand the specific regulations in your state. The course of action for selling a property with tenants in place varies based on whether the likely buyer is an investor or an owner-occupier.
If you envision the property attracting an owner-occupier, your approach to managing tenants takes on added significance. While landlords have the legal right to sell their property at any time, a fixed-term rental lease remains legally binding until its stipulated end date. Consequently, working collaboratively with tenants is vital if you intend to sell. There are options to terminate a tenancy agreement prematurely through mutual agreement and it’s best to speak to your property manager first.
My investment property is tenanted, and I want to sell it.
Understanding capital gains tax (CGT) implications when selling a property is a vital aspect for sellers to grasp. Typically, when a property is sold at a profit, such as with an investment property, CGT becomes applicable. However, exceptions do exist.
Navigating the landscape of CGT entails various exemptions and concessions, each with the potential to lower your overall tax obligation. Familiarizing yourself with these options and seeking expert financial counsel from a financial advisor or accountant is an important step to optimize your financial outcome.
What is capital gains tax when selling property?
Determining the optimal timing for selling your property involves a comprehensive assessment of various factors, making market research essential. Analyzing recent sales of similar properties in your vicinity can provide insights into pricing trends and demand patterns. Additionally, broader economic circumstances exert a significant influence. Instances of heightened financial stress might lead to more distressed sales, potentially impacting overall property values.
Interestingly, even climatic conditions can exert an influence. Spring, for example, often experiences increased property buying activity across many regions. Conversely, if your property benefits from abundant natural light throughout the year, the winter season might be advantageous due to reduced competition. Ultimately, the interplay of supply and demand stands as a pivotal determinant. Favorable outcomes are more likely when demand outpaces supply.
Naturally, your personal financial situation is a crucial consideration. Engaging with your trusted advisors to align the timing of your sale with your financial goals is advisable.
