Selling Real Estate Frequently Asked Questions
What is an exclusive listing?
With an exclusive agency agreement, you give only one agent the rights to sell your property. This may entitle the agent 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.
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 and unhurried. 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. Let the agent run the open home, the vendor should leave the property.
Why is it important to declutter an open house?
Decluttering involves removing personal items as much as possible 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. Modern homes and decor tastes also tend to lean towards a more sparse presentation, while 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.
What does 'overcapitalised' mean?
The term 'overcapitalised' refers to a situation where you have spent more money on your property than you will recoup from the 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 currently rented?
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.
In some cases, the fact your property has reliable tenants in place may actually be appealing to prospective investors.
Do I pay a commission if I sell the property myself?
If you sell the property yourself, whether or not you have to pay the agent a commission will depend entirely on the agreement you signed with them. 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 conveyancer for 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.
Find out the value of your property with a free property appraisal with LJ Hooker.