Making the decision to sell your property can be a difficult one. It is important to research the market in order to gain an understanding of the approximate price you may be able to obtain as well as the price of another property if you will be re-entering the market again. In some cases, you may be better off holding onto your property until the market picks up or even undertaking renovations on your current residence to either live in or sell.
Following your research, if you make the decision to list your property, it is recommended to choose an agent. Your agent will be in charge of advertising your property, undertaking the showings and completing the necessary legal requirements involved. Finding an agent you are satisfied with can be a difficult process. A local agent that is knowledgeable of your suburb and is likely to have a solid client base accessible to them is always desirable. It is helpful to ask for information on their recent sales in the local area, including the final sale price and how long the property was on the market. Try to avoid choosing an agent solely based on the initial quote they provide, rather look for experience, marketing strategy, negotiation skills, their fees, commissions and contracts and finally their interpersonal skills.
Once you have chosen an agent you will sign an agreement with your agent that will outline agent commissions, duration of the agreement, advertising costs, estimated sale price and other relevant information. Following this you will need to organise the preparation of the Vendor's Statement (section 32), which will be completed by your solicitor/ conveyancer. This will detail all of the information required for the prospective purchasers.
When your property is on the market, the agent will arrange the advertising and showings, and once an offer is made, the agent will negotiate the price on your behalf, or alternatively organise the auction process. When a sale price is agreed on, the purchaser will usually pay a deposit and the contract will be prepared by the seller’s real estate agent or their solicitor/ conveyancer.
A transfer document is prepared by the purchasers solicitor/ Conveyancer, which is signed by the purchaser and stamp duty paid and then forwarded to the vendor’s solicitor/ conveyancer for the vendor to sign.
Settlement then occurs on the day the purchaser pays out the remaining balance of the purchase price. A final search of the property is obtained and the title documents are exchanged for payment. The seller’s solicitor/ conveyancer will make contact to advise settlement has taken place and will submit the required documentation.
Conveyancing Process for Sellers.
Conveyancing is the process of transferring the ownership of a property from one person or entity to another and is a required step when someone buys or sells a residential or investment property.
- Preparation of the Contract of Sale: Depending upon which Australian state the transaction is taking place in, either the Vendor’s Real Estate Agent or Solicitor/ Conveyancer prepare the Contract of Sale. Under various laws the contract must contain specified documents, certificates and disclosures. In most states and under usual circumstances the Vendor’s Real Estate Agent facilitates the negotiations and exchange of contacts.
- Exchange of Contracts: If the vendor accepts the purchaser's offer, contracts are exchanged and an agreed upon deposit is paid (usually 10%) and is held by the real estate agent or solicitor/ conveyancer. If a Real Estate Agent is involved, the buyer needs to advise the of their solicitors/ conveyancers details so the contact can be forwarded. If there is no agent involved, the buyer needs to ensure the contract is delivered in a timely manner.
- Cooling Off Period: Once the contracts has been signed and exchanged a cooling off period (which varies from state to state) allows the purchaser to rescind the contract during this time. Please note, cooling off periods do not apply to auction sales.
- Finance: If the contract is subject to finance, the purchaser needs to provide a copy of the contract to their financial institute and advise of their solicitor/ conveyancers details.
- Transfer of Property Titles: A transfer document is prepared by the purchasers solicitor/ Conveyancer, which is signed by the purchaser and stamp duty paid and then forwarded to the vendor’s solicitor/ conveyancer for the vendor to sign.
- Settlement: A property is said to settle on the day the purchasers pays out the remaining balance of the purchase price. A final search of the property is obtained and the title documents are exchanged for payment.
- Post-Settlement: The purchaser’s solicitor/ conveyancer will contact any relevant parties to advise of the transfer and will forward payment of transfer duty to the appropriate State Revenue Office. A letter is usually sent to the purchaser by their solicitor/ conveyancer containing the settlement statement and copies of searches that were carried out on the property.