YOU SELL PRE-LISTING GUIDE - Christchurch
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THE DECISION TO SELL YOUR PROPERTY IS A o o s e TOUGH ONE. h HOW TO C We’ve written this guide to give our potential clients some helpful advice and information once you’ve decided to sell, to assist you to plan your property sale. CHOOSE A REAL ESTATE AGENT When it comes to selling one of your most valuable assets, your home, it makes sense to take the time to choose a qualified and knowledgeable sales consultant who has the right tools and strategies at their disposal. Your choice of agent could be the difference between a good price and a great price, a quick sale or being stuck on the market. When speaking with sales consultants, don’t be afraid to ask as many questions as you need to, to ensure you are comfortable and confident with your consultant. On the next page is some key items to consider when making your decision as well as the top five questions to ask when interviewing real estate agents. 2 HARCOURTS HARCOURTSHOLMWOOD HOLMWOOD–– PRE-LISTING MARKETINGGUIDE PROPOSAL 3
e n t CHOOSING Ag AN TOP 5 QUESTIONS HOW LONG HAVE YOU BEEN IN THE INDUSTRY FOR? Experience counts in this Q1 industry and it is a very important consideration. However, we suggest to also take into account listing numbers, past experience and enthusiasm. Sometimes a newer agent with great experience in other industries and plenty of time and dedication available to service your property, is the best choice. Q2 WHAT PROPERTIES HAVE YOU SOLD RECENTLY IN THE AREA? Can you tell me about the process and result and provide a buyer and seller testimonial? It’s important that the agent can show experience in similar properties to your property. More importantly KEY CONSIDERATIONS though, it’s not just that they have sold in the area, but that they EXCELLED in those sales. Asking for some case studies will really separate the great agents from the Choosing an agent to act in your best interest in your average agents. property sale is the most important decision you will make in the process. This decision will define your selling experience, your timeline and days on market and of course it can have a substantial effect on the WHAT PROCESS SHOULD I USE TO SELL MY HOME? Why do you recommend it? final result. Q3 There isn’t one simple answer to this question and each agent might have different recommendations but the key to success is in the details – in the why. Make sure they aren’t just “painting by numbers” but that they are making a custom recommendation 1 2 3 specific to your property and circumstance. LICENCE RESEARCH SUPPORT HOW DO YOU TYPICALLY HANDLE PRICING NEGOTIATIONS BETWEEN YOUR BUYERS Q4 AND SELLERS? Once again there isn’t one right answer but this question will really The simplest consideration first Prior to meeting the agent Finally, you’re not just deciding make the great agent stand out. Your agent should be able to explain a few techniques and foremost is to check if your we recommend doing a bit of to work with one agent you are they use and what circumstances they use them in. One important factor is that they agent is licenced or registered friendly online investigation. choosing an entire agency to should always take offers and complete their negotiations in writing (preferably on a to sell property in New Zealand Check their website, online work on your behalf with your contract) to be as transparent as possible. and if they or their agency is a profiles on realestate.co.nz and agent taking the lead. Make sure registered member of the REINZ. trademe.co.nz, check facebook to research the agency, how Secondly, it is important to check and google for client reviews, many sales they do, who and if they or their office has ever had as well as to get a strong overall how many other agents there action taken against them via the impression of the agent. are (more agents equals more REINZ. All honest and trustworthy buyers), what areas they sell in FINALLY, WHAT HAPPENS IF MY PROPERTY DOESN’T SELL IN THE FIRST 4 WEEKS? agents will be comfortable (do they follow the right migration Q5 This question is one that not many ask but it is really important. Not all sales happen and confident answering these path for your property), what quickly, some properties take longer to find the right buyer and get a deal together. You questions and providing the leadership and administration want to make sure that your agent will work to find the best buyer not just the quickest necessary information. support is available to your lead and that they are going to work just as hard on day 100 as they did on day 1. agent and finally how they work together as a team to achieve the best results for their clients. 4 HARCOURTS HARCOURTSHOLMWOOD HOLMWOOD–– PRE-LISTING MARKETINGGUIDE PROPOSAL 5
o m e PREPARING n g H YOUR M e e t YOUR i POTENTIAL FOR SALE DECLUTTER The first tip is the simplest. It’s a must to clean AGENT and tidy your home before hitting the market and prior to every inspection. It’s crucial to also remove any clutter that could stand in the way of a potential buyer picturing themselves living in the home. That means removing personal nick knacks, photographs and unnecessary furniture within a room not designed for that purpose, for example an exercise bike in a living area. Even if it means putting belongings into storage until the property sells – the investment will be worth it. REPAIR What to expect What to expect Finish any aesthetic repairs well before hitting DURING THE MEETING? AFTER THE MEETING? the market. Your chosen agent should be happy to plan and project manage this for you as part With your permission, the agent should: Before they put the property on the market of their service. Things as small as chipped they will need: • Tour your property doing through every paintwork could detract from the overall feel room, and a complete tour around the • All legal owners and key decision makers of the home. You could also invest in updating outside including any yard space. The to be present to finalise the way forward features like tired curtains, older fixtures and agent should take detailed notes and ask and complete the necessary paperwork. fittings, or laying new turf if you have a patchy questions. They should also find out from lawn. Your agent should be able to complete a you what you love and what you don’t • Public liability insurance information (it pre-sale property audit for you. love about the property. will form part of your building insurance). • Discuss your needs and allow you to set • Strata and/or Disclosure Statements an agenda to make sure they determine as required. how best to assist you. • Keys, codes and combinations for entry STYLE • Answer any questions you may have to the property for home inspections. Once clutter free, consider a home stylist about the service they will provide. • Builders plans (if you have them). or home staging service. The results can be • Provide you with accurate and detailed dramatic. Home stylists will take a look at your • The agent should provide you with a space and loan you the furniture which is the market research that include property detailed daily marketing plan and a size and style best suited for your home. This can sales and current competition. promise calendar of what will happen make a space look bigger, more comfortable and • Discuss a customised marketing plan to each day of the campaign. liveable. Again, this will help potential buyers to suit your desired outcome. see the home in its best light. • Let you know what service items they promise to meet during the campaign. 6 HARCOURTS HARCOURTSHOLMWOOD HOLMWOOD–– PRE-LISTING MARKETINGGUIDE PROPOSAL 7
You must be comfortable with the method chosen should make no difference to the service offered by your agent or the CHOOSING d THE RIGHT o investment in a result. eth SALE M When choosing a selling method your agent should provide you with advice based on your situation. When you need to sell by will be a significant factor in this decision plus who is impacted by the sale and how everyone is feeling about the move. Methods of sale that involve a the property is difficult to price. quick but intense marketing period However it does cause buyers with structured buyer viewing some frustration and only ever opportunities can often be the less recommended for a short period. disruptive choice. Setting a sale date in place allows you to plan ahead DEADLINE: The Deadline Sale and can create urgency for buyers process allows buyers with to act quickly in your favour. There conditional and unconditional are four key methods that you can interest to put their offers forward by choose from to sell your property. an end date. Priced or No-Price, Deadline Sale AUCTION: Selling by Auction is the a private treaty contract or Auction preferred option for many. This is under a public sale contract. because the property is generally PRICED: A private treaty campaign is on the market for a shorter time, e fl xible and can be adapted easily to and has the highest sales success meet the market requirements. The rate. An intensive, high profile property is marketed with a price guide. auction marketing program attracts Which can be adapted throughout genuinely interested, cash-in-hand the campaign. This campaign allows buyers. These buyers are focused buyers to put forward offers subject to on the maximum price they’ll pay conditions such as n fi ance and building not how low their offer should be. & inspections. Combined with the excitement of the big day it’s this natural level of NO PRICE: The same campaign competition that helps establish the type as “Priced” however with the highest possible price on the day. pricing indicator removed. This is sometimes recommended when 8 HARCOURTS HARCOURTSHOLMWOOD HOLMWOOD–– PRE-LISTING MARKETINGGUIDE PROPOSAL 9
S a l e THERE IS p i n i o n o MORE TO PRICE THAN METHODS PRIVATE TREATY DEALINE SALE AUCTION MARKETING PERIOD MARKETING PERIOD MARKETING PERIOD HOW BUYERS BUY TODAY • All buyers have equal • Buyers focus on the property not • Buyers focus on the property not opportunity to put offers forward the price the price • Buyers often decide to view • Buyers enter the emotional • Buyers enter the emotional based on price process: like > want > need process: like > want > need LOCAL SALES PRICES ACHIEVED • Buyer can offer straight away • Deadlines can be accepted up • Buyer seeks financial approval until deadline date to bid • Requires marketing planning for 8 weeks. • Seller may consider a premium • Hold buyers until auction day COMPETING PROPERTIES CURRENTLY offer and sell prior. FOR SALE • Seller may consider a premium NEGOTIATING • Sometimes multiple buyers in DEADLINE DAY oe ff r and sell prior. BEST DAYS ON THE MARKET private competition • Multiple oe ff rs considered AUCTION DAY PRICE • Negotiate with each offer • One chance for buyers to be • Multiple buyers in open individually chosen as the most favourable competition • Negotiations on conditions, offer • Bidding up not negotiating down PROPERTY APPEAL TO BUYERS settlement and price. • Offers submitted are confidential • Buyers see the value is real • Buyers fear losing the property • Buyers fear losing the property CONDITIONAL PERIOD CURRENT MARKET CONDITIONS • Buyers justify paying more to win. • Building Inspection NEGOTIATING • Valuation & Finance • Negotiate with most favourable contract NEGOTIATING The most difficult task for most sellers is To help, here are some things you should know: • Other Conditions determining the value of their property. • Negotiating first with cash bidders • Negotiations on conditions 1. The current market determines the value • Finding and holding back-up settlement and price. • Once sold under the hammer The advertised price of your home must be of your home so make sure to study the buyers there are no conditions just right. If you price it too low, you lose money current real estate market facts and figures. • Re-negotiating if required and if you price it too high you’ll lose buyers. CONDITIONAL PERIOD • Open negotiations to non cash That’s where its important to work with an 2. Research shows that the properties that • Settlement. • Building inspection, valuation & buyers after auction if necessary. agent with comprehensive market knowledge sell the quickest also sell the closest to finance, other conditions and expertise in property pricing techniques. their initial asking price. • Finding and holding back-up buyers When interviewing agents sometimes 3. Buyer interest is greatest for your • Re-negotiating if required sellers might simply choose the person who property within the first three weeks • Settlement. suggests their home is worth the highest of hitting the market. value however, in practise, this can be a risky 4. The longer a property sits on the market move if that agent hasn’t provided compelling the more likely it will attract a lower price. data to support their pricing suggestion. SOLD SOLD SOLD 10 HARCOURTS HARCOURTSHOLMWOOD HOLMWOOD–– PRE-LISTING MARKETINGGUIDE PROPOSAL 11
con d i CURRENT MARKET. t i o n s A TYPICAL BUYER STEP JOURNEY START... 01 RESEARCH ...BUY • Properties and prices. Market conditions are less important to you if you are both selling and buying in today’s market. For example, any disadvantages STEP you might experience as a seller will be an advantage to you as a buyer. NEGOTIATE • If negotiations 02 are unsuccessful they‘ll offer on their REFINE second preference or start again • Their budget • Locations SELLERS’ • Property types BALANCED MARKET STEP • Their viewing list BUYERS’ MARKET • More buyers looking to buy than 05 MARKET • Equal number properties for sale of buyers and properties • Properties are quick FINE TUNE • More properties for to sell VIEW sale than buyers • Narrow their focus STEP looking • Properties take • Multiple offers increase prices achieved to one or two properties and make an offer on • Compare properties for value 03 longer to sell their first choice. • May change budget and criteria. • Sellers lower their prices to sell STEP 04 12 HARCOURTS HARCOURTSHOLMWOOD HOLMWOOD–– PRE-LISTING MARKETINGGUIDE PROPOSAL 13
WHEN YOU LIST WITH HOLMWOOD ...you’re not just deciding to work with one agent e r you are choosing an y FINDING Bu entire agency to work on your behalf with your YOUR agent taking the lead Finding the right buyer BUYER REACH INTEGRATED HIGH TECH HIGH TOUCH for your home requires MARKETING Day 1 HIGH PROFILE MARKETING your agent to leave no stone unturned. Buyers receive notification of any Maximum The many websites and portals we buyer new properties entering the market advertise property on are far reaching. reach that matches their criteria and so However, because there are thousands enquiry from the internet is highest of properties listed, online buyers use High buyer More buyer in the first few days. However, search criteria to create a shortlist of enquiry inspections enquiry then slows quickly. It is Day 30 properties to view in their preferred The essential to launch your property to location and price range. Multiple Shorter seller has the market with a comprehensive oe ff rs time on power in 30 to 60 day campaign using online The right agent will design a submitted market negotiations portals, social media, database comprehensive high tech and high technology, print media and touch marketing strategy to attract the targeted marketing activity. maximum number of buyers to the property as early in the campaign as Day 60 possible. This activity generates energy No buyer Risk of no Longer competition and competition between buyers to make offers time on or urgency a favourable offer before they miss out. market attracts low offers Less Fewer enquiry inspections Limited Day 60 buyer reach LOW PROFILE MARKETING 14 HARCOURTS HARCOURTSHOLMWOOD HOLMWOOD–– PRE-LISTING MARKETINGGUIDE PROPOSAL 15
Ne g o t i a t i n g ACCEPTING AN OFFER WITH YOUR Once you have come to an BUYER agreement on price, conditions and settlement period for the purchase - both parties will sign the contract and initial any alterations. Most agents in New Zealand use the REINZ approved contract which has been written by the Auckland Law Society. The final agreed contract will include the agreed price, deposit details, When you receive an offer on your property you conditions of sale, and settlement period as well as the standard have three options – accept the offer, decline the contract conditions and disclosures. offer or counter-offer and continue negotiating If the property sells by auction there with the buyer. will be no added conditions and no cooling off period, the standard auction deposit is 10% and standard settlement period is 30 days from One of the most important traits of a great 3. Before you counter-offer or accept an date of contract. agent is their ability to negotiate on your offer make sure your agent calls every behalf. The negotiation process is a bit like buyer that has been through the home Some common conditions of sale are: balancing on a tight rope, you want to get first to triple check there is no further • Finance the most out of the buyer without pushing interest from any other party. A multi- them so far that they walk away. Once you offer scenario is the best chance for a • Building report lose a buyer in the negotiation process it is great price. very difficult to get them back to the table. • LIM Report 4. If there are multiple offers make sure Here are some important points to be sure your agent follows the REINZ guidelines • EQC Report of before you start the negotiation process and receives every offer on contract, and with any buyer: has every buyer sign a multi-offer form. • Sale of another property 1. This goes right back to the beginning of 5. You aren’t simply negotiating price, but • Due diligence or specialist searches the process – make sure you have tested also conditions and settlement period – • Body corporate or council searches the agents negotiation skills prior to remember to make sure you understand signing with them – a great negotiation and are happy with all aspects of the If there are conditions on the sale can land you thousands more in your contract. of the property your agent should back pocket. continue marketing your home and completing inspections until the 2. Make sure the agent gets every offer in sale is confirmed. writing and that you don’t counter offer until it’s on contract (some buyers will submit a letter of offer prior to contract). 16 HARCOURTS HARCOURTSHOLMWOOD HOLMWOOD–– PRE-LISTING MARKETINGGUIDE PROPOSAL 17
leting There is lots to organise Comp and remember so make sure to ask your agent for a moving checklist – this will help to make sure you don’t forget anything. THE SALE Once all the conditions (if there are any) have been met you’ll receive correspondence from your buyer (often via their solicitor or conveyancer) confirming they are satisfied and the conditions are at an end – this means the contract is now “unconditional” and the last part of the process is awaiting settlement. In this time you can start preparing On settlement, the solicitors will for your move. There is lots to exchange the monies and transfer organise and remember so make documentation. They’ll also provide sure to ask your agent for a moving documentation to your agent for checklist – this will help to make sure approving the release of the keys to you don’t forget anything. the buyer. The purchaser is entitled to inspect Within a few days of settlement the property at an agreed time the purchaser’s solicitor or - normally in the week prior to financier will register the necessary settlement, and as the seller you documentation and mortgage must hand over the property in the transfer with the Land Titles Registry. same condition in which it was sold. Settlement then takes place on the settlement date agreed on the contract (normally between 30 and 90 days from contract date), and is generally organised between the buyer and seller’s legal and financial representatives. Officially, this is when ownership passes from you to the purchasers and the balance of the sale price is paid to you or your financial institution. 18 HARCOURTS HARCOURTSHOLMWOOD HOLMWOOD–– PRE-LISTING MARKETINGGUIDE PROPOSAL 19
Ho l mw WE ARE o o d Since 1991, people have been at the heart of what we do. It was true then, and it continues to be true, today. We’ve seen how buying or selling a home changes people’s lives and we work with our clients throughout the entire process to make sure they get the results they’re happy with. From industry leading sales personnel to an established track record that sees Holmwood ranked highly within Harcourts every year, we don’t just promise to deliver, we deliver on our promise. Our experience has taught us that the happier we make people, the better we do. It’s something we don’t take for granted and why we love what we do. And it’s why Harcourts Holmwood are your kind of people. 20 HARCOURTS HARCOURTSHOLMWOOD HOLMWOOD–– PRE-LISTING MARKETINGGUIDE PROPOSAL 21
OUR PROMISE OF SERVICE TO YOU Our Promise to you is your assurance that you will have access to all documents, marketing and scheduled activities to do with your sale at every step of the way. We will be diligent in providing YOUR feedback to you after every showing of your property. We will closely monitor market activity in your area that could impact on your sale and prepare regular reports to keep you fully informed. We will be transparent in our TRUST communication and accountable with regular meetings scheduled with you to discuss our progress. When it comes to negotiating, we will e only present you with offers in writing OUR r t i s from buyers that we have qualified p e as having serious intent and ability to x purchase your property. E You said, “I think of Harcourts when I think real estate.” Just one of the reasons New Zealanders voted us the Most Trusted Brand for the 9th year in a row. Find where you belong. 22 holmwood.co.nz Harcourts Group Ltd Licensed REAA 2008 Your
OUR o u SERVICE Y TO 1 2 3 PRE-MARKET PRIOR PREPARATION PRESENTATION & PROPERTY AUDIT PROJECT MARKETING 1 Pre-Market Property Audit MANAGEMENT No matter whether you are planning If your pre-market audit has Marketing your home is made up Prior Preparation to hit the market tomorrow or in 12 highlighted some cosmetic updates of many components including 2 months time. At any stage in your or maintenance items that you advertising, communication and Project Management decision making process, a member would like to remedy prior to selling, follow-up. of our team is happy to meet with but you don’t know where to start, 3 Presentation and you to complete a pre-market audit many of our agents are also able Our team will work with you to Marketing of the property for you. assist with project management of create a customised marketing plan the repairs. that includes online advertising, This includes a visual inspection print advertising as well as specialist 4 Showtime and confirmation of pricing range This includes choosing the right communication with our database of and marketing strategy, as well service providers from our extensive buyers. as a property condition audit and trade lists, sourcing quotes and 5 Buyer Interaction recommendations of any repairs or overseeing the work. Your agent will work through our and Offers property updates required to make “Marketing Menu” with you to select sure we get the highest price possible the best plan for your property and out of the pool of buyers interested in your budget. 6 Contract Negotiation properties similar to yours. 7 Under Contract 8 Sold 9 Settlement 24 HARCOURTS HARCOURTSHOLMWOOD HOLMWOOD–– PRE-LISTING MARKETINGGUIDE PROPOSAL 25
WE LIKE TO THINK OF ALL OF OUR CLIENTS AS ‘CLIENTS FOR LIFE’. We are here for you from this moment on. Whenever you need us. 4 5 6 7 8 9 SHOWTIME BUYER INTERACTION CONTRACT UNDER CONTRACT SOLD SETTLEMENT & OFFERS NEGOTIATION Buyers rarely purchase without first Your Harcourts Holmwood agent All contract negotiations will be Once your property is under Firstly – Congratulations! Your home Finally, the big day has come. It will seeing your home in person, and will respond to all buyer enquiries completed on a REINZ certified contract we often still have some will be classed as ‘Sold’ once it feel like a whirlwind – particularly sometimes multiple times prior to promptly (normally within a couple contract written by the Auckland conditions, such as a building either sells under the Hammer or if you are moving out of one home making a decision. We make our of hours of receipt) and will aim to Law Society. report, to work through until the after all contract conditions have and into another all on the same day properties available for both private arrange a viewing of the home at property is officially ‘sold’. been met. At this point your agent (if you are selling an investment you inspections and open homes (where the next available open home or via Your Harcourts agent will also will meet with you to put up the might not even notice). possible) and are as flexible as private inspection. use the REINZ multi-offer process Your Harcourts Holmwood agent Sold sticker (its always lovely to get possible with buyers to remove all the if there is more than one buyer will be working in two directions a photo for the album at this point - On this day the solicitors and barriers to ensure as many as possible Post inspection, your agent will interested – this involves all buyers during this time. the end of an era!). financial institutions will organise potential buyers see your property. provide you with the feedback from signing a statement confirming they the transfer of title and money at the buyer on their interest in the are presenting their best offer and Working with the successful Your agent will let other buyers a particular time (normally in the Our agents attend every inspection property and also organise further that they understand that they are in buyers to help them get through know the property is now sold and afternoon). After this time, your real and provide you with feedback inspections or a time to take an offer competition with other buyers. all their conditions and questions, they’ll update the online marketing. estate agent will receive notice as quickly as possible after the from them. including organising and attending from both legal representatives inspection has finished. Any buyers Your Harcourts Holmwood agent is building inspections, valuations Your Harcourts agent, as part of confirming transfer of ownership and through your home will receive All offers presented to you by your here to help you get the best price and additional buyer inspections. our service, can also assist you allowing us to release the keys. multiple points of contact from our Harcourts Holmwood agent will be not the quickest sale, so they will We also help the buyers source with a variety of other services team post their inspection via phone taken in writing (no verbal offers). work tirelessly between yourself and conveyancers, inspectors and including but not limited to: We are here to help on this day if calls, texts and email to ensure we your prospective buyer to put a deal brokers if they need our help. All to conveyancing, moving services, you need anything or have forgotten Whenever an offer is received we will together that you are happy with. help keep the sale together. utilities connections, property to organise anything – please don’t answer all their questions and give do everything in our power to contact management or rentals, and hesitate to call! them multiple opportunities to re- all other parties that have inspected Your agent will be honest and Secondly, your agent will still be mortgage broking. Let us know inspect and of course put forward the property or shown strong interest, upfront throughout the process and out finding back-up buyers for your what more we can do to assist you We like to think of all of our clients an offer. before negotiations begin. will concentrate on providing you home on the off chance that the between now and settlement. as ‘Clients for Life’ – we are here for with as much information and data first contract does not complete. you from this moment on. Whenever as possible to assist you in making This means your agent will often Between today and settlement you need us. the right decision for your future. keep holding open homes and day (normally a day or two prior inspections until the property sale to settlement) your buyers will becomes unconditional. likely complete a pre-settlement inspection to confirm the property is in the same condition their purchased it in. 26 HARCOURTS HARCOURTSHOLMWOOD HOLMWOOD–– PRE-LISTING MARKETINGGUIDE PROPOSAL 27
FENDALTON 51 Holmwood Road Christchurch 8014 Phone: 03 355 6116 Email: fendalton@harcourts.co.nz ILAM 292 Clyde Road Christchurch 8053 Phone: 03 351 6556 Email: ilam@harcourts.co.nz ILAM 2 (Head Office) 397-399 Ilam Road Christchurch 8053 Phone: 03 351 3002 Email: ilam2@harcourts.co.nz MERIVALE Level 1, 175 Papanui Road Christchurch 8014 Phone: 03 355 6677 Email: merivale@harcourts.co.nz ST ALBANS 142 Sherborne Street Christchurch 8014 Phone: 03 377 0377 Email: stalbans@harcourts.co.nz holmwood.co.nz
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