Prior to starting the process of selling a property, take the time to think and talk about what you want to achieve.
Important things to know before your start the selling process
- It’s helpful to have an idea of the current market value of your home before you start planning to sell. A real estate agent will evaluate the current market value of your property before presenting an appraisal and submission proposal for you to consider. An appraisal should be based on a visit to the property to assess its condition. The agent should also compare your property to comparable local sales. The submission will explain the services the agent can provide and the agent’s opinions on how to best market your property.
- Think about what you can do to get the best price for your property and to make it ready for marketing. Your property should be presented at its best to get the best price when you come to sell. Think carefully about major renovations – you may not get your money back if you tackle big jobs like remodelling the kitchen or bathroom before selling. Budget thoroughly if you decide to go ahead. Ask your agent what they would recommend before you commit to any big renovations as agents may have ideas to spruce up the property without breaking the bank that still allows you to achieve a successful sale.
- Consider how you want to sell your property and with what method. Most property sales in New Zealand are by advertised price, deadline sale or by negotiation. A buyer can make a conditional or unconditional offer at any time when a property is being sold at an advertised price with no time limit. In a deadline sale, a property is marketed for a set period with an advertised end date. Price by negotiation may be used when it is difficult to estimate the price a property is expected to sell for. Potential buyers make offers based on their perception of the properties market value and the seller will negotiate with them on price. Your agent will present any offers to you on a standard sale and purchase agreement. If there is more than one offer, the sale may turn into a multi-offer process. You don’t need to accept the highest offer. You can accept any or none of the offers, and you can negotiate, through your agent, with anyone who submits an offer. A property auction is a fast-paced, public sale. The property is sold to the buyer with the highest bid after the seller’s reserve price is reached. If you are selling a property by auction, you will need a sole agency agreement with an agent, and you must set a reserve price before the auction. The reserve price is the lowest price you are willing to accept for the property and is confidential to you, your agent and the auctioneer. When a property is being sold by tender, buyers make confidential written offers to the agent before a deadline. Buyers’ offers may be conditional, and you can also attach conditions to the sale, for example, stating the settlement date or listing the details of the chattels that come with the house.
- Understanding the multi-offer process This process is intended to give all potential buyers an equal opportunity. It is not like an auction where an agreement is automatically formed with the successful bidder. The seller is not obligated or expected to accept any offer. You may accept one offer, reject all offers, or choose to negotiate further with one party. Multi-offer processes can differ from agency to agency, but they can only be described as multi-offer when there is more than one offer in writing.
- And lastly Always talk to your lawyer first