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Four key steps to maximise your sale price whilst minimising headaches

Four key steps to maximise your sale price whilst minimising headaches
Four key steps to maximise your sale price whilst minimising headaches

It has been the hot topic of conversation around the dinner table for months – should we sell the family home and move.

The pros and cons have been weighted up and the decision has been made. Now the hard part of the process starts as its time to put your most prized asset on the market.

Here, we present four key steps to help maximise your sale price whilst minimise the headaches.

  1. The first step is to choose the appropriate selling agent. You need to do this based on the skills of the agent as an individual, not the reputation or branding of the real estate agency they work in. A glossy appraisal kit may look appealing, but it’s the individual agent who’ll be conducting the marketing campaign and negotiating the sale on your behalf, so try to look beyond the surface to find the substance.

    Find out who is selling the most property in your area and read agent reviews that have been posted by past vendors. The trick is to find an agent who has the experience and reputation required to get you the best possible price but at the same time is not so busy that you simply become a number. It’s wise to shortlist and interview two or three agents before making your choice.

  2. Once you have chosen the best agent it is time to negotiate the fee structure. Most agents will try for a flat commission, varying from 1 to 3% of the sale price. However, don’t feel you have to take this as a given. It takes the same amount of legwork to sell a property on the lower or middle rungs of the ladder as it does to sell a property on the higher rungs. Therefore, the fee should be similar in dollar terms.

    This means that even if you agree to a flat commission, the percentage amount should decrease as the value of the property increases. For example, a 2% commission on a property selling for $500,000 is $10,000. However, if your property is at a different level of the market and sells for $1 million, a commission of 1% will be the same amount in dollar terms.

    Alternatively, you may want to negotiate a stepped commission that rewards the agent for achieving a higher sale price. As an example, if your property is worth around $400,000, you may agree to pay 1.5% if the agent achieves that amount, or 2% if they achieve $450,000.

  3. Third, negotiate the marketing budget. Most agents will recommend a budget of one per cent of the property’s value. As with the selling commission, this percentage should decrease as the property’s value increases. And make sure you’re getting true value for money. Ask the agent to demonstrate that the marketing campaign they’re recommending is genuinely appropriate for your property’s location, architectural style and price level. It’s possible that an equally good result could be achieved with a more economical campaign.

  4. Finally, make sure you’re clear about two figures: a) the price you’d like to achieve; and b) the price the property is likely to achieve when it’s put to the market. If the gap is too wide, you may need to revise your expectations. If the gap is narrow, stand firm and give your agent clear instructions about the minimum price you will accept.

In a nutshell, remember that the aim of the game is to minimise your selling costs and maximise your selling price. By keeping this in mind and following the steps above, you’ll be well on the way to achieving that goal.

Mark Armstrong is a director of ratemyagent.com.au, Australia’s number one real estate agent rating website.

Mark Armstrong

Mark Armstrong

Mark Armstrong is a director of ratemyagent.com.au, Australia's number one real estate agent rating website.

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Investor Tips Mark Armstrong

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