Part I
The Great Australian Dream
Glenn Lumsden
‘Now there are three of us, I think it’s time we sell the tree house and move up to a bouncy castle.’
In this part . . .
Like buying a home, selling a property is something most people do only once or twice in their lifetimes — which can make it a mysterious and scary proposition. Chapter 1 talks you through the basics and helps you mentally prepare for the process. In Chapter 2 I help you decide if it’s your only option; sometimes renting or renovating is a better choice. If you do go ahead with the sale, Chapter 3 will help you determine the best time to sell; should you only ever sell in spring, and should you sell first then buy, or the other way around? Chapter 4 explains what property professionals do, and how to identify a good real estate agent who you can trust, as well as other professionals you need to deal with like valuers and solicitors. I also discuss putting your home on the market yourself to save on the real estate commission and expensive advertising.
Chapter 1
Assessing the Dream: Aspects of Selling Property
In This Chapter
Finding out when people sell their homes and why Making sure you’re mentally ready to sell Defining the two main methods of sale Realising your beloved home is a commodity Employing professionals at every step of the process Surviving inspection days and moving on after the sale Selling a home is one of the biggest transactions you’ll ever make in your life. Given the cost and effort involved, and because selling property is something you do so rarely, you’re probably filled with anxiety just thinking about it.
How can you get the best price on the sale? What work do you need to do to prepare your property for sale? Who should you get to sell it for you? These are just a few of the decisions to be made, and many people decide that selling is all too hard, and that they’re better off staying where they are. Others figure that they can just leave it to their real estate agent to take care of everything.
But even if you do join the 95 per cent of Australians who use a professional to sell their homes, it helps to have some understanding of what’s involved. Going into the selling process armed with knowledge gives you a sense of having some power over the process rather than feeling manipulated by forces beyond your control.
In this chapter, I look at what’s involved in selling a property, and help you work out whether you’re up for it at this stage of your life. I talk about different selling methods, how property prices are set in Australia and your home as a commodity. I give you an overview of the professionals you can employ, surviving inspections and what to do after a successful sale.
Selling a Home Isn’t an Everyday Activity
According to the Australian Bureau of Statistics, typical Australians move ten times during their lifetimes; around once every seven years. These moves may include a move or two during childhood, then moving out of the parental home and into a series of rental properties. Later on in life, most people buy and sell around two or three properties.
Plenty of life events can prompt the decision to relocate: You and your family may have outgrown your current home; you may need to move for work purposes; or you may be planning to have children and want to live in an area close to a good school, parks and other facilities. Or, your move may be motivated by the desire to take advantage of real estate price rises in your particular area. Perhaps you want to sell up in order to move to an area where you can buy a property more cheaply and pocket the difference.
Selling a property is expensive (see Chapter 2). You need to pay real estate agent commissions and legal fees, as well as the costs of relocating to your new home. While selling isn’t quite as expensive as buying property (mainly because you don’t have to pay stamp duty when you’re selling the property), if you’re also buying another property, you add those costs to your overall outgoings. Before you make the decision to sell, you may want to think about whether taking this road is really necessary. Can you achieve the same goal in another way without having to put your property on the market? In Chapter 2, I help you judge whether selling is the best strategy and suggest ways you might be able to achieve your objectives without going through the expense and effort of selling your home.
Getting Psychologically Ready to Sell
Moving house is up there with the most stressful events in life. You have to say goodbye to a home, and a community, that may have been a source of security for some years. Then you have to prepare your home to get it into a state where others can see its appeal as their home. That can involve a lot of physical and emotional work, not to mention the upheaval of having your home on show to prospective buyers.
Dealing with the various professionals, such as valuers, real estate agents and solicitors, can be another source of stress. Then there’s the financial juggle involved in selling your home and buying another. The process of selling your home can take at lea...
