WA first time seller guide

Coming to the decision that you are going to sell your home can seem intimidating. There are lots of things to consider, like is it the right time to be selling? Should I buy or sell first? Or what price should I advertise my property for?

As a seller, you have two things in mind: getting the best price for your property and finding your next property at the best price, while also having to live somewhere throughout the process.

Whether you are selling for the first time, upgrading or even downsizing, trying to juggle the purchase of a new home whilst trying to sell your existing home is a logistical dilemma that many West Aussies face.

This guide will walk you through the key stages of selling your property, starting by helping you with a swift transition from finding owners for your current property and becoming homeowners to your next property.

Assess the current market

Deciding whether to buy first or sell first really depends on the current market as well as your personal situation. Typically, sellers may rely on renting as a temporary solution if they are not ready to buy or haven’t found their next home yet. However, if this is not achievable nor is staying with friends or family, then you would be faced with having to buy your next home first.

In a seller’s market and when the market is strong, it is common for people to buy their next home first, as it shouldn’t take long for their current home to sell.

However, in a buyer’s market, it would be better to sell first, keeping in mind that you can extend the settlement date to allow time to find a property. If you can avoid having two loans running at the same time, then you will have more financial flexibility.

We have broken it down so you can consider the advantages of buying first and selling first, so you can make the best decision for your circumstances.

Selling first

Advantages

• Know exactly how much capital you have made.
• The sale of the old property essentially funds the new property.
• It is clear how much you can borrow from the bank for your next home.
• You may have the opportunity to extend the settlement date to allow for more time to find your next home.
• You aren’t paying interest on two home loans at the same time.

Disadvantages

• When you sell, there is pressure to leave the premises by the settlement date.
• Prices could rise between you selling and buying your next home.
• You might need to find alternative accommodation if you are still on the hunt for your next home.

Buying first

Advantages

• Buying first works well in a seller’s market.
• If you’re in a financial position where you can take out a second loan, buying first is a good option as you can move out on your own terms.
• If you have built up equity, you can use this to fund your next home.

Disadvantages

• Your old property could take longer than anticipated to sell.
• The climate of the market could change while your property is on the market, getting less than you originally evaluated.
• You must be able to manage two home loans.
• Your borrowing power may be reduced.

Before putting your home on the market, ensure you take the time to self-educate and learn your rights and legal obligations as a seller.

Whilst your licensed real estate agent will be able to guide you every step of the way, there are certain things about your property that you must disclose to the agent, and this is within your responsibility to do so.

On the contrary, it is just as important that you are aware of your rights, so you can have as much involvement in the sale process as you like.

Seller’s rights

Determining the sale price

Once you have your property professionally appraised by your real estate agent, you have the final say in the asking price. Your real estate agent may guide you with this and help you through the negotiation process if you get an offer, however the final decision on what to advertise your property for and what you accept will come down to you.

Determining the marketing strategy and method of sale

As a seller, you can work with your real estate agent to determine the marketing strategy. Your real estate agent will give you their professional advice and present to you their marketing strategy, however ultimately, you have the final say in this as well as the method of sale (auction, digital auction or private treaty).

As well as the marketing strategy, you also are able to work with your real estate agent to determine the advertising strategy and voice what you think will work best for your property. You can choose how much you would like to spend on advertising as well as what channels to advertise your property through.

Outlining the terms of conditions

Every sale is unique in regards to the special terms and conditions. They are usually on your terms to reflect your situation and the specific requirements of the sale.

It is within your rights to outline things such as your chosen settlement date, how much deposit is required and any other special requirements of the sale that apply to all buyers.

Rejecting or negotiating offers

As a seller, you have the right to accept offers or reject offers. You can reject an offer if it wasn’t high enough or you are unsure if the buyer will be able to get a loan. However, it is illegal to reject an offer based on discrimination against the buyer.

You can also choose to initiate a counteroffer, in which your real estate agent will be able to begin the negotiation process on your behalf.

Enter into an enforceable contract

You have the right to enter into a contract at any point. If you are happy with the offer, then the settlement process can be underway.

Restrict entry to the property

When your property is on the market, you have the right to determine when home-opens are to take place, and you can restrict access at any time to suit your lifestyle.

Seller’s obligations

When it comes to disclosing information about your property, the area is not so black and white. In order to achieve the best outcome for your sale, we recommend being totally transparent and honest with your real estate agent about your property.

As a seller, some of your obligations include:

• Disclosing facts material to the proposed transaction, such as planned road widening which would reduce the front verge or that the property contains asbestos.
• Buyers need to be made aware if any additions or renovations to the property do not have Council approval, such as pergolas, studios, outdoor spas etc.
• Being honest about the representations of the property. You cannot lie about local government planning zones or the working order of the facilities.
• Not engaging in misleading and deceptive conduct. You cannot hide faults by placing a chair in front of it.

Selling your house comes with a myriad of expenses, right from putting it on the market through to moving out.

Whilst it is important to understand these costs before jumping in, you shouldn’t always go for the cheapest route.

If you determine a budget and plan of how much you want to put into the sale of your home, you will reap the rewards of a more successful sale.

Here are the key components of selling a home which come with a price tag.

Agent fees

Real estate agent commissions are not set by law and vary amongst agents and different suburbs. The rates for real estate agents in WA fall between 1.5 and 3.5 per cent. For example, if you sold your home for $800,000 and the commission rate was two per cent, the real estate agency would be paid $16,000 in commission. Agent fees are generally quoted inclusive of GST.

There are various ways to negotiate the commission. There’s a fixed rate, where the agent and seller agree on a fixed fee for the sale of the property, and no matter what it sells for, the fee is set. Or there’s a ‘percentage of sale’ fee, where the agent is paid an agreed percentage of the final sale price. You and the agent will agree on the fee before signing into an agreement.

Selling your property through a real estate agent who is a skilled negotiator has many advantages. You are far more likely to achieve a higher sale through a real estate agent than if you were to sell on your own.

Marketing costs

How much you spend on marketing costs will come down to the strategy you want to take. Marketing packages can vary depending on the duration of your marketing campaign and the depth of marketing. Typical marketing expenses consist of signage, listings on reiwa.com, photography for the listing, advertising and more.

If your licensed real estate agent has a reiwa.com subscription, then they will have access to a whole range of products and services designed to get your listing maximum exposure and in front of others.

Ultimately, if you want more reach and exposure for your property, make sure to budget more for the marketing costs.

Conveyancer fees

Conveyancing is the official transfer of legal ownership of property from one party to another. We encourage all sellers to enlist the services of a conveyancer to ensure that you understand everything in the process of transferring ownership. A conveyancer will ensure all the legalities of the sale process are adhered to. Generally, you would want to set aside anywhere from $800 to $2,000 for conveyancing fees. Again, the price will depend on the nature of the sale.

Lender fees

In the case where you still have a mortgage on the home you are selling, your lender will charge you a mortgage discharge fee. This could be anywhere from $150 to $1,500 and takes between 14-21 days to process. These costs are normally agreed upon in the mortgage agreement.

Staging costs

Be prepared to splash some cash if you want your home to stand out above the rest. Styling your home for sale can cost anywhere from $2,000 to $6,000. The stylist will arrange your home so that it will permit the largest number of people to see that they can live in your home. Purchasing decisions are often subjective so it will be money worth spent.

Repair and maintenance costs

In the lead up to the sale, there may be some small renovations needed to boost the attractiveness of your property to ensure it’s ‘move-in ready’. This can be as minor as fixing a scratch on the wall or as major as completely redoing the kitchen. If you plan to do any renovations, have a conversation with your real estate agent to determine what items are necessary and to make sure you don’t overcapitalise.

Once you’ve made the decision to sell, one of the first things you’ll need to do is hire a real estate agent to handle the marketing and transactional process of selling your property.

Choosing a real estate agent is a big decision, so it pays to be thorough and do your due diligence to ensure the agent you select is the right fit for you.

Here are our top tips to keep in mind when searching for an agent.

1. Always use a REIWA real estate agent

The first thing to do when searching for a real estate agent is to check that they are a member of the Real Estate Institute of Western Australia (REIWA).

Using a REIWA agent to sell your property provides you with the absolute confidence that your interests are being protected.

The key benefits of listing your property with a REIWA agent are:

• Access to standard real estate transactional documentation that REIWA owns, such as the Offer and Acceptance Forms.
• REIWA agents are required to continually update their education and professional training.
• REIWA agents are required to hold professional indemnity insurance to ensure your protection.
• REIWA agents have automatic access to the latest market information, historical trends and industry intelligence to help give their clients an advantage at market.
• REIWA agents can list your property for sale on reiwa.com - the most successful and high-profile real estate portal operated by any real estate institute in Australia.

2. Do your research

Before choosing an agent, it’s a good idea to do a little research on local agents in your area to find the best fit for you and your property.

You can use an online tool like reiwa.com AgentFinder to find and compare local agents in your area. You can search by location, agent or agency name and compare data including recent sales, listings, awards and more.

Attend some home opens and observe how the agent engages with the prospective buyers.

Once you have narrowed your search down to two or three agents, you can then approach these agents or agencies directly and set up meetings with them to see who you feel the most comfortable with.

3. Have a list of questions prepared

Now that you’ve narrowed down your search to two or three agents and are setting up meetings, it’s a good idea to have a list of questions prepared to ask them. This will give you a good reference point to compare their answers and help you make a more informed decision.

Some questions you might want to consider asking are:

• Have they been achieving the seller’s asking price?
• Will they be the only agent working on your sale or will other agents be involved?
• What are their marketing strategies?
• How would they suggest advertising your property for sale?
• What is their communication style and how can you contact them?
• How are they different from other agents?
• How much are their fees?

4. Look beyond the cost of an agent's fees

It can be tempting when dealing with large sums of money to choose the agent or agency that has the lowest fees.

While the cost of an agent's service should absolutely factor into your decision-making process – it shouldn’t be the driving force.

Instead, make the key focus their reputation, previous sales history, their successes, marketing strategy and how well they communicate with you.

It’s important to remember that the cheapest agent is not necessarily the best agent, and making your choice solely based on how much they charge could cost you in the long run.

A common question sellers ask is how an asking price for their property will be determined.

Deciding how much your property is worth can be achieved in two ways. Your licensed REIWA real estate agent can provide you with a property appraisal or you can hire a property valuer to give you a valuation.

Property appraisals are the most common. This is a service that will be offered by the agency you sell your home through and will be done by running a comparative market analysis to determine the best price point for your property.

Property valuations are generally better suited to situations where you are required to provide a more exact figure (eg to secure a home loan or establish the value of a property for a legal dispute). This is a paid service that is separate from the service your agent will offer as part of selling your home.

There are five key factors that need to be considered when setting an asking price:

1. Location

The suburb and street of your home is arguably the most important factor in determining how much your property is worth. Prices can vary dramatically depending on what suburb you’re in. For example, A four-bedroom house in Cottesloe will be worth a lot more than a four-bedroom house in Cooloongup.

2. Land value

The bulk of the value of your home will be tied up in the land. While the suburb you’re in plays an integral role in what that land is worth, the size and position of that land will also factor into your property’s overall value.

3. Market conditions

Market conditions play a big role in how your agent will determine the market value of your property. If the market is slow, your property will be appraised lower than if the market was strong.

Currently, WA is in the middle of a property boom. Homes are selling quickly and at higher-than-expected prices, with 15 per cent price growth expected to be achieved in WA during the 2021 calendar year.

Your agent will look at how your local area is performing, how similar homes are selling in your area, and what kind of competition you are facing.

4. Property characteristics

The features of your home will also factor into how the price of your home is estimated. Things like solar panels, a double garage, swimming pool and air-conditioning are factors many buyers covet and can add to the value of your home. Likewise, not having some of these features could see your property valued at a lower price than a home that does have them.

5. Renovations and improvements

In some instances, it can pay to invest in upgrading your home. For example, renovated bathrooms and kitchens in older-style homes are often held in high regard and can lift the value of your home. If you are renovating or upgrading for the sole purpose of increasing the value of your home, it’s important to seek advice to ensure you don’t overcapitalise. Be strategic and focus on the improvements that will get you the most bang for your buck.

When listing your property for sale it is important to have an upfront discussion with your REIWA real estate agent about their process and strategy for setting an asking price.

There are many different avenues you and your REIWA real estate agent can take when listing your home for sale.

Most agents will agree that a multi-pronged attack is the best way to target a wide range of interested buyers. The wider your net is thrown, the more likely you are to attract a bigger pool of people who are genuinely interested in buying your property.

The more interested buyers you have, the more competition there will be to secure your property, and the more likely it is that you will achieve or exceed your asking price when sold.

Some of the marketing and advertising options available when selling property include:

• Advertising your property for sale on real estate websites like reiwa.com. Ask your agent about how you can upgrade your listing to maximise exposure.
• Selling your property Off-Market.
• ‘For sale’ signboards out the front of your home that target local buyers in the area.
• Paid advertising in the real estate section of your local newspaper.
• Paid advertising on online news websites.
• Paid promotion across social media channels like Facebook and Instagram.
• Direct email marketing to their agency’s database of interested buyers.
• Local letterbox drops.
• Home opens.

To ensure you get the most out of your advertising, you should also consider investing in professional photos and a virtual tour video to help elevate your chosen marketing avenues and give buyers greater insight into your property.

REIWA real estate agents are highly skilled in promoting properties for sale and will be able to guide you down the right path. For instance, they might advise you to start slow, test the water with an online advertisement on a property portal, then build from there if necessary, or they may think your property would be best served using a multi-stream marketing approach.

Before listing with an agent, be sure to discuss with them the marketing services they offer their clients and which strategies they feel would work best for your property.

Search for a REIWA agent in your local area now.

Presentation is very important when selling a home. Even in a strong market where buyer demand is high like WA is currently experiencing, a well-presented home can still make a big difference to buyers and improve your chances of a successful sale.

This doesn’t mean spending lots of money or undergoing full renovations as there are plenty of quick, easy and transformative hacks that can leave a lasting impression on buyers.

Remember, a buyer is likely to attend many home opens before finding the right home, so here is how you can present your home in its best light:

1. Prepare a plan and budget

First things first, you should determine your selling price and use that as the basis for how much money you want to pocket into this project. Having a budget designated to revitilising your home will keep you from overcapitalising or getting carried away.

Identify your property’s flaws and work on those. Write a list of things that need attention and how much time and money you are willing to put in. Spend wisely and don’t overspend on things that won’t matter.

2. Clean and de-clutter

It’s that simple and is probably the number one rule when presenting your home for sale

Buyers want to visualise themselves in your home, so make it easy for them. They don’t want to be looking at someone else's dirty dishes or dusty trinkets. Ensure your benchtops are as clutter-free as possible and wiped down. The same goes for the bedrooms and bathrooms - make sure the beds are made and the bathroom is tidy with towels in their correct places and clutter put away if possible.

3. Repair and revitalise

Many people aren’t looking to buy a fixer-upper and can be turned off if your property needs work. If there is something that is broken, make sure you do the due diligence and get it fixed before buyers start walking through the door.

There are also ways to spruce up your home without putting a huge dent in your pocket. For example, replacing the cabinet doors, door handles, benchtops or adding in a splashback are some low-cost ways to revamp your home. Remember, kitchen and bathrooms sell houses!

If you think that renovations are needed, chat to your real estate agent about the pros and cons and if your property needs it to achieve a better sale price.

4. Furnish wisely

Sometimes, a quick reshuffle of furniture can really maximise the space that you are working with. You don’t need to push everything out of the way in order to make it feel more spacious, just moving the right things in the right places can really make the difference you need.

Generally, neutral colours work best when staging a home to make it presentable to the average person, however adding a touch of colour can also boost the atmosphere and be more memorable.

If you need inspo, check out the reiwa.com Pinterest page.

5. Let there be light

Natural light is your best friend when it comes to presenting your home in its finest form. Open all curtains to allow for some natural sun glow. If there are any dark rooms or corners, put in some alternative lighting.

Having a bright home will create a sense of openness, leaving a lasting impression on potential buyers.

6. Engage the senses

Whilst it is important to present your home so it looks visually appealing, the same goes for smell. Add some aroma to your home through air fresheners or by lighting a scented candle. This will make it pleasant at home opens and eradicate any bad smells.

7. Check your plants

It might sound silly, but if you have any dead plants, remove them! Whether it be indoors or outdoors, make sure that you present your plants nicely, just like the rest of your home. A dead garden or dying plants reflects a lack of responsibility, which may make the buyer wonder what else in the property has been neglected.

But, if alive and looking well, plants can really transform a space and are encouraged as part of the staging process.

8. De-personalise

In order for a buyer to truly picture themselves living in your home, the canvas needs to be as blank as possible. Put away any photographs, awards, bills or anything else personalised away for the home opens. Buyers generally don’t want to attach the seller to the purchase, so removing anything that identifies you will better your chances of a successful sale.

9. Leave no stone unturned

Ensure that you have cleaned and checked everywhere, including the garden/outdoors and any storage spaces. A buyer’s attention to detail means they are leaving no nook and cranny unseen, so you should do the same thing so no parties are unpleasantly surprised.

10. Get a second opinion

Sometimes, what you think looks good might not be someone else’s view and you will never be able to please every type of buyer. However, it’s always good to get a second opinion on how your home looks and feels to an outsider. A friend, or family member may be able to give good insight, from a different perspective. They can put themselves in the shoes of a buyer and walk through your home, potentially spotting things out that you may have missed.

The art of negotiation is an important skill to have when selling property.

The good news about selling your property via a REIWA real estate agent is that they are experts in property negotiation and will help guide you through the process to ensure the best possible outcome.

In a fast-paced market like Western Australia is currently experiencing, you may find yourself presented with multiple offers, and it’s important to know how to handle that.

Instinctively you may want to simply go with the highest offer, but there are other factors to consider that may influence your decision so it's important to evaluate each offer carefully. What factors should you consider?

Here are four factors that might impact your decision when evaluating an offer for sale.

1. The dollar value - First and foremost, you want to look at the dollar value of their offer. How does it compare to the appraised value that the agent provided? Is it an offer you’d realistically consider? Would you like to present the buyer with a counteroffer?
2. The deposit – Is the buyer willing to put down a deposit? If so, this is usually a good sign that they are a serious buyer and have their finances in order – meaning a smoother settlement process.
3. Payment type - While most buyers will require assistance from a bank to buy a property, there are some buyers who are in the fortunate position to pay in cash. Buyers who can offer cash know they are at an advantage as their sale is a guarantee. Cash-paying buyers who are aware of this advantage, may offer you slightly less money for the property in return for a speedier sale. If selling quickly is a priority for you, this might impact your decision.
4. Special conditions - When presenting you with a formal offer, the buyer has the opportunity to include ‘special conditions’ into their contract that would need to be met for the sale to go through. This can include things like; the buyer needing to sell their own home before buying yours, that the sale is subject to finance, or even something as small as them wanting a piece of furniture included in the sale. It is assumed you, the seller, will have a current Safety Clearance Certificate relating to RCDs for all circuits – power and light and an adequate number of hard wired smoke alarms. Additionally, it is not unusual for buyers to make their offer conditional upon a building inspection report and a timber pest inspection report (both of which the buyer will pay for). They may also wish to include a seller warranty that all plumbing, electrical and gas appliances are in safe and serviceable condition at settlement.

Responding to the buyer’s offer

When you receive an offer on your property, you have three avenues up your sleeve.

1. Accept the offer

If you are happy with the amount of money they have offered as well as the conditions included, then you can simply accept the offer without any back and forth.

2. Counter the offer

Arguably the most common response is to counter an offer. You would use this option when you are seriously considering an offer but have some reservations (whether that would be about price or conditions). You may only need to counter once, or you might go back and forth a couple of times until you reach an agreeable solution.

3. Reject the offer

If the offer the buyer presented does not come close to meeting your expectations, whether because the sale price is too low or their special conditions are too complicated, you have the option to simply reject the offer. While the buyer is still entitled to present you with another offer, you run the risk of not hearing back from them if you reject their offer without countering.

Whatever option you choose to do, be sure to work closely with your REIWA agent and heed their advice about what is a fair and reasonable outcome for your circumstance.

So, you’ve received an offer you’re ready to accept – now what?

An offer to buy a property is usually presented using both the Contract for Sale of Land or Strata Title by Offer and Acceptance form and the Joint Form of General Conditions for the Sale of Land (commonly referred to as the General Conditions).

REIWA owns the wording of the Offer and Acceptance form and is a joint owner of the General Conditions with the Law Society of Western Australia. These standardised forms are the most widely used in Western Australia.

Be sure to read both forms carefully before signing as they are legally binding. Your REIWA agent will sit and go through the forms with you to ensure you are aware of exactly what you’re signing and any special conditions that might have been added by the buyer. Once you and buyer(s) have both signed, this becomes a legal contract. There is no cooling off period for either party. Meaning, the contract cannot be broken if the buyer changes their mind or if you receive a better offer from another buyer – you are both bound by the terms of the contract.

For more information about property contracts, visit the Department of Mines, Industry Regulation & Safety website.

Both buyers and sellers have legal requirements they must fulfil to finalise the sale. This is referred to as the ‘settlement process’.

As part of the legal contract you enter in with the buyer, you would have established a ‘settlement date’.

The settlement date is the date that the purchase price is paid to the seller and the buyer becomes the owner of the property. The settlement date becomes the deadline for all the conditions and promises made in the contract to be completed. It’s important this is completed on time as there can be hefty penalties for any setbacks. A minimum of four to six weeks is generally recommended for the period between the contract date and the settlement date.

Most buyers will hire the services of a settlement agent or solicitor to assist with the settlement process and ensure the buyer and seller meet their obligations. This is a complex legal process, so it pays to hire someone to make sure you do it right.

Your settlement agent or solicitor will arrange the following on your behalf:

• Ensure that all relevant parties have fulfilled and met their obligations on the Offer and Acceptance form in the lead up to settlement.
• Arrange for payment of stamp duty to the Office of State Revenue.
• Ensure the property is free from restrictions or encumbrances on the transfer of title.
• Prepare and verify all the necessary documents to enable a smooth settlement.
• Liaise with your mortgage broker, lender, and real estate agent (if applicable) to ensure your finance or discharge of mortgage is in order, your final inspection has occurred, and all parties are ready for settlement.
• Adjusts your rates and taxes to take into account when you take over possession of the property.
• Settle any outstanding payments with the local council, water and land tax authorities (and strata company if applicable).
• If the property is leased, then obtaining lease documents and determining whether any rent paid prior to settlement will be paid to the buyer.
• Provide you with a settlement statement advising you of the funds due to you once settlement has been completed.
• Coordinate settlement date with all necessary parties.
• Attend settlement on your behalf and advise you once settlement has occurred.
• At settlement, the balance of the purchase price will be handed over to the seller’s settlement agent or solicitor and the buyer’s settlement agent or solicitor will ensure that documents are registered so that the title reflects a change of ownership.
• Lodge all documents with Landgate to ensure the successful transfer of title to the buyer.

What happens after settlement?

On the day of settlement, the buyer officially assumes legal ownership of your property.

Once the final documents have been signed and the adjustment statements have been reconciled, both parties will advise the REIWA agent, in writing, that settlement has occurred – which will authorise the agent to release the keys to the buyer.

Congratulations, the sale of your home is now official!