Selling your home is a big decision, both financially and emotionally. Once you decide to sell there are a number of steps to work through before your house goes on the market. Find out how to set a price for your home, when and how to sell and what happens to your mortgage when you sell your home. It’s time to get ready to sell.
1. Where to start.
Once the decision is made, where do you begin? Well, start right where you are. Before even contacting an agent, you should get the property as close to “open home-ready” as possible by de-cluttering, tidying up the garden and getting it all looking tip-top. Then you can move on to when you want to sell, for how much, how you want to sell and what you want to look for in an agent.
2. How much is my house worth?
The question of how much your house is worth is a big one. There are many factors that will determine just what you should be asking. realestate.com.au can help you find an easy answer to the estimated value of your property using its cutting-edge automated valuation model. The model generates an estimated value for your property through analysis of a broad range of data, including:
- Property type (ie house, townhouse, strata title etc)
- Land size and location
- Comparable sales (ie similar homes that have sold nearby)
- Market trends, current and historical
- Property characteristics, such as the number of bedrooms, bathrooms, garages and the size of the property’s footprint.
You can also get an estimated value using an agent appraisal, a bank valuation and other desktop and automated valuations.
3. How to sell your home.
Residential property in Australia is generally sold in two ways: by private sale or auction. There are quite a few factors you’ll need to weigh up before making the best choice for your situation, including location, property type and demand. Choosing is best done in collaboration with your agent.
Auction vs. private sale
Generally speaking, auctions are especially suited to properties in high demand or that have a unique feature. Auctions are a competitive, public process and this can help really drive up the selling price. And there’s no cooling-off period. For those not so comfortable with this transparent process or who may have a property where demand is not as high, a private sale may be a better option. In these cases, the property is listed with an asking price through an agent, who then markets the property and presents offers back to the seller. These sales are less public, can be less costly than auctions and also include a cooling-off period where the buyer has time to change their mind.
4. Capital gains tax when selling.
The issue of capital gains tax when selling a house is another thing sellers need to understand. Generally, if a piece of property is sold for a gain – which often happens with an investment property – capital gains tax (CGT) is payable. But there are always exceptions. For example, no CGT applies if the property is a person’s main residence, or if the property was purchased before September 20, 1985. Meanwhile, small business concessions on CGT may also apply if the property is used in relation to a business and the taxpayer passes a variety of tests.
5. When to sell your home.
There are a myriad of factors that can determine if now is the right time to sell, so researching your market is the key. Look at similar properties that have sold in your area and find out whether the prices are near what you’re looking for and also if the demand is there. Overall economic conditions, will also play a big part. If there are a large number of “stressed” sales forced by tougher financial conditions, this could drive down prices overall.
Even the weather can play a part. Spring usually sees a spike in house buying in most areas. Or if your house gets good natural light all year round, winter might be best for you, when there’s less competition. Ultimately, supply and demand will play the biggest roles. If there’s high demand and lower supply, this will bode well for your sale. Obviously, your own financial position plays a central role too, so talk to your trusted advisers about when makes sense for you to sell.