What is the process of selling a property, from listing to closing?

Preparing Your Property

Before you list your property, it’s essential to make it as appealing as possible to potential buyers. Clean and tidy your property, decluttering and deep cleaning every room. Consider making necessary repairs, such as fixing leaky taps, patching up walls, or replacing outdated fixtures. These small improvements can significantly boost your property’s value.

Common Challenge: Overlooking minor repairs or leaving clutter can lead to negative first impressions.

Solution: Invest time and possibly a small budget in presenting your home in the best possible light. A well-presented property attracts higher offers.

Choose a Good Real Estate Agent

Choose a good local real estate agent with market knowledge and experience. Your agent will advise you on pricing, marketing and the overall sales process.

Common Challenge: Choosing an agent without thorough research can lead to poor representation.

Solution: Look for an agent with proven experience, positive client testimonials, and a solid marketing plan tailored to your property.

Set the Listing Price

Your agent will help you set a competitive and realistic listing price based on a comprehensive market analysis. Pricing your property correctly is vital; too high, and you risk scaring off buyers, too low, and you might leave money on the table.

Common Challenge: Emotional attachment can lead to overpricing.

Solution: Trust the data-driven advice from your agent and remain objective about your property’s value.

Marketing Your Property

Your agent will create a marketing plan designed to showcase your property’s best features. This plan typically includes professional photography, online listings on major real estate websites, and open houses to attract a broad audience.

Common Challenge: Ineffective marketing can result in fewer potential buyers and a longer time on the market.

Solution: Ensure your agent uses high-quality visuals and targets the right audience through a variety of channels.

Receive Offers

Interested buyers will make offers to your agent. Your agent will present these offers to you and guide you through the negotiation process to ensure you get the best deal possible.

Common Challenge: Receiving low offers or negotiating with difficult buyers.

Solution: Stay patient and work closely with your agent to counteroffer and negotiate terms that are favourable to you.

Accept an Offer

When you accept an offer, both you and the buyer will sign a sales contract. The buyer typically pays a deposit of 10% of the purchase price, which is held in the real estate agency’s trust account.

Common Challenge: Rushing into accepting an offer without considering all terms.

Solution: Take time to review the contract with your agent and solicitor to ensure it meets your expectations.

Conveyancing and Due Diligence

The buyer’s conveyancer or solicitor will carry out searches and due diligence on the property. This includes verifying the title, zoning, and any encumbrances or charges on the property.

Common Challenge: Issues discovered during due diligence can delay the sale.

Solution: Be proactive by providing all necessary documents promptly and addressing any issues raised during this process.

Building and Pest Inspections

The buyer will typically arrange building and pest inspections to identify any underlying issues with the property. These inspections can influence the final sale price or even result in the buyer withdrawing from the sale.

Common Challenge: Unexpected findings can reduce the buyer’s offer.

Solution: Consider pre-emptive inspections before listing your property to address potential problems early.

Contract of Sale and Cooling-off Period

In Queensland, the buyer has a cooling-off period, typically five business days, to cancel the contract without penalty. This period allows the buyer to reconsider their decision and ensures all conditions are met.

Common Challenge: The buyer withdrawing during the cooling-off period.

Solution: Keep communication open with the buyer and ensure that all conditions are transparent and agreed upon upfront.

Exchange of Contracts

Once due diligence and inspections are complete, both parties sign the contract of sale, and the buyer pays a portion of the purchase price (usually 10%). This is a critical step that legally binds both parties to the sale.

Common Challenge: Misunderstandings or miscommunications can lead to delays.

Solution: Work closely with your solicitor or conveyancer to ensure all details are correct before signing.

Settlement

The settlement date, usually agreed upon during the exchange of contracts, is the final step in the sales process. This date typically falls between 30 to 90 days after the exchange. On settlement day, the remaining balance of the purchase price is paid, and ownership is transferred to the buyer.

Common Challenge: Last-minute complications, such as financial delays or unresolved property issues.

Solution: Maintain regular communication with your solicitor and the buyer’s team to ensure a smooth transition.

Handing Over the Property

On the settlement date, you must ensure the property is vacant and in the agreed-upon condition. The buyer will take possession once the final payment is made.

Common Challenge: Overlooking the final condition of the property, leading to disputes.

Solution: Conduct a thorough walkthrough before handing over the keys to confirm everything is in order.

Finalising the Settlement

Your solicitor or conveyancer will provide you with a settlement statement detailing the costs and proceeds of the sale. This step finalises the financial aspects of the transaction, ensuring you receive the correct amount after all fees and adjustments.

Common Challenge: Confusion over fees and final amounts.

Solution: Review the settlement statement carefully with your solicitor to clarify any discrepancies.

Completion of Settlement

The settlement is completed and you receive the proceeds of the sale minus any outstanding costs.

Notifying Relevant Parties

After the sale is complete, it’s essential to notify relevant parties such as utility companies, the local council, and other organisations about the change in ownership. This ensures all accounts are settled and transferred appropriately.

Common Challenge: Overlooking important notifications, leading to complications for the new owner.

Solution: Create a checklist of all necessary notifications and address them promptly after the sale.

Post-Sale Considerations

After the sale, you may need to consider your tax obligations, particularly Capital Gains Tax (CGT). However, various exemptions and reliefs might apply. It’s also a good time to think about how you’ll use the proceeds from the sale, whether reinvesting in property or other ventures.

Common Challenge: Overlooking tax implications can lead to unexpected financial obligations.

Solution: Consult with a financial advisor to understand your tax responsibilities and plan your next steps wisely.

Careful Planning

Selling your home with local independent real estate agents involves careful planning, attention to detail, and effective communication with all parties involved.

By understanding the process and proactively addressing potential challenges, you can ensure a smooth and successful sale. Whether you’re moving on to a new property or simply liquidating an asset, the experience can be both rewarding and straightforward with the right approach.

Author – Craig Douglas

Please Note: The information contained in this document is for general information purposes only and does not constitute legal advice. The laws and regulations governing the sale of property in Queensland are complex and constantly changing. It is important to seek the advice of a qualified property lawyer or conveyancer before making any decisions about the sale of your property. This document does not take into account your individual circumstances and may not apply to your situation. By reading this document you agree that you have not relied on the information contained herein and that you will seek independent legal advice before taking any action.

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Craig Douglas 0418 189 963

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This page was proudly created by Craig Douglas, your local independent Gold Coast real estate agent, working for a Boutique Real Estate Agency. Selling residential and commercial properties, from those that are awe-inspiring, through to a diamond-in-the-rough, otherwise known as a “renovator’s delight”.

I negotiate and sell on behalf of property owners who want to get the best possible price, with the least amount of hassle. Let’s talk about the process of selling your property over a coffee to get you started – 0418 189 963