Many people who are thinking of selling their home really do not comprehend the selling process that is involved. It can be very daunting and stressful to the seller once you have decided to sell your home. Be warned!! I hear it so often, when I was selling residential property in Queensland and now down on Phillip Island, that the sellers rely so much on the advice from the local real estate agent. The most important advice is what price should you list your home at? When you do put your home on the market the most disappointing part of selling is how long your home is on the market for. When your home sells quickly you are so pleased, however the longer you have your home on the market the more stressful it becomes, because you are frustrated your home has not sold and also other factors such as having to keep your home clean and tidy and the outside neat and the grass mown for open homes and inspections. Homes can sit on the market for a long time and the main reason comes down to price and when you first listed your home the price could have been inflated! Or the home sells for a lot more than advertised and this is disappointing to the buyer. The buyers know so much about homes they are interested in purchasing because they do all their research on the internet and will only make an offer if the price is close to their research. This is why auctions are good because properties sell at the current market value. I will talk about this in another Di’s Corner Chat.
Interestingly, the State Government has introduced on May 1 2017, changes to the Estate Agents 1980 and this will strengthen laws against underquoting in Victoria. This is all about the selling price of the property. This is very relevant to the seller and buyer of residential property in Victoria. Under the new law, all estate agents and agents representatives selling residential property in Victoria are required to:
1) set a reasonable estimated selling price :
2) consider the 3 most comparable property sales to the property for sale when setting their estimated selling price :
3) prepare a Statement of Information, in the approved form, for prospective buyers that includes the indicative selling price for the property for sale, the details of the 3 most comparable property sales and the median suburb price :
4) not use qualifying words or symbols to describe the advertised price for a property for sale (if a price is included in an advertisement) and
5) update advertised prices if the estimate selling price is revised.
N:B: If the property for sale is in the Melbourne metropolitan area, the comparable property must be within 2 kilometres and have been sold within the last 6 months. If the property for sale is outside the Melbourne metropolitan area, the comparable property must be within 5 kilometres and have been sold within the last 18 months.
It is so important that you the seller understand this and make sure you do receive three comparable properties before you decide to list your home at a price that is relevant and keep an eye out on the market in your area.
I have my new quarterly Market Report available. This is on my website and being delivered to homes in San Remo, Newhaven, Cape Woolamai and Rhyll in the next week or so. If you would like a copy please contact me on my mobile or by email to receive a copy.
Please contact Dianne on 5956 6837 or 0408 034 080 for your real estate needs.