Selling a home or other residential property can be very stressful. Good home selling advice and tips can help reduce the stress. There are several matters you need to consider before you even think about selling your home.
It is important to sort these out, as it could cost you money if you don’t!
This information is based on selling a home in New South Wales. However, many of the principles apply in any Australian State, even though the practice will vary from State to State.
The initial questions you need to ask and resolve before deciding to sell your home or other residential property are:
- Do you need a Solicitor or Residential Conveyancer?
- Do you need a Contract?
- Do you need a Real Estate Agent?
- What is the sale price to be?
- How much money will your bank or lender want?
- Will you have to pay tax?
Do You Need A Solicitor Or Residential Conveyancer?
You have to decide whether you want to pay a professional to do the legal side of selling your home, which is known as residential conveyancing. That is what you are doing when you engage a Solicitor or Licensed Conveyancer. When you sell your home, you are entering into a legally binding contract with all the legal obligations that it imposes.
Affordable Conveyancing Services are the professionals to help you. They will prepare the home sales contract for marketing, be involved when you get a buyer, negotiate any changes to the contract before exchange, and then do all the paperwork needed to be done to complete the selling of your home.
An error could cost you money, and, by engaging Affordable Conveyancing Services, you are covered by their professional indemnity insurance, if they make a mistake. You are paying for their specialist residential conveyancing knowledge, and, insurance protection.
Do You Need A Contract?
In NSW, you can be fined if you try selling your home, or other residential property without having a contract ready to show any prospective buyer. So, one of the first things you need to do is to organise a contract that meets all of the legal requirements. There are quite a few legal requirements to be met and, unless you really understand what is needed, you are better to leave it to the professionals to prepare.
If the required documents that are meant to be attached to the Contract are not, it may mean the purchaser can pull out, even after you think they are locked in. This can have disastrous consequences, if you are relying on the money to buy another home or property, or for some other reason. You can even be fined, if you don’t attach the required documents. Affordable Conveyancing Services will ensure your contract is complete to avoid these pitfalls.
Do You Need A Real Estate Agent?
There is nothing to stop you selling your home or other residential property yourself. However, you need to keep in mind what is involved. You will have to place the ads, deal with all the people who contact you to enquire about buying your home. This all takes time and, can also be very demanding.
The benefit of employing a real estate agent is that they do all that. They will do the home selling for you. You just have to ensure that you get the best deal from the agent. Don’t be too shy in negotiating the best deal you can. Real estate agents charge a commission and it is usually a percentage of the sale price. The Real Estate agent should give you an estimate of the market price, so you can work out pretty quickly what you will have to pay them.
What Is The Sale Price To Be?
It is important when selling your home to get the sale price right. If you owe money to the bank, you want to ensure you will get enough to pay them. If you decide you will sell it without a real estate agent, you will need to pay attention to your local paper and, the prices houses in your area are selling for so you can decide on the right price.
You could pay a registered Valuer to provide you with a market valuation to sell your home. If you use a real estate agent they should advise you as to the price range to sell your home or other residential property. Their advice as to the market price is part of what you are paying for.
How Much Money Will Your Bank Or Lender Want?
If you have a home loan, which is known as a mortgage, it is very important that you know how much money your bank or lender will want, when you sell your home.
This is especially so if you are on a fixed interest rate term contract, or any other fixed term contract. You may have to pay the bank a lot of money if you break this type of contract. This could cost you thousands of dollars.
So, talk to your bank before you do anything else. You need to find out what it will cost you, to pay off the loan and, any other fees they may charge.
Will You Have To Pay Tax?
If the home you are selling is where you live, there shouldn’t be a problem. If it is another residential property, where you don’t live, you need to consider whether you will be liable for Capital Gains Tax. You might be liable for land tax, even though you were not aware of it. Lots of people don’t pay land tax in NSW, only to discover they have to pay it when they sell.
All buyers will do a land tax search and, this is when a land tax liability can be discovered. Talk to your accountant or tax advisor to work out any liability you may have to pay tax.
You can even contact the Office of State Revenue in NSW to find out whether you should have been paying land tax.
LASTLY! WHEN SELLING YOUR HOME…
Do your homework. Check the figures, then check them again. Any mistake could cost you thousands of dollars. You need to work out how much will be left for you.
Selling your home can be a stressful experience. Let Affordable Conveyancing Services carry the burden.