How to sell your own home

• Find out the benefits of selling your own home.
• Learn how to prepare your home for sale.
• Discover how to create a sales campaign.

The prospect of selling your home can be daunting and even more so if you’re thinking of doing it yourself. If done right, however, it can be a rewarding process.

In this article, you will learn what to consider before deciding to sell your own home and what steps you need to take if you decide to go ahead.

Why sell your home

If you feel you have the time and patience, selling your own home could be a better option than going through a real estate agent. You may even fetch a higher price. Before you decide to sell your own home, you should feel financially ready.

Being financially prepared can mean a few things, but mainly it comes down to equity. If your home is worth more than you owe, it may be an ideal time to sell. If your equity is good, you can sell your home and break even or make a profit, even if the market conditions are not ideal.

Legal considerations for selling without an agent

In Australia, you are within your legal rights to sell your own home privately. However, government regulations vary based on each state.

• NSW: You can visit NSW Fair Trading to find information on selling your home without an agent. NSW requires you to have a contract of sale before listing or advertising your property.
• QLD: You can find information on selling your home privately by visiting the Office of Fair Trading. Queensland Fair Trading office suggests doing extensive research to meet all legal requirements before deciding to sell your own home. They also require you to provide a five-day cooling-off period and a statement in the contract warning buyers of the cooling-off period.
• South Australia: To find information on selling your home privately in south Australia, you can visit South Australian Consumer and Business Services. South Australia’s CBS suggests seeking legal advice from a solicitor or conveyancer before listing the property for sale. You will have to undertake the searches required under the Land and Business (Sales and Conveyancing) Act 1994 and complete a Form 1 ‘Vendors Statement’.
• Tasmania: You can visit Consumer Building and Occupational Services Tasmania for information on selling your home privately. Tasmania requires you to provide a vendor statement when selling your home. It is also suggested to seek legal advice to inform you of any legal obligations before starting the process of selling your home.
• Victoria: To find information on selling your home privately, visit Consumer Affairs Victoria. If you are selling your home in Victoria, you must provide a vendor’s statement and a contract of sale. They also suggest seeking legal advice before putting your home on the market.
• WA: For information on selling your home privately in WA, visit the Department of Mines, Industry Regulation and Safety. They suggest you talk to a settlement agent or solicitor regarding the legal contracts and obligations necessary to sell your home privately.

How to sell your own home

Now that I’ve laid out the benefits of selling your own house, you may be wondering how exactly you would go about it. Like with most other major decisions, you need a plan. Here’s a step-by-step guide:

Create a marketing budget

Selling your own home can save you money by avoiding agent fees, but you will still need a marketing budget. You need to consider your direct costs, such as advertising, legal expenses, and professional photography. You can expect to pay between $1,000 to $4,000 for these expenses.

Decide the method of sale

You will need to decide what method of sale suits you, either private sale or auction. It is usually recommended to sell your home privately because there is no set end date, giving you more time to consider the offers. Be sure to research pricing laws in your state before going this route.

Auctioning can also be rewarding if your type of home is in high demand. Buyers vying for your home can drive the price up, but there’s also the risk it won’t sell if your asking price is too high. You will also need a licensed agent to conduct the auction.

Prepare contracts and legal paperwork

You will need to have contracts and vendor’s statements ready, and in NSW and ACT, you are required to have them prepared before putting your house on the market. It is not recommended to use blank contracts yourself. Instead, it’s best to use a professional to conduct legal contracts and paperwork.

Set your asking price

The easiest way to find an accurate asking price for your home is to search for similar homes in your suburb that have recently been sold and compare yours to the houses on the market. This will give you insight into what houses in your area are selling for.

Get your home ready to be photographed

When you list your property, potential buyers will first see photos of your home. Engaging a professional photographer is a worthwhile investment as it’s an excellent way to portray your home how you want it to be seen.

You’ll first need to prepare the property by cleaning the inside and the front and back areas. You can either leave the house empty, set up display furniture, or just use the furniture you already have, but it's best not to have the rooms full of clutter when taking photos. You can expect to pay between $150 to $300 for professional photos.

Create and promote a listing

You will need to write a brief description of the property, add photos and include the asking price. There are a couple of ways to promote a listing. You can run ads in the newspaper or use realtor websites. Either way, it’s essential to describe the home in a buyer-friendly way.

Prepare and conduct open homes

You should deep clean and declutter your home when preparing for a viewing. When buyers are inspecting, they like to imagine what their home would look like, so it’s best not to have very many personal items on show.

You can also have your house styled if you aren’t sure how to present it. When scheduling open homes, find out if there are any other open homes in your area around the same time. Any other inspections could lead to more foot traffic to your home.

Putting up an ‘Open for Inspection’ sign at the front of the home will help attract anyone viewing nearby homes. Be sure to collect contact information from people inspecting your home. This will allow you to follow up with potential buyers and update them on any changes to the listing.

Communicate with potential buyers

An important step in selling your home is communicating with potential buyers. Respond to enquiries and follow up with buyers after inspections. This is a way to gauge interest and help sell your home faster. Buyers generally prefer to speak to the owner because they know the property best.

Negotiate and sign contracts

Once you’ve found a buyer, you will need to contact your conveyancer or solicitor to organise the property settlement.

Most likely, your contract will be conditional, usually on something like finance or building and pest inspections. Once your contract becomes unconditional, your house is considered sold, and you just need to wait on the settlement to occur.

Verdict

Selling your home does not have to be stressful. If you put in the time and effort, it can be an enjoyable experience. With the proper due diligence and planning, you can learn what it takes to get the best out of it.

Hopefully, this guide has given you the confidence to venture out on your own.