Selling a Property FAQ
A little while back we did a buying property in the ACT FAQ to help out those who are buying with many of the common questions. In that article we promised a similar selling property in the ACT FAQ. Here it is.
These are the most commonly asked selling property in the ACT questions and there direct answers.
What is a Contract of Sale?
The document that outlines the details of a sale
This includes information such as price, settlement dates, deposit and property details.
When are you locked into the sale?
Exchange of contracts finalises the sale
Once the deposit has been accepted the sale is on, but there is still room to pull out and lose the deposit given. Otherwise, once the contracts have been exchanged and the deposit fully received you are locked into the sale.
Auction or Private Treaty?
Auction is best in a rising market, private treaty is always effective (with the right agent).
Auctions are for faster sales often best when the market is rising to allow open competition. Private treaties are for those with more time and a more clear cut budget.
What deposit should I accept?
10% is a standard baseline, if 20% is available go for it.
Deposits come down to how much liquid funds you want available. The deposit will usually be the first liquid funds you have available after settlement and therefore a higher deposit means more access to funds. This can be better for those selling off investment properties, but if you are moving that money into another loan, a lower deposit (with lenders mortgage insurance) is definitely a good bargaining tool.
What is an Acceptable Commission Rate
For a quality real estate agent 2-3% is reasonable.
This can vary depending on location with the lowest being around 1.5% and the highest around 4%. Be aware that with agents you usually pay for what you get. So the higher rate will come with more experience and benefits.
What are Advertising Costs
They vary greatly but you could expect to pay $4000-$10 000 for a property around or above the median house price
This purely depends on your advertising effectiveness and who you hire to conduct your advertising. The estimate we have given is for a property above the $500 000 mark and should keep you well equipped with your advertising.
For answers to other questions not in this selling property in the ACT FAQ, take a look at these articles.