The Savi Guide to Selling Your House
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1 The Savi Guide to Selling Your House This is a step-by-step guide on how to sell your house through Savi. Please note: this is a guide only and Savi recommends you seek legal advice.
2 Introduction We kiwis talk a lot about the property market. It s always in the news. We chat about it at BBQs. We ve got TV shows about it. You could say we re obsessed about property. So why don t we put all this kiwi know how into action when we sell our own homes? Why, in this day and age are we paying real estate agents thousands of our hard earned dollars to sell our property? Does this make sense to you? (If it does, get your head checked!) Seriously though, ask yourself this question: What can a real estate agent do that you can t? Savi has been created to help kiwis (a DIY nation) sell their properties themselves. Saving thousands of dollars. We do this by simply stripping back the sales process. We ve taken out all the B.S. to show all you need to sell your home is a wee bit of savi. P.S. we need your help putting up the For Sale sign. Good on ya! STEP ONE the sale price and method There are several different methods for selling a house, including auctions, tenders, deadline sale, buyer enquiry over etc. But for most people selling privately, we recommend the traditional method known as Sale by Private Treaty. This means you set an asking price and buyers make offers. Offers can be made at any time. You negotiate with the seller on the price. Once you agree on the price and any other conditions, the standard Sale and Purchase Agreement documentation is used. Before you set your asking price you need to do some homework. But don t worry, we ve made it easy. The first step is to find out what other similar properties in your area have sold for. Savi can help by giving you access to recent sales figures through Property IQ. This is part of Savi s service. In the admin area of your Savi account you can search the latest sales data in your area. Once you see the actual sales prices of similar properties, it s not difficult to set a savi.co.nz 2
3 realistic asking price for your own. Don t be tempted to inflate your price as this will drive buyers away and your home will take longer to sell. Ultimately, the true value of any property is what buyers are actually willing to pay. STEP TWO preparing your home for sale An important factor in selling your property is preparation. Don t under estimate the importance of the first impression. It s your home. Be proud of it. Show it off. Think of all the good times you ve had in it and all the effort and money you have spent on it. Here is a checklist. Most of these are common sense. Remember, presentation is key. Leave no stone unturned. Tidy the garden. Mow the lawns. Clean the walls and skirting boards Finish any small repairs. Fix door handles. Tidy rooms and remove any clutter. Remove extra furniture so rooms look more spacious. Clean the bathrooms. Get air fresheners. Remove any pet hair. Clean your oven and kitchen thoroughly. Clean the windows inside and out. Replace any light bulbs that don t work. Repairing dripping taps. Ensure gate and door handles work properly. STEP THREE getting ready to list! 1. Take photographs A picture paints a thousand words. This is particularly true when selling your house. The photos are the first thing people look at, so take time to get them looking good. Any camera above 5-megapixels will give you suitable quality. So if you have a good camera on your phone, or a reasonable digital camera, both should be fine. The main photos buyers are looking for are the front and back of the house, the bathroom and kitchen, the master bedroom, the garden or any special features. Use common sense. If you have great views from your property, you should include those. Be sure to take a LOT of photos. That way you can pick and choose which pictures look the best. 3
4 Photo tips from the pros Tidy up first. This may seem obvious, but mowing the grass and cleaning the weeds out of the gutters will make a house look a lot better. When photographing the exterior of your house, shooting from an angle rather than straight on gives the house dimension and character. So pick the angle that is flattering to the house and provides the best backdrop. For interior shots, you need as much natural light as possible, so don t leave it too late in the day. Natural light makes everything look crisper, brighter, and so much better. Open all the curtains and blinds to let in as much light as possible. Remove as much clutter from rooms as possible. When photographing a room it almost always looks better if the shot is taken from the doorway looking into the room. Try not to include obstructions on the outside if possible. Items such as telephone poles, electrical wires and dumpsters do nothing to make a home look appealing. If you know how to touch up photos on your computer, by all means use your skills to enhance them. It s worthwhile to do some quick editing if needed to make the pictures look as good as possible. There you have it! Now you have some impressive pictures to show home seekers, you are ready to sell that home in record time! If you prefer to use a professional photographer, Savi can recommend one in your area. Their expertise could be just the difference you need to set your listings apart. Uploading your pictures to Savi couldn t be easier. Simply choose the pictures you want on your listing you can add them all at once - and hit the button. You can add as many photos as you like but only the first 20 will go on Trademe. 2. Write your listing When you write your ad, remember people are going to be browsing a lot of different property listings, so you want yours to stand out. There are three main things people look at first in a property ad - the headline, the photo and the price. If those three things don t catch their interest they won t read any further. We have covered the photo and the price in different sections of this guide. So what we need to focus on at this point is the headline. This is what will draw people in to read the rest of your ad. So you need to take some time to get it right. savi.co.nz 4
5 Picture your ideal buyer in your mind. The first thing advertising professionals do when writing an ad is to think about who is their target market. In your case, you need to think who is the most likely buyer for your property? It might be a young couple looking for their first home, or a family with two young children looking for more space. Or an older couple looking to downsize. Or someone who loves the character of an older villa. Or it might be an investor looking for a property with a good rental return. So, you need to picture this person in your mind as you write your headline - and your entire ad. To write a good headline, think about your home and the two or three things about it that will appeal to your ideal buyer. You might have a lovely garden, it might be in a good location for schools, or near the beach, or close to the city, it might have a brand new kitchen or bathroom, or you might have great views. If your suburb is particularly desirable you can mention that in the headline. Whatever comes to mind as the two or three strongest benefits, these can make a strong headline. Here are some examples of good headlines: Bargain for First Time Buyers Luxury Townhouse With Park Views As is Where is! Builders Dream! Charming Character 3-Bed Bungalow If you are stuck for headline ideas, it can help to browse other listings to get inspiration. Don t copy exactly but you can often use a similar to concept from another ad and adapt it to your own. Remember you only have about 5 or 6 words in a headline, otherwise Trademe will cut off the end. So don t make it too long. 3. The rest of your ad We ve spent some time on the headline because it s important. But the rest of your ad also needs to speak to your ideal buyer. So picture them in your mind as you write and mention what is relevant to them. 5
6 What is the neighbourhood like? How close are the schools? Where are the nearest golf courses? Is it handy to a shopping mall? What transport is available and where? What are the best ways to get to work? Are there other children in the area for the kids to play with? Finish with a call to action To make it easy for potential buyers to get in touch with you, include several different ways to contact you e.g. work number, mobile number, address etc. Write a closing statement encouraging buyers to contact you. Something like, Give us a call to schedule an appointment to view the property. If you follow the guidelines above, you should have an ad that gets people to click on it and contact you. If you would like professional help to write your ad, Savi provides this service for an additional fee of $280 +GST. STEP FOUR - open homes and viewings This is the fun part! Someone is interested in your home. How cool is that, or maybe it s just someone nosy from round the corner. Either way it s show time. You put a lot of effort to get this far the last thing you want to do is a half-hearted job. Get your game face on, or in this case a smile. Manners cost nothing, it s nice to be nice. Have a pen and paper ready (part of our service at Savi is to send you some good quality paper for taking notes). Every person who walks through the door needs to leave their name and contact details. It s best that you write it down (since you can read your own hand writing). Show the potential buyers round the house. Point out the features, tell them about the positives of the area. It s your home, no one knows it better. Some useful information to have at hand: How much are the rates? How much do you pay in gas / electricity? If you have had some sort of valuation done you might want to advise on that. Any repairs that need done (EQC related issues for Christchurch) With all of the above, honesty is always the best policy. savi.co.nz 6
7 STEP FIVE following up after a viewing or open home There is a reason you take everyone s details. Leave it a day or two at the most, then send out a follow up asking if anyone is interested in buying your home. If not, some constructive feedback is always useful. It s a simple question. Don t be afraid to ask it. Are you interested in buying my home? STEP SIX the offer or negotiation This is business. Do not take it personally. You need to do your best to take you emotions out of this part of the process. So you have received an offer! What is next? Do you accept or not? Well that s up to you. We can t make that decision for you. You have three options when it comes to offers. You can, of course, accept the offer. Or you may reject it. But the most common approach is to make a counter offer. You are always in control. What is important is to view each offer carefully. It s always good to have an idea of what you want and an open mind when it comes to offers. You don t need to accept the first one and you don t need to answer straight away. Take your time think it over. If you feel it s too low, then simply ask for more. Be specific. The worst that can happen is they say no! STEP SEVEN completing the sale Once you have accepted an offer, you will need to engage a lawyer to help complete the sale. The first step is to complete a Sale and Purchase agreement. Savi can provide you with a Sale and Purchase agreement document. Or you can obtain one directly from your lawyer. 7
8 What is in a Sale and Purchase Agreement? Terms and conditions in the agreement will include The agreed price Chattels that are to be included in the sale such as fixed floor coverings, whiteware or curtains The type of title for instance freehold or leasehold Any conditions the buyer and seller want fulfilled before the contract is agreed The date the agreement will become unconditional The settlement date Any deposit the buyer must pay The agreement will also set out obligations and conditions that the buyer and/ or seller must abide by. These may include what access the buyer may have to inspect the property before settlement and ensuring the property remains insured until the settlement date. Your lawyer s role A lawyer can: advise you on the legal aspects of selling a house privately (obligations to the buyer etc.) help you write up the sale and purchase agreement check over amendments to the sale and purchase agreement while you are in negotiations with the buyer undertake all communication with the buyer s lawyer receive and hold a deposit from the buyer into their trust account arrange for the transfer of the legal title (this is called conveyancing) arrange the release of mortgage documents as required by lending institutions, and arrange mortgage repayments receive final payment from the buyer s lawyer and arrange for keys to be transferred arrange for the transfer of rates payments as at the settlement date forward a notice of sale to Quotable Value and the local rating authority arrange payment of the net proceeds of sale savi.co.nz 8
9 What are my legal obligations as a seller? You should disclose any information you are aware of that may be relevant to the buyer, this includes: Any weather tightness issues If you don t have the necessary building consents and code compliance certificates for works carried out while you owned the property. The buyer could claim damages (or re-negotiate a reduced buying price, or even cancel the contract) if you breach the terms of the sale and purchase agreement, including the warranties. You could also be liable for legal action if you provide misleading or false information about the property - even if you honestly believed the information was correct. Settlement of the Sale Once an offer has gone unconditional (when all of the conditions in the sales and purchase agreement have been met, and the buyer is legally bound to buy the property), prepare to move out by arranging for: the discharge of the mortgage if you have one on the property (your lawyer can arrange this) the electricity, gas and water meters to be read on the possession date your phone account to be transferred NZ Post to redirect your mail your house and contents insurance to be cancelled or transferred your paper and milk deliveries to be cancelled On the settlement date, your lawyer will collect the money from the buyer s lawyer. The buyer is now entitled to take possession of the property and have the legal title transferred to their name. Congratulations! You have successfully sold your home! 9
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