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You can sell your home yourself or hire an agent to do it for you. Both options require certain things to happen before, during and after the sale. Here are the main requirements and resources to help you with the selling process.
Preparing for sale
First, think about your potential buyers. Are they:
- families
- retired people
- first-home buyers
- developers?
Understanding your potential buyers can help you decide if carrying out repairs and upgrades will make your property more appealing. Always consider the cost compared to any increase in the selling price. Your decision will help you allow enough time to complete these tasks or for styling with temporary furniture and homewares.
Some agents offer these services for a fee - eg painting, gardening or styling.
Selling the property yourself
You don’t have to pay agent’s commission if you sell the property yourself but it can be time consuming.
Make sure you employ a qualified conveyancer or solicitor so you meet all the legal requirements, including:
- filling out the Form 1 - vendor’s statement
- preparing the contract – must be in writing.
You will also need to:
- arrange your own advertising – consider where you'll advertise and the cost
- organise other promotions – eg photos, video, print brochures
- answer phone calls from potential buyers
- conduct open inspections
- make the buyer's information notice (form R3) available
- ask people to put offers in writing, including counter offers.
Setting a price
Research property sales in your area to help you set a realistic selling price.
Consider:
- the median prices of properties sold in South Australia by suburb
- the asking price of similar homes – check listings on more than one real estate website
- recent sales figures for similar properties in your area.
Selling with an agent
Agents charge a fee for service. This could be:
- commission percentage of the sale price
- a set fee
- combination of both.
Read more about the role of the agent.
Selling price
Agents must give you recent sales statistics of similar properties and any information to show how they worked out their estimate of the selling price. When you sign a sales agency agreement, their genuine estimate of the selling price must be included in the agreement.
The lowest price you are prepared to accept can be guided by:
- the agent’s estimated selling price
- research and sale prices in your area
- a valuation by an independent, qualified valuer.
A realistic selling price can help you decide on how much you can afford for your next property.
Once you’ve set your selling price for:
- auction sales - you can’t increase your acceptable selling price in the sales agency agreement
- sale by offer - you can change the price, but this will affect any promotion of the sales price.
Sales agency agreement
You must sign a contract with the agent before the agent can sell your property. This contract is called a sales agency agreement.
For residential properties, the agent must give you a guide, Final sales agency agreement guide - form R1 - which outlines your rights and obligations under the agreement. After you have read and signed it, you must receive a signed copy, or if you both agree within 48 hours.
The agreement must state:
- how the property will be sold and the estimated selling price as a single dollar figure
- how long the agreement will be valid - up to 90 days
- how the agreement can be terminated
- any recent sales of similar properties or information the agent has used when working out the estimated selling price
Fees and charges must also be included, such as:
- services the agent is to provide and all fees and charges
- marketing strategy and separate services charged - eg advertising
- nature, source and amount of commissions, rebates, discounts or other benefits
Other information that must be included is:
- whether the agent has authority to accept an offer on your behalf
- a statement confirming that the agent will comply with the Land and Business (sale and conveyancing) Act 1994 and will act in your best interests.
Provisions, fees and terms in the agreement can be negotiated. These must be put in writing and signed by you both. For example, there could be a commission penalty if the final selling price is less than the estimated sale price, or a bonus if the final price is higher.
Any changes to the agreement must be in writing and also signed by you and the agent. However, you cannot increase the acceptable selling price for auction sales.
Sole agency agreement
This is the most common type of agreement. It gives the agent the exclusive right to sell your property. The agent will be entitled to the agreed commission, even if you end up selling the house yourself.
If you withdraw your property from sale before your agreement ends, the contract might include a cancellation fee. Listing with a new agent if you cancel a contract early could mean you have to pay commission to both agents. Seek legal advice if you want to terminate an agreement.
General or open-listing agreement
Most agents won’t offer a general or open listing agreement because they could still have to pay their marketing costs if another agent sells the home.
With this agreement the agent is only entitled to the commission if they sell the property. You could open-list your property with several agents and you can cancel the agreement at any time by giving them written notice. The conditions of an open listed agreement should be included in the contract.
Extending a sales agency agreement
Extending a sales agency agreement
A sales agency agreement can be extended for up to 90 days if you are given both:
- a Notice of Expiry within 14 days of the original agreement expiry date
- the extension recorded in writing, signed and dated by you and the agent.
If the agent gives you this notice you can:
- give written notice that you don’t wish to extend the agreement
- agree to extend the agreement - for no longer than 90 days
- do nothing - the agreement will extend automatically, up to 180 days.
The agreement can only be extended once. After that, new agreements need to be made. During the extension period, you can end the agreement by giving the agent at least 7 days’ notice in writing. No reason needs to be given.
Lock all your valuables away and hide from view anything you don’t want the public to see. Generally, pets should not be at the property during inspections. Although there can be some exceptions – e.g. birds in aviaries.
Marketing and information for buyers
You could be charged the up-front cost for advertising. Ask the agent about any discount they receive because they place large numbers of advertisements. They cannot profit from these expenses, beyond what is disclosed in your sales agency agreement but a refund can be given to you at the end of the sale.
Any information you give the agent or potential buyers about your property must be factual and up to date. It’s illegal to misrepresent a property for sale:
- verbally
- in writing
- with photographs.
There are also legal requirements for the vendor’s statement - Form 1
Promoting the price
The price stated in the sales agency agreement will affect how the property is marketed. Agents must not promote a price that is less than their estimated selling price or your acceptable selling price - whichever is higher.
- Auction sales - you cannot increase the acceptable selling price in the sales agency agreement.
- Private treaty sales - you can change the acceptable selling price. This must be recorded, dated and signed by you and your agent in the sales agency agreement.
The set minimum price doesn’t need to be disclosed to potential buyers.
Form 1 – vendor’s statement
A Form 1 statement - vendor’s statement - must be prepared, setting out the buyer’s cooling-off rights and important information about the property, such as title details, mortgages on the property, easements, zoning and outgoings – eg water rates.
Selling with an agent: they will need to certify that the statement is complete and accurate.
Selling the home yourself:
- if the buyer is using an agent, their agent must certify that the Form 1 you provide is complete and accurate
- if neither of you have an agent, the seller is responsible for legal requirements and that the statement is complete and accurate.
A buyer might be able to withdraw from the sale, or take legal action, if information is incorrect or insufficient. Any change must be as a notice of amendment and given to the buyer. This alters the buyer’s cooling-off rights and gives them a further 2 clear business days from service of the amended notice.
The Form 1 must:
- for private treaty sale − be given to the buyer at least 10 clear days before settlement
- for auction sale – be available at the auctioneer or agent’s place of business for 3 business days prior to the auction and at the auction site for 30 minutes before the auction.
Your agent must take reasonable steps to advise potential buyers where and when the Form 1 will be available.
Recently built or renovated
If the home was built or renovated within the last 5 years, some warranties can transfer to the new owner.
An interested purchaser can request a copy of the certificate of building indemnity insurance. An interested purchaser can also request details about either the builder or tradespeople contracted as an owner builder.
Inspections
Opening your home for inspection gives potential buyers the chance to view the property. Inspections are usually for 30 to 45 minutes, once or twice a week. ‘Open inspections’ can be arranged for certain dates and times, or inspections could be arranged by appointment.
Lock all your valuables away and hide from view anything you don’t want the public to see. Generally, pets should not be at the property during inspections.
You or your agent can record contact details for each person as they enter the property. This is a security precaution and helps in following up with interested buyers.
Making the sale
Receiving offers
An offer isn’t binding until a sale contract has been signed by all parties. All offers from interested buyers must be:
- in writing
- include particular details
- be signed by the person making the offer.
Find out more about receiving an offer.
Auctions
Auctioneers must be registered and carry their registration card issued by Consumer and Business Services. This can be a physical or digital registration card.
Find out more about selling at auction.
A reserve price – the lowest amount the seller is prepared to accept – must be set in writing before the auction but it is not shared with bidders. The set reserve price can be changed by the seller but it must not be more than 110% of the acceptable selling price stated in the sales agency agreement. The agent must keep written records of the reserve.
By law, sellers cannot increase the acceptable selling price. Any increase must wait until the sales agency agreement has expired or a new agreement is made with a different agent.
The agent must keep a record of all bids.
Sales contract
Once a contract is signed by the buyer and the seller, it is legally binding. Make sure any conditions are included in the sales contract before you sign it.
Examples of conditions can include:
- The offer will be withdrawn if the seller doesn't sign the contract by a certain date.
- A satisfactory building inspection report must be received.
- The buyer is able to obtain satisfactory finance.
A solicitor or conveyancer will be able to advise about the wording.
Talk to the agent about any appliances, furniture and personal effects that aren't included in the sale. Generally, items such as hard-wired kitchen appliances and curtains and blinds are included.
After the contract is signed
Cooling-off
A buyer is entitled to a cooling-off period of 2 clear business days. During this time, they can withdraw from the sale without penalty. However, there is no cooling-off period at auctions.
The cooling-off period starts after the contract is signed, or the Form 1 is given, whichever comes last. It’s against the law for an agent to be paid commission if a buyer cools off.
Settlement
Record a settlement date in the sale contract. This is the date the new owner will take legal possession of the property.
Related information
On this site
Hiring a real estate professional
Other websites
Helpful contacts – buying and selling a home - Consumer and Business Services
